I refer to Rikh’s blog post “Hermès sells saris in India“, dated October 7th, 2011. I agree with him to a certain extent.  With growing wealth in India, Indian consumers’ spending power is growing at a rapid rate. In midst of the economic downtown, every company is trying its best to increase profits to survive through. Opening up new market in India is one of the best ways to do it. There is a large market for luxury as the rich ones look beyond basic needs. Hermes’s decision to sell saris in India is a risky one. Though this may open up new markets to increase its revenue, it is a tough one. It is competing against the established local designers in the market. People may have already developed a brand loyalty to these brands and maybe unwilling to switch to other brands. Hermes needs a massive amount of marketing to break into the market.  Even if Hermes’ saris are good, it will be labeled as Westernized and Indians may have a feeling against it. Thus, they may choose local saris over Hermes’. Hermes still have a long way to go in this market.