Analyzing Harry Rosen Expansion to India
Analyzing Harry Rosen expansion to India
International Business
The case basically shows us the fast improvement in Indian economy, and therefore, great opportunities in targeting this country for business. India has been among developing countries and recently it has been improving more quickly.
Why India?
According to National Portal of India, based on Purchase Power Parity (PPP) India has the fourth largest economy of the world. Today India is an attractive country for investment and business opportunities because of a huge manpower base, natural resources and macro-economic fundamentals. Since 1991 some economic reforms have been occurred in this country, which as result, have been providing friendlier environment for investors through a liberalized policy framework spanning the whole economy. http://business.gov.in/indian_economy/index.php According to Hindu magazine, for international luxury brands, “India is no longer a mere testing ground, but a lucrative market. Estimates suggest that India has more consumers for luxury goods than the adult population of several countries.” Based on the World Wealth Report 2005-06, published by Merrill Lynch and Cap Gemini, India has the world’s second fastest growth at 19.3 per cent in the number of high net-worth individuals in 2005. Every year 25 million people are getting added to the Indian middle class population. Therefore, companies and brands across the world, especially luxury brands cannot take their eyes off this fact, since it is a great opportunity for them.
Industry estimates suggest that more than 200 international luxury brands are trying to make into the Indian luxury market, worth $444 million (according to the “India Luxury Trends 2006” report by KSA Technopak), growing at 30-32 per cent. According to the Synovate PAX media survey 2006, the ownership of luxury goods has grown from 15 per cent to 19 per cent since last year. Those owning luxury jewellery ($500 and more) now account for 17
International Business
The case basically shows us the fast improvement in Indian economy, and therefore, great opportunities in targeting this country for business. India has been among developing countries and recently it has been improving more quickly.
Why India?
According to National Portal of India, based on Purchase Power Parity (PPP) India has the fourth largest economy of the world. Today India is an attractive country for investment and business opportunities because of a huge manpower base, natural resources and macro-economic fundamentals. Since 1991 some economic reforms have been occurred in this country, which as result, have been providing friendlier environment for investors through a liberalized policy framework spanning the whole economy. http://business.gov.in/indian_economy/index.php According to Hindu magazine, for international luxury brands, “India is no longer a mere testing ground, but a lucrative market. Estimates suggest that India has more consumers for luxury goods than the adult population of several countries.” Based on the World Wealth Report 2005-06, published by Merrill Lynch and Cap Gemini, India has the world’s second fastest growth at 19.3 per cent in the number of high net-worth individuals in 2005. Every year 25 million people are getting added to the Indian middle class population. Therefore, companies and brands across the world, especially luxury brands cannot take their eyes off this fact, since it is a great opportunity for them.
Industry estimates suggest that more than 200 international luxury brands are trying to make into the Indian luxury market, worth $444 million (according to the “India Luxury Trends 2006” report by KSA Technopak), growing at 30-32 per cent. According to the Synovate PAX media survey 2006, the ownership of luxury goods has grown from 15 per cent to 19 per cent since last year. Those owning luxury jewellery ($500 and more) now account for 17