Many years before when I was responsible for setting up India’s first ever retail arena at India’s first private airport at Bangalore in 2006, I had a special focus on creating a luxury retail zone. When I approached global brands like Apple, GAP, Omega and many others in India and abroad, they didn’t evince much interest. For India was not even a budding Luxury market then. Mont Blanc writing instruments, which is among the Top Brands sold across Airports worldwide didn’t have a presence in India at the time with a standalone store and we were keen to bring them on board at the Airport with an exclusive store, but the principals politely declined the offer. I have a long list of such disappointments from my tenure at BIAL.
Today, things are different. The global luxury market is pegged at US $1.3 Trillion annually (including services such as Travel, Resorts and Hospitality) and India alone has an estimated market size of $6 billion growing at 9% CAGR since 2012 – across various categories ranging from Watches to Clothes, Automobiles to Cigars, Wines to Writing Instruments and so on. Incidentally, the Luxury Market size of China is pegged at $25 Billion and growing twice as fast as that of India. USA remains the largest contributor to global luxury retailing at over US $85 billion followed by Europe at an estimated US $65 billion.
Same is the case with electronic products, especially from brands like Apple or Bang & Olufsen. Apple fanboys (and fangirls) stand in Q all night to buy their coveted new launches since they mostly appreciate the features the product offers. Unlike in India, where the latest iPhone is more a symbol of prestige in the society and the associated benefits (like getting a table faster at a restaurant – I am not kidding!). While brands like Bose remained “luxury” and niche until a few years ago in India, thanks to deep discounting and presence on e-commerce websites, they are now competing with local and Chinese imports in their respective categories.