Indo france 2012 (6)

5

Transcript of Indo france 2012 (6)

Page 1: Indo france 2012 (6)
Page 2: Indo france 2012 (6)

8 � Indo-French

INDIA - Demystifying the Luxury Mantra

Ŷ Abhay Gupta

TKH�P\VWLFLVP� RI� ,QGLD� KDV� DOZD\V�enchanted the west. Many could not UHVLVW� VXFFXPELQJ� WR� KHU� K\SQRWLF�

FXOWXUH�DQG�PDQ\�ZHVWHUQHUV�KDYH�PDGH�,QGLD�WKHLU�SHUPDQHQW�DERGH���

+LVWRULFDOO\�� ,QGR�)UHQFK�EXVLQHVV� UHODWLRQV�JR�EDFN�D�IHZ�KXQGUHG�\HDUV�ZLWK�WKH�)UHQFK�HVWDEOLVKLQJ�WHUULWRULHV�LQ�3RQGLFKHUU\��0DOH�and Chandernagore. Dr Francois Bernier was the personal physician to the mogul Emperor $XUDQJ]HE��$QG� PRUH� UHFHQWO\� )UDQFLV�:DF]LDUJ��:KR�FDQ�IRUJHW�KLV�LPPHQVH�ORYH�IRU�,QGLD�DQG�KLV�KXJH�FRQWULEXWLRQ�LQ�UHVWRULQJ�and creating Neemrana luxury hotel chain EHVLGHV�PDNLQJ�,QGLD�KLV�KRPH�VLQFH�����"

/X[XU\� JRRGV� DQG� EUDQGV� DFURVV� LQGXVWU\�sectors too are found to feel the need to HQFKDQW� ,QGLDQV�ZLWK� WKHLU�ZDUHV� DQG� DUH�KXPPLQJ�WKH�³/X[XU\�0DQWUD´��%XW��LV�,QGLD�QHZ�WR�OX[XU\"�1RW�UHDOO\��

$�TXLFN�GHOYH�LQWR�KLVWRU\�DQG�RQH�UHDOL]HV�WKH�IDFW�WKDW�OX[XU\�LV�QRW�DOLHQ�WR�,QGLD��

���'LDPRQGV�ZHUH�¿UVW�PLQHG�KHUH�RYHU������years ago

���7DM�0DKDO����WKH�OX[XU\�HSLWDSK�RI�ORYH�H[LVWV�VLQFH�������

��� ,Q� WKH� ODVW� FHQWXU\� WKH� ULFKHVW� RI� DOO�PDKDUDMDV�DQG�UDMDV�LQ�,QGLD�ZDV�WKH�1L]DP�RI�+\GHUDEDG�����WK�RQ�)RUEHV�OLVW�RI�³$OO�WLPH�ZHDOWKLHVW´�DQG�ZRUWK��������ELOOLRQ���

���)RUEHV������OLVW�FRQ¿UPV�WKDW�WRGD\�,QGLD�KDV�TXLWH�D�IHZ�LQ�WKH�WRS�¿IW\�ELOOLRQDLUH¶V�FOXE�

��� ,WV���������+1,�KRXVHKROGV�DUH�VODWHG�WR�PRUH�WKDQ�GRXEOH�LQ�WKH�QH[W�WKUHH�\HDUV��VXEVWDQWLDWLQJ�WKH�SURMHFWLRQ�WKDW�WKH�OX[XU\�LQGXVWU\�ZLOO�HDVLO\�KLW�WKH�����ELOOLRQ�PDUN�E\������

,QGLD�KDV�FDXJKW�WKH�IDQF\�RI�WKH�EHVW�OX[XU\�EUDQGV� LQ� WKH�ZRUOG� IURP� IDVKLRQ�� OLIHVW\OH��DXWRPRELOHV��DYLDWLRQ��\DFKWV��ZLQHV��KRPHV�and real estate. Considered as the fastest growing market for luxury goods, an average RI�RYHU����SHUFHQW�JURZWK�KDV�EHHQ�PDLQWDLQHG�FRQVLVWHQWO\�RYHU�WKH�ODVW�¿YH�\HDUV��

,QGLD� LV� QRZ� EHLQJ� FRQVLGHUHG� DV� WKH� QHZ�0HFFD�RI�OX[XU\���%XW�LV�,QGLD�UHDG\�WR�UHFHLYH�

Asian countries’ stages of Luxury Evolution

Source: The Cult of the Luxury Brand inside Asia’s love affair with luxury. Radha Chadha & Paul Husband

DOO�WKH�KLJK�HQG�EUDQGV�DV�\HW"�7KLV�KDV�EHHQ�D�GHEDWDEOH�LVVXH�IRU�VRPH�WLPH�QRZ��(VSHFLDOO\��is it at the same level as the west or China, WKH� OHDGLQJ�%5,&� FRXQWU\�ZKLFK� DFFRXQWV�IRU� ��� SHUFHQW� RI� ZRUOG¶V� OX[XU\� EX\V"��+6%&�UHSRUW��6HSW���������� ,URQLFDOO\�� WKH�VDPH�UHSRUW�DOVR�VXJJHVWV�WKDW�,QGLD�KDV�EHHQ�VWHDGLO\�JURZLQJ�DQG� LV�EHFRPLQJ� WKH�PDLQ�KXE�IRU�WKH�OX[XU\�EUDQGV��7KLV�LV�ZKHUH�WKH\�QHHG�WR�EH�±�WKH�WLPH�LV�³QRZ´�

7KH�ZRUOG�LV�ZHOO�DZDUH�DERXW�WKH�GLYHUVLW\�RI� WKH� ,QGLDQ� FXOWXUH�ZLWKLQ� LWV� ERXQGDULHV��From north to south and east to west, tastes and patterns may vary. But the aspirations of a strong and multifaceted society are fuelling WKH�GHVLUH�WR�RZQ�WKH�YHU\�EHVW��:H�VHH�D�QHZ�G\QDPLVP�DV� LW�PDUFKHV� RQ� WR� EHFRPLQJ� D�JOREDO�HFRQRPLF�SRZHU�

The Stages of Luxury Evolution

,Q�RUGHU�WR�XQGHUVWDQG�IXUWKHU��OHW¶V�WDNH�D�ORRN�at the journey of luxury with an emphasis on WKH�6(�$VLDQ� FRXQWULHV� ±� WKH� VWDJHV� RI� WKH�OX[XU\�HYROXWLRQ���%\�5DGKD�&KDGKD��3DXO�+XVEDQG�

Page 3: Indo france 2012 (6)

:KHUHDV�LQ�&KLQD�OX[XU\�KDV�DOUHDG\�PRYHG�from the start of the money to the third stage – the show off stage, in Japan, luxury is already D�ZD\�RI�OLIH��7KH\�VD\�WKDW����SHUFHQW�RI�WKH�ZRPHQ� LQ� -DSDQ�RZQ� D�/RXLV�9XLWWRQ�EDJ���2Q� WKH� RWKHU� KDQG�� ,QGLD� LV� MXVW� HPHUJLQJ�DQG�PRYLQJ� WKURXJK� WKH�¿UVW� VWDJH� LQWR� WKH�VHFRQG�WKDW�LV��WKH�µ6WDUW�RI�PRQH\¶�SKDVH�DQG�is galloping to catch up with China very fast.

$QRWKHU� UHSRUW� UHFHQWO\� SURYLGHG� E\�$7�Kearney shows us how fast this pace of growth LQ�,QGLD�LV���)LIW\�OX[XU\�RXWOHWV�ZHUH�DGGHG�during the current year. These were not just FRQ¿QHG�WR�WKH�PDMRU�FLWLHV�EXW�HYHQ�FRYHUHG�the 2nd tier cities.

����RI�WKH�VWRUHV�ZHUH�DGGHG�RXWVLGH�0XPEDL�DQG�'HOKL��LQFOXGLQJ�QHZ�FLWLHV�RQ�WKH�OX[XU\�PDS�VXFK�DV�3XQH��6XUDW��/XGKLDQD

Increase in Luxury Outlets in 2012

The annual consumption of the emerging

markets is expected to climb up to $30

VTKNNKQP�HTQO�����VTKNNKQP�D[�������YJKEJ�accounts for 70 percent of global economic

ITQYVJ��/E-KPUG[��6JG�EQWPVTKGU�VJCV�QPG�can recall as an emerging market are India,

$TC\KN�CPF�%JKPC�VQ�PCOG�C�HGY

Indo-French� 9

Page 4: Indo france 2012 (6)

The annual consumption of the emerging PDUNHWV�LV�H[SHFWHG�WR�FOLPE�XS�WR�����WULOOLRQ�IURP����� WULOOLRQ� E\� ������ZKLFK� DFFRXQWV�IRU� ��� SHUFHQW� RI� JOREDO� HFRQRPLF� JURZWK���0F.LQVH\��7KH�FRXQWULHV�WKDW�RQH�FDQ�UHFDOO�DV�DQ�HPHUJLQJ�PDUNHW�DUH�,QGLD��%UD]LO�DQG�&KLQD� WR�QDPH�D� IHZ��7KH�+LJK�1HW�:RUWK�,QGLYLGXDOV�LQ�,QGLD�URVH����SHUFHQW�WR���������IURP���������DQG�LV�H[SHFWHG�WR�DVFHQG�E\����SHUFHQW� WR���������E\������ �(XURPRQLWRU���*LYHQ�WKLV�IDFW�RI�WKH�ULVLQJ�+1:,�QXPEHUV�LQ�,QGLD��WKH�OX[XU\�PDUNHW�LV�SUHGLFWHG�WR�JURZ����SHUFHQW�HYHU\�\HDU�WLOO�������ZKHUHDV�&KLQD�ZLOO�JURZ�ZLWK�RQO\����SHUFHQW�SHU�\HDU��2QH�RI�WKH�WRXJKHVW�PDUNHWV�WR�GR�EXVLQHVV��%UD]LO�expects its luxury goods industry to grow PRUH�WKDQ�����ELOOLRQ�WKLV�\HDU�ZLWK�WKH�JUHDW�QXPEHU�RI�µQHZ�PRQH\¶�PLOOLRQDLUHV�VXUIDFLQJ�and chasing the luxury dream.

:H� DOVR� VHH� D� VLWXDWLRQ� LQ� ,QGLD��ZKHUH� D�SRUWLRQ�RI�LWV�+1:,�SRSXODWLRQ�VSHQGV�RYHU������PLOOLRQ�HYHU\�\HDU�VKRSSLQJ�LQ�RYHUVHDV�OX[XU\�PDUNHWV� �UHSRUW� E\�$OWDJDPD�� (X���7KLV�VSHQGLQJ�QRZ�QHHGV�WR�EH�GLUHFWHG�KHUH�LQ�,QGLD�DQG�FRXOG�EH�WKH�JDPH�DFFHOHUDWRU�LI�executed well.

Challenges to growth of luxury

The Challenges

:KHUH� ZH� VHH� JURZWK�� WKHUH� DUH� DOZD\V�FKDOOHQJHV�WKDW�KLQGHU�SURJUHVV��,Q�,QGLD��WKH�major challenges are related to lack of luxury UHDO�HVWDWH��ODFN�RI�WUDLQHG�WDOHQW��UHJXODWRU\�LVVXHV�OLNH�KLJK�LPSRUW�GXWLHV�DQG�)',��7KH�)',��IRUHLJQ�GLUHFW�LQYHVWPHQW��QRUPV�KDYH�EHHQ� QRZ� UHOD[HG� DQG� WKH� JRYHUQPHQW� LV�JLYLQJ�WKH�JUHHQ�OLJKW�WR�PDQ\�RI�WKH�EUDQGV�ZKR�KDYH�EHHQ�ZDLWLQJ�WR�FRPH��$OWKRXJK��QR�VL]HDEOH�QHZ�OX[XU\�PDOOV�ZHUH�DGGHG�LQ�������WKHUH� DUH�PDQ\� SURMHFWV� LQ�'HOKL��0XPEDL�and Pune. Newer properties to accommodate OX[XU\�EUDQGV�DUH�DOVR�EHLQJ�FUHDWHG�LQ�WZR�WLHU�FLWLHV�DQG�ZLOO�EH�IXQFWLRQDO�RYHU�WKH�QH[W�three years.

2QH�RI�WKH�FULWLFDO�IDFWRUV�DV�SRLQWHG�RXW�E\�WKH�DERYH�JUDSK�LV�WKH�ODFN�RI�WDOHQW��VNLOOHG�PDQSRZHU� IRU� WKH� OX[XU\� VHJPHQW��7KLV� LV�D� VHULRXV� LVVXH�DQG�PDQ\�EUDQGV�DUH� IDFLQJ�WKLV� SUREOHP��$V� SHU� D� QDWLRQDO� UHSRUW�� E\������WKH�OX[XU\�VHFWRU�LV�HVWLPDWHG�WR�UHTXLUH�DSSUR[LPDWHO\� �����PLOOLRQ� WUDLQHG� SHRSOH�DFURVV�WKH�ERDUG��

$� VXUYH\� FDUULHG� RXW� E\� /X[XU\�&RQQHFW�KLJKOLJKWHG� WKH� IDFW� WKDW� WKH� FXUUHQW� ,QGLDQ�luxury personnel lacked skills in ‘Luxury Brand Management’ as well as ‘Luxury &XVWRPHU�([SHULHQFH�0DQDJHPHQW¶��,Q�RUGHU�to meet these challenges, Luxury Connect DVVRFLDWHG� LWVHOI�ZLWK�6'$�%RFFRQL� IRU� WKH�EUDQG�PDQDJHPHQW� SURJUDP� DQG� KDV� EHHQ�successfully conducting these programs in ,QGLD��

7KH� UHVHDUFK� DOVR� EURXJKW� IRUZDUG� DQ�LQWHUHVWLQJ�REVHUYDWLRQ�WKDW�WKH�KXJH�)UHQFK�conglomerate LVMH is perceived to offer the EHVW�FXVWRPHU�H[SHULHQFH�ZRUOGZLGH��/X[XU\�&RQQHFW�%XVLQHVV�6FKRRO��,QGLD�KDV�WKHQ�GXJ�deeper to tie up and partner with Jean-Claude Roustant, the ex training director of LVMH to EULQJ�WKH�VDPH�VHUYLFH�FXOWXUH�WUDLQLQJ�WR�,QGLD���-HDQ�&ODXGH�KDV�EHHQ�WKH�WUDLQLQJ�GLUHFWRU�RI�LVMH for over 13 years and has not only designed the LVMH service culture contents, EXW�DOVR�LPSOHPHQWHG�WKHP�ZRUOGZLGH��7KLV�SLRQHHULQJ�YLVLRQ�E\�/X[XU\�&RQQHFW�LV�WKH�¿UVW�DQG�RQO\�LQLWLDWLYH�RI�WKLV�NLQG�DQG�KDV�PHW�with an outstanding acceptance and success IURP�RQH�DQG�DOO��,Q�DGGLWLRQ��LQ�LWV�HQGHDYRXU�

10 � Indo-French

Akshay Gupta
Page 5: Indo france 2012 (6)

Indo-French� 11

Abhay Gupta, founder promoter & CEO of

Luxury Connect, is also the recent recipient of the

prestigious ‘Luxury Retail Icon of the year’ title

by Asia Retail Congress. A pioneer and veteran

of luxury in India, he helped not only bring in but

establish luxury brands like Versace, Versace Home,

Versace Collection, Corneliani, John Smedley,

Tween Damat ADV and Arredo Classic in India.

He has been widely recognized as Luxury Expert

by Forbes magazine (March 2012 and November

�������&1%&��&11��1'79�3UR¿W��%XVLQHVV�,QGLD�(April 2012), Economic Times, Hindustan Times,

Retailers India and Black Book.

WR�SDUWQHU�ZLWK�WKH�EHVW�LQWHUQDWLRQDOO\�IDPRXV�luxury schools, Luxury Connect has tied up DQG�LV�WKH�RI¿FLDO�FKDQQHO�SDUWQHU�IRU�%XVLQHVV�6FKRRO�RI�/DXVDQQH��6ZLW]HUODQG��7DONV�DUH�DOVR�RQ�ZLWK�(,0/�3DULV�WR�EULQJ�WKHLU�YDULRXV�SURJUDPV�LQWR�,QGLD��/X[XU\�&RQQHFW�LV�DOVR�WDONLQJ�DQG�SODQQLQJ�ZLWK�(XURSHDQ�EUDQGV�WR�have these students exposed to at least eight weeks of internship.

The Way Forward

Understanding the market psyche is very LPSRUWDQW��,QGLD�KDV�GLYHUVH�WDVWHV�DQG�PDQ\�WLHUV� RI� FXOWXUH�� ,QWHUQDWLRQDO� EUDQGV� WKDW�have understood this are having resounding VXFFHVV��7KHUH� KDYH� EHHQ� IDLOXUHV� WRR�� EXW�WKH�SULPH�UHDVRQ�IRU�WKDW�KDV�EHHQ��VHOHFWLQJ�WKH� ULJKW� SDUWQHU��7KH�S\UDPLG�EHORZ�JLYHV�GLUHFWLRQ� DV� WR�KRZ� WKH�PDUNHW�QHHGV� WR�EH�approached.

:LWK�WKH�RQFRPLQJ�ERRP�LQ�WKH�,QGLDQ�OX[XU\�market that we will witness soon, there are various opportunities, challenges as well as SURVSHFWV�� (VVHQWLDOO\�� WKH� EUDQGV� QHHG� WR�focus on the need to have a correct partner, EHVLGHV� MXVW� WKH� FRUUHFW� ORFDWLRQ��7KLV�ZLOO�KHOS� GHP\VWLI\� WKH�PDUNHW� DQG� EUDQGV� FDQ�FRPPXQLFDWH� WR� DQ� DSSUHFLDWLYH� ,QGLDQ�audience which has opened its heart and wallet to luxury.

To succeed in the India luxury market, brands need to focus on four dimensions

Reaching the India luxury customer

7KH�NH\�WR�VXFFHVV�LV�WR�EH�DEOH�WR�SRVLWLRQ�WKH�EUDQG�LQ�FRUUHFW�VWUDWD�RI� WKH�S\UDPLG�±�VWDUWLQJ�DW�WKH�HYHU\GD\�RU�DIIRUGDEOH�OX[XU\�WR�WKH�KLJKHVW�OHYHO�RI�EHVSRNH�OX[XU\��)RU�WKLV�LW�EHFRPHV�PRVW�HVVHQWLDO�±�WKDW�\RX�WHDP�XS�ZLWK� WKH� FRUUHFW� SDUWQHU�� �7KH� FRPELQDWLRQ�of this formula could guide you towards the ZLQQLQJ�PDQWUD�

$OVR�OHW¶V�ORRN�DW�VRPH�PRUH�IDFWRUV�WKDW�PD\�ensure the success of the winning mantra. The IROORZLQJ�.HDUQH\�UHSRUW�VXPV�LW�XS�ZHOO�

The brands need to

focus on the need

to have a correct

partner, besides just

the correct location

Akshay Gupta