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Inflation may touch 10% by end MarchInflation up at 0.83% on higher food pricesHoarding drives food inflation by 16.32%Inflation a matter of concern: FM

: The country’s economic report card is showing up red. This month, inflation hit a 16-year high breaking the 12% barrier at 12.34%. Almost everyone is having second thoughts before reaching out for an extra helping that will satiate their want. In the context of the current economic slowdown, what is the ultra rich most likely to splurge on — that Rs 80,000 tag handbag or the Rs 4 lakh suit piece or the one-lakh-rupee-watch? With more and more luxury labels setting shop in India and even as more are coming in, which category of premium goods are moving off the shelves? Which categories will sell, irrespective of inflation and slow downs?

Most luxury labels that have opened shop in India say volumes have never been their concern. “It is not a volume game,” they aver. On the contrary. Worldwide, luxury accounts for 2% of all retail sales, informed Arvind Singhal, chairman, Technopak Advisors. “It would be similar in India as well. The pricing worldwide has margins built in which allow the brands to make a low volume business viable.”

Premium Italian luxury brand, Brioni, which set foot in India in March 2007 with its first store in Mumbai, opened its second store in Delhi in April 2008. The label for the rich and the indulgent, has not witnessed any glitch in sales, says Conrad Curry, brand manager. “Our clients are old customers, who have been buying our products from our boutiques around the world before we came to India.” The customers — businessmen, politicians, film personalities and the ‘loyal, traditional’ — continue to patronise it. “The category that we service is not affected by the economic ups and downs,” he says.

Prices are not a matter of concern for the wealthy. Says Sukaiyna Gokal, brand manager for Middle-East and India, A Lange & Sohne, in India. “The buyer’s scene is looking good now and we are well on our way to build up a sound customer base.

More so, people in India are getting well acquainted with the brand and state-of-the-art tradition in hand-crafted fine watchmaking.” Business has been good and the company, which has only one point of sale in India in Mumbai, is planning to expand to other metro cities.