The high-end Indian consumer has never had it better. If you thought 2007 was the year of luxury brand launches, Ruchika Mehta says things are set to get bigger and better in 2008
Pierre Cardin may have kick-started the entry of Western luxury brands in India nearly a decade ago, but no one could have predicted the potential the country holds for luxury goods and services today. The new darling of the luxury industry, India is at the threshold of a veritable 'luxeplosion' with 2007 becoming synonymous with the year of luxury brand launches.
If 2006 was the year of the (proverbial) bottom of the pyramid, 2007 was all about the realisation of opportunity at its summit. Some evidence of that legitimising of self-indulgence came in the form of ten luxury brands (no less) like Fendi, Escada, Alfred Dunhill, Gucci, Ermenegildo Zegna, Bruno Magli, Jimmy Choo and Bottega Veneta marking their entry this year. Italian super luxury sports car maker, Automobili Lamborghini, launched two models of the car, while Rolls Royce arrived at a Mumbai mall and ‘officially’ sold 10 Phantoms.
However, 2008 is the year to watch out for, as things will get bigger and better for the Indian luxury consumer. Brands like Hermès, Just Cavalli, Emporio Armani, Dolce & Gabbana, Jean-Paul Gaultier, Alberta Ferretti, Tod’s and Tiffany, among many others, are waiting in the wings.
It is no longer inconceivable to spot a Bentley Continental GT zipping down Mumbai’s Marine Drive, or fashion forward women walking out of salons in Cavalli jeans and Hermès handbags. According to a recent study, there are over a million luxury consumers in India, but this is just the tip of the iceberg. This number is only a fraction of eight million plus consumers who have high disposable incomes but are unfamiliar with luxury brands. The growth rate of the Indian luxury segment is 14.6 per cent, and the target audience is 22-55 year olds. It is currently worth US$ 444 million (or Rs 2,400 crore according to KSA Technopak’s 2006 India Luxury Trends report) and is set to expand with a new firm to facilitate process by bringing together buyers and manufacturers.
But shopping for luxury brands is an experience in itself, and not merely buying goods. Until this year, appropriate real estate, space and ambience were a sore point with most Western luxury brands. Five star hotels were the only, and necessarily limited, option. Developers soon saw the potential in this segment, and the country’s first luxury mall, The Galleria, currently houses Gucci, Bottega Veneta and Jimmy Choo at its swanky Nariman Point address in Mumbai.
Delhi too is set to get its very own luxury shopping destination with India’s largest realtor, DLF, launching Emporio early next year. Emporio will be India’s answer to London’s Bond Street. Four floors of only high-end luxury brands will lend another dimension to the Indian luxury retail market.
No doubt, there’s a lot for the aspirational Indian to look out for. After all, the future looks nothing short of luxurious for the conspicuous consumer!
Ruchika Mehta is editor Hello! and Grazia. Views expressed in this article are her own
This article is part of Luxeletter.
