Upload
rakeshsoni21
View
1.210
Download
3
Embed Size (px)
Citation preview
LUXURY
The Luxury Cult Comes to India
Vinod KaulDirectorRVG NewsVision Pvt. Ltd
LUXURY
Defining Luxury
The basic Gucci or LV ladies handbag is a canvas bag selling for $1000.
RVG NewsVision Pvt. Ltd
LUXURY
Defining Luxury
The emotionalism of luxury
“Purchase of luxury items gives the buyer an immense amount of joy which surpasses the economic value of the product.”
“…it is bought to satiate an altruistic need and the joy of possessing a piece of extreme luxury is an end in itself.”
Louis Vuitton CEO, Yves Carcelle
RVG NewsVision Pvt. Ltd
LUXURY
Defining Luxury
Characteristics
Luxury brands live in people’s hearts & minds
Luxury brands have range Can be teamed with many products
Luxury brands have permanence Don’t go out of style/are classic
RVG NewsVision Pvt. Ltd
LUXURY
Defining Luxury
Wealth & other forms of luxury
Luxury is most often associated with wealth & exclusivity. Other forms: Time, Experience, etc
A recent US study (2000 affluent consumers by the CBC Research Centre remarkable similarity in perspective around the world largest chunk (44%): ‘luxury is having enough time to do whatever you want and being able to afford it’.
Next chunk: ‘life experiences’ and ‘comfort, beauty and quality’.
Material products become just a tool or a toy for that greater ‘life experience’.
Exotic luxury packages: A flight into outer space on the Virgin Atlantic?
Cont :-
RVG NewsVision Pvt. Ltd
LUXURY
Luxury Defined
Values of Luxury
• Rarity/exclusivity• Highest quality• Know how• History, roots, dreams• Rewards: pleasure, status• Emotion, experience• Custom made
RVG NewsVision Pvt. Ltd
LUXURY
Luxury defined today
The maker of dreams. “The luxury industry sells a share of a dream to the customer”.
Luxury Defined
Madame Laggard, French Trade Minister
RVG NewsVision Pvt. Ltd
LUXURY
Downside
The Ethics of Luxury
Opulent & decadent
Materialist & consumerist
Social segmentation & vanity
Exploitative - $1000 LV bag in canvas
Not essential
Conspicuous consumption
Upnside
Need not be vulgar but sophisticated
Aesthetic expression
Social positioning more democratic than ‘caste’ system
Can be genuine pursuit of excellence
Selling dreams/mystical experience
RVG NewsVision Pvt. Ltd
LUXURY
Luxury Products & Services
Cars: Jaguar, Mercedes Benz, Lamborghini, Rolls Royce, Bentley, Ferrari, Bugatti
Couture: Versace Indian couture designers: Rohit Bal, Tarun Tahiliani May not include prêt designs
Hotels & resorts Amar Vilas (Oberoi), Four Seasons
RVG NewsVision Pvt. Ltd
LUXURY
Luxury Products & Services
Accessories
Footwear: Jimmy Choo
Handbags: Louis Vuitton, Aigner, Leiber, Hermes, Prada
Small leather goods: Dunhill
Watches: Piaget, Tag Heur
Eyewear: Armani, D&G, Chanel
RVG NewsVision Pvt. Ltd
LUXURY
Luxury Products & Services
Perfumes: Channel
Jewellery & Gems: Cartier, Tiffany
Writing instruments: Mont Blanc
Luggage: Louis Vuitton
Liquor: Henessy (vodka), Blue Label, rare wines Art
Not Luxury: Mango
RVG NewsVision Pvt. Ltd
LUXURY
International Powerhouses in Luxury
French luxury conglomerate
Chairman: Francois-Henri Pinault
Gucci, Yves Saint Laurent, Sergio Rossi, Bottega
Veneta
Alexander McQueen, Stella McCartney, Belanciaga
Turnover: 18 billion euros
LVMH Moet Hennessy-Louis Vuitton SA
Louis Vuitton founded in 1854 - luggage
Merger in 1987
Bernard Arnault, Chairman
Tag heur, Louis Vuitton, Fendi, Celine, Kenzo, Dior, Marc Jacobs
Turnover: 16bil euros, Employees: 72,000
PPR (formerly Pinault-Printemps-Redoute), 1963
RVG NewsVision Pvt. Ltd
LUXURY
The Marketing of Luxury
Entry level items
Under $250Cuff links, scarves, fragrances, ties Bought by aspirational buyers.
Investment Pieces
Above $250watches, apparel, figurinesBulgari Aviator sunglasses $330Burberry Classic Trench Coat $1,184Omega constellation Double Eagle $3,450Hermes crocodile Kelly bag $30,000 Bought by regular luxury buyers.
RVG NewsVision Pvt. Ltd
LUXURY
Luxury sales & growth
World turnover in 2007: $233 bilPowerhouses of luxury consumptionUSA – largest, accounts for one thirdJapanChinaEurope
Growth in luxury markets
North America 2%Europe 12%Asia Pacific 18%
RVG NewsVision Pvt. Ltd
LUXURY
Luxury in Asia
Cult of the Luxury Brand
Inside Asia’s Love Affair with luxury
Radha Chadha & Paul Husband
Luxplosion rocking Asia
94% of women in Tokyo in their 20’s have something from LVAsis is now the world’s biggest market for luxe37% in Asia + 15% by Asians abroadChina will be the biggest in 7 years
Luxury in India has become more accessible. Bollywood is an influencer
RVG NewsVision Pvt. Ltd
LUXURY
Luxury model for Asia
Stage 1: Subjugation, desire based
Stage 2: Start of money, India
Stage 3: Show off, new rich, China
Stage 4: Fit in, Conformity, Joneses, Taiwan/Korea
Stage 5: Way of life, Japan, Hong Kong
India has gone from old money to new money
India could be in top 5 consumers by 2025
RVG NewsVision Pvt. Ltd
LUXURY
The story in India
Luxury is not new to India but the modern form is yet to evolve
Branding
Lasting customers relations
Signature look
Virgin market
RVG NewsVision Pvt. Ltd
LUXURY
The story in IndiaErmenegildo Zegna First store opened at Crossrads in 1999. Closed in 2005A 3000sqft store opened at Taj, Mumbai in 2007Third store to come up at EmporioHave taken a 51% ownership in Indian operations
Jimmy Choo
Name now synonymous with luxury shoes for women
Jimmy discovered, bought & guided by Tamara Mellon
Accessories editor at Vogue
Ten years later company valued at ₤185 million
Halle Berry, Hilary Swank and Helen Mirren on Oscar night
60 stores across the world
Launched India store through Murjani Group in Sep08
Located at Nariman Point, Mumbai
Worn by Aishwarya Rai, Preity Zinta
Internationally launching sunglasses, fragrances & handbags
RVG NewsVision Pvt. Ltd
LUXURY
Louis Vuitton LV’s association goes back to the Maharaja’s for
luggage
First store opened in 2003 at Oberoi Hotel, New
Delhi
Second store opened in Mumbai in 2004
Now opened at Emporio
Staying away from apparel for India
Have taken 51% stake
RVG NewsVision Pvt. Ltd
LUXURY
Online poll in 48 countries covering 25,000
consumers
Nielsen Survey on Luxury
InternationalGucci most coveted (one in five)
Chanel & Calvin Klein tied for second place
Followed by Louis Vuitton, Giorgio Armani, Christian Dior,
Versace India
57% see labels as status symbols
Most coveted;
Gucci (41%)
Calvin Klein (31%)
Dior (26%)
Versace (25%)
Armani (22%)
RVG NewsVision Pvt. Ltd
LUXURY
The Sachdev Group – Priya Chatwal & Charu Sachdev
Brands: Lanvin, Alberta Ferretti, Jean-Paul Gaultier,
Moschino,
Stella McCartney
Promoters of Luxury in India
Genesis Colors Sanjay Kapoor of Satya Paul fame
Brands: Aigner, Canali, Kenzo, Paul Smith, Just Cavalli
Murjani Group Gucci, Jimmy Choo, Calvin Klein, Bottega Veneta
Brandhouse Retail (S.Kumar Group) Escada, Dunhill
JV’s in the pipeline DLF with Armani Hermes with Neelam Khanna (PRS Oberoi clan) Reliance Retail
TSG International Marketing Pvt Ltd
RVG NewsVision Pvt. Ltd
LUXURY
The Indian Luxury Market & Industry
Over one million luxury consumers
Potential new customers: eight million
With high disposable income
Target audience: 22-55 years
Currently worth: US$444mil/Rs2,400cr
KSA Technopak India Luxury Trends Report
RVG NewsVision Pvt. Ltd
LUXURY
Retailing of luxury
US: Fifth Avenue (NYC), Rodeo Drive (Los Angeles)
Germany: Konigsallee (Dusseldorf)
London: Bond Street
The luxury mile
IndiaThe Galleria (Mumbai)
Gucci, Bottega Veneta, Jimmy Choo
Emporio, Delhi
UB City, Bangalore
Taj Mahal shopping arcade, Mumbai
Louis Vuitton, Zegna, Fendi
Oberoi Hotel, Delhi
Louis VuittonSet to open:
Palladium (Mumbai) at Phoenix Mills
RVG NewsVision Pvt. Ltd
LUXURY
Emporio
The first Indian luxury destination:
Officially inaugurated: Sunday, 30th Aug
Developer: DLF
130 luxury brands
Apparel: Dolce & Gabana, Canali, Louis Vuitton, Chistian Dior
Jewellery: Cartier, Harry Winston,
Leather Goods: Tods
Men: Paul Smith, Armani
Watches: Piaget, Chopard, Jaegar
Indian designers: Rohit Bal, Tarun Tahiliani, JJ Valaya
RVG NewsVision Pvt. Ltd
LUXURY
Issues facing luxury in India
Lack of appropriate space
Adjacencies important – nightmare McDonald’s
Started with use of hotel space
Makeshift space in malls/markets
Emporio – perhaps the first luxury mall in India
Expensive real estate
Lack of trained manpower
Specialized programs in Institutes
Lack of Indian products & brands
FDI restrictions
RVG NewsVision Pvt. Ltd
LUXURY
Scope for Indian brands
Can you think of an Indian luxury brand?
Acquiring Western brands: Tata acquires Jaguar from Ford in the UK
Oberoi hotels: Rajvilas, Udaivislas, Amarvilas
India’s strengths: excellence in craftsmanship, heritage, business potentialSome suggested areas: hotels & hospitality, spas, jewellery, meditation (Mahesh Yogi), art, Indian fashion
RVG NewsVision Pvt. Ltd
LUXURY
Luxury Education Essec Business School, France
Most prestigious international course in luxuryOne year MBA program since 1995Student size: 30
IIM, AhmedabadTied up with Essec for new luxury programStudent size: 9
International University of Monaco 10month MSC program in management of luxury goods &
services cost: 12,000 euros
Stern School of Business, New York Since 2006
RVG NewsVision Pvt. Ltd
LUXURY
Luxury Education
Columbia University, New YorkCourse in design & marketing of luxury goods
HEC Paris & Tsinghua Univ., BeijingSix month module
Pearl Academy, DelhiLuxury module as part of Fashion
Marketing
RVG NewsVision Pvt. Ltd
LUXURY
RVG NewsVision Pvt. Ltd
LUXURY
RVG NewsVision Pvt. Ltd
LUXURY
Thanks
RVG NewsVision Pvt. Ltd