Luxury and the brand
Even as the economic slowdown slowly started gripping India, it was still seen as one of Tiffany Outlet the promising new markets for luxury brands from across the world.
India as we all know do not have any high street such as the Sloane Street, Bond Street or the Oxford Street in London, rue du fauboug Saint Honor or Avenue Montaigne in Paris or Fifth Avenue in New York. These are areas that cater to the needs of luxury retailing in terms of fancy buildings and neat streets. More over, luxury brands would always want their like minded neighbours as they cater to the needs of high profile clients and would never want brands that Tiffany Outlet are several notches below their league occupying spaces in and around their stores.
With such a mindset, when these brands entered India a while ago, they had to remain within five star hotels’ shopping arcades as luxury retail infrastructure was unheard in the country that time. But slowly that too started getting exhausted as more and more brands started occupying the spaces in hotels. Then it became imperative that brands willing to enter Indian market have retail spaces matching their requirement.
This is when some of the real estate companies in India sensed the need of having luxurious retail ambiences that not only cater to the needs of luxury brands, but can boost their business prospects as well. With the opening of UB City Mall in Bangalore, Palladium in Mumbai and the Emporio in Delhi and some similar conce Tiffany Outlet pts coming elsewhere in the country, prospects in terms of luxury retail ambience surely is looking up. However, with fewer options placed before these brands, real estate developers are charging exorbitant rates per square foot rentals that are not keeping the smile on the faces of CEOs of luxury brands.
The other factor has always been the high tariffs that India demands from luxury brands. In a situation such as this one, such burdens are passed on to the consumers and those going in for these brands are well traveled class and when they have the opportunity to travel, why would they want to pay more and buy the brand that they can buy from Singapore, Milan or Paris?
Brands found a way out from this too. They realized that if products were excessively priced doing business in India would not be possible. Those who have entered the country now cut down on their profit margins and try and give the consumer prices that are comparable elsewhere in the world.
Now India has several brands like never before from the world of luxury in different segments. From watches, fashion, accessories, jewellery to automobiles, home ware and private jets, India has many things for its elite population like never before now.
While fashion and accessories are somewhat meeting their target in sales, more expensive brands such as cars too are doing phenomenally well in sales. Rolls Royce Phantom for instance has more demand than supply in India. While the allotted number of Phantom for India is nine, the demand for the same hovers around 13. Some of the other luxury carmakers have also done exceedingly well in the country. Audi for instance is a clear success in India right from its top end model A8 to A6, Q7 and A5. Same is the case with Maybach, BMW 7 series and X6, Mercedes Benz S Class.
While these belongs to daily need categories, luxury leisure has also being seen increasing in the last few months. There are several players in the yacht segment that are doing much beyond their expectations in India. Italy’s Ferretti Yachts, tipped to be the most luxurious yacht brand in the world has several of Tiffany Outlet its boats floating on the sea in India. UK’s Princess Motor Yacht is another brand that the elite Indian is going in for. Yet another segment that is developing fast is that of private jets.
And it’s not just the top end of the country’s population that is going in for some of these brands. What really is attracting these luxury brands to India is its phenomenal growth in its middle class segment. The youth segment is earning more and has much more disposable income with them than ever before. This is where luxury brands see the future of their business.
It is members of this segment that will boost the sales of accessories along with the members of the elite. While the elite can buy all on offer at the shelves (such as expensive clothes that run into lakhs of rupees and watches running into lakhs and crores), the growing population of young Indians with increased income, more importantly disposable income go in for such accessories as shoes, belts, bags and some ready to wear.
Since Indians predominantly wear traditional clothes, especially during festive seasons, brands that have entered the country or the ones proposing to set shops here see majority of their revenue coming from accessories such as watches, shoes, bags, belts, etc. Indians are known to be big spenders for buying and distributing gifts during festive seasons and during such times too brands see major purchases being made.
Even as the West reels under the unexpected economic crisis with sales drastically falling for every single brand, luxury brands have a reason to retain their smile when it comes to India. According to some of the people associated with luxury brand retail in the country, most Indians who splurge on high end brands still continue to do so. Most of them pay in hard cash, often running into lakhs, and walk away with their favourite brands.
However, brands are still far away from reaching their targets. Most of these brands have come to India with long term objectives while there are some that are hoping to make fast bucks. Those who are not happy with their business in their stores have been taking their products for off site trunk shows and doing their business through ‘By Invitation Only’ exhibition cum sale in cities such as Hyderabad, Kolkota, Ludhiana, Chandigarh, etc.
India may be in the radars of luxury brands as one of the most promising new markets in the world. But things will have to change further in the country for it to reach anywhere close to other countries in terms of luxury retail development. Duties will have to come down so that Indians do not go elsewhere in the world and spend their money adding on to the revenue of those countries. Low tariffs will make them spend ion India and bring in revenue to our own country. If products are priced the same as they are around the world, it will also attract more tourists to India and make them spend here which is good for the economy.
Yet another change required should come from real estate sharks. The luxury retail space offered in the country is as expensive as some of the other locations in the world. The difference here is that while they are as expensive as some of the other malls abroad, the surroundings and the approach to these malls are not similar to that of the other malls on foreign shores. Yet they charge very high rates of rentals and brands having left with no other place to retail end up walking into these malls.
With all these factors falling in place, India surely can become of the favourite destinations for luxury brands. With rise in income among Indians, especially among young Indians, brands can get what they want in terms of sales and Indians too get what they want at their doorsteps.