Here is some bad news for ultra-luxury brands wanting to set up shop in India. A study by CPP Luxury Industry Consultancy reveals that more than 60 per cent of India’s ultra rich buy stuff abroad, especially in Dubai, followed by London and Hong Kong.
There are two reasons for this. One, shoppers can get the same goods abroad 20 per cent cheaper due to high taxes on imported goods in India. The second reason is there are no dedicated luxury retail locations in the country. So buyers have to access luxury brands in shopping centres that often lack the “right customer experience” for these products.
While companies say they have no control over the tax part of it, they are at least trying to improve the shopping experience.
For instance, Roberto Cavalli is hoping to woo Indian luxury buyers with the “best coffee that money can buy”, says Gianluca Brozzetti, chief executive of Roberto Cavalli Group. “We have decided that every store in India will be accompanied by a café that compliments the store environment,” adds Brozzetti.
The company’s 4,000 square feet boutique in Delhi at the DLF Emporio has already started offering the same. This is the brands’ second innings after it last year terminated its contract with Genesis Luxury for marketing Just Cavalli. Roberto Cavalli has tied up with a new partner, Manav Gangwani of the Infinite Luxury Group. The pace of expansion will be leisurely. “We are not going to start stores in a hurry. The Indian boutique will feature women’s and men’s prêt-à-porter collections, as well as accessories, eyewear and kidswear with prices starting at Rs 5,000 and going up to a few lakhs.
The India growth story has brought UK’s luxury mobile handset maker Vertu to New Delhi, after retailing its handsets in Indian metros via franchisees, mostly high-end jewellery and watch stores. Gordon Watson, business head (Europe, Middle East, Africa & India), Vertu believes, “It is hard to give luxury products at international prices in India (due to high taxes on imported goods), but what we can do is match the retail experience and bring in high-end services that will compliment the Indian buyer.” Vertu handsets start at about Rs 3.5 lakh.
Although Watson rules out the possibility of an “India inspired” mobile handset line up, he says, “We have an exclusive tie-up with Sunteck Realty for three years where apartment buyers get access to dedicated concierge service with a manager to serve them.” The Vertu concierge service is personalised to the owner’s lifestyle at the touch of a button on the handset and can be accessed across the globe.
The brand also ruled out the possibility of looking at online sales to widen its reach in India. “Owning a Vertu mobile phone is an experience in itself. How do we replicate that online? When client’s walk-in to our stores, they even get the option of choosing the premium materials out of which their select communication device is crafted,” he says.
Bespoke service is what Roberto Cavalli intends to give Indian customers too, in order to make them shop at the India store. Brozzetti says he would have made-to-order services for Indian buyers who would like to choose “what material, what style and how they would like to wear the brand.”
Earlier this year, Excedo Luxuria, distributor and promoter of bespoke jewelry and luxury brands along with Swiss luxury watch brand Cecil Purnell announced that they would offer customisation to Indian buyers which would include providing crocodile straps to making the cases in white gold, rose gold or platinum. There are only 75 Cecil Purnell watches made each year and are available from Rs 80 lakh and onwards.
