“At present, the main advantages of beginning such a business are related to the drop in rents for ultra-central spaces, preferred by luxury brands, the immaturity of the market, on which there are several high end brands, which cannot, however, be considered luxury brands. In addition, franchisors have become more flexible about negotiating exclusivity contracts or even lowered fees,” the Franchise Development Manager of CHR Consulting, Raluca Stanciu, told Business Standard.
Nevertheless, investing partners are rather skeptical, because they are expecting the purchasing power of Romanians to continue to decline, due to the crisis, and Romanians have changed their priorities, placing luxury products at the bottom of their shopping lists.
“The end of 2008 brought a 10 percent drop in the luxury segment, compared to 2007, and the downward trend will continue by the end of this year. However, since the end of 2008, brands such as D&G, Valentino, Occinelle, Burburry, and Chloe have shown their interest in Romania,” Stanciu said. The investment for opening a new luxury product store amounts to €500,000, according to the official.
