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  • The Indian Luxury Outlook 2019

    The Indian Luxury Outlook 2019

    As 2018 comes to a cold & wintry end, as political environment hots up, as new alliances, mergers and acquisitions take shape in business & politics, as GST corrections & FDI norms in ecommerce are tinkered, what is it that the Indian Luxury Industry can look forward to?

    Assocham figures continue to be optimistic and bullish. As per last projection, not only is the industry expected to be of a size of USD 30b by the year end 2018, but is also to continue its growth trajectory unhindered. But alas, the suddenly disturbed seemingly stable political applecart, the floundering rupee, the growing uncertainty, and the eminent global slowdown of 2020 looms large. Ground reality for luxury could be different. Industry insiders, trade analysts and brands all alike seek the pot of gold at the end of the rainbow.

    A seeming direction that the Indian Luxury Industry could take or adopt from the rest of the world appears as under:

    1. Consolidation is the key: With Reliance brands having taken over Genesis Retail in 2018, the largest fashion and accessory conglomerate of Indian Luxury and premium space has taken shape. With almost no competition, the all-powerful group is set to be the only point of entry into India. Surely independent brands and smaller groups continue to offer their wares, the sheer strength, negotiation powers and might of Reliance will perhaps be the single most driver of the fashion & Luxury space.
    2. Power of the Common Man: Someone wise enough once said ‘don’t underestimate the power of the common man’. Sure enough, luxury has slowly spread its wings to the hitherto sleepy tier I & tier II towns. The fast emerging Indian market is not only witnessing demand for luxury products from the Metros but also Tier I and Tier II cities which have a sizable number of HNIs (High Net-worth Individuals). Alongside, an increase in wealth for the middle class coupled with internet penetration has resulted in newer segments of first-time luxury buyers. This has given ample space for a whole lot of brands to set up shop in India, retail their brands through distribution networks. This surely will be the next growth driver for Luxury in India.
    3. Travel, Tourism &Hospitality will drive further growth to the value pie: With increased e-visa processing, faster on the ground arrival support, eye catchy Incredible India campaigns, the tourist inflow from within and outside is likely to further increase. Statistics according to a new report of the World Travel and Tourism Council (WTTC) reveal that India’s travel and tourism sector ranks 7th in the world in terms of its total contribution to the country’s GDP.During January-October 2018 FEEs from tourism increased 8.30 per cent year-on-year to US$ 23.54 billion.


      Source : www.ibef.or

       

    4. The Great Big Fat Indian Wedding carnivals will drive luxury: The wedding industry and the wedding service industry sets unprecedented benchmarks. According to a 2017 KPMG report titled Market Study of Online Matrimony and Marriage Services in India, the marriage services industry is estimated to be worth approximately US $53.77 billion (Rs 3, 68,100cr).This is one sector which adds incremental sales to all sectors of the industry – from beauty, fashion, accessories,  photography, jewellery, travel, hospitality, gifting to also the cuisine segment. With high standards being set by the likes of stars like Anushka Sharma – ViratKohli ; Priyanka Chopra – Nick Jonas& finally the Ambani weddings, the aspiration of average Indian to splurge on weddings is reaching a new peak. With Rolex watches as gifts to the entire wedding procession to bespoke clothing from super luxury brands to not only the entire family but the whole procession adds further fillip to the trade.
    5. Technology and Luxury: From high end home appliances such as Sub Zero Wolf to tech controlled homes like Home Automat, luxury and technology seem to marry and create an inseparable union. What was earlier restricted to high end laptops and computer systems demand has now invaded the mobile space, the home entertainment space besides the affluent kitchens. Super expensive mobiles from Iphone X to Hanmac are finding a demand que beyond their imagination in India.
    6. Technology and Retail: Omni-presence now means beyond just available everywhere to also be ‘Phygital’. A merger of the physical and digital retail is quietly invading the global retail. Amazon Go has already launched 8 number of cashier less stores& plans to ramp up to 3000 by 2021. Can India, the tech brain of the world be far behind? In Bangalore, Decathlon launched a similar store by introducing a ‘phygital experience’- an innovative mix of physical retail and digital touch points. From virtual reality to digital payments the intent is to create a fun, unique and immersive user experience designed to engage and add value to for them at every step of the way while choosing their favourite sports gear.On other hand, another concept store called ‘Watasale’ went further to create cashier less store, its first store in Kochi and have plans to expand to other cities including Bengaluru and New Delhi in the near future. Can Indian Luxury ignore this anymore?
    7. Predictive Analysis to Predictive Selling: The Indian fashion industry proudly receives its first futuristic analysis software, ‘Stylumia’. Created by ex Myntra founder Ganesh Subramanium, the software will assist in better buying to be able to improve efficiencies and sell through ratios. Most Luxury brands dependent on the human predictions of the buyer can now resort to technology and manage their budgets better. This coupled with predictive selling, could bring in the much needed correction in stocks over load with luxury brands.
    8. Experiential retail, Virtual Reality and Artificial Intelligence: These three aspects will come to the forefront: Brands like Arvind have introduced Magic Mirrors through its brand Creyate Custom Clothing. Also, Shoppers Stop has launched an innovative augmented reality-based dressing room: ‘The Magic Mirror’. It is an intelligent photo booth that gives customers the option to select and view apparel and accessories on themselves without having to physically ‘try on’ the desired products. Apart from this, ecommerce players such as Lenskart(Eyewear) and Caratlane (Jewellery) are already into Virtual trial of the products by customers.
    9. Rent a Luxury / Reusable Luxury are a reality: What started as a trickle two years back, is now a stream with more ventures offering specialised product categories arriving at the horizon.Websites such as Confidential Couture offer usable Luxury Goods while Ziniosa & Rent A Closet offer fashion on rent.And now, even the affluent women are renting high end jewellery for their wedding. The fashion rental market is becoming the biggest trend. A wedding suit or gown worth Rs. one lakh could be rented for as low as Rs. 2000 to Rs. 2500! It is estimated that the online wedding rental  business is worth Rs. 100 crore and the existing players have claimed a 25 to 50 per cent year-on-year surge in business (Black Book).
    10. Sustainable, Authentic and Responsible Luxury is being sought for: GrassRootby Anita Dongre and Nicobar by Good Earth are few names that are famous for their Sustainable offerings.Slowly but surely, the well exposed Indian consumer seeks value over mere brand name. Value definitions are shifting rapidly in line with global shifts. A brand who pays heed to such demands will perhaps go a long way.
    11. SUVs take over the roads:  Various variants of SUVs have been introduced by automakers of all categories. From Mahindra XUV 500 to Lamborghini Urus, Rolls Royce Cullanin to Porsche Cayenne, almost all Luxury brands have come up with their SUV variant. Sale of SUVs grew seven times faster than that of passenger sedans. While small cars and sedans managed a growth of 3% in the last financial year, the sales of SUV grew 21%. The share of SUVs in overall passenger vehicle sales rose to nearly 30 % in 2017-18, compared to 14% recorded at the end of March 2017-18.According to numbers released by Society of Indian Automobile Manufacturers (Siam), 9.2 lakh SUVs were sold in 2017-18 against 7.6 lakh units in the previous year.
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  • Zara mocked in Asia for selling £70 ‘lungi’ – a ‘Thai grandpa’s uniform’

    Zara mocked in Asia for selling £70 ‘lungi’ – a ‘Thai grandpa’s uniform’

    High street retailer Zara has been widely mocked for marketing a £70 checked skirt which bears a striking resemblance to a cheap sarong worn by Asian grandfathers.

    The fashion brand’s description of the new mink-coloured garment as a “check mini skirt” with “draped detail in the front” sparked laughter across Asia, where social media users pointed out the similarities with the traditional “lungi” worn by their fathers, uncles and grandfathers.

    The lungi is a piece of cloth wrapped around the waist and tied at the front, that has been popular among men in the warmer climes of South and Southeast Asia for generations. It can be picked up in the markets of Thailand, Burma or Bangladesh for a few pounds.

    “Hate to break it to you Zara, but that’s a lungi,” wrote India’s Hindustan Times newspaper, adding that the LungiWala online retailer offered very similar garments for just £4.

    “In other places, it would be available for much cheaper than that. We should know, we’ve seen our fair share of them: we even have a dance for it. (‘Lungi dance’, anyone?)”.

    Meanwhile, Asia-based Coconuts media described the skirt as looking like a “Thai Grandpa’s uniform” commonly used for modesty when washing outside.

    Many social media users made a joke of it.

    “Zara selling lungis is..exactly how my indian mum will be luring my dad to go shopping next weekend,” wrote Australian Twitter user Sarath Chandra.

    Others, however, were upset that the fashion brand had used the design without referencing its origins. Elizabeth Segran, a writer who said she grew up in Singapore, Malaysia and Indonesia, accused the company of failing to acknowledge that the skirt was inspired by the Asian lungi.

    “I am not the only one who is a little peeved by this casual cultural appropriation. Asian Twitter just went up in arms,” she wrote for US magazine Fast Company.

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  • Indian cellcos told to re-verify all customers

    Indian cellcos told to re-verify all customers

    The Indian government has instructed the nation’s mobile operators to re-verify all their mobile subscribers with a system that uses biometric authentication by next February.

    All existing subscribers will need to be re-verified using the Aadhaar-based system, which includes a unique identifying number and biometric data.

    Both prepaid and postpaid subscribers will need to be registered under the new system, and all licensees will need to inform existing subscribers about the requirement through advertisements in print and electronic media as well as SMS.

    The new requirement stems from a Supreme Court order in February that requires operators to complete the verification system for existing subscribers within one year.

    Operators plan to use and share a common device ecosystem for the verification process and will work on mechanisms to limit public inconvenience.

    But the Cellular Operators’ Association of India (COAI), the peak body for India’s GSM operators, has complained that the re-verification exercise will cost 10 billion rupees in infrastructure and training costs, and these expenses will need to be borne by operators.

    COAI also indicated it may need to seek an extension from regulator Trai if its members are not able to complete the process of re-verifying millions of subscribers within a year.

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  • Number of Indian tourists to Bali rises by 61.57%

    Number of Indian tourists to Bali rises by 61.57%

    The number of Indian tourists visiting Bali has increased by 61.57 percent — the highest rise among all countries — compared to the same period last year, from 72,969 to 117,897 people.

    “India ranks fifth among the top 10 countries visiting the island, after Australia, China, Japan and the UK,” Adi Nugroho, head of Balis Central Statistics Agency (BPS), said on Wednesday.

    Indian tourists constitute 3.69 percent of the total foreign tourists visiting Bali. About 3.19 million tourists have visited the destination in the first eight months of 2016. This figure is by 22.76 percent higher than the number of visitors seen during the same period last year, which was 2.6 million.

    India tops the list of countries that have seen the highest rise in the number of visitors to Bali, followed by the UK (42.56 percent) and China (35.06 percent), Nugroho said. The number of German tourists has risen by 35.05 percent, French by 31.48 percent, Australian by 18.51 percent and Japanese by 7.98 percent.

    Bali tourism practitioner Made Sudana said Bali is seeing an increasing number of Indian tourists because of the similarity between both places in terms of art, culture and Hinduism. Improved cooperation between India and Indonesia has also had a positive effect. Bali has actively pursued this as it expects more and more Indian tourists to visit the island.

    Earlier, Indonesian Ambassador to India, Rizali W Indrakesuma, said the Indonesian government is seeking direct flights to India and vice-versa. Direct flights are important as they will help increase the number of Indian tourists as well as facilitate business and investment opportunities between both countries.

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