A new culture of consumerism has Indians snapping up luxury.
The money is there, the population is growing and the big, wide world is teasing India with fortune cookies. Glitzy shopping malls parading the world's biggest brands, aggressive advertising and easy money with even easier payback options have set India shopping like there is no tomorrow. And it's all there for the asking. Shell out the extra buck and walk home with the feel good glint.
Global luxury watch brand Longines, popular in the Indian cities and endorsed by cine star and former Miss World Aishwarya Rai Bachchan, is all set to hit the smaller towns. A part of the Swatch Group, it plans to enter Hyderabad, Bangalore, Chandigarh, Jaipur and Ahmedabad soon.
"India's luxury watch market has a lot of potential. I believe in the coming years more people in this country will sport luxury watches," says Charles Villoz, vice-president sales, Longines International.
"The country has a huge middle class and a good watch is no less than a major investment." Growing at the rate of over 20 per cent per year, India's luxury watch market is worth over Rs3.5 billion (about Dh326.27 million).
In a significant endorsement of India's super premium consumer segment, billionaire designer Giorgio Armani also plans to bring two of his fashion lines to India through separate standalone stores.
According to reports he is inking a franchise and distribution deal with DLF. After the first stores in Delhi, Armani is expected to move into the other big cities.
Not to be outdone, luxury Italian fashion brand Dolce & Gabbana (D&G) is to establish retail outlets across India. According to Ramesh Sanka, Chief Financial Officer, DLF, the company will provide the necessary real-estate infrastructure for the project. The company plans to open two retail outlets in Mumbai and New Delhi early this year.
DLF, India's largest realty firm, is making a very visible call to big money. It has been in the super luxury business for awhile with exclusive apartments, a signature Arnold Palmer golf course and a hotel tie-up with Four Seasons.
Now it is also eyeing India franchise rights for ultra luxury brand Salvatore Ferragamo that is well known for its handmade leather shoes, men's accessories and apparel. DLF is preparing the Emporio mall in Delhi as a one-stop shop for brands such as Armani, Versace, Louis Vuitton, Christian Dior, D&G, Escada and Cartier. An Emporio mall in Mumbai is also on the cards.
Bottega Veneta, the Italian luxury brand that is part of the Gucci Group, launched recently in Mumbai. Its store, opened in partnership with the Murjani Group at the Galleria, Hilton Towers, will offer a range of handbags, shoes, small leather goods, belts, eyewear and luggage.
According to Bottega Veneta's creative director Tomas Maier, the purpose of opening shop in India is to get the brand within reach of those who shop for it in boutiques abroad and also to cultivate a whole new audience. "The Indian consumer is very sophisticated and this market is very dynamic. So our hopes are high in India," he says.
"I am confident the Indian consumer will understand and appreciate what we do. There is a global language of design and quality that is understood as well in Mumbai as it is in New York or Paris." The Gucci Group has several luxury brands including Gucci, Bottega Veneta, Yves Saint Laurent, Sergio Rossi, Stella McCartney, Alexander McQueen, Bedat & Co, YSL Beautè, Balenciaga and Boucheron.
Jimmy Choo is in India. After shoes, bags, eyewear and fragrances, stiletto queen Tamara Mellon of Jimmy Choo wants to design 'jewellery, watches, swimwear and lingerie among others. There are many new categories which excite me as the brand goes global."
Mellon, who is also on the board of American brand Halston and is helping guide the brand's growth after being acquired by movie mogul Harvey Weinstein for $20 million (about Dh73.4 million), confirms rumours of the brand's entry into India. "Halston is an iconic American brand and once we launch the brand in the US, we are going global. And by 2010 we should be ready for Asia, unless our franchisee says India is ready earlier."
Mellon, along with her franchisees, the Murjanis, plans to have at least five stores in India by 2011. She feels that Asia will give her the same revenue in five years as the US or the UK. "Mumbai's woman is the Jimmy Choo woman," she says with joy.
Talk luxury and the big fat Indian wedding can't be left behind. It remains the ultimate destination for opulence and extravagance. The world's biggest brands are on call. "It's no surprise that so many international brands want to get associated with India during the wedding season.
"The market has grown and there are many more millionaires in India today," says Tarun Sarda, CEO of one of the most popular Indian wedding exhibitions, Celebrating Vivaha. Another extremely popular Indian wedding exhibition is Bridal Asia. Its CEO Divya Guraya adds, "Brands such as Chanel and Fendi have got a sudden recognition at wedding marts."
With the top segment of the wedding industry growing at a staggering 25 per cent, analysts believe that even the mid-segments are moving up at about 15-20 per cent. Pavas Bhatia, associate director at retail consultants KSA Technopak, confirms: "The Indian wedding mart could be anywhere between Rs500-Rs600 billion (about Dh46.6 billion). But it isn't just the trousseau that is getting the embellishments. The premium gift market has also gone up."
What's left? How about cars?
The world's best sedans are eyeing India with hope. Car majors Fiat, General Motors and Toyota are planning to test market their luxury marques Alfa Romeo, Hummer and Lexus respectively, early this year. The prices threaten to be astronomical but when did a price tag become a deterrent to ostentation?
"The market is growing rapidly for high end premium cars; all that is required is a dedicated set-up," says Giovanni De Filippis, MD, Fiat India. The luxury car segment is a small fraction of the entire Indian car market but it promises big revenue for global automobile giants and a bigger ego ride for the buyer.
There are yachts, and there are expensive yachts.
The marina at the Gateway of India in Mumbai recently got swankier with the arrival of the Rs150 million (about Dh13.9 million) yacht belonging to Vinod Mittal, Managing Director of the Ispat Group.
The Italian made Ferretti 550, the world's second best luxury yacht brand, now joins Vijay Mallya's 95-metre Indian Empress that costs approximately Rs4.43 billion (about Dh413 million).
Mittal's ride has an anti-rolling gyro-system designed by Mitsubishi, a sunbathing area, a fridge, and a jet ski, apart from a galley and three spacious bedrooms. The shopping zeal is frenetic and spreading in India like a bush fire. The bigger Indian cities are witnessing a spectacular shopping experience.
However, as the smaller towns enter the radar of the big players and the economic boom evens out, the shopping overdrive promises to get more democratic.
