Holiday shopping binge boosts luxury companies

 Holiday shopping binge boosts luxury companies

In NEW DELHI: Due to a strong economy, businesses anticipate a considerable increase in demand for luxury items over the current holiday season. Fashion, jewelry, shoes, and even cigars are among the many categories that are expected to have significant increase in the third quarter, with certain categories perhaps increasing by as much as 20%.

Watches, branded jewelry, and ready-to-wear products are seeing an increase of 50% from a year ago at DLF, a prominent luxury mall in northern India.

"Overall spending has increased noticeably, and spending per consumer has increased by 8% since last year. Therefore, we anticipate higher spending throughout the approaching holiday season across all luxury categories, including apparel, cosmetics, and personal care. The tier-2 and tier-3 markets have also responded favorably, according to Pushpa Bector, senior executive director of DLF Retail.

Leading worldwide designers who have increased their real sales over the previous year include Louis Vuitton, Gucci, Dior, and Cartier, among others. The holiday season has been quite profitable for fashion designers as well. The Collective, a high-end multi-brand shop owned by the Aditya Birla group, is a statistical example of this as well. Typically, this time of year accounts for more than 35% of the company's yearly sales of accessories. The business said that there is also a desire for "distinctive" items.

Malabar Group, a jewelry manufacturer, is seeing pent-up demand throughout the holiday season, which is encouraging consumer mood and paving the way for strong holiday sales. Sales are anticipated to rise by 150% from a year ago, according to the company.

The brand has introduced a premium diamond line for this season since the market for luxury jewelry is growing as a result of shifting tastes and increased disposable cash.

A favorable trend is also being seen in the auto industry. The market often gets more active during the holiday season, and customers prefer getting their automobiles in the run-up to Diwali, according to Lexus India President Naveen Soni.

"In August of this year, we reached our whole annual sales projection for 2022, and by the end of 2023, we anticipate growing by at least 40% over the previous year. "SUVs are in right now," he said.

In a similar vein, sales of certain uncommon luxury items, such as cigars, are increasing. The India Cigar Club's Raahul Kapoor, a co-founder, stated: "This season, we are observing a strong turnover for cigars in the midway price bracket. Therefore, during the celebrations, there are much more individuals shopping for quality non-Cuban cigars that are well-kept and maintained.

According to Euromonitor International, India's luxury goods industry is among the fastest-growing in the world, with forecasts indicating that it would reach $8.5 billion in 2023, an increase of $2.5 billion over 2021.