Proposed tax on international card purchases may drive sale of luxury brands in India
Liberalised Remittance Scheme, in case of amounts exceeding ₹7 lakh in a financial year from October 1, is likely to push the sale of luxury brands in India, experts said.
Covid had helped boost demand for luxury brands in India as international travel restrictions shifted sales to domestic stores. That is now set to get another boost due to narrowing of the price gap between foreign and local markets after accounting for the 20% tax collected at source (TCS), mall owners said.
«An Indian consumer earlier used to go abroad and shop in Dubai or London, but when the pandemic happened, many of those brands like Chanel or Hermes called their Indian consumers to do small events inside the store.
There are customers who come for the first time to the brand's store in India and realise the price difference is hardly 15%. Millennials also prefer luxury brands, leading to the growth,» said Pushpa Bector, senior executive director at DLF Retail, which operates premium malls across the Delhi-National Capital Region.
Global luxury brands are also bullish on the Indian market.
Recently, Aditya Birla Fashion Retail partnered with French luxury department store chain Galeries Lafayette while Reliance Brands signed a deal to bring global luxury brands Valentino and Balenciaga to India.
«Every luxury brand is available in India so why should anybody go abroad for shopping. Travel should be experiential.
