The Indian luxury market is expected to cross $32 billion by 2020 in the first quarter from the current $23.8 billion. The exposure of international brands amongst Indian youth and higher purchasing power of the upper class in tier II and III cities are bringing a change. However, the mindset needs to change. The Modi government may show its full might towards its various initiatives, but they need to be practiced to the full to give that push to Indian conglomerates that dare to think big, think luxurious! It is only then that the vast consumer expenditure on foreign luxury experience can be routed back into the country.

By Sanjana Mohan                    
India’s luxe story is just getting more intriguing! Instead of building ‘brand India,’ the Indian consumer is being distracted towards a lush foreign market. A recent study by ASSOCHAM concluded that the Indian luxury market is expected to cross $32 billion by 2020 in first quarter from the current $23.8 billion.

The exposure of international brands amongst Indian youth and higher purchasing power of the upper class in tier II and III cities are bringing a change. Another wealth report by ‘Knight  & Frank’ claims that India will account for 5 per cent of the total Ultra High Net worth Individuals (UHNWI) population and 6 per cent of the billionaire population across the world by 2025.

Standing on the threshold of becoming a superpower, India has its share of magnificent markets and brands that cater to the luxury segment. But we prefer to spend our cash reserves on foreign shores, rather than building our Indian brands. We would rather pick a cream from Estee Lauder than discover the richness of ‘Khadi.’

The difference here lies in the packaging, the positioning, the appeal, and ultimately, the experience! What does Indian luxury mean to the world – it is what defines India, the grandiose, the extravagant, the magnificent, the gorgeous, the palatial and the Indian trademark! 

This makes India’s position unique as it perseveres to establish brand ‘India’ to the world. But even then, our domestic consumers spend on luxury products abroad. Indians like traditional clothes and jewellery, but international brands score over in shoes, bags and accessories. Most HNIs prefer to shop abroad for these categories as the same brands in India cost a lot more, owing to the high luxury tax.

Therefore, it is time we work towards making our Indian brands more appealing, more luxurious!

India’s global brand-building efforts can be pushed by the ‘Make in India’ and ‘Skill India’ initiatives. When our skilled labour moves towards foreign brands, shamelessly disseminating their talent, but not to our benefit, we must hang our heads in shame! Our brands don’t lack the quality or the opulence, but the vision and the positioning. 

This can be further elaborated by innovation and designing - creating that Indian stamp! The advantage we have over the rest of the world is our rich heritage, and we should play ball with it! Like Sabyasachi! When he goes westward to create a brand, he collaborates with the very fancy Christian Louboutin to create stunning footwear and a bigger brand, wooing a larger set of people.

There are other homegrown inspirational stories too like HiDesign, Allen Solly, Van Heusen, Da Milano, Louis Philippe and many others who are showing their way on how to establish their own in a sparse Indian luxury market. 

Indian luxury brands need that exposure and ample backing from the government to establish their forte! Why is it that an Indian brand launched abroad and then positioned in India, is lapped up the consumer? It’s not just the product, but the mindset too that needs to change.

The Modi government may show its full might towards its various initiatives, but they need to be practiced to the full to give that push to Indian conglomerates that dare to think big, think luxurious! It is only then that the vast consumer expenditure on foreign luxury experience can be routed back into the country. It’s a vicious circle that first needs an Indian brand building exercise. It is time to think magnificent, for India! 

Idiosyncratic
The luxury industry is more idiosyncratic, every brand has a different approach as for example we could think of Ferrari’s noise as product flaws but from a luxury experience perspective, and this is the brand’s philosophy.

It also invests in Formula 1 events, and rarely advertises as they believe in performance. In luxury, passion and dreaming are valued along with its functionality. La Martina applies this principle by defining itself not as a fashion brand, but as a polo brand. They are mostly present in all polo events and also they reinforce their belief in several touch-points, like in designing the clothes, also in the atmosphere of their stores.
In a similar manner, Bottega Veneta has no visible brand symbol, but still, consumers recognize the brand seeing the weaved leather pattern for which the company is known. Again when we think of Chanel, the black and white colors, the intertwined c’s, the number five, a string of pearls, a camellia and a little black dress comes to mind.

Adopting the principle of luxury experience we have one more premium brand Absolut Vodka. Its 800 collaboration with the artist has iconized the shape of its bottle by consistently developing advertisements focusing on its interpretation.

Hermes customers have to form a long-term, intimate relationship with the store before they are given the opportunity to buy one of the brand’s “it” bags. Rather than putting off customers, this behavior creates a sense of belonging to a special group. Customers who are admitted then stay for a long time and are rewarded for their loyalty. 

Aston Martin also believes in relationships, this is the brand which extends its invitations to events and maintains long-term relationships with the customers, even with the ones who bought their cars twenty years ago.

If we talk about mass brands, their aim is to communicate their value or advantages over other brands but luxury brands don’t push customers to buy the product. Rather, they communicate the legends associated with the brands. Luxury products, their stores, and marketing actions narrate a story and heritage of the brand. For example, Rolls Royce invites a few selected customers to visit its manufacturing facilities to experience the production process, yet there is no pushing to customers to buy the product.

Similarly, Polaris the pioneers in the category of off-road vehicles, are creating the right placement for the product with the Pioneering concept of Polaris Experience Zone. Polaris India team has created around 90 Polaris Experience Zones in India and is gearing to cross 100 very soon which makes there strategy different from the masses. Besides the Polaris ATVs are much sought after by the off-road racing community. Polaris India thus participates and conducts off reading events.  

Polaris also owns the luxury motorcycle brand Indian, which is America’s first motorcycle company. Indian Motorcycle India has conducted national rides with its customers on prestigious events that include national importance (20 years of Cargill War with Indian Army) and also associate with customers riding on legendary Indian Motorcycle making a difference in the society.

The launch of new products is conducted at various cities where existing and target customers are invited to showcase the product and in all such events some celebrity is invited. Recently in the FTR 1200 launch of Indian Motorcycle India, we saw from Bollywood R Madhavan, Rohit Roy and Sahil Khan gracing such event.

Companies like this make us believe that we can bet on our country on luxury and make a difference even by owning international brands. Polaris has proved its strength by conducting many rides to support Girl Child Education and conducts events for customers to engage and enjoy together which makes all the Indians believe in the product and makes it the first buyer’s choice.

Similarly, if all the Indian companies adopt such methods or create their unique propositions to promote the sale, our country can mark its name in the luxury segment with pride. Nor can it just talk about few brands in the listing but we would have a plethora of players in the list.

Image Courtesy – Sunday Guardian / FB - Esparto Events 

(Writer Sanjana Mohan is an innovative, multifaceted, dedicated and solutions-focused International Consultant with a 19+ year career demonstrating visionary leadership and outstanding performance in business innovations, new businesses, and market strategies. She was Editor-In-Chief for 3 business magazines during her tenure in journalism. )

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