Brand Bash

The New Indian Consumer lives by the credo8216;have money, will flaunt8217;. He8217;s ready to spend tens of thousands on a Chanel jacket or a Hugo Boss suit. In response, big-ticket fashion houses are rooting for India

MONEY CAN8217;T BUY HAPPINESS, but it sure can come close8212;with a Chanel suit, aVuitton hand- bag oraHermesscarf. TheNewIndianConsumer seems to live by the credo: have money, will flaunt. And the goodnewsis thatoneneedn8217;ttrudge abroadanymoretoget hold of these goodies. Luxury brands, seeing the potential in India, are beating down the doors to establish their pres- encehere. AfterChinaandRussia, India hasemergedasthe hautest destination for luxe brands. The fashion forecast predicts the entry of Versace, Gucci, Armani and Jimmy Choo, to name just a few, who will join the ranks of Chanel, Christian Dior, Hermes, Louis Vuitton, Fendi, Ferragamo, Moschino,Tiffany, Piaget et al.

Luxury priests love to cite the example of Pierre Cardin8217;s hasty retreat about a decade ago to prove that the Indian market has now undergone a sea change and is ready and willing like never before. SaysTikka Shatrujit Singh, advisor to LouisVuitton in India:8220;India is the last great frontier. It8217;s an emerging young consumer market, which they wish to openupandthey wanttogetit absolutelyright.8221;Theexper- iment in China has been hugely successful, with the coun- try expected to be the biggest market for luxury goods by 2009. In India, the market is yet to take off, but the early birds will catch the worm. 8220;It is just not possible to ignore Indiaanymore,8221;saysSunil SethiofAllianceMerchandising, which represents Selfridges in India.8220;It may not be a prime market, but they all want to make their presence felt. It8217;s nowaherdmentality, wheremostbrands arescramblingtoar- rive early and reap the benefits,8221; he adds.

The ones that have already established their presence in the Indian market seem satisfied with the revenue. Says de- signer Kalyani Chawla, brand ambassador for Christian Dior, which opened its first outlet in Delhi in February this year, 8220;Having been here for only three months, it has been very good business indeed. And with snob value attached, our limited editions fly out sooner than anything else.8221;

The high spenders who are likely to buy a Chanel jacket Rs. 1.7 lakh, an Aigner bag Rs 45,000 or a Hugo Boss suit Rs 75,000 8220;may range from well-heeled executives and CEOs tow omen who are in tune with the latest trends and yet haveadistinct identityoftheirown.Theyarewell-travelled individuals, who are conscious of quality, and happy that the bestinluxuryisavailableattheirdoorstep,8221;explainsFrances Shenker, luxury consultant to Ferragamo, Aigner and Rossetti in India. Inshort, luxury brandsvie for the attention of the global consumer, no matter his nationality.

The market potential may have beenestablished,butin- frastructure remains a major hurdle. For a luxury brand, at- mosphere is everything and the retail options in India lack character. The unsophisticated retailing environment leaves only five-star hotels as options for outlets, but with luxury malls coming up in Delhi and Mumbai, things may change. Agrees Charu Sachdev, CEO of TSG International, which has a tie-up with Moschino in India: 8220;Lack of space has been a major deterrent. The world over, luxury brands sellthroughtheirboutiques onbeautifullymaintainedhigh streets, like Bond Street in London and Via MontenapoleoneinMilan.In India,wedonot knowhowtomaintain our external environment like roads and side streets. So, in India,luxury worksinacontrolled environmentlikeahotel.

But space is limited and rentals are sky high.8221; Despite deterrents, the luxe revolution has only just begun and the months ahead will see Indians soaking up luxury like never before.