final talk - luxury brands

8/7/2019 Final Talk - Luxury Brands

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e to the world of
http://e/RealPlayer%20Download/RealPlayer%20Downloads/Luxury%20movie.wmv


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e to the world of


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Something inessential but conducive to pleasure and comfort.

Something expensive or hard to obtain.

Luxury is and remains whatever goes beyond what is essential.


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In Ancient Rome

Luxuria (Latin: love of show, wantness)

still a bad habit held in check by legislation


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Luxury Brands in India

Why do I need to know how the watch market

is doing? Im in the business of luxury,

Partick Heiniger, CEO, Rolex


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Opulence rather than necessities.

Brands have for centuries customer loyalty.

Louis Vuitton, Burberry and Chanel werelaunched in the 19th and early 20th centuries

when royalty and aristocracy reignedsupreme.

Designers like Christian Dior, Louis Vuitton

and Guccio Gucci designed clothes, luggageand leather goods exclusively for the noblemen and women of society.

Their work was an art and was a part of theluxury and prestige experience.

History

History
http://www.patialamarket.com/wp-content/uploads/2008/06/patiala-maharaja-bhupinder.jpg


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Maharaja of Patialawearing the 963 caratdiamond necklace.

It is supposed to bethe most importantpiece of jewellery ever

made. And it was madeby Cartier.
http://www.patialamarket.com/wp-content/uploads/2008/06/patiala-maharaja-bhupinder.jpg


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Nawab Mir Mahbub Ali Khan Bahadur,Asaf Jah VI,

The Nizam (ruler) of Hyderabad(reigned 1884-1911),

Purchased a yellow RollsRoyce in the year 1911. Itcreated a sensation.

According to transportauthorities, more than 3,000Mercedes cars were

registered in Hyderabad cityalone. This number isincreasing every month by 10to 12 cars, on an average.


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Vertu Cobra Cellphone: $310,000.

(1Crore 48 Lac 88 Thousand Indian Rs.Only )

Features Justify The Price?


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Perfumes

Only ten bottles weredesigned from exclusiveBaccarat crystal

decorated with 18 caratgold and 5 carat whitediamond.

The Imperial Majestycost $215,000 for 16.90

ounces bottle and wasavailable only for theChristmas holidayseason of 2005. OR4,96,153.8 INR for 30 ML.

Clive Christian; made in the UK.

Clive Christian: The Imperial Majesty


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5 Rs

Crores

Only


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Mukesh- larger-than-life-Ambani has boughthis wife Nita Ambani a Rs. 242 crore Airbus319 corporate jet as a birthday gift.

Birthdays will never be the same again!
http://sachiniti.files.wordpress.com/2007/11/mukesh-nita.jpg


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SRK on his birthday, today giftedFarah Khan a mercedes benz s350.

Birthdays will never be the same again!


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21st CenturyThe luxury scene has changed due to severalfactors.

1.Mass class of wealthy people have emerged

the world over.

2.Sea of luxury brands and this has affectedthe high entry barrier that the industryguarded for centuries.

3.Thirdly, the rapid growth of digital,information and communications technology


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B d T


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Luxury and prestige brands : Rolex, Louis Vuitton andCartier consumer loyalty not affected by trends.

Premium brands : Polo Ralph Lauren, Calvin Klein andTommy Hilfiger that aspire to be luxury and prestige brands

but termed as mass-premium brands or mass-luxury brands.

Fashion brands : Address the masses eg. Westside, W, LuisPhillips, Allen Shore , Reid & Taylor.

Brand Type


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Luxury consumers

SRI Consulting Business Intelligence

1. Luxury is Functionalsuperior functionality and quality.

2. Luxury is RewardIve made it!

3. Luxury is Indulgence

include younger consumers


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1.6 million households; this number is likely to cross 3million by 2010

Each household earns around Rs 45 lakh (about $100,000)

per year

The spend is about Rs 4 Lacs ($9,000) per year on

luxury/very premium goods and services

The number of households is growing at 14 per cent peryear

Source: India Luxury Trends 2006, Technopak

INCREASING NUMBERS


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With the fastest high networth individualspopulation in the world and income level ofconsumers expected to triple by 2025, India ispoised to become a manufacturing hub for globalluxury brands in the next four to five years,

According to a FICCI-Yes Bank report.


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Luxury brands associated with the core competences of

1.Creativity,

2.Exclusivity,

3.Craftsmanship,

4.Precision,

5.High quality,

6.Innovation and

7.Premium pricing.


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Craftsmanship, Precision,


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High quality, Innovation and Premium pricing.


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Creativity, Exclusivity,


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Satisfaction of not only owning expensive itemsbut the extra-added psychological benefits like

1.Esteem,

2.Prestige and a

3.Sense of a high status

belong to an exclusive group of only a select few,who can afford these pricey items.


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The Indian consumer no longer minds paying apremium for quality,- Yohan Poonawala, chairman & managing director of Poonawala Fashions.

It makes practical sense to bring internationalfashion to India. Because Indian consumers haveshown a pronounced desire to consume .


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No Yaar It's


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How pretty.New York,was it?

No Yaar , It sjust a little thing

I picked up inParee


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What's available today ranges

fromPorsche cars,Pershing yachts,

Louis Vuitton bags and suitcases,to Bang & Olufsen audio systems.

And of course, the numerousclothes brands Moschino,Cavalli, Ermenegildo Zegna and

Dolce & Gabbana (D&G), to name

Foreign brands- rapid progress.


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Upscale watchmaker Tag Heuer, 40% growth in Indiaover the last three years, Plans to expand from 80

shops to 120 in 2006.

Jimmy Choo is looking to open 10 shoe stores in Indiaby 2011. under the agreement with the New York-based

Murjani Group, which also distributes the TommyHilfiger brand in India.

Two luxury malls are being planned in Delhi, andhundreds of others throughout the country.

Chanel's Bertrand says theyr talking to chains like

Shopper's Stop, Lifestyle, and Ebony.

Ri h Ri h


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Richee Rich

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Luxury products have been available in Indiasince the 1990s.

In 1997, Mumbai based Finex Distributiondistributed Cartier and Corum.

Regent Watch & Jewellery was started in 2000with its first store at the Taj Mahal Hotel inMumbai, followed by a store at the MauryaSheraton in 2003.

All these companies are essentially distributorswho normally have sole agency rights. They alsodo promotion and the setting up of retailnetworks

Backgroun

d

The Statistics


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In 2001-2002 there were 20,000 families in India withannual income of more than Rs 1 crore .

By 2005 ,that number has increased to 53,000 families

By 2010 ,India will have an astounding 1,40,000millionaires.

It is not just the big Indian cities like Delhi, Mumbaiand Bangalore where the rich are located.

A small town like Nagpur had nine millionaires in 1995-1996. By 2001, that figure increased to 425, with agrowth rate of 91 percent.

Pune has 16,000 millionaires now (As on 2007)

The Statistics

Merrill Lynch and Capgemini's 2007 wealth report

Poonawala is the latest entrant to tap the luxury


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Poonawala is the latest entrant to tap the luxuryretail space. He stocks six brands

D&G,Just Cavalli,Versus,GF Ferre,

Exte andC'N'C Costume National His multi-brand store called Escape at the Grand

Hyatt in Mumbai. While luxury retailers arewitnessing a slowdown in sales in more maturemarkets, industry experts predict that luxury

retail in India will quadruple in the next five


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Companies like LVMH,Swatch Groupand Chanel are the only onesrepresented, in a limited way.Others, like Aigner, Montblanc and

Cartier, are present through licenseeagreements.


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Barrier is India's stiff tariffs on high-endimports. Tax on imported watches, for example,is 50%.

Joseph Wan, Group Chief Executive for HarveyNichols, the London-based retailer, says.

"Harvey Nichols caters to the top 3% of thepopulation, and that 3% are very well-traveled.

"If my Dolce & Gabbana in India has to be moreexpensive because of import duties, how can Ido any business? You just can't."

I

SSU

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Louis Vuitton, for example, enteredthe Indian market in 2003 and still

has only four outlets there, comparedto 25 in China.

"We would like to have the right toown 100 percent of our retailcompany rather than 51 percent today

- Yves Carcelle, Louis Vuitton'schief executive,I

SS

UE S

Road Ahead


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Stuart Walker, a professor of design, explains that an object

can become the culmination, physical manifestation andsymbol of good works in its intention, design making, use

and disposal... Beauty can be captured in the object through

what it represents, and not simply through its appearance.


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