Cut the tape, the duties too

Hefty import duties, red tape and lack of retail space outside five-star hotels are the three major challenges hampering India's development as a luxury goods destination. These concerns came up at the discussion on "Opening Up India to Luxury Goods: Opportunities and Challenges".

Alessandro Ferreri, general manager (Asia & Middle East), AEFFE, pointed out the importance of tying up with a local partner who understood the market. Moschino opened its first Indian store last October in Mumbai and is launching a second in Delhi by yearend. While they were lucky in India, Ferreri said China was much tougher to break in. "But we now have 18 stores in China."

Besides challenges from market, Patrick Normand, MD (Middle East and South Asia), Cartier, said the challenge was also internal with regard to design. "Cartier is a 100-year-old brand. Earlier, Indian consumers were royals. Now, we need to be relevant to a younger and a modern audience."

K.T. Chacko, director-general, foreign trade department of commerce, the third speaker, said: "Concessions on capital goods imports and the removal of the Urban Land Ceiling Act are the two major reforms we have taken recently. More such steps will be initiated in the future.”