Forget Rupees, it's Roubles that is making the luxury industry see green. Ralph Lauren opened his flagship store in Moscow last week, and already the brand's crocodile-skin Ricky handbag (retailing at a price of $21,600) has sold out!
Luxury goods make up for 10 per cent of retail sales in Russia, a market worth $270-billion that may grow as much as 17 per cent next year, according to Moscow researcher Fashion Consulting.
Russians are "the incredible driver of the strength in luxury," says Jim Hurley, a luxury goods analyst at Telsey Advisory Group LLC in New York. "The fact that they (Ralph Lauren) are opening two stores confirms the incredible opportunity."
Ralph Lauren is arriving in Moscow later than his larger competitors. Moet Hennessy Louis Vuitton, the world's biggest luxury goods maker, opened its first outlet in Russia in 2003, six years after PPR SA's Gucci Group entered the country. Versace, the Italian fashion house, led the way, opening a stand-alone store in Moscow as early as 1994.
Looks like India still has a lot of catching up to do!
Source: Globeandmail.com
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