Luxury brands are training their guns on the Hyderabad market, which according to trade circles is set to grow exponentially in the next two to three years. The market now is small, but significant in the value chain.
With the number of HNIs in Hyderabad on the rise, the demand for highend products is on the rise.
For instance, Hyderabad-based Inline 4 Motors, Tata Motors’ Jaguar Land Rover dealer in Andhra Pradesh, is hopeful of good sales by the end of this financial year. It is previewing the all new Range Rover Vogue MY13 for its elite cliental at the ongoing three-day Indian Luxury Expo, the largest of its kind in Asia, which is hosting 40 luxury brands.
Sharath Reddy, a senior official of Inline said: “In the first year of operations, we have sold about 170 Range Rovers.” Of the 350 cars sold in Andhra Pradesh since its inception in 2010, 310 were purchased from Hyderabad while the rest were bought by customers from Visakhapatnam, Karimnagar, Vijayawada and Rajahmundry.
“On the very first day, we have had five bookings for the new Range Rover,” Reddy said adding that JLR expects big bookings.
“Hyderabad is on every luxury brand player’s radar and there is lot of opportunity here. Definitely, it is a growing market,” said Girish Bajaj, consultant, Indialuxuryexpo.com.
“There are a lot of high net-worth individuals in Hyderabad,” said Bajaj. According to a study, the number of HNIs in India grew 35 per cent between 2008 and 2012 to about 1.7 lakh and the number is expected to go up to 4.5 lakh by 2015. Bangalore, Hyderabad, Pune and Chandigarh and Chennai are on the cards for many luxury brands now.
It is said Hyderabad has the highest number of (40) Rolls Royce cars in India. The luxury car market in India is around 25,000 across brands. The market for super-luxury cars priced between Rs 1-2 crore stood at around 250-300 units in 2011. About 100 units super-sports cars like Lamborghini, Maserati, Ferrari and Porsches were sold besides over 150 units of super-luxury saloons like Rolls Royce and Bentley last year.
On the other hand, Bentley and Lamborghini will launch their models for the Hyderabad market on Tuesday.
“There are a lot of Bentleys and BMWs on Hyderabad roads. That itself is an example of the local luxury goods market snowballing into a huge thing here,” said Shilpa Reddy, fashion designer and fitness expert.
Burberry has already opened shop in Hyderabad. “We are expecting two other luxury brands – Louis Vuitton and Gucci – to debut Hyderabad,” she said.
Giving a fillip to the luxury goods market in the city will be Gitanjali group’s luxury mall to be launched between April and June next year. The mall is expected to be on the lines of Delhi’s Emporio mall. “The mall will house about 80 luxury brands across from jewellery, accessories, apparel and others,” said Sharat Belavadi, assistant vice-president, mall operations, Coronet.
Euromonitor’s report on luxury goods market said that the value of luxury goods sold in India for 2011 stood at $2.18 billion. It said that India will overtake China as the world’s fastest-growing market for luxury goods due to increase in the number of HNIs. It is expected to grow at CAGR of 20 per cent to reach $7 billion in value by 2017 while China will grow by 15 per cent over the same time, the report said.
source: http://www.mydigitalfc.com / Home> My Brands / by B. Krishna Mohan / December 17th, 2012