New Delhi: There were approximately 1.8 million Indian households earning over $100,000 and spending about $10,000 per year on luxury goods and services in 2007. According to the Technopak Study 2007, the number of these households isexpected to grow to 3 million by 2010. Keeping pace with the growth in the number of well-to-do Indians, the luxury products market in the country too is growing. It was estimated to be worth $500 million in 2006. It is expected to grow at a compounded growth rate of 28% till 2010 and reach a staggering $1.2 billion by 2010 and then to double, reaching $2.5 billion by 2015.
It is these numbers that are driving the industry to make India the manufacturing hub for high fashion and luxury goods. “I think India has an excellent basis and excellent history of producing items in all sectors, including carpets, textiles, and jewelry. Now it’s come time to organize it”, says H.E. Jerome Bonnafont, Ambassador of France to India. France traditionally has been home to some of the world’s biggest luxury goods manufacturers. .
But can India really become the manufacturing hub of high fashion and luxury goods? While industry experts are optimistic, designers in the industry are cautious. Fashion designer Sanchita, who set up a clothing design shop here 4 years back, says it’ll take no less than 15 years. There are a host of reasons that they cite: From lack of FDI in retail to manufacturers inability to address issues like quality.