The author has shared a podcast about the fashion industry’s future in India.
Subscribe to the BoF Podcast here.
“Will India become the next China?” This question has been a hot topic for years in the fashion world. While India continues to grow rapidly with its vast population and economy, its unique culture and diverse retail landscape make it quite different from China.
At BoF VOICES 2024, Ravi Thakran shared his experiences from the 1990s when he helped grow luxury brands in China. He offered valuable insights into the differences between these two populous nations and explained why many European luxury brands struggle to make their mark in India.
Thakran pointed out that although India is growing quickly, it accounts for less than 1% of the luxury market for major brands like Louis Vuitton and Cartier. He noted, “India’s remarkable growth is evident, but it’s primarily driven by a young population that has a low average income. For those looking to tap into aspirational markets, India is the place to be.” However, he emphasized that luxury brands need to adapt their approaches to succeed in this market.
Thakran discussed the distinctive factors driving India’s economic growth and offered strategies for succeeding in this complex and promising market.
Here are some key insights from his talk:
- Asia has become a powerhouse in producing garments and accessories. It supplies a significant portion of the global market and is also a major consumer. However, brands that dominate this market are still primarily based in Europe and the USA. Thakran wondered why Asia’s share of value in these categories is still low, despite being the largest market.
- The Indian market is vast but presents challenges like high import duties and an established preference for local clothing. Western brands must adapt to India’s cultural landscape for success. Thakran commented, “Luxury in India will always have a unique identity; unless you align with that, you might miss out.”
- Drawing from the teachings of Buddha and Gandhi, Thakran reminded us that growing wealth in Asia doesn’t have to lead to excessive consumption. Their philosophies encourage mindful living, which is especially important in today’s focus on sustainability. He remarked, “While we encourage India to adapt to the West, there’s a valuable message from India for the West in return.”
