Lux goods: Mumbai slides, Delhi tops
When it comes to splurging on luxury and high-street brands such as Dior, Burberry, Mango, Diesel and Zara, Delhiites are fast outpacing Mumbaikars.business Updated: Oct 24, 2011 21:46 IST
When it comes to splurging on luxury and high-street brands such as Dior, Burberry, Mango, Diesel and Zara, Delhiites are fast outpacing Mumbaikars.
Home to the fashion-conscious Bollywood stars, Mumbai has lost out to Delhi in the last few years as the national capital is taking on the mantle of the fashion capital.
“Delhi supercedes every other city in terms of spending power,” said Kalyani Chawla, brand ambassador, Dior.
“The North Indian culture of ostentatious display of wealth is a factor that leads to the consumption of luxury brands being higher in Delhi,” said Roasie Virq Ahluwalia, general manager, corporate affairs, Genesis Luxury Fashion. Genesis is responsible for bringing brands such as Canali, Etro, Paul Smith, Jimmy Choo and Burberry to India. Delhi accounts for 40% of total sales across all brands, while Mumbai clocks 30%, he said.
Delhiites are not as price sensitive as Mumbaikars, said Kamal Kotak, country head, Major Brands, which is behind high-street brands such as Mango, Promod and Aldo. For Major Brands, 50% of their sales come from Delhi while Mumbai accounts for about 30%.
After Delhi and Mumbai, most brands are eyeing Bangalore, Chennai, Hyderabad, Pune, Chandigarh and Ludhiana as the next key cities.
The Indian luxury goods market is estimated to be worth $14.7 billion by 2015 according to a CII-AT Kearney report.