I'd previously written about how LVMH is aggressively turning into one of the most influential luxury goods companies in India. Now, LVMH has become enough of a mass presence here to call the shots in negotiations over real estate and advertising space. The company has bagged some of the best retail spots in new, high-end shopping malls in Mumbai and Delhi, edging out rival companies to lesser corners.
"When they arrive with their brands, they push everyone else out," says Christian Blanckaert, Hermès' executive vice-president, who visited New Delhi in March to scope out locations for the brand's first stores in India.
In India, the rush for good space is key to cementing a presence in one of the world’s hottest emerging luxury goods markets, and competition is fierce for the few new retail locations that are suitable. At the Emporio shopping mall in New Delhi, LVMH has hogged two of the best locations by reserving boutique space for Louis Vuitton and Dior, and it is considering opening shops for other brands, including Fendi and Celine. The shopping centre is scheduled to open by the end of 2007.
With the September launch of Vogue India, LVMH will have more opportunities to tap synergies. Alex Kuruvilla, the managing director for Condé Nast India, which publishes Vogue, says LVMH will be buying bulk ad space for its brands — at discounted rates. "LVMH is in a better position than other small, individual brands," says HSBC luxury goods analyst Antoine Belge.
Source: Mint
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