It's destination India for global luxury brands

New Delhi: Foreign retail brands are wasting no time to tap into the rapidly growing luxury retail market in India. Barely a week after the government announced the increase in FDI cap in single brand retail to 100% from 51%, an array of retailers have already announced their plans to enter the Indian market. Luxury brands like Vertu, Christian Loubotin, Armani Junior and several others will open their exclusive stores at DLF Emporio early next year, while brands like Van Laack and Diesel Black Gold will begin their operations within the next one month itself. "We are excited on the recent move by the government approving 100% FDI in the luxury space. Luxury has always been a sunrise sector with the capacity to grow at the rate of 25-30 % annually and it's clear that people are wanting to experience and taste luxury," said Dinaz Madhukar , V-P , DLF Emporio. Foreign brands like Zara, Versace, Tommy Hilfiger and several others are already present in India, albeit through franchisees or joint ventures with 51% holdings or less. Enhancement of the FDI cap has come as a deal sweetener for those brands already present, as also a welcome sign to those that have been eyeing the Indian retail market. Industry experts believe that the move will open the floodgates for several international brands, not interested in a partnership model , to enter the Indian market. Especially with the fast growing luxury market in India, there could not have been a more suitable time for the enhancement of FDI cap in single brand, experts reason. "With the increase of FDI cap in single brand retail , the options for international brands have increased. Although most brands are already present in the country either by way of joint ventures or franchisees, it opens the options for entry of those who may not have been interested in partnerships. Plus those already present might consider revising their partnerships ," said Saloni Nangia, senior vice president- Retail, Technopak. Rising disposable incomes of the Indian middle class is another factor, which is expected to buoy luxury spending. A study conducted by Technopak shows that the Indian luxury market, which is growing at 20%, will be nearly two and a half times its current size over the next five years.