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The urge for splurge…

With Luxury catching the eyes of investors the opportunity in luxury retail seems big.

Mature markets for luxury are Europe, US, Japan, France, Germany and Paris where luxury retail is already prominent.

Countries like Africa, India and China are still in the nascent stage of luxury retail and have been catching the eye of luxury retailers.

Taking franchise of a luxury brand is an investment opportunity of an emerging market. The first mover who acts as a catalyst in bringing the luxury brand gains the advantage.

The demand amongst consumers is high for luxury brands but is it worth investing in luxury brands. If luxury is worth, the investment option is a question for an investor.

Experts have estimated the growth of luxury retail at the rate of 15-17 per cent a year. Luxury will be the biggest boom in the coming years.

Looking at this view, luxury seems to hold a long-term perspective, though the gestation period is long it is worth the pain. Luxury brands are willing to enter  emerging shores estimating the current growth of their economies.

To be successful the brands are looking at models specific to the each emerging market. With other options like single brand foreign direct investment and wholesale models, franchising seems to be the right choice looking at the specifications of the markets.