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

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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 17
billion, up 120-150% from current levels.
10 AFFLUENT CONSUMERS OF LUXURY 18
11 THE EXISTING PLAYERS IN THE INDIAN 20
LUXURY MARKET
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 29
Mumbai, 20th to the 27th November 2010
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
IN INDIA

21 PRESENCE OF SOME HIGH PURCHASED 39

LUXURY BRANDS IN INDIA

22 HOW LUXURY BRANDS CAN ENTER IN THE 42

INDIAN MARKET?
23 SWOT ANALYSIS 45
24 Suggestions 46
25 Case study 47
26 Conclusion 51 Page 2
27 Bibliography 52
 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, luxury

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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 consumers
What 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 in-

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

33, sets the emerging young India apart

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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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Page 2
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

SOME MORE THE OTHER LUXURY BRANDS PRESENT IN

INDIA

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T2 Gucci
Fendi Chanel
Jimmy Choo Versace
FCUK Bvlgari
Burberry Mango
Moschino Lapidus

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Demand for luxury watches surges
With 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.

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.

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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 2009
La 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 2009
Yves 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 2009
The 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 2009
Ferrari 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 2009
Most 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 2009
World’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 2009
Victoria’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 2009
World’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 2009
World’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

Challenges Faced in India

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 • 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 WEAKNESSES

1. Brand Name/Brand Ambassadors 1. Concentrated Market-only metro cities

2. Customer Loyalty 2. Government Regulations
3. Quality 3. High Prices
4. Global Presence 4. Percentage of target audience is Less
5. Higher Operational cost-rents

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OPPUTUNITY THREATS

1. Manufacturing the brands in India itself 1. Fake branded stuff available in India
rather than importing it 2. Available at cheaper prices abroad
2. FDI Regulations
3. Gloabalization

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.

Even a 500-room five-star hotel with five restaurants (the only other

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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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