Festivities plum up luxury sales

Tuesday, 09 November 2010

Diwali has brought in good tidings for luxury brands in India. In fact, it has been the most illuminated season after two years of dry spell, thanks the economic downturn that started in 2008 and continued well into the end of 2009. This year the Indian economy is back on track and luxury retailers are seeing cash registers ring like never before.

Charu Sachdev, CEO of The Sachdev Group, which sells Moschino, Jean Paul Gaultier and Alberta Ferretti brands is happy and says they are looking for at least 20 per cent rise in sales this year. Luxury shopping destinations like DLF Emporio in Delhi and UB City Mall in Bangalore are abuzz with activity. Unlike their international stores, where new collections are released near Christmas, brands launched new collections in India to cash in on the festive spirit of Diwali.

Canali, which launched the Nawab Collection a couple of seasons ago, added the Blue Nawab collection just before Diwali this year. Other luxury brands that introduced new collections to cash in on Diwali were Jimmy Choo’s jeweled bags and Bottega Veneta launched new home accessories and desk sets. Raymond Weil and Seiko opened their exclusive boutiques in Chennai’s Express Avenue Mall and the timing was well planned.

Since this season also happens to be the wedding season, it only adds to the shopping frenzy in the luxury segment. Olivier Bernheim, CEO and President of luxury watch brand Raymond Weil says the wedding season contributes greatly to their revenues. In fact, that’s the reason why sales never dipped dramatically during the slowdown. This year, with a good monsoon, rising Sensex and the bright job market, sales are expected to increase further.