luxury retailing in india
TRANSCRIPT
Work allocation…(Information
Collected By…)1. Koushik Das(131324):
Overview of Luxury Retail in India & its Distribution.
2. T Hari kumar(131449):
Luxury Retail with Mall Perspective Example,
DLF Emporio & News Article on DLF Emporio,
(RETAIL OUTLET)Kapoor Watches.
Sudhakar(133307):
News Articles Regarding Luxury Retails
4. T Harsha Vardhan(131429):
Phoenix market city mall & its all Branches.
Luxury retail distribution in India• Leather Goods and Accessories 7%
• Fashion and Clothing 7%
• Spas and Clubs 3%
• Furniture & clothing 6%
• Technology 15%
• Cosmetics and Fragrances 4%
• Alcohol and Foods 7%
• Travel Hotels 36%
• Watches and Jewelry 15%
- Source: Boston Consulting Group
Location Matters• Location is one of the important parameters, which reflects on
positioning of the brand, decides its target segment and
impacts the shopping experience to a great extent.
• In India most luxury brands prefer to operate from the five star
hotels and luxury/premium malls.
• The location should provide a relaxed atmosphere, good
adjacency of brands operating in the same segment, easy
accessibility, proximity to posh residential catchments and
ample car parking coupled with good security facilities.
Continue…
• The various formats for entry into India open for International
luxury retailers are:
• Wholly Owned Subsidiary
• Licensing Agreement
• Franchise agreements
ENTRY STRATEGY OF FEW INTERNATIONAL BRANDS
• Harley Davidson- Wholly Owned Subsidiary
• Gas- Raymond- Licensing Agreement
• Roberto Cavalli- Infinite luxury group- Franchise agreements
OBSTACLES FOR ENTRY OF LUXURY BRANDS
• The confinement of luxury brands to five-star hotels or
premium malls due to the absence of luxury shopping districts
• The local sourcing norm of 30% from small local companies is
worrying some of the international players who are concerned
about their brand image and quality
• Taxation on luxury products along with the historically weak
performance of the Indian rupee makes imports extremely
expensive
• Luxury is not about price but value.• Building a luxury brand is about trust - the kind
that develops over time, and needs consistency ofproduct and experience.
• Getting world-class services at a convenience ofprice and time defines modern luxury.
• The Luxury consumers in India are not necessarilyaffluent but aspirational. They have globalexposure and understand the value of a brandedproduct.
LUXURY
DLF EmporioNew Delhi, India
India’s biggest Luxury Mall
ABOUT DLF EMPORIO…• DLF Emporio is a shopping mall situated in Vasant Kunj, New
Delhi. It is one of the first truly zoned luxury malls to open inIndia. It is also one of the most expensive malls in the countrywith rental rates of Rs.900-Rs.1,000 per sq. ft. per month
• The mall, which has been said to be amongst the mostluxurious in Asia, is near the exclusive residential area ofVasant Vihar.BRANDS:Abhishek GuptaAbu Jani & Sandeep KhoslaDiorDKNYGiorgio ArmaniGucciHackett LondonHarry Winston
INSIDE VIEW OF DLF EMPORIO
NEWS ARTICLE ON DLF EMPORIO
KAPOOR WATCHES CO.
• Kapoor Watch Company, a well-established name in theIndian Watch Retail industry is accredited with conveying thelegacy of some of the premium luxury watch brands in Indiasuch as Baume & Mercier, Cartier and Mont Blanc etc.
• Its first stores being established in the year 1967.• Kapoor Watch Company boasts of pioneering success of a
dedicated and independent team of professionally trainedand qualified staff to cater to the needs of customers.
Luxury brands like Cartier, Armani, Diesel and others use
WhatsApp to promote products in India to promote, sell, and
offer after-sale-services.
ET Bureau Oct 9, 2014, 02.16AM ISTKenneth Cole, Zegna and Brooks Brothers, Nordiac Kandie, Corneliani, Heel& Buckle
Reasons:
• India's favorite instant messaging app.
• WhatsApp is not-so-exclusive platform to reach out to
consumers in India.
• India is one of the fastest-growing markets for instant messaging
applications.
• In 600 million WhatsApp users, 65 million are in India.
• Selling luxury is all about offering personalised services and
platform like WhatsApp enable that.
• Can maintain one-on-one relationship with the rich and suave
clients by sharing info.
• The service helps s connect better with the clients
• For 'cash-rich-time-poor Customer.
• Conversion rate is high as 80%.
• Nearly seven out of 10 enquiries that come to them on
WhatsApp convert into business.
• Dedicated person to reply to WhatsApp messages from clients.
• Generate leads customer service at a more micro level.
• Provides Better decision making for customers.
• Messages are sent out only after seeking permission from the
clients. Else it can backfire.
• A lot of our women customers want to stay updated on what has
come into the stores on a weekly basis.
• 71% of women, compared to only 18% of men, 'like' or 'follow'
a brand on the social media conversations.
Luxury players using cinema halls, TV, newpapers Events to
target buyers
ET Bureau Sep 18, 2014, 04.00AM IST
Nirav Modi's
• It is a great way to reach out to a larger set of potential buyers,
but what you show and where has to be chosen wisely.
• The view is that a lot of wastage happens on mass media.
• "It is possible to break down the kind of audience we want to
reach out to rather than addressing a large crowd.
• The” Collective” tying up with DTH services providers to put
out ads through the digital video recorders.
• Cosmetics brand Forest Essentials that markets itself as luxury
ayurveda has already launched television commercials.
• Luxury brands are targeting high-definition TV channels and
cinema halls located in posh localities.
• Some luxury brands are creating by-invitation events to
showcase their works to make sure the message travels to the
right audience.
• Quintessentially Lifestyle Services, a luxury concierge service
provider, has partnered with top media investment firm
GroupM to organise a luxury festival in March next year.
Luxury labels like Armani, Bottega Veneta stay off virtual
retail stores
ET Bureau Oct 15, 2014, 05.35AM IST
Reasons
• Brand exclusivity
• Fear of fakes to rule of the land.
• Fear that it may impact their credibility.
• "Luxury is all about touch and feel. It is different from buying
at the click of a button.
• government policy to not allow brands with foreign direct
investment to sell online.
• invested so much money on brand building and they cannot
afford to dilute it by being visible online.
• Brands put out their catalogues and information on their
websites for people to make better choices rather than selling
directly.
Cases filed by brands against those people selling the fakes online
have gone up considerably in the last six months,"
Example :
• Smart Collection (Giorgio Armani, Ralph Lauren and Givenchy)
• British luxury brand Burberry has filed a case in the Delhi-High
Court.
• Genesis Luxury had recently put out newspaper advertisements.
Jimmy Choo shoes sold at a 'wedding exhibition' in the national
capital.
Luxury marketers remain cautious on IndiaFIRST PUBLISHED: SAT, NOV 01 2014. 12 39 AM IS
• According to a study done by Boston Consulting Group
• Luxury marketers are shying away from investing in India as
regulatory issues and lack of infrastructure make India a difficult
market to operate in.
• There are 17 Italian luxury brands in India now and that number
has remained unchanged since 2005
• India has among the highest customs duties in the Asia-Pacific
region at 38%.
• In China it is 17%
• No custom duty in Hong Kong and Singapore.
• There are four different taxes, and it is very complex.
• India allows 100% foreign direct investment (FDI) in single-
brand retail, it requires such retailers to source 30% of their
manufacturing requirement from India
LUXURY RETAILING IN INDIA
PHOENIX MARKET CITY MALL
• BRANCHES :Mumbai, Pune, Chennai, Bangalore.
• Phoenix Market city has been envisioned as a dynamic new retail-led mixed-use destination.
• Common logo of Shop, dine and Entertainment.
• Retail zone with more than 200 shops and the hypermarket.
• Food Court - 13 fine dining restaurants, 5 quick service restaurants, spread over 1.2 lakh sqft.
• PVR Cinemas- Multiplex Screen with 2,700 seating capacity.
S NO NAME OF THE MALL PLACE AREA
1 Phoenix MarketCity Mumbai, Maharashtra 4,050,000 sq ft
2 Lulu Mall Kochi, Kerala 3,900,000 sq ft
3 PhoenixMarketCity Pune, Maharashtra 3, 400,000 sq.ft
4 PhoenixMarketCity Chennai, Tamil Nadu 2,400,000 sq ft
5 Mantri Square mall Bangalore, Karnataka 1,700,000 sq ft
6 Great India Place Noida, Delhi 1,500,000 sq ft
7 Z Square shopping Mall Kanpur, Uttar Pradesh 1,500,000 sq ft.
8 Select Citywalk New Delhi 1,300,000 sq ft
9 AlphaOne Mall Ahmedabad, Gujarat 1,200,000 sq ft
10 Neptune Magnet Mall Mumbai, Maharashtra 1,056,000 sq ft
INDIA'S 10 BIGGEST MALLS
Source: http://www.rediff.com/business/slide-show/slide-show-1-indias-biggest-malls/20130424.htm#10
GROUND LEVEL
• Accessories/Footwear
• Denim
• Department store
• Electronics
• Entertainment
• Food & Beverages
• Fashion
• Fitness
• Food
• Gift & Crafts
• Home Décor
• Hyper
• Mens Fashion
• Salon
UPPER GROUND LEVEL
Accessories/Bags/WatchesAccessories/FootwearBeauty, Cosmetics & PerfumesDepartment storeElectronicsEthnic wearEye wearFood & BeveragesInternational FashionJewellary, Kids learningMaternitySilverwareSports & FitnessTravel
FIRST LEVEL
• Accessories
• Ethnic Wear
• Fashion
• Electronics
• Food & Beverages
• Eye wear
• Book Store
• Footwear
• Cosmetics
• Jewellery
• Maternity
• Sports & Fitness
• Travel
SECOND LEVEL• Food & Beverages
• Fashion
• Eye wear
• Entertainment
• Electronics
• Spa & Salon
• Book Store
• Home D’ecor
• Health & Fitness
• Gifts
PHOENIX,MUMBAI
OVERVIEW
FACT SHEET
• Retail development Area - 2.1 million Plus
• Mixed used development of over 4 million Sq. Ft.
• 1. 5 million Commercial office
• Retail Gross Leasable Area : Approx 1.4 million
KEY POINTS OF THE MALL
• Best ever international Brand mix
• All day dining with best F&B mix with dedicated food court.
PHOENIX,PUNE
OVERVIEW• Need to simplify lives to create an epi-centre with city that
offers people complete solution.
• Integrated mixed use development.
• Functional relationship life style and leisure experience.
• Transforms from traditional, historic city to a commercial metropolis
PHOENIX,CHENNAI
OVERVIEW
• Paramount luxury destination.
• Centre to the entire city spread across 25,00,000 acres
• Designed by Benoy(Hong Kong)
PHOENIX,BANGALORE
OVERVIEW
• Business development combines efficient planning with natural genesis and personal elements.
• Careful cultivation of idea-to-design, mixed-use development, more organic in nature.
• 17acres offering retail, Offices, entertainment etc.