NEW DELHI: Convinced that rich Indians won’t cut on their indulgences, especially for once-in-a-lifetime event like wedding even during the current meltdown, luxury brands are busy expanding their footprint. Brands like Cartier, Hermes, Hugo Boss, Longines and Christian Dior are banking on robust—30 % plus—sales growth in the upcoming wedding season, and are busy launching new stores. They are Indianising their ensemble to meet local needs.
Says Sanjay Kapoor, MD, Genesis Luxury Fashion, the company that markets European luxury brands like Canali, Kenzo, Paul Smith, Just Cavalli and Aigner in India: “Luxury products are bought out of choice and thus its demand remains inelastic. Moreover, inflation and financial crisis will not have significant impact considering that the wealthy buyers of luxury products will always have disposable cash.”
As per ET-AT Kearney’s Indian Luxury Review 2007, the $500-million domestic market for luxury products (apparel, watches, jewellery , wines & spirits and accessories) may grow over 20% year-on-year for the next 7-8 years and more than quadruple to $2.6 billion by 2015. The $4.4-billion Indian market (minuscule in comparison to global standards) for luxury products, services (hotels, resorts, fine dining and spas) and assets (homes, cars, jets, yachts and art) too will become a $30-billion phenomenon by 2015.
Says Longines regional sales manager Claude Jaunin: “We introduced a special packaging embedded in gold and red five years ago which we will replicate this year too. We have also introduced elements such as diamonds, mother of pearl and gem stones in the watch and packaging because we see strong sales during the wedding season.”
An exponential growth in the number of rich and very-rich households coupled with growing awareness and aspirations is driving this growth in luxury consumption. While there were 83,000 dollar-millionaire in India in 2005, their number has doubled in the last three years to 1.67 lakh, according to Capgemini Merrill Lynch Asia Pacific Wealth Report 2008. No wonder, most luxury goods marketers are still upbeat on the India growth story.
While French fashion brand Hermes plans to open multiple boutiques in India with the first one opening in New Delhi on October 17, another iconic French luxury label, jewellery and watch maker Cartier, will open its first boutique store in DLF Emporio next month. Inspired by Indian motifs and creative heritage, Cartier will also launch its ‘Inde Mystérieuse’ collection, targeting the Indian wedding season. The collection will have facets of India through ribbed and engraved gems and golden-brown diamonds cut in Indian fashion.
Says Dior Watches India marketing manager Karishma Manga: “Even if the global economic slowdown has made an overall impact, for some brands the market is still growing strongly. For Dior, the Indian wedding season in the year-end makes this quarter very important.” Keeping Indian’s growing penchant for diamonds, Christian Dior has unveiled the limited edition of Dior Christal Dazzling Automatic Watch, especially targeted at the Indian wedding season, priced at Rs 7-8 .5 lakh.
Hugo Boss is introducing BOSS Selection line, targeted at the upcoming wedding season. Says Hugo Boss India brand manager Harish Chandra: “The wedding season in India is one of the most important times of the year for Hugo Boss. While footfalls are at an all-time high during this period at our stores, the actual sales are higher by 30-40 % during the wedding season.”
