Luxury Brands Compete In India Market

Online sales are growing faster.

As jewelry prices are very expensive, online sales have been advancing slowly. Many consumers like to see payment in kind again. But now this is changing, and a report from McKinsey shows that online jewelry sales account for 4% of the total sales of jewelry. Although this figure is small, online sales of jewellery increase by two times the overall growth rate of jewelry sales. The report also shows that by 2017, jewelry sales on pure lines will account for 6% of the total sales.

　　 Amazon Nature also wants to get a slice of this potential market, so it aims at India. The rich people in India enjoy life and are famous all over the world. The class of "old money" trained by British education is also very British. For example, the rich man, VAI jar Maria, always followed a butler behind his house, carrying ashtray ashore in one hand and a bottle of Scotch in the other. Lakhemi Mittal, India's steel magnate, famously sold 66 million pounds in London to buy a mansion in London's Kensington Palace residence. It once created the highest private purchase record in the world.

Mukesh Ambani, the chief executive of the faithful group, is a representative of the new class. He spent $2 billion to build a 173 meter skyscraper in Mumbai. The first luxury house in Asia is luxurious in every detail: there are 9 elevators in the hotel lobby, and all the staircase handrails leading to the banquet hall are covered with silver. The ceiling area of the banquet hall is 80% full of crystal lamps. There were 600 full-time employees and servants who lived in the mansion with six families of Mukesh. Mukesh doesn't mind showing off wealth. As a report on the India Stan times held a luxury show, "let's show off, because you have the ability now."

Data from Capgemini and Merrill Lynch Wealth Management show that India now has 12 million dollar millionaires, which controls India's gross national income of about 1/3. In the end of 2009, the survey of luxury goods in 11 countries and regions in the world also showed that India's respondents described luxury products as "quality" and "a lifestyle". Meanwhile, nearly 3/4 respondents said they did not feel guilty about buying luxury goods at a high price, because they regarded affordable luxury goods as a symbol of national economic development. The key is that the number of luxury goods consumers willing to spend a lot of money is increasing, from 46 thousand in 2006 to 132 thousand in 2013, an increase of 200%. Each of these consumers has an average of more than 1 million US dollars in liquidity. Meanwhile, from 700 thousand households in 2006 to 1 million 100 thousand households in 2013, India's annual disposable income of more than $100 thousand has increased by 60% over the past 7 years.

In addition to the numerous local tyrants and spending "capricious", Amazon has another reason to choose India. According to Vikas Purohit, the fashion manager of India, India market is similar to the west, and is witnessing the rapid growth of jewellery sales. Amazon's choice of jewelry business is coincided with the wedding season in India. It also chose a good time to sell jewelry.

At present, the category of Amazon jewelry business is mainly divided into diamonds, gold ornaments, jewelry and designer merchandise, and some famous brands such as D 'Damas, Aspen and so on. But also for the social celebrities are prepared to never "crash accessories" jewelry series. In order to make consumers feel secure, Amazon will add quality assurance certificates to every product.

Shopping environment is a problem

Faced with the popularity of India's luxury market, it is inevitable that some people will compare it with the previous Chinese luxury market. Raha Chadha, an expert on luxury consumption in India, has discussed the question in his book "brand name first: Asian luxury craze" in a chapter. Will India be the next China?

After the financial crisis, the shrinking of luxury consumption in the traditional market has led luxury companies to turn their attention to the emerging markets, especially the BRICs (China, Russia, Brazil, India, South Africa) that are enjoying rapid economic growth. As the second largest country after China, India has high hopes. India has become the fourth largest luxury consumer in the world.

From this point of view, India's luxury consumption is still less than China's 1/10. In 2009, the figure was 600 million euros (and China was 6 billion 600 million euros), accounting for only 5% of the total global luxury consumption. Nevertheless, a report released by Bernstein research firm in April 2010 said that in the next 10 years, India will become a major market for luxury consumption in Asia. Bain&Co. has also predicted that the annual growth rate of India's luxury market will reach 25% in the next 3 years.

When the European market stabilizes, the Chinese market will encounter Waterloo. Luxury brand They are looking for their new growth market, and India is clearly one of the goals.

LV is the first luxury brand to open in India. The famous Chanel has a boutique in India. Several other first-line international brands, such as Prada, Max Mara and Ralph Lauren, still do not appear in the India market. Some brands are between the two and are preparing to land in India.

Kalyani Chawla, vice president of marketing and public relations at Dior, insists that India is just a toddler in luxury sales. Chawla said: "like most of the first-line brands in the global market, Dior sales in India are also growing steadily."

Although China is widely recognized as a luxury consumer, it is important to ignore that India is catching up. However, compared with China, infrastructure construction in India is lagging behind. There are no good roads, airports and high-rise buildings. There are no commercial boulevards in India's main cities and no high shopping centers. In addition, India has high tariffs on imports (such as tariffs on imported watches up to 50%), which are all factors that hinder the promotion of luxury brands.

"One of the problems that luxury companies need to face now is the consumption habits of the wealthy in India. Many of the wealthy people I know in India prefer to fly thousands of kilometers to Paris, London or Milan to buy luxury goods, and do not want to visit the New Delhi shopping center which can be driven in half an hour. Because compared with the shopping malls in India, the foreign shopping atmosphere is better, and the style of the products is updated and the prices are more reasonable. Alex, a Chinese staff member of an electronics company in India, told reporters that India does need more luxury stores or channels to meet the needs of the rich.

Male becoming the main consumer

In addition, male power and Bollywood star effect are becoming the new driving force for India's luxury market. In September 2007, Time magazine published a global luxury survey. The survey points out that among the top five luxury brands in India, the top fourth are Rolex, while the top three are good at making India's traditional clothing, sari's clothing brand. The India government's protection policy and Indian's love for traditional culture make India's local brands popular.

Because women in India are still wearing sari and are not likely to wear western style clothing, the male consumers in India become the main consumer of luxury goods, which is the opposite of the situation in other countries. Jewelry, watches and accessories are among the largest luxury goods in India, and men's luxury brands are becoming more and more popular. Classic Menswear Brands such as Zegna and Canali gained the favor of India men aged 35 to 44, while India men aged 21 to 35 liked to wear Paul Smith, Kenzo and Etro.

Another big motivation for India consumers to buy luxury goods is to chase Bollywood stars. These consumers want to imitate the star's lifestyle and personal style, so that real life can be described in the movie.

What is more interesting is that at the wedding ceremony in India, the jewellery worn by the groom is much more important than that of the bride, because in the past, the number of jewellery jewelry directly reflected the economic strength of the husband's family. Although the amount of jewelry worn is not much related to the family status, the groom still maintained such a tradition, so as to experience the bright day.