Premium in India , Mass in the World

The old story of people travelling abroad in India for some premium brands or depending on the smuggled stuff is about to be a myth soon .The makers of luxury goods have officially flocked to India. You can find upmarket outlets in all major metros. So whats up for grabs and whats the operating play and future , here's our reading :

This global market was estimated at approximately $69.4 billion in 2003 and is expected
to grow 42 per cent to reach a whopping $100 billion by 2008. A Technopak study puts the
Indian luxury market at around $444 million.( source from the net )

In terms of numbers, O&M says there were 61,000 high networth individuals (HNIs) in India in 2003. The World Wealth Report puts HNI growth in India at 14.6 per cent per annum, nearly double the global rate.( source from the net )

A luxury brand is all about image; the product does not matter so much , how its presented and retailed and how its unique than the rest is what makes it different .Luxury brand needs to gets imagery right , connect with its right TG and also needs to advertise right , we mean from being seen at the right mediums and associations . From a retailer point of view its about getting the right location , and have a few walkins but hope that the cash memo size and conversions from them is good .

What's available today ranges from Porsche cars, Pershing yachts, Louis Vuitton bags and suitcases, to Bang & Olufsen audio systems. And of course, the numerous clothes brands — Moschino,Cavalli, Ermenegildo Zegna and Dolce &Gabbana (D&G), to name a few.

Whatever the numbers are of the potential in India , we dont see luxury brands retailing taking off in a Big way in India , we believe that we are a stage when say a Levis jeans which is seen as a mass brand in other countries( developed we mean ) ,is positioned as premium in India thus what the world thinks of as premium is super premium in India and what India sees as premium is Mass in the world .The volumes of business wud be always be low .

With the rate of growth in Indian economy hitting the 6 % to 8 % rates , we feel that time for Luxury retailing in India is yet to come but would come , an Indicator for that could be when say a Levis brand would be a mass brand , and when say a Hugo Boss is perceived to be premium ! lets wait