Mint Luxury Summit 2013

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A summary of quotes from panelists via @livemint twitter stream.

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Mint Luxury Summit 2013

  1. 1. Mint Luxury Summit The Customer Experience Company
  2. 2. A summary of quotes from panelists via @livemint twitter stream. 23rd-24th March 2013
  3. 3. We made it easier for Luxury brands to come in. But we must build Indian brands like Hidesign & Fab India Per capita income in India, even today, is behind key countries in Europe in the 1940s If something is made here and sold in other countries, they also have tariffs. It's unthinkable otherwise Foreign investors should look at sourcing from India as a positive thing. As a discerning choice not a compulsion Fabrics, brass, the steel range of a global major all come from India. We’re in a position to offer something. If investors have to engage with India, they have to see it as a country with rich resources and creative mind. 11 out of 12 diamonds produced anywhere in the world come to India for cutting, polishing Contemporarisation of the traditional crafts and arts ensures that design and marketing are connected IKEA approval only a formality, will lead to sourcing from India, 66 Single brand proposals have already been approved to come to India Anand Sharma Minister of Commerce & Industry & Textiles
  4. 4. Growth in luxury market not exactly spectacular. The small size of the luxury market isn't beautiful Traditional luxury market in India is around $6 billion, led by cars Luxury perimeter is ever-expanding India, with its legacy of Maharajas, has long had an appreciation for branded luxury Face of the Indian consumers has changed but the taste and value has been intact In the 1930's 20% of all Rolls Royce used to be in India For first generation entrepreneurs, making a statement is very important Over the last year or so, growth has been 15-20 % in the luxury sector High net worth individuals growing by over 200 per cent Drivers for luxury market: HNIs; awareness creation and marketing; improved retail’ growing appeal for visible luxury Investment by brands and empowerment in retail environments are driving growth in luxury in India Seeing a shift from 'old money' to status driven 'new money Joydeep Bhattacharya Joydeep Bhattacharya, Head of Consumer Products & Retail Practice, India, Bain & Company 1
  5. 5. The main driver of the growth will be the choices and stances that luxury brands will take. If there is significant investment made by luxury brands; the market growth may go up to 20% There should be certainty in the investments by the luxury brands and it should be regulated Too early expansion outside Mumbai/Delhi hurt the luxury market Luxury brands not committing to India because first wave of investments in 2000 faced problems HNI numbers is 130,000 is the first driver of growth The number of HNIs will grow to 400, 000 in a decade from 130,000 today Cars, jewelry appeal to a wider set of buyers and have more growth than say perfumes. Cars and wines the bright spots in India today. Joydeep Bhattacharya Joydeep Bhattacharya, Head of Consumer Products & Retail Practice, India, Bain & Company 2
  6. 6. Luxury markets are opening up in India, but it will take time. 100% FDI and reduced tariffs will help the luxury market in India Government should ease the market for the companies. Luxury brands need to see india differently and in that way create an aspiration in market Luxury brands should communicate better with the consumers. We think the real drivers of growth are investment by the luxury companies and the culture HNI numbers are same in Brazil and INdia and yet Brazil’s market is much larger High street in Brazil looks much nicer than our Khan Market India offers a challenging business environment Luxury companies are not engaging upper middle class; we need to focus on that China had 270 luxury stores in 2003, India has around 50 now. Luxury companies are not investing in retail distribution and marketing in India Consumers in India still don’t aspire to go for premium luxury brands China's car market is 30X that of India's Sandeep Lodha Principal, Bain & Company
  7. 7. It takes a year to make a successful fragrance Fragrance more than anything is an idea, be it natural or synthetic The story if Calvin Klein resonates in his product such as Obsession; which reflects his partying! The business model that we are in is challenging as it involves investing, manufacturing & selling You create fragrance after emotion. Fragrance is not a thing, it’s a story I’m telling The modern perfumery that we practice today started in the late 19th century Fragrances have always been a part of our rituals, be it funerals or even connecting with gods Perfumes have been progressed from religious use to medical and now cosmetics The main problem is that luxury sector is not seen as a concept. We all have the ability to smell; but this sense gets lost as we don't use it for survival Rose, jasmine, tube rose, vanilla sandalwood are some of the important materials Eternity : When Calvin Klein got married and when it didn’t work out, he created ‘Escape’ Thierry Wasser In-house perfumer, Guerlain 1
  8. 8. I will sign a 10 year contract this year with a partner in Coimbatore to source vetive For me sourcing is not buying raw material, but buying things from local people We have more links with India and Shalimar is one of them Jasmine, Tube Rose, Vetive are all from India. Vetive can make you time travel with one smell We are perfumers and not fashion house and that is what sets us apart from others We are telling love stories. In commercials you see love popping out of the bottle Luxury is not a marketing concept, but an experience. Marketing is not my enemy, but it’s not my friend either. It’s just not creative. There is a big problem where marketing is overpowering perfuming We wouldn't be 185 years old if we were doing marketing Scent is about you and not about anyone else. Scent has no sex and there should not be a discrimination in a man's perfume and that for a woman Thierry Wasser In-house perfumer, Guerlain 2
  9. 9. When you start using chemicals to duplicate the natural fragrance; then it becomes a problem Natural materials might face legislative difficulties. Natural rose or jasmine could be a problem for few, more than synthetic ones Synthetic raw material is much safer for a perfume and it is easy to know whether it is harmful Prices of the perfumes have nothing to do with local GDP but much about the entry Shalimar is named for the eternal love of Shah Jahan and Mumtaz The garden of Shalimar have been the source of inspiration for the product ‘Shalimar’ You acquire the sense of smelling by being curious about it and that is what we perfumers do Thierry Wasser In-house perfumer, Guerlain 3
  10. 10. If there is a reasonable levels of taxation and structure; the markets will grow in India. The tendency in India has always been to not expand out Tax Rates. More than 50 % of products that go in perfumes are source from India The concern for revenue is much higher because of the huge fiscal deficit Connaught place is an ideal place to come up with a luxury mall When it comes to the government’s concern of taxes usual flogging horse is the rich The issue of infrastructure, logistics, continue to be poor in India You have to aspire to the future of luxury customers and training schools are important for that Dr. Ajay Dua Former Secretary, Ministry of Industry & Commerce, Government of India
  11. 11. Singles are more free and likely to spend more on the luxury brands There are more single women and men with more dispensable income Consumer aspirations and buying behavior are crucial factors in expanding the luxury market Young Indians are spending which is very different from the spending habits of the older generation If everyone is buying a brand, it won't remain a luxury brand. There is a paradox in that Have seen Indians buying luxury goods in Paris and the sales girl in tears because of the questions that they ask. In India we save 35% then buy apartment, then gold, save for our children and then maybe spend on luxury products What happens in China cannot happen in India, it is case of comparing apples with oranges Firms should compete with each other over creativity and innovation, and this trend is picking up in India Single brand and multi-brand retail is opening up in India Studies suggest that the demand for for luxury products will go up in India by 2014-15: We have to ask ourselves whether we do have a demand of luxury goods in India Prof. Ashok Som Professor and Associate Dean, Global MBA, ESSEC Business School
  12. 12. Made in India is more about quality rather than price. Our local market is not even satiated now We can learn a lot about marketing from European brands. Our brands need to learn to talk about the 'virtues' of the brand I think the EU brands have done a fantastic job in marketing themselves and we need learn from that. Luxury is something that makes you feel good. It could be 10 pair of shoes or anything else. I don't have an answer to what is luxury! Luxury is a state of mind. It's something that makes you feel good The luxury is right now limited to infrastructure availability in cities but it's opening up across the nation Urban India is growing at a very fast pace and that is good for the Indian markets A lot of western markets are slowing down. Seeing 20% growth in a difficult market Good old Indians. The richer they are the more price sensitive they are. The price difference is a perception issue more than a reality Authenticity , Availability and Range were issues, but not anymore. Price still is. For every dollar spend in India, about 8.9 is spent outside India I firmly believe that Indian market is going to explode Sanjay Kapoor Managing Director, Genesis Colors
  13. 13. We need to identify and select the best Indian artisans and connect them with international designers I see a bigger role of India in the luxury market; not just as consumers but also manufacturers India is in position to manufacture luxury goods that present its own pictures India has a lot of heritage. India has to hook its heritage with a lot of provocative design India needs to mix its heritage with the innovation and that will attract the consumers Bigger role of women in luxury market is progressive. Today men shop like women. Counterfeit is enemy of luxury because its fake. Who buys counterfeit products ? Most of the time, people from Europe Luxury is the weapon against uniformisation The important point of a luxury company is to make good usage of money and should give back to society My fear is that all luxury brands will have only one culture, then that day luxury market will be dead Luxury is a dialogue between two or more cultures Luxury brands always have a culture, in India however there is an enormity of different cultures. Luxury is not a business, it is above everything, it is more like a phenomenon A product is like an emotion and to create a new emotion you need to be an artiste Renaud Dutreil Chairman, LVMH Moët Hennessy Louis Vuitton Inc 1
  14. 14. Consumer is very far from an artisan and the bridge needs to be funded. Designers study international course and artisans have local knowledge; we need to merge the both. Fabrics used by Indian designers are so pleasurable and very comfortable Luxury products are not just products; they are emotions and the emotions just can't be uniformed Consumers are smart, you need to follow them but you also need to invent. In some countries, luxury is viewed as strategy for survival of culture In emerging countries, more people travel, the more they get educated about luxury Luxury can be seen as a transmitter of information and education People are more educated when they try to buy different and get educated in the process In emerging countries, you have an access to middle class and they want to be educated to luxury brands Fresh luxury market can never born out of isolation, but with different partnerships and dialogues Dialogue between artisans and designers is a wonderful formula for luxury products and then a good manager To shape innovation of luxury in India, i will create the inventory of artisans who can mix creativity and craft The thing to ask is would you like to protect the wild tiger (local fashion) or the caged tiger (retail fashion) Renaud Dutreil Chairman, LVMH Moët Hennessy Louis Vuitton Inc 2
  15. 15. We hope India to be one of our top five markets in 2020 Ferragamo shoes are comfortable for Indian roads as well Luxury traveling will take off in India and e-commerce will do really well in India. I see India creating its own brands and I am enthusiastic about Indian craftsmanship India is regarded as exceptional by international markets Large number of young customers are looking forward to buy luxury goods. Consumer will mix and match luxury brands and will create indo-western stye. Indian market different from the rest of the markets and has not overpowered by the west. Luxury has always been there in India, right from the time of Maharaja's India is a growing market for luxury markets and has grown at the rate of about 26 % Fulvia Visconti Ferragamo Vice-President, Salvatore Ferragamo
  16. 16. Developers should learn from fashion houses that luxury is about more than putting a pic of a little girl on a hoarding. I believe that luxury will not go beyond top cities in India, due to lack of compassion for it Today we have sufficient wealth and the demand of luxury homes will be more than supply Its nice to be on a panel on luxury, usually we guys get asked about affordable housing. Once the delivery of true luxury starts coming, then it will differentiate it from the others Developers today don’t understand what is luxury; they just use the tag and price it high. Retail and offices today have redefined the luxury. Luxury housing is not really new in India you can see that in out havelis and bungalows. Anuj Puri Chairman and Country Head, India, Jones Lang Lasalle
  17. 17. Endorsement don’t work in the case of the luxury homes; the buyers are smart The panelists believe the format of luxury housing will not work in the small towns, because for people: a home is a home As India’s consumption takes off, there will be huge growth in the luxury retail Consumers today want everything around their houses, they want it to be more like a luxury facility Almost 70 % of the wealth creation in India over the last few years has been through real estate. Abhishek Lodha, Managing Director, Lodha Group.
  18. 18. Indian men became westernized long before the women did There will be a market for fashion in at least 22 cities across India by 2020 We are long way from becoming global brands. We need to become national brands first The fashion industry needs to become more relevant in our country Indian women are voluptuous and we should not discourage that and work our designs according to that We have western clothes for our daily lives & reserve traditional clothes for wedding, we should blend both Today we have finally started relating design with comfort Indian fashion has remained elitist The best of the Indian goods are exported, then how do we expect to raise the way of living of the people Tailoring is a western construct which I suspect came in with the British We had tradition of textiles, people draped differently in different parts; there was no tradition of jewellery It is difficult to generalize the dressing in India because of its vast cultural diversity Tarun Tahiliani Fashion Designer
  19. 19. 90% of the fashion is reinventing Gieves & Hawkes most profitable store in the world is in a tier 3 Chinese mining city. If tailoring continues in India, it needs to be sure it is made as per the local needs. We are looking forward forward to help dressing India and hope India helps Europe too Around 2 % of the spend in England on luxury comes from India In India bespoke tailoring will be at the heart of our business. It is not so in China We have 120 shops in China but not one in India, but the question is how do we approach India. Mark Henderson Chairman and Co-founder, The New Craftsmen and Chairman, Gieves & Hawkes
  20. 20. Unless we are clear what do we want to sell, we won't become a true global luxury brand Luxury brands should transcend designers, which I don't see happening in India A luxury brand should have a limited accessibility, otherwise it's not one We have very strong high-street brands in Asia, but we don't have premium luxury brands Charu Sachdev Founder & CEO -TSG International Marketing Pvt. Ltd.
  21. 21. I don't think there is a link between heritage and luxury brands in India Indians are not ready to accept their own luxury brands Asian brands got to reflect where they come from to become truly global Luxury brands are like a soft power and they need to stimulate to the cultural appeal, specially in India If you are making something for India, then you have to have the feel of the country in your products. We are actively looking for young Indian designers to take back to London for Annoushka Takes 3 hours to open a fashion store in China I look forward to find people who would like to develop a luxury market in India Indians wearing a sari with Jimmy Choo heels is much more subtle than chinese model of head to toe Chanel The lack of multibrand, departmental store culture is a major issue. In China brands are able to produce margin and have good property prices that is missing in India I would love to bring Annouskha to India John Ayton Founder, Annoushka
  22. 22. There is a wide acceptance of Indian products globally We need to support our artisans and not shun them as local and cheap It's the best time to integrate India with the luxury market Amar Agarwal Managing Director, Spa Group The Indian design and inspiration has a lot to offer, right from creators to manufacturers Made in India tag is most likely and will become huge Karan Ahluwalia Group Executive , VP and Country Head , Luxury Banking Group , Yes Bank
  23. 23. Futurescape, Delhi Level 4, Rectangle 1, Commercial Complex D4 Saket, Behind Sheraton, Delhi New Delhi – 110017, INDIA Futurescape, Mumbai Level 2, Raheja Centre Point 294 CST Road Near Mumbai University Off Bandra–Kurla Complex, Santacruz (E) Mumbai – 400098, INDIA Telephone: +91 9910201783 +91 (11) 6654 4196 Email: innovate@futurescape.in Web: www.futurescape.in Twitter: @futurescape

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