We have become a brand-crazy
nation and international high-end brands have picked up the cue. They are all coming to India in hordes and the consumerist middle class is
lapping up these luxe products with great alacrity. Being brand conscious is today more the norm than the
exception, says Kanchana Banerjee
She wakes up and cleanses her face with Neutrogena cleanser. Bathes with Body Shop coco butter body wash. Washes her hair with a Clinique shampoo. Post bath, applies Neutrogena sesame oil on her body. On her face, she applies Clarins serum for oily skin. Splashes on some Cool water Davidoff and is ready for the day.
Who is she? Sorry to burst the bubble. This is no Page 3 glitterati or film star we are talking about. She is today's uber cool, hip and brand conscious Indian woman. She could be a homemaker or a working woman. She is you.
Yes, its true. Indian women today have taken to using premium cosmetic brands like never before. Clarins, Nina Ricci, Dior and other fancy brands adorn her dressing table. Call it being evolved, having more disposable money on hand or a plain fancy for things expensive, the Indian woman is the hot new consumer for the hi-end premium cosmetic brands of the world. And needless to say, the manufacturers love her new found fancy and are looking at the mammoth Indian market with renewed interest. And the Indian woman…lets just say she's loving it!
Kapil Kumar, Managing Director, Brushman India (a Delhi-based PR & Corporate Communications firm) says, "With the increased disposable incomes in India and exposure to international trends, fashions and products, the Indian consumer today is very well informed and wants the same products and facilities that are globally accepted."
William S Pinckney, MD & CEO Amway India adds, "Indian economy is on an all-time high, salaries have increased exponentially. From a price conscious market Indians have evolved into a quality conscious market. People are aspirational and brand conscious. Perception reigns supreme and being seen in the right brands is important. All these factors contribute to the growing need and demand for hi-end brands." Amway's skincare range sold under the name - Artistry along with beauty lotions from the house of Dior, Clarins, Sheisedo and others are the current favourites. All of them bear price tags that are red-hot expensive but that's not bothering the women today.
International products that were earlier a distant dream for most and only procured when someone went for a trip abroad, is now readily available in all retail malls and shopping complexes. Today you don't have to wait for your favourite NRI aunt or uncle to gift you a Nina Ricci or Davidoff perfume. Just walk into any upmarket shopping complex and buy it off the shelf.
So what has fuelled the need and demand for these premium brands? Kapil Kumar says, "It's a combination of frequent international travel, increased exposure to western trends and products through TV, films and magazines." In the last couple of years Indian edition of international magazines like L' Officiel, Marie Claire, All this has made her much more fashion and trend conscious. She's not lagging behind in terms of what's new and hip.
Happy to oblige
Seema Agarwal, Mumbai-based homemaker says, "Today women are in sync with what's good for a particular type of skin. They are knowledgeable about various products. Indians are travelling the world and we don't need any statistics to prove that. So their exposure to western trends, products and fashion has increased. And so have the demand and the need."
The companies are only too happy to oblige. They are in a hurry to capitalise on the growing market that is increasingly becoming hungrier for flashy brands, prices notwithstanding. While Pierre Cardin had to beat a hasty retreat a decade ago, the scene today is different. In the last couple of years, India has seen the triumphant arrival of big labels and brands from the West - Dior, Mont Blanc, Bvlgari, Escada, and Hugo Boss are just few names that have set up outlets in India. In 2002, the world's largest luxury goods group - Louis Vuitton - made a grand entry in India, opening a boutique in Delhi and another in Mumbai in 2004. Other purveyors of opulence, from Chanel to Bvlgari, followed soon. In recent months a multitude of swanky brands have announced plans to set up shop in India, including Dolce & Gabbana, Hermès, Jimmy Choo and Gucci.
Limited editions According to the brand managers of most, consignments sell off even before they land in India. And this includes the special and exclusive limited editions that cost more than an average Indian's annual package! Custom-made luggage from Louis Vuitton store range from Rs 15,000 to Rs 1.5 lakh! Beauty products - fragrances, treatments, needs of hair, skin & face - are available from the price range of Rs 1,000 to Rs 18,000. Artistry's premium and top-of-the-line Time Defiance Intensive Serum costs Rs 9,999! The others - Nina Ricci, Dior, Clarins and etc. cost equally high. If the prices shock you, be informed that all of them sell and sell quickly.
Sumona, a Delhi-based freelance market researcher, "I've been using Artistry serum of Amway for the last three years. Yes it is expensive but it has its benefits." Kusum, director marketing with a well known five star hotel chain regularly uses Clarins as part of her regular skin care regime. They all admit that the products they use are very expensive but also add that they are very beneficial. What they all stop short of saying is - I'm worth it!
Much of this has happened as a result of increasing salaries in India. A report in Economist.com states, quoting a survey conducted by American Express, that India has fewer than 100,000 millionaires among its one billion-plus population. It predicts that this number will grow by 12.8 per cent a year for the next three years. The long-term ascendance of India's middle class, meanwhile, has been charted by the McKinsey Global Institute, which predicts that average incomes will have tripled by 2025, lifting nearly 300 m Indians out of poverty and causing the middle class to grow more than tenfold, to 583 m. Number of families with annual incomes of more than $230,000 will have more than doubled from 20,000 in 2002 to 53,000 by the end of 2005 and will grow to 140,000 by 2010. The bottom line is that India, like China and Russia, today is a hard-to-ignore emerging market for luxury brands.
Good living
The good lifestyle, once experienced by a select club, is now getting democratized. There are more than 1 million luxury consumers in India and the numbers are growing by the day. Rich Indians are no longer a rare breed and India is now a compelling market for the brands with burgeoning economic growth. The fashion and film industry is getting stronger and gaining popularity in the world, the basic love for gifting and massive opulent weddings is becoming the popular norm, statistics reveal that India is the fastest growing auto market in the world, market sizes in many high-end categories of electronics, jewellery etc. are also burgeoning every year. This is a phenomenon that is unmatched anywhere else globally. The world is eyeing India and everyone wants a piece of the growing pie.
Rich and famous
The brands aren't just focusing on Delhi, Mumbai and the larger metros. Pockets of wealth in mini-metros like Hyderabad, Ludhiana and Chandigarh are coming to the fore. You'd be shocked to know that it is not Delhi or Mumbai that has the highest per capita ownership of Mercedes cars; it is Ludhiana!! These cities represent a huge client base. Alongside the rich and famous from the metros that lap up these outrageously expensive brands, the wealthy from mini metros and smaller cities are not to be left behind in the race!
But it's not all smooth sailing for these hi-end brands. There are quite few hiccups before they can rest easy. High import duties make the luxury goods more expensive and since Indians are travelling the world they can pick up what they want from their international jaunts. Also finding suitable retail space is a big deterrent. So far most designer boutiques are located inside plush five star hotels for want of fashionable addresses or hi-street in India. But that should change soon. A new luxury-goods mall, Emporio, is to open shortly in the prosperous south Delhi neighbourhood. A fitting address for the premium hi-end brands from the West! Big names like Gucci, Prada, Armani, Louis Vuitton, Cartier, Ferragano are expected to be there.
Some of the brands have also roped in hi-profile Page 3 socialites to boost their products' image further and give it the much-admired Indian appeal (!!) So while Delhi-based Page 3 socialite and exporter Kalyani Chawla is the brand ambassador for Dior Couture, Simar Dugal is the face of Aigner and Charu Sachdev, lawyer by profession, is associated with labels like Tommy Hilfiger and Moschino.
All this points to one thing - the world's hi-end brands are very serious about their India plans. They are here not just to test the waters but with serious expansion plans. And for the ever eager Indian consumer, there couldn't have been better news. So what are you waiting for…happy times are here and let the shopping begin!