Christian Dior opens in India

Christian Dior opened its first store in India on Monday. The luxury goods brand's store in New Delhi offers Indian consumers the haute couture which they have been clamouring for, from $1,000 handbags to $400 sunglasses. "We thought perhaps it was time to establish ourselves in India," managing director for Christian Dior's Asian operations told the FT. "Luxury is part of the worldwide opening of India."

Luxury retailers like Louis Vuitton, Chanel, Cartier, Fendi, Bulgari and Dolce & Gabbana already have outlets in India, and others like Gucci and Valentino are following in their footsteps. Western luxury retailers are more welcome in the country now that the Indian government has amended certain legislation pertaining to foreign ownership of a single-brand. Last month the government allowed single-brand retailers to own up to 51 percent of an outlet in India. Christian Dior, however, had already chosen for a franchise before the changes were put into play.

The number of Indian households with an income of $100,000 or more and purchases of $9,000 on designer goods is growing, according to a report which will be released by the Knowledge Company, a division of retail consultancy Technopak, later this week. It said that segment will grow 14 percent each year. With the arrival of luxury retailers, wealthy Indians will become increasingly aware of the value of designer brands. Until now this has not been the case, Saloni Nangia of the Knowledge Company tells the FT. "Being present in a market is crucial to developing it further, but beyond that one needs to get across to the consumer what luxury is all about," she said.