Global luxury labels re-entering India with fresh perspective

Mumbai - Global luxury brands, who earlier failed to understand the preferences of Indian consumers and the domestic market, are returning with fresh strategies and perspective. The list include lingerie label La Perla, who has partnered with Vikas Jain, Co-founder of Micromax, British luxury menswear and accessories brand Alfred Dunhill, which shut down its stores in India in 2012, and Italian fashion house Versace, who has now found a new partner in place of Manav Gangwani’s Infinite Luxury.

New strategies, new beginning

Global luxe labels, are turning their past experiences in the country into learning for a new beginning. Experts have always said the preferences of Indian consumers are different than their western counterparts. Price consciousness is another factor brands need to keep in mind while eyeing a pie of Indian market. Poor infrastructure facilities, lack of high streets and few high-end malls makes it tougher for these luxe brands in creating a standing coupled with high import duties and Indians preferring to purchase at global stores on their trips abroad.

However, luxe labels now seem to have understood the trick of doing business in India. They are introducing products and tweaking prices to match Indian sensibilities and distribution strategies to suit the local market. They have also realised the need to have a local partner, who understands the market well to offer better service. Supply of retail space for luxury brands is expected to double in the next three to four years, says property consultant CBRE, this is good news for a host of luxury brands present in India and eyeing an entry into the country. Companies including DLF, Reliance Industries, Phoenix Mills, Mumbai-based Maker Group and Shobha Developers have a lined up a host of projects both malls and commercial buildings in Delhi, Mumbai, Chennai and Bangalore.

Brands also taking an e-route to India

Global luxury brands such as 'Tory Burch' or '7 For All Mankind' are now available in India at a mouse click. From large luxury retailers like Saks Fifth Avenue, Macy's, Harrod's and Neiman Marcus, who have already started shipments to the country, online shopping platforms are launching several luxe brands for the fashion-savvy consumers. Austrian jewellery brand Swarovski and American clothing brand Brooks Brothers have already begun offering their high-end products online. Swarovski, which gets 3 percent sales from online websites like Myntra and Jabong, is looking to increasing it to 8 to 10 percent over the next two years. Premium products retailer Elitify.com is set to bring brands like Paul Smith, Furla, Emporio Armani and Armani Exchange, by partnering with Genesis Luxury, on its platform.

Recently, Jabong partnered Luxury Quotient to tap the online luxury market. Luxury Quotient is a global distributor of luxury goods and has around 20 international luxury brands under its fold. Labels like Cette, Gregg Homme, Leonisa, Obviously, Pamela Mann, Vitamin A, Ivanka Trump, Falke, anatomie, Dom Rebell, X by Gottex, Emilio Cavallini are now available on Jabong.com.

Mango, Forever21 and Mothercare retailed under DLF Brands, are also exploring options to launch e-commerce site offering products under categories such as women’s wear, kids’ wear and so on. The company aims to strongly establish its web platform so that it can offer similar customer experience offered by popular marketplaces such as Snapdeal and Flipkart.