Festive buying spree cheers luxury brands

livemint.com:

NEW DELHI : Companies expect a significant surge in luxury goods demand in the ongoing festive season amid a thriving economy. Categories such as fashion, jewellery, footwear and even cigars are set for substantial growth, with some categories likely to rise by up to 20% in the third quarter. DLF, a leading luxury mall in northern India, is witnessing a growth of 50% for watches, branded jewellery and ready-to-wear items from a year earlier.

“There is a noticeable uptick in overall expenditure, with an 8% growth in spending per customer compared to the previous year. So, we are expecting increased spending across all luxury categories, such as clothing, beauty and personal care, during the upcoming festive season. We have also witnessed a positive response from tier-2 and 3 markets," said Pushpa Bector, senior executive director of DLF Retail.

Leading international designers such as Louis Vuitton, Gucci, Dior and Cartier, among others, are setting the pace with a rise in actual sales over last year. Couture designers are also reaping significant benefits from the festive season. It is also statistically true for The Collective, a luxury multi-brand retailer owned by the Aditya Birla group.

Typically, more than 35% of the business’s annual accessories sales happen during this time. There is also demand for ‘distinctive’ products, the company said. Consumer sentiment during the festive season is also positive for jewellery brand Malabar Group, which is witnessing pent-up demand, setting the stage for robust festive season sales.