Shopping In India, Why Tradition Maintains its Strength

Typical Shopping mall, no wonder Indian's don't prefer them

Typical store in India, lots of inventory to dig through

Can't imagine any other way of fabric/sari shopping

According to Forbes Magazine, India has the fastest growing population of millionaires in the world. WIth this glaring statistic, it is no surprise why many luxury clothing companies are trying to enter the marketplace, yet at the same time, many in the market are facing challenges. I walked by the Galleria Mall near the Oberoi in South Mumbai, Jimmy Choo and Gucci were empty, for hours. Most elite, prefer to do their shopping whilst traveling abroad, where there is larger selection and no import luxury tax (which at times increases prices up to 20%). And most of the these luxury brands entered the market treating India as one marketplace, rather than understanding that every region is significantly different than one another, from culture, preferences, language, style and attitude. The boom will come, but it will take 5 to 10 years. These brands, as we know, have deep pockets, and they are here for the long haul. FYI, the luxury market is expected to grow to $30.5 billion by 2015, from 3.5 billion this year.

Within the middle class, India has high hopes on the success of malls, which emerged in the market about 7 years ago. Today, there are about 100 malls throughout India, and according to the IIndian Economic Times, only 20-25% of these are successful.

Perhaps the western approach to shopping, particularly around the culture of shopping and merchandising, doesn't work in India.

Case in point, it appears most people like the bargaining element of shopping, the crowded inventory, and the one to one relationship you develop when looking at items. In most stores, clothing is not hung, but rather placed on shelves. You can spend hours in a store, looking at the inventory, which requires a salesperson to show you his or her collection. In the mass market, this is still the preference. Malls are for touring and socializing, but the real source of revenue maintains its presence in such pictured establishments. It makes sense, it is more personal and familial.

The beauty of India, is that no matter what the West brings, the Indian's will adjust it to their own taste preferences. Coffee must be very sweet, clothing must have embellishments.

Unlike China, where its all about the attaining the Western status, the South Asian taste seems to be too deep and rich to penetrate.