Study on the Growth of Indian Luxury

Market

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GROUP MEMBERS

ROLL NO’S NAME SIGNATURE

82 FARAZ VEHVARIA

112 ANSARI IRSHAN

113 ANSARI TEHSIN

114 ATHANIA MOHAMMED

115 SHAIKH AKTAMASH

ACKNOWLEDGMENT

It gives us immense pleasure to present this project on teen marketing. We are the students of Burhani College, Mazagaon. We express gratitude to Pro.M.Ahmed for appreciation of our work and giving us an opportunity to bring out this project.

While doing this project we had the opportunity to look in to theoretical world of socially responsible marketing which we wouldn’t have looked into if it wasn’t for Pro.M.Ahmed we are thankful to him for letting us do this project. We very sincerely request Pro.M.Ahmed to give his suggestions and comments for any improvements’ required.

It would be very unfair if we did not thank the many people who helped us survive the birthing of this project. My teacher who has been so kind. My group members without whom this project wouldn’t have been possible.

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TABLE OF CONTENT

S.NO TOPICS P.NO

1 Introduction to Luxury Brands 1

2 Difference between regular goods and luxury goods 4

3 Characteristics of Luxury Industry 5

4 Indian luxury market 7

5 The growth of indian luxury market 8

6 Consumer profiles: luxury products in india 9

7 An overview of Luxury products consumers in India 12

8 How & why Luxury market is Booming in INDIA? 13

9 India’s luxury products market: demand is $3-3.5

billion, up 120-150% from current levels.

17

10 AFFLUENT CONSUMERS OF LUXURY 18

11 THE EXISTING PLAYERS IN THE INDIAN

LUXURY MARKET

20

12 Jewellery 22

13 Automobiles 23

14 Top 10 luxury cars in india 24

15 Demand for luxury watches 26

16 Rolls Royce On A Rolling Spree In India 28

17 French Luxury products mission to New Delhi and Mumbai, 20th to the 27th November 2010

29

18 Top 12 Most Expensive Luxury Products of 2009 30

19 Potential of luxury market in india 36

20 PROMISING GROWTH OF LUXURY MARKET 37

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IN INDIA

21 PRESENCE OF SOME HIGH PURCHASED LUXURY BRANDS IN INDIA

39

22 HOW LUXURY BRANDS CAN ENTER IN THE

INDIAN MARKET?

42

23 SWOT ANALYSIS 45

24 Suggestions 46

25 Case study 47

26 Conclusion 51

27 Bibliography 52

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EXECUTIVE SUMMARY

Around two decades ago no one could imagine that a luxury market

would exist in India. But over the years with the change in the

demographics of the Indian consumer and with higher disposable income

available, the luxury market in India has indeed emerged as one of the

fastest growing markets in the retail segment.

It was very interesting to study the luxury market in India because it is a

new sector and not much research has been carried out on the same.

Through this report we have tried to give an estimate of the luxury retail

market in India, how much it has penetrated and also how much it is

likely to grow. Also we have tried to specify various factors which are

crucial for the success of luxury brands in India. While doing out research

on this project we have come across many new findings. The role the

Indian market plays in the global scenario and the position of India vis-à-

vis other countries. Also we learnt about the duties and legal requirements

for this segment. We have tried our best to cover the various aspects that

are involved in luxury retailing through this project and it has indeed been

a great learning experience.

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OBJECTIVE OF THE PROJECT

OBJECTIVE:

To study the Current Scenario and the Growth of Indian Luxury Market

SUB-OBJECTIVE:

Opportunities of International Brands to enter the Indian Market

Analyze the Luxury Brand Awareness in the Indian Market

Reasons behind people going for Luxury Brands

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GETTING TO KNOW LUXURY

Luxury, derived from the Latin word luxus, means indulgence of the

senses, regardless of cost.

Luxury denotes:

1. Something that is an indulgence rather than a necessity.

2. The quality possessed by something that is excessively expensive.

Luxury is something that everyone wants but nobody needs, its an area of

huge comfort and the best of the best.

“Luxury speaks a level of exclusivity, unusualness”

A luxury brand or prestige brand is a brand for which a majority of its

products are luxury goods. It may also include certain brands whose

names are associated with luxury, high price, or high quality, though few,

if any, of their goods are currently considered luxury goods.

The luxury sector targets its products and services at consumers on the

top-end of the wealth spectrum. These self-selected elite are more or less

price insensitive and choose to spend their time and money on objects

that are plainly opulence rather than necessities. For these reasons,

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luxury and prestige brands have for centuries commanded an

unwavering and often illogical customer loyalty.

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INTRODUCTION TO LUXURY BRANDS

Luxury brands have often been associated with the core competencies of

creativity, craftsmanship, precision, high quality, innovation, & premium

pricing. These product attributes give the consumers the satisfaction of

not only owning expensive items but the extra-added psychological

benefits like the esteem, prestige and a sense of a high status that reminds

them and others that they belong to an exclusive group of only a select

few, who can afford the pricey items.

The luxury sector targets its products and services at consumers on the

top-end of the wealth spectrum. These self-selected elite are more or less

price insensitive and choose to spend their time & money on objects that

are plainly opulence rather than necessities. For these reasons, luxury and

prestige brands have for centuries commanded an unwavering and often

illogical customer loyalty.

Luxury has never been something easy to define, yet this mystery concept

is something highly desired by one & all alike. We look at delving deeper

into this mystery and aura of luxury goods by way of comparing them

against ‘regular goods’ as well as highlighting the characteristics of the

luxury industry. But before beginning with that, lets first attempt to

understand some common terms associated in the world of high end

goods:

Luxury and prestige brands such as Rolex, Louis Vuitton & Cartier

represent the highest form of craftsmanship and command a staunch

consumer loyalty that is not affected by brands. These brands create and

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set the seasonal trends and are also capable to pulling all their consumers

with them wherever they go.

Premium brands are those brands like Polo Ralph Lauren, Calvin Klein

and Tommy Hilfiger that aspire to be luxury and prestige brands but their

marketing mix strategies are more attuned to a mass market, albeit a

luxury mass market. They also termed as mass-premium brands or luxury

brands.

Fashion brands on the other hand are those that address the masses.

LVMH (Louis Vuitton Moet Hennessy) is the largest luxury good

producer in the world with over fifty brands, including Louis Vuitton, the

brand with the world's first designer label.

Luxury brands are businesses.

- The business is about understanding the consumer – and managing the

balance between exclusivity and accessibility.

- Luxury brands take the elements they feel passionate about, add design

then develop it and present it to the customers that exceed their

expectations.

A luxury good is a product at the highest end of the market in terms of

quality and price. Classic luxury goods include haute couture items such

as clothing, accessories and luggage. However, many markets have a

luxury segment including for instance, cars, wine and chocolates.

Such brands share characteristics like consistent premium quality, a

heritage of craftsmanship, a recognizable style or design, a limited

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production run of any item to ensure exclusivity, an element of

uniqueness and an ability to keep coming up with new designs when the

category is fashion-intensive.

Keeping it simple and realistic, luxury is anything and everything that

you may truly desire; it can be short lived or a life long desire – it is

‘your’ emotional connect and reward that allows it to appear as luxury.

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DIFFERENCE BETWEEN

REGULAR GOODS AND LUXURY GOODS

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CHARACTERISTICS OF THE LUXURY INDUSTRY

1. Luxury means different things to different people

Luxury has no certified origins. But luxury branding is said to have taken

birth in the west with the appearance of high-end brands. To get an insight

into what luxury today means to different Americans, we take a look at the

table below, compiled by American Demographics in 2003, to understand

how to develop target strategies for various segments.

2. Luxury is a product category in itself

This can be best explained by the fact that both an expensive watch and

an artwork can be considered to be luxury items. Therefore, all luxury

marketers are not just competing in their ‘ technically defined’ product

categories (like manufacturers of refrigerators compete amongst

themselves) but for the wallet share of luxury goods in total.

3. The meaning of luxury had changed

Luxury has moved from its ‘old’ meaning of ownership (also known as

conspicuous consumption - Conspicuous consumption is a term used to

describe the lavish spending on goods and services that are acquired

mainly for the purpose of displaying income or wealth rather than to

satisfy a real need of the consumer. In the mind of a conspicuous

consumer, such display serves as a means of attaining or maintaining

social status. Invidious consumption, a necessary corollary, is the term

applied to consumption of goods and services for the deliberate

purpose of inspiring envy in others.

4. Aura is more important than exclusivity

Exclusivity is something that cannot be ensured to a great extent and

neither is it the prime requirement of a luxury consumer. The consumer

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bases his decisions on the relevance of the aura of the brand to his

fulfilment or actualization needs.

5. Classification of luxury consumers

SRI Consulting Business Intelligence places consumers in 3 groups

according to what luxury means to them :

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INDIAN LUXURY MARKET

LUXURY is no stranger to India. The erstwhile maharajas and princes

led a life of opulent splendour. The only way to be apart of the elite was

to be born into it. The lifestyle was also associated with hunting, polo and

other games of the rich. New money could never get into this circuit.The

aspiration was always there. But the princes operated in a different league

altogether. The era of the self-made millionaire was yet to arrive. So

small possessions, or copied fashion designs with a few geegaws thrown

in, became the height of luxury. An achiever of the 1970s could only get

by with a good foam mattress — no Omega, Rolex or BMWs. This trend

saw a shift, a gradual one, in the 1980s. Luxury began creeping into upper

class homes through small things and symbols. The colour TV came in,

the humble pen was elevated to a Parker, successful self-made people

began to be featured in magazines. The concept of luxury as a reward for

achievement gained acceptance, though royalty and the aristocracy

continued to remain the benchmark of the elite. The real change came in

the 1990s when more people started making more money. There was a

sudden explosion of colour and things and objet D'arts began to appear.

In order to gain access to luxury and class one could just go out and

charge it. What contributed to this shift? India opened up to the world.

The liberalization process brought more than high economic growth rates.

It showed the people what was possible. In the process, it has altered

mindsets. The IT revolution, and the consequent demand for Indian

brainpower, has created a whole new breed of wealthy global Indians. At

the other end, an increasingly open economy has created new business

opportunities, which has resulted in a slew of new, extremely successful

first generation businessmen. They are millionaires. They spend. They

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sport Vertu mobiles. But they may not even be comfortable with English.

All of a sudden, wealth is no longer the preserve of the elite.

THE GROWTH OF INDIAN LUXURY MARKET

The Indian is growing day by day as people are spending money on

luxury items. A couple of years ago – weeks in the case of the Porsche-he

bought every single item abroad, spending hard earned foreign

exchange ,lining up at the vat refund counters at airports. But not any

more, the world’s most prestigious luxury brands are expanding their

footprint in India, almost as if discovering a new world. Moreover, it is

not just the luxury brands, there are also luxury plus for those who have

the cash to splash on products with the cachet of exclusivity.

In today’s deluxe India, the children of your domestic staff are wearing

Levi’s and lee. For the brand conscious and trendy, it has to be Swarovski

encrusted seven of all mankind jeans, specially made for the Indian

market. We can look more into the qualitative as quantitative insights of

the luxury market with context to India.

The market opportunity for luxury products in India is estimated at $3 billion. This market is expected to grow at 25-30 per cent a year till 2015.Changing consumer attitude, relaxation in import duties and emergence of high-end shopping destinations are some of the key reasons catalysing the growth of this market. Indian consumers have started gravitating towards luxury goods and services that connect with their aspirations.A number of high-end international brands (such as Armani, Noraletto, Raymond Wiel and Burberry) have entered the Indian market through joint ventures with Indian retail players.In spite of some luxury brands closing shop, there are many that have managed to expand their presence after a certain number of years. It is widely believed that the segment has potential for players with a long-term focus.

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Consumer Profile: Luxury products in India - Presentation Transcript

CONSUMER PROFILE Luxury Products in India by Gilles Moutounet Leaders in Luxury Middle East 2009 Conference in Dubai

Contents Global Luxury Products Market Indian Luxury Products Market Key Growth Drivers Business Outlook Consumer Profile: Luxury Products in India Socio Economic Profile Emotional Drivers and Influencers Buying Behavior Indian Luxury Market: Critical Success Factors Indian Luxury Market: Gitanjali Perspective Global Luxury Products Market continue to capitalize on existing market Global Luxury Products Market Share Global Luxury Products Market Trend USD bn Global Luxury Products Market Major Markets Product Categories Consumer characteristics Europe Apparel Absolute - characterized by elitism, heritage and USA Jewellery uniqueness. Japan Watches Aspirational - characterized by being Fashion Accessories recognizable and /or distinctive. Accessible - characterized by affordability, status and membership. ….AND STRIVING TO SEEK OUT NEW MARKETS TO EXPLOIT

India is second fastest growing region in Asia Pacific for Luxury Products Luxury Products Market Size, 2006, USD Mn Differences in Global and Indian Market Indian Luxury Products Market Major Cities Product Categories Major Drivers Mumbai Jewellery Aspirational - characterized by being recognizable Delhi Watches and respected. Bangalore Apparel Achievement - characterized by acquisition of best Chennai Fashion Accessories before others. Indian market is dominated by Jewellery whereas as Global market is dominated by Apparel and Accessories …. AND IS EXPECTED TO GROW AT CAGR OF 25% OVER NEXT 5 YEARS.

“Look Good” products consist major part of Total Luxury Product Market Products Market Break-up, 2006, USD mn Indian Luxury Products Market Demographic and Cultural diversity is a critical factors when analyzing Luxury Consumer in India. Consumers spend most on “Look Good” category of Luxury Goods such as Jewellery, Watches followed by apparel. …PRODUCTS WITH HIGH FLAUNT FACTOR DOMINATE THE MARKET.

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India Luxury Products Market is estimated to grow at 25% over next 5 years Estimated Luxury Products Market, USD mn Growing Economy One of the fastest growing economies in the world with 6% growth over the last decade Market Potential PRESENTING TREMENDOUS India has the 2nd largest population and the largest youth OPPORTUNITY FOR LUXURY population in the world BRANDS IN INDIA Emerging Market World’s third largest diamond jewelry market, and growing swiftly ($5bn by 2013) Total domestic jewlery is worth $ 27 bn.

India Luxury Consumer has unique buying behavior and product preferences Who is this Luxury What does this Luxury consumer? consumer do? What is Socio Economic What is the source of profiling of Luxury affluent lifestyle of Consumer in India? Luxury Consumer What are the What are consumer needs peculiarities of luxury and wants? shopping behavior? What influences him to focus on certain products?India Luxury Consumer is typically a 25 – 34 year old entrepreneur or a industrialist Profile of Indian Luxury Consumer Age profile of Indian Luxury Consumer •Indian Luxury Consumers are typically young businessmen (25-34 Years) who have been exposed to luxury brands through their overseas travel, education or gifting. •Senior corporate professionals, professionals (lawyers, doctors, architects) are the next biggest set •IT / BPO professionals complete the picture Profession of Indian Luxury Consumer •The boom in corporate India has created a new breed of luxury consumers. •These are people who have experienced rapid enhancement in their earnings and consequently spend on themselves. •They tend to be less prolific in their purchase, they are emerging as a promising segment. …DRIVEN BY GROWING ENTREPRENEURIAL SPIRITS IN INDIA.

Attributes of “Luxury brand” for Indian customer High Value for International History Longevity Expensive Quality & Exclusivity Money Recognition Service Less important More important Source ET consumer research across 6 cities and 490 consumersWhat does the Indian customer associate Luxury with? Influencers for Luxury Purchase are mostly peer groups Understanding Indian Luxury Consumer •Indian Luxury Consumer is primarily influenced by peer feedback and positive “word-of-mouth” reviews. •The media plays a strong role as an influencer with lifestyle publications, television and the internet. Key purchase Influencers …. HIGH VISIBILITY MEDIA EVENTS ARE ALSO IMPORTANT

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INFLUENCERS Source: AT Kearney Research Report Results of Survey % of respondents who rated the option among top 3

Indian Luxury Consumer has unique buying behavior Brand Conscious •Aware of world trends because of growing travel overseas for business and leisure travel where they get exposed to best of the brands and luxury trends Price Sensitive •Demand Value for Money which is mostly because of traditional cultural values Expectations •High standards of service expectations as the Luxury Consumer will mostly have long term association with the product Personalization •Personalized connect is important because Indian consumers has high emotional association with the products they own or acquire …. WHICH COMES FROM STRONG TRADITIONAL VALUES Source: AT Kearney Research Report 12 Luxury Brands need to follow a structured process to capture Indian Luxury landscape Create Indianise Build Brand Utilize Indian Softer Price Infrastructure Product Awareness Resources Points Brands Foreign Luxury A win-win Brands would should help brands need consumer in situation for benefit by India to to India is global keeping their create an understand increasingly brands is to prices environment the Indian becoming utilize the competitive to develop personality brand talented and and offering the existing and fashion conscious cost effective entry level infrastructure elements to which has Indian products as ‘Indianise’ high visible designers well their products value JV with local partners Localized products Branding campaigns Indianised versions of Local manufacturing like Walmart with Bharti from McDonalds and participation in luxury cars by Mercedes Retail Media …WHICH CAN HASTEN THE PROCESS OF MARKET CAPTURING AND BRAND BUILDING 14

Gitanjali an Indian Jewelry Pioneer • Established in 1966, Gitanjali started as diamond trading and polishing house • Graduating from the diamond trading the company set-up its own jewelry manufacturing units • In 1994, Gitanjali launched India’s first diamond jewelry brand - “Gili” • Expanded into jewelry retail by launching first stand alone store in India • From 2000 to 2006, introduced major brands like Nakshtra, Asmi, D’damas, Sangini • Increased international footprint by acquiring/opening stores in leading jewelry markets like USA, Japan, China and Middle East and upgraded them by aggressive branding OUR STRATEGY IS TO “SELL EVERY DIAMOND AS A DREAM”Gitanjali Spread across the global stage 137 Samuels and Rogers stand alone stores 50 Giantti doors 110 Vérité doors 8 stand alone stores +50

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in-store boutiques +400 stand alone stores +2500 in-store boutiques …BY SELLING EVERY DIAMOND AS A DREAM

An overview of Luxury products consumers in India

The numbers might seem unbelievable, but the luxury market currently stands at a staggering $14.4 million. With increasing buying power, not necessarily just among the nouveau rich, the luxury market appears to be merrily singing along at an annualized growth rate of 30%.To put in perspective, the country has about 1.6 million households earning over Rs 45 lakh or more per year, spending about Rs 4 lakh per year on luxury or very premium goods and services. While growth in such households is slated to rise to about 14%, there is an emerging “wanted luxury†� class waiting to jump on to this premium bandwagon.

There are a set of consumers in India who understand luxury and value the heritage behind it. However, there are another 8-9 million consumers who can afford luxury, but are not yet oriented to its finer points and so don’t understand its value. They are not active consumers, but they do veer towards luxury.Attracted to the finer things of life, these consumers are more individualized than ever, expecting every product, service and experience to address their unique needs. Gone are the traditional demographic segments — there are some new, mind boggling statistics, especially since incomes continue to explode at the top rungs.

With its 280 million urban populations, India plays host to 28 million of the rich and upwardly mobile that’s 10% of the urban population. While 1 million are luxury consumers, 6-7 million are very affluent, while another 9-10 million are mid-affluent. Yet another 11-12 million categories the mass affluent, according to a Technopak study.

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How & why Luxury market is Booming in INDIA?

o India ranked first for the fifth time, on the Global Consumer

Confidence Index – June 2007, conducted by The Nielsen

Company.

o Indians were judged the world’s most optimistic consumers, with

high financial confidence about their income for the next 12

months.

o Higher disposable incomes, easy availability of credit and high

exposure to media and brands has increased average propensity to

consume considerably over the years.

o India ranked first for the third consecutive year, on the Global

Retail Development Index – 2007, conducted by AT Kearney

across 30 emerging economies. India is ranked as the most

preferred retail destination for international investors.

o Modern retailing outlets are increasingly matching up to global

standards and witnessing intense competition.

o Organized retail sector is estimated to grow by 400%, in value

terms, by 2007-08.

o Increasing number of domestic and international players are setting

up base and expanding their business to tap the burgeoning market.

o Fastest Growing Economy is one of the biggest reason for the

growth in Indian luxury market:

o • Two-thirds of India’s population is under 35 years of age and

more than 60% of the population will be in the working age group

(15-60) till year 2050.

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o • The median age of 23 years, opposed to the world median age of

33, sets the emerging young India apart

o • India is home to about 20% of the global population under 25

years of age.

WHERE'S THE MARKET- THE PRESENT SCENARIO

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Source: IMD World Competiveness Yearbook 2006

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PRESENCE IN HOTEL

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LUXURY MALLS IN INDIA

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India’s luxury products market: demand is $3-3.5 billion, up 120-150% from current levels.

Luxury retail looks beyond metros and malls

“India’s overall luxury market will grow 21% to become almost three times its current size by 2015,” predicts the Luxury in India report, jointly released by the Confederation of Indian Industry and AT Kearney on 7 October.

India has around 127,000 millionaires. There was a 50.9% rise in the number of high-networth individuals (HNIs), or those with investable assets of $1 million or more, in 2009, according to the Asia Pacific Wealth Report by Merrill Lynch Global Wealth Management and Cap Gemini released in September. Their total wealth grew 53.8% from the previous year, it said.

Moreover, “nearly 70% of India’s wealth is concentrated in the five metros,” said Atul Singh, managing director and head of global wealth and investment management, India, DSP Merrill Lynch, explaining that a presence in the these cities was needed at a minimum to cover the Indian luxury customer.It may pay to spread the net even wider.

“Wealth creation is no longer restricted to only Mumbai, Delhi and Bangalore. It is taking place in tier-I and tier-II cities such as Ahmedabad, Pune and Hyderabad,” said the AT Kearney report on luxury retail, which estimates India’s latent demand at $3-3.5 billion, up 120-150% from current levels.

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AFFLUENT CONSUMERS OF LUXURY

The new generation affluent Consumers are:

CEOs and other senior professionals

(in their thirties and early forties)

Entrepreneurs in new businesses

Returning "prodigal children"

Actors and models

Franchisees, and small and medium Retailers

In terms of population percentage, it may seem minuscule. The seriously

rich and affluent represent just 1 per cent of the entire population, but

with a base of one billion people, it still adds upto 10 million high end

customers, a substantial number in any market.

They are what is being termed Global Indians, the ones who are traveling

abroad at the drop of a barbour hat. They are acquisitive, brand conscious

and, above all they want the best and they want it now. If they can buy in

their city so much better.

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TOP DRAWS

The five top purchases of the affluent Consumer

Watches & Jewellery Apparel & Accessories

Electronics Wines & Spirits

Personal Care Automobiles

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THE EXISTING PLAYERS IN THE INDIAN LUXURY MARKET

Luxury life style products marketing in India

The demand for Luxury life style products has resulted in Starcom launching a specialist solutions unit, named C that will focus on lifestyle marketing and communications to the super-rich. While C will operate through the spectrum of lifestyle sub-segments — from premium and prestige to luxury and indulgence, the agency has decided to indulge the picky, rich consumer who is changing in a number of ways.It’s not only the wealthy who desire the halo of luxury. Never before has the luxury market seen an audience and community of highly affluent buyers as interest in learning what constitutes the best of the best. They have accumulated an incredible nest egg, by either having made a lot of money on the bourses, sold businesses, or dabbling in knowledge sectors. They now have enough time to savor and sample the best of the best, be it wine, travel, apparel, cars, fine jewellery or a lavish holiday. This community — the wannabes — is hungry to learn, and wants to be educated in a sophisticated fashion, about what constitutes the best.

A demanding clientele:

The wannabes are demanding more high-touch marketing. They are brand-sensitive in the sense that the brand is the price of admission. For today’s consumer, luxury brands can no longer live by brand image alone because the customer has become increasingly value driven and more demanding of superior service, intelligent communication and a personalized understanding of their wants, likes and desires.

Since luxury consumers have more confidence about the economy in general, and about their financial status in particular. There is a notable rise in luxury consumers’ perception of the financial health of the country says an official of the Luxury Marketing Council Worldwide, an apex body for luxury goods and service providers which opened its office in New Delhi last year. What turns them on is a one to one, personalized, high-touch, highly customized marketing which demonstrates understanding of their needs, wants and values.

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Money does beget more money. And with a strong, rich populace in a position to demand and get the best-of-the-best, especially with their liquid portfolios, sophisticated marketing techniques are called for.Advertisers and marketers are dabbling in new marketing intimacy techniques, one-to-one marketing, and intelligent coddling by brands that have not traditionally used to customizing their marketing programs.The brief is clear. In addition to the search for the memorable, the unique

and services that have high value, there is the hunger to know. With more

households spending about Rs 4 lakh a year on premium products —

which works out works out to a market potential of Rs 72,000 crore —

this is one segment that simply cannot be ignored.

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JEWELLERY:

The top Luxury Jewellery brands in India today

Cartiers SA is a French jeweller and watch manufacturer that is a

subsidiary of Compagnie Financière Richemont SA. The corporation

carries the name of the Cartier family of jewelers whose control ended in

1964 and who were known for numerous pieces including the "Bestiary"

(best illustrated by the Panthère brooch of the 1940s created for Wallis

Simpson), the diamond necklace created for Yadavindra Singh the

Maharaja of Patiala and in 1904 the first practical wristwatch, the

"Santos." Cartier SA is headquartered in Paris. Jacques Cartier (of cartier

family) visited India in 1911 in pursuit of fine pearls. He also persuaded a

number of Maharajas to reset their jewels using Cartier designs. The

necklace, created for the erstwhile Maharaja Bhupinder Singh of Patiala

by the House of Cartier in 1928 is one of the most expensive pieces of

jewellery ever made.

The world famous jeweler was back in India in 1997, when the curbs on

luxury goods imports were eased, with its watches, pens and eyewear.

The jewellery has had to wait. Cartier retails its jewellery only through

exclusive boutiques. The company is now shopping for the right real

estate in Delhi and Mumbai.

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AUTOMOBILES:

More than 5,000 luxury cars were sold in 2006, up from 3,000 cars in

2005 and just 1,000 in 2004. Both financiers and companies like BMW

India believe that the market will hit 10,000 units by 2010. Over 80,000

millionaires in metros and mini-metros have fuelled increasing demand

for these vehicles priced at Rs 20 Lakh and above. Car loans have also

come up with competitive equated monthly installments (EMIs) to attract

the common individual with big dreams. Top of the line marques like

Mercedes-Benz, BMW, and Audi are now available at an EMI very close

to those of premium cars like Honda Accord, Toyota Corolla, and

Hyundai Sonata. In the volume car market, 75% of all sales are financed,

while 60% of luxury cars are financed.

Given the global economic conditions, the worldwide passenger car

market is expected to witness a 10% fall in sales. However, India’s luxury

car market outperformed other Asian countries in sales last year by rising

40%.

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TOP 10 LUXURY CARS IN INDIA

MERCEDES BENZ E CLASS

VOLVO S 80

BMW 5 SERIES

AUDI A 4

BMW 3 SERIES

MERCEDES BENZ C CLASS

VOLKSWAGON PASSAT

TOYO TA CAMRY

SKODA SUPERB

NISSAN TEANA

LUXURY CARS AWAITED

MODEL COMPANY

Evolution X Mitsubishi

Minis BMW

AMV8 Vantage Aston Martin

Brooklands coupe Bentley

C30, C70 Volvo

Hummer General Motors

Lexus LS 460 Toyota

Cruse Chevrolet

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SOME MORE THE OTHER LUXURY BRANDS PRESENT IN

INDIA

T2 Gucci

Fendi Chanel

Jimmy Choo Versace

FCUK Bvlgari

Burberry Mango

Moschino Lapidus

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Demand for luxury watches surgesWith growing middle-class income, luxury watches have found an eruption in demand in the post-economic slowdown era. Leading producers like Titan Industries, Timex, Timond, HMT and Gitanjali are currently facing a demand which surpasses supply.

In the past two years, high-end luxury watch brands have grown by 20-22 per cent, as against 7-8 per cent growth in low-end watches.

- Titan: Chiming in sales growth- Titan to set up watch assembly facility- Bajaj, HMSI sales zoom in January- Titan plans 22 new 'World of Titan' stores by March 2010- Fastrack eyes Rs 30 crore from accessories business- Fastrack plans to have 50 stores in India by April 2010

Still, the surge in demand seems to have not been expected. “Indian companies start manufacturing such watches at least six months in advance to meet seasonal demands. Anticipating lower domestic production, local retailers start their bookings in global markets at least six to eight months ahead of occasions like Christmas, New Year, etc. But, the current unseasonal demand was not anticipated six months ago, due to uncertainty over the global economy, resulting in demand outstripping supply,” said Vinod Agarwal, president of the Watch Trade Federation.

Hemal Kharod, editor of Trade Post, a trade publication dedicated to the sector, believes that manufacturing of high-end luxury watches require visionary skills for designers, which takes far more time than for mid- and low-end watches.

Tastes seem to have changed over the past nine-odd months, with low-end consumers upgrading watches to price points between Rs 8,000 and Rs 10,000. Titan Industriestries have, therefore, introduced many new brands in the high-end segment to leverage market sentiment. “In future, if the trend continues, which is very likely, we will introduce many innovative and stylish brands to meet consumers’ demand,” said Titan its chief executive officer, Harish Bhat.

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Titan had also introduced the Swiss-made brand, Xylys, in the upper segment and all these brands have been received well by consumers. “Whatever we produced, we sold,” Bhat added.

The Rs 10,000-crore watch industry share has been classified in two parts. The low range sector, with a price between Rs 500-3,999 dominates, with over 60 per cent of market share. The Rs 4,000-17,000 range constitutes 30-35 per cent; the rest is with super high-end products. Volume-wise, about 45 million watches, including clocks, are sold in India annually, with an annual growth rate of seven to eight per cent.

“Call it an impact of a growing economy — India’s luxury watch demand today is much higher than that of the global level,” said G S Kannan, managing director of the Timex Group. Watchmakers now feel the need for introducing new and stylish watches to meet customers’ desire. So, the company is planning to launch a new segment of watches at the 15th International Watch & Clock Fair in Mumbai between February 4 and 7.

“Good movement has been seen in the high-end watch market. Since we entered into this business about a year and a half ago, it is for the first time that high-end watches have seen such stupendous demand,” said Mehul Choksi, chairman of Gitanjali Gems. The company recently launched the ‘Morellato’ and ‘Chronotech’ brands in the luxury segment, well accepted by consumers.“There is a growing need of concessions for consumers. If introduced, the demand will increase significantly. Gitanjali is shortly introducing price concessions to lure more customers,” said Choksi

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Rolls Royce On A Rolling Spree In India

The fast growing luxury car market in India has prompted many luxury car makers from the world to surge into it with more potential. All these companies are interested to gain the maximum by either creating their identity or through the expansion. The latest entrant is Rolls Royce which is in the segment as the most sought after brand among luxury cars. The cars are driven from BMW camp and the need has arisen to the company to meet the demand in the Indian market by expanding the dealer network. For BMW India seems to be the second largest market in Asia.

With two products-the Ghost(Rs2.5 crore) and Phantom(Rs3.5 crore)- in its fold in the Indian market, Rolls Royce is facing the tough situations to meet the demands for its products. The CEO of Rolls Royce said that Indian market had the most dearth for its products since the country is the second largest in Asia, after China. Hence Rolls Royce is on the verge of reaching the demanding customers by expanding the dealer network, he added. The company could sell 600 units in the Chinese market in the last year whereas it could reach just 80 owners in India which is still 600% growth on year-on-year growth rate.

There are just two dealers for the Indian operations, one in Delhi and the other one in Mumbai and the CEO mentioned that there could be two more dealers in short time preferably in Punjab and Hyderabad. He said since the company has been receiving good demand for its products in India the company’s UK unit will enhance the production volume to reduce the wait period. He expressed the hope that in 2011 Rolls Royce may hit the three digit volume in the Indian market. The CEO said in addition to the existing two models, there will be an electric version of Phantom called 102EX. This, he said, would be on display at the Geneva Motor Show slated for next month which would reflect the demand for such versions in the global markets. He said this 102EX would be a one-off car making some explorations on power drive from alternative fuels. He said this could be drivable at the event of being a research tool.

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French Luxury products mission to New Delhi and Mumbai, 20th to the 27th November 2010

A growing market for French companies in Luxury !Ubifrance’s Lifestyle department in Paris in collaboration with the French Trade Commission in India organized a market prospection with BtoB meetings in New Delhi and Mumbai for 12 leading French brands including 3 recognized as ‘Patrimoine Vivant’ (Living Heritage) in various sectors such as Table accessories, Furniture and home decor, Eyewear, Jewelry design and Pret-à-Porter.All of them were delighted to discover the facets of the prosperous luxury market in India for exporters.

Highlights of this event:

- The informative session, visits of malls and luxury boutiques- More than 80 BtoB meetings prearranged in Delhi and Mumbai- Networking nights where participants had the opportunity to meet with renowned artists, architects like Rajeev Sethi, famous designers like Asshima, Satya Paul, Aadarsh Gill and James Ferreira. And of course the glitterati of Bollywood including Rageshwari.

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Top 12 Most Expensive Luxury Products of 2009

Once thought immune to the ebbs and flows of economic fluctuations, the year 2009 snatched away the reputation of luxury sector for being recession-proof, but thanks to the aspirational consumers, who inspired the manufacturers to increasingly bring out the exceptional products of luxury. Our list closes the year that gloomed around the globe with some of the unmatched products of desire with the hope to see better year ahead for each one of us and of course, a better growth in the luxury segment worldwide.

January 2009La Fraicheur Wine Coolers

The month as usual started off sluggishly but in the light of the festive season, who better than a true wine connoisseur would know the importance of perfect wine accessory to make the occasion really special. La Fraicheur, an Amsterdam-based company, brought the limited edition wine coolers encrusted with diamonds and crystals with a hefty price tag of $145,000.

February 2009Yves Saint Laurent’s armchair

The month of love saw the most blinged-up souvenirs like the diamond-studded kitchen knife, world’s most expensive pen and the embellished portrait, but Yves Saint Laurent’s armchair stole the show at Christie’s. Auctioned in Paris for a whopping $28 million, this brown leather armchair became the most expensive piece of 20th-century design ever auctioned.

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March 2009The Nightingale of Kuala Lumpur

For much part known for the International Women’s Day, the month of march saw a range of products aimed at women, however, to make it to the top in our list of “most expensive” is the $30 million diamond dress by Stylo. Dubbed the “Nightingale of Kuala Lumpur,” this $30 million dress left Victoria’s Secret far behind in the race for the most expensive couture, with the second runner-up being the $20 million diamond dress designed by jeweler Chris Aire, but just in tune with the $30 million diamond studded bikini created by Susan Rosen with Steinmetz Diamonds.

April 2009$4.2 million designer tiara for a pet

While the month of April saw Mr. Mervis decorating a $30,000 cupcake with diamond toppings and the queen of bling, Paris Hilton adding a little more sparkle to her life with a $400,000 diamond-encrusted dashboard, Leon Verres thought to bring out the most exclusive and most expensive champagne of all times. However, long after making the pet fashion go mainstream, Paris Hilton inspired a Thai jewelry designer, who crafted a tiara worth $4.2 million for his pet dog. Using precious stones given to him by his mother, the designer encrusted 250-carats of emeralds and diamonds in titanium to make the tiara for his really pampered pooch.

May 2009Ferrari Pontoon-fender Testarossa

While Marc Newson’s luxurious Lockheed Lounge chaise created uproar at the beginning of the month with its $1.6 million price tag, but it was the iconic 1957 Ferrari 250 Testarossa that set a new world record for the most expensive motor car ever to be sold at an auction. The car went for $12 million in an auction of Italian supercars organized by RM Auctions at Ferrari’s Maranello home in Italy.

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June 2009Most expensive bridal gown

As the buzz surrounding Slumdog Millionaire continued even after its big Oscar night back in February, there was still scope for the world’s most expensive curry to coincide with the DVD launch of the Oscar-winning flick. However, amid all the talks of slowdown, cutbacks and layoffs, there were still manufacturers who kept the spending spree alive. The month saw some of the world’s most expensive products, like this world’s most expensive espresso machine, the world’s most expensive magazine and Vi-spring $84,425 eco-friendly bed, but to steal the show was the most expensive bridal gown in Vietnam, valued at $117,000. This white silk and satin bridal gown from Vietnam is decked out with 222 diamonds and 100 red rubies. Showcased at the Ruby Plaza trading center in Hanoi on June 28, this shimmering gown is a creation of young fashion designer Huy Vo. The gemstone-made flower on the gown has 22 big rubies and 8 big diamonds. A big water drop-shaped ruby that symbolizes love has been used for the pistil. It took 40 days to complete this unique gown.

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July 2009

Audi Design’s grand piano For most part of the month, the death of Michael Jackson created an unprecedented global outpouring of mourning, tribute and celebration. It was a $25,000, solid bronze, 14-karat gold plated custom casket that holds the King of Pop in eternity as the fans bid final goodbye to the royal departure. With all the fevered grief, S.T. Dupont had to light up in style with its gold and diamond lighter to cater to the uber-rich smokers. However, Audi Design Studio followed Porsche’s footsteps in designing a truly unique piano. Designed by Philip Schlesinger, who implemented the project at the Concept Design Studio in Munich, the piano priced at $139,867 debuted in the Audi Forum Ingolstadt, to celebrate Audi’s 100th anniversary.

August 2009“Star of India” Rolls-Royce

If you think there are very few things in the list that actually amazed you, consider a $21,495 haircut. Amazed! Gotta be. The Sultan of Brunei known for his classy taste, made the statement with the world’s most expensive snip, but to match the grace and aura of the Sultan, our list includes the renowned “Star of India,” a one-off 1934 Phantom II 40/50 HP Continental “All-Weather Convertible,” that belonged to the Maharaja of Rajkot. Priced at $14 million, this prized Rolls-Royce is also considered to be the world’s most expensive car.

September 2009World’s most expensive diamond encrusted BlackBerry

The kings followed this month too, but it was the bling king this time around. Alexander Amosu unveiled the world’s most expensive diamond encrusted BlackBerry after a slew of BlackBerrys in precious metals including the Pearl Limited Diamond Edition, Tellor and the Pink BlackBerry Bold. This limited edition, $200,366 BlackBerry is crafted in solid 18 carat yellow gold and encrusted with 4,459 brilliant cut diamonds (weighing 28.43 carats). Only three will ever be made and of which one handset has already been sold to a client in the Middle East.

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October 2009Victoria’s Secret diamond bra The month was all set to buzz with the machine-gun-packed $1 million Batmobile followed by the $1.4 million Dartz Monaco Red Diamond Edition that also boasted of whale penis leather interiors, only to find Pamela Anderson with a stop sign on their way to the blue waters. However, in the later half of the month Ukrainian designer Verlingieri Lesya brought in the hottest fashion trend with her $10,000 Swarovski corsage, probably inspired by the corsage worn by Sarah Jessica Parker in Sex and the City. But, for an elegant yet sexy look, the embellishments were completed by Victoria’s Secret $3 million diamond bra. Designed by the Italian jewelry house Damiani, it took 15 artisans about 800 hours to craft this one-off bra with an 18-karat gold harlequin-patterned net and embellished with 2,355 colorless and cognac diamonds. This diamond-studded stunner has a 16-carat heart-shaped champagne diamond pendant dangling in the middle.

November 2009World’s most expensive bauble

With things setting more into festive mood by the end of the year, it was obvious to see more liquor flowing through the streets. To come up first in the league to stimulate our senses was the world’s most expensive beer at $1200 for the 12-liter bottle of Vieille Bon Secours ale, followed by Dalmore Oculus that almost set record for world’s most expensive whisky at $46,400 in an auction at Bonhams. However, as we approached Christmas, the world’s most expensive bauble with a price tag of $136,000 set our pulses racing. The one-of-a-kind tree decoration is made of 18-carat white gold and is plastered with over one and half thousand stunning diamonds. Surrounded by two incredible rings made of 18-carat fat gold wire, it features 188 red rubies that took a year to complete the designing and manufacturing. It was dreamed up by a 38-year-old, Mark Hussey, the owner of 30-year-old family business, Hallmark Jewelers.

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December 2009World’s most expensive furniture

To close the year with a bang, auctioneers, product manufacturers and designers took out wonderful delights from their closets to feed our voracious appetite for luxury. Designer Luisa Di Marco couldn’t resist but bring out the most expensive studs in history. Three pairs, together valued at $623,000, were auctioned for charity at the VIP launch of Rio Ferdinand’s new Live The Dream Foundation. Ginza Tanaka crafted $135,000 Mount Fuji in pure gold and somebody thought to throw a treat with treat world’s most expensive cupcake. However, nobody would have guessed that the year would close with the world’s most expensive piece of furniture. Auctioned at Christie’s for a whopping $7.3 Million, the ornate Cucci Cabinet dates back to 1665 to 1675 and is one of three wooden cabinets crafted by Italian artist and master craftsman Domenico Cucci. This magnificent cabinet features Florentine “pietra dura” plaques with opulent gilt bronze mounts, elaborate marquetry and beautifully modeled figurative carvings.

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POTENTIAL OF LUXURY MARKET IN INDIA

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PROMISING GROWTH OF LUXURY MARKET IN INDIA

Indian luxury market to touch US$ 452 million

A recent luxury trends report from Ledbury Research advises companies

to start focusing on India. They are estimating that the number of families

with annual incomes of more than $230,000 will have more than doubled

from 20,000 in 2002 to 53,000 by the end of 2005 and will grow to

140,000 by 2010. By way of comparison, the UK has 400,000 families at

this income level currently.

Luxury car makers are pouring in to woo the nouveau riche (Audi, BMW

are the most recent entrants). A recent article in the Christian Science

Monitor talks about how the luxury product makers are trying to tap the

lavish spending that occurs around the wedding season by timing their

new product introductions, market promotions etc.  An average Indian

wedding ($34,000) costs almost 30% more than the average American

wedding ($26,327), with rich Indian families spending as much as $2

million dollars.

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PRESENCE OF SOME HIGH PURCHASED LUXURY BRANDS IN INDIA

HUGO BOSS – The name denotes success, perfection and a style that

transcends international borders. This German luxury fashion group is a

well established menswear brand for the last 80 years; the company was

started in 1923.

Key initiatives of the company

Started women wear in 1998.

Started shoes/accessories in 2003.

Presence in India

2003 - Entered India through franchisee partner, Bin Hendi Enterprises of

Dubai and launched its first store in the Oberoi hotel, Delhi.

2004 - Launched one more store in Mumbai.

2005 - Launched 2 more store in Bangalore and Mumbai.

But at the present there are only 3 stores in India, one of the Mumbai

store has been shut down. The company has invested Rs.25crore approx.

in these stores in India.

Product Portfolio in India

Uniform presentation of products through-out the world and effective

marketing measures support the strong image of the HUGO BOSS brands

and the Company. Hugo Boss has brought two premium lines to the

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country: Boss Black and Boss Orange and the product category is only

for men in India. Hugo Boss's Indian customers preferred sportswear and

this comprised a large percentage of its sales.

Product Range – Ready to wear, Footwear’s, Belts, Handbags, other

accessories.

BOSS Orange

BOSS Orange offers casual collections for men and women who enjoy

dressing in style and wearing surprising looks. Unusual materials, bold

colors and beautiful details appeal to a clientele that delights in

experimentation.

BOSS Black

The women’s- and menswear collections in the BOSS Black line offer

versatile fashion ranges with a rich array of elegant "modern classics" in

business-, leisure- and formalwear: perfect looks that satisfy the most

sophisticated tastes.

Price Points

Men shoes Rs.13000-35000

Belts Rs.5000-15000

Wallets Rs.8000-15000

Ready-to-Wear Rs.15000-35000

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Challenges Faced in India

Indians prefer to buy luxury goods in Europe or Singapore or

Dubai, as they feel that it is cheaper abroad.

Most Indians feel that the latest launches take a while to come to

India. After-sales service is also a major concern for people.

Marketing Strategy in India

A lot of promotion such as organising photo-shoots with lifestyle

magazines such as Cosmopolitan and Femina.

Making its latest international launches available in India.

Offering zero per cent finance schemes to make the watch category

more affordable for the Indian youth, Swiss watch company

LVMH Watches and Jewellery is going all out to reach its niche

target market.

DIOR at Luxury Mall- Emporio (Rated one of the best Luxury mall in India)

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HOW LUXURY BRANDS CAN

ENTER IN THE INDIAN MARKET?

FDI up to 100% allowed under the automatic route for cash and carry

wholesale trading and export trading and FDI up to 51% is allowed,

with prior Government approval for retail trade in ‘Single Brand’

products. However, FDI in retailing of goods under multiple brands,

even if the goods are produced by the same manufacturer, is not

allowed under the current guidelines.

o Policy Framework

This route involves foreign company entering into a licensing

agreement with a domestic retailer or partnering with Indian promoter

owned companies.

o Strategic License Agreements

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This entry route is widely used, with many international brands setting

up shop. There exists the master franchise route and the regional

franchise route for India entry.

o Franchisee Route

100% Foreign Direct Investment is allowed in wholesale trading

which involves building of a large distribution network.

o Cash and Carry Wholesale Retailing

International firms can enter into agreements with domestic players

and set up base in India. Share of MNCs is restricted to 49% in this

route.

o Joint Venture 

Company can establish its manufacturing unit in India along with

standalone retailing outlets. These are the available Routes for Foreign

Players to Enter the Retail Sector.

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How taxes and Duties are affecting growth of INDIAN LUXURY

Market?

o Steep import duties mean luxury fashion products are priced 15

percent higher in India than in their country of origin and a reduction in

rates will actually increase government revenue from their sales.

o We pay around 45 percent taxes to import our goods to India and

this affects the retail pricing of the product.

o The pricing of these items is almost 15 percent higher.

o The high duties apart, the fact that there is a flourishing market in

India for foreign luxury goods can be gauged from the fact that brands

like Kenzo are looking to ramp up their presence in the country despite

the global financial meltdown.

SWOT ANALYSIS

STRENGHTS

1. Brand Name/Brand Ambassadors

2. Customer Loyalty

3. Quality

4. Global Presence

WEAKNESSES

1. Concentrated Market-only metro cities

2. Government Regulations

3. High Prices

4. Percentage of target audience is Less

5. Higher Operational cost-rents

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OPPUTUNITY

1. Manufacturing the brands in India itself

rather than importing it

2. FDI Regulations

3. Gloabalization

THREATS

1. Fake branded stuff available in India

2. Available at cheaper prices abroad

SUGGESTIONS

Respect: Connect with luxury consumers as a selective target. Luxury brands

need to respect this point of difference in all interactions between the brand

and the consumer

Segment: Acknowledge luxury consumer subsets. Luxury brands need to

identify, differentiate and prioritise the most profitable subsets for targeted

strategies.

Insight: Identify what is important to the defined target. Motivations could be

based on personal and non-personal factors.

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Connect: Brand interactions really matter. For example, respondents cited that

friends and family are an important influence on luxury consumption

Experience: Establish emotional connectivity. Deep and meaningful

relationships need to be developed in order to win the soul of the luxury

consumer.

Indianness: Embrace and celebrate the Indianness brand. India has a very

powerful and unique identity, and this needs to be leveraged within a luxury

brand context.

Consistency: Adopt a truly holistic approach, to ensure that all brand

interactions, whether advertising or customer service, are consistent with the

brand positioning. Contemporary Indian society is challenging traditional

consumption patterns. The Indian consumer is ready to embrace luxury

consumption.

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Case study

Nita Ambani to buy 25K pieces of crockery from SL

DEC, 2010, 05.36PM IST, SAGAR MALVIYA & RESHMI DASGUPTA,ET BUREAU

MUMBAI/NEW DELHI: India's richest person, Mukesh Ambani , may have built the world's most expensive house, Antilia , in South Mumbai's tony Altamount Road, but his wife Nita seems quite a bargain hunter. 

She would have to be, especially when her shopping list includes 25,000 pieces of chinaware for her high-rise home. She's settled for 106-year-old Japanese brand Noritake, whose 22 carat gold/platinum-trimmed porcelain crockery has fans round the world. 

Interestingly, the big-ticket order has not been placed at the exclusive Noritake showroom in Mumbai's Kemps Corner, a stone's throw from the Ambani tower. Rather, corporate India's first lady has chosen Sri Lanka for this acquisition as Noritake is 70-80% cheaper there than elsewhere in the world, including India. This is because the Japanese brand has its largest manufacturing facility in Sri Lanka, and exports its fine china to over 100 countries from there. 

M Deva Raja, General Manager of Noritake Sri Lanka, said the company has an enquiry from Ambani for more than 20,000 pieces but has not supplied anything yet. A Reliance spokesman declined comment. 

"Noritake is a must-buy for anyone who visits Sri Lanka," said Santosh Desai, chief executive, Future Brands. "However, an order of such a scale is unheard of for the brand which is an elite icon. But then again, a 27-floor residence is also unheard of." 

A 50-piece dinner set with 22 carat gold/platinum trimmings could cost $300-500 in Sri Lanka while the same would be priced between $800 and $2,000 in India. Multiply that by 500 (to cover Nita Ambani's 25,000-piece order) and the price could have hit $1 million at the upper end in India. 

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Even a 500-room five-star hotel with five restaurants (the only other entity which could conceivably put in a similarly-sized order) would draw the line at that price tag, particularly if a cheaper option was available. Her thrift, therefore, was complimented by social commentator Shobhaa De. 

"If she is indeed buying her crockery from Sri Lanka, I would say that she is a practical Gujju housewife, cost-conscious and sensible and I admire her for it," Ms De said. "Why should she pay five times more for something here? She is setting a good example for others to follow!" 

Noritake's Raja said the company was studying the specifications in the order and whether they will be able to supply that many pieces. 

However, all of it may not be headed for Antilia, said a source. "Mrs Ambani has bought Noritake crockery several times in the past, especially during Diwali for gifting." Noritake, originating in a village of the same name near Nagoya in Japan, has been an A-lister ever since it hit the US market a little over 100 years ago. 

Cleverly appealing to both the mass market and the high end with a technologically superior and diverse product range, Noritake has been a favourite with homes, hotel chains and airlines for its delicate designs and durable quality.Nita Ambani heads to another country to buy Crockery for the most expensive home on the planet

Living in the world’s most expensive house, doesn’t mean that you have no limit to your expenses specially when it comes to splurging on the interiors and other small accessories for your palatial home. And this, Mrs. Nita Ambani knows quite well.

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The dotting wife knows that hubby dearest works hard to give her all the luxuries in the world. No wonder, the wife of India’s richest man, Mukesh Ambani, went all the way to Sri Lanka just to go crockery shopping. This is because the brand she has selected offers 70-80% cheaper crockery in Lanka.

Nita seems to be a quite a bargain-hunter. The lady who is actively involved in various philanthropic activites, has opted for Noritake, a 106 year old Japanese brand whose 22 carat gold/platinum-trimmed porcelain crockery has fans round the world. And when you have a list of buying 25,000 pieces of China-ware you obviously would want a good bargain. Not that she really needs it, though!

What is surprising is that, the huge order has not been placed in the posh Noritake showroom in Mumbai’s Kemps Corner which is a stone’s throw from the Ambani Tower but she has chosen Sri Lanka for this acquisition. Noritake offers products at cheaper rates in Lanka as the brand has its largest manufacturing facility in Sri Lanka and exports its fine-china to 100 countries from here.

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Nita, who holds a qualification of an interior designer, has previously gifted Noritake crockery to friends and family as a Diwali gift. So maybe all the purchase from Lanka is not headed towards the 27-floor residence.

M Deva Raja, General Manager of Noritake Sri Lanka, said the company has an enquiry from Ambani for more than 20,000 pieces but has not supplied anything yet. A Reliance spokesman declined comment.

You can see a remarkable difference in cost when you compare the prices of the same products sold in India and in Sri Lanka. A 50-piece dinner set with 22 carat gold/platinum trimmings could cost $300-500 in Sri Lanka while the same would be priced between $800 and $2,000 in India. Multiply that by 500 (to cover Nita Ambani’s 25,000-piece order) and the price could have hit $1 million at the upper end in India.

Shobhaa De, an Indian critic, says,”If she is indeed buying her crockery from Sri Lanka, I would say that she is a practical Gujju housewife, cost-conscious and sensible and I admire her for it,” Ms De said. “Why should she pay five times more for something here? She is setting a good example for others to follow!” Gujju stands for Gujaratis who are the natives of the state of Gujarat, India. Gujaratis are often known to be stingy.

Sri Lanka, The Pearl of the Indian Ocean, is known for its natural beauty, lush tropical forests, white beaches and diverse landscape throughout along with a rich biodiversity. The country lays claim to a long and colorful history of over three thousand years, having one of the longest documented histories in the world.

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CONCLUSION

The starting point for identifying successful Luxury brand strategies in

India has been established by identifying certain salient aspects of luxury

brands that remain constant as well as identifying the stage of mindset of

the Indian consumer towards these brands.

The focus is now towards ‘how many’ more luxury brands will enter the

market to gain a first mover advantage, which is of significant importance

in India. Apart from ‘how soon’, we primarily focus on

‘How will’ luxury brands cater to the mainly aspirational needs of the

Indian consumer.

A word of caution that goes for luxury marketers, irrespective of their

brands and geographical presence – The luxury consumer is always

looking for newer ways to satisfy his continuously changing needs.

Hence, the need to keep a close tab through insightful research is of prime

importance.

As far as India is concerned, given the rapidly accelerating affluence of

the masses, the scenario is set to witness a boom. The ones who will be

riding the wave will be the ones who have kept their ears open to each

and every word of their each and every customer. After all, in the luxury

business, no marketer can afford the luxury of treating its consumers as a

loosely bunched segment.

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BIBLIOGRAPH

1. unitymarketing.com

2. hindustantimes.com

3. brandchannel.com

4. Wikipedia.com

5. eluxury.com

6. Luxurymarketing/India.com

7. Forresterr.com

8. www.luxurycarwheelsindia.com

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