Mazars presentation - Luxury summit 2015 (IFCCI / Assocham)
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INDIA LUXURY SUMMIT 2015 FRENCH COMPANIES AT THE HEART OF THE DEVELOPMENT OF LUXURY SECTOR IN INDIA
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Transcript of Mazars presentation - Luxury summit 2015 (IFCCI / Assocham)
INDIA LUXURY SUMMIT 2015
FRENCH COMPANIES AT THE HEART OF THEDEVELOPMENT OF LUXURY SECTOR IN INDIA
LUXURY SECTOR :WHAT ARE WE TALKING ABOUT ?01
LUXURY – WHAT ARE WE TALKING ABOUT ?
Source : BCG/Ipsos
IS INDIA THE NEW PRIORITY OF GLOBALLUXURY BRANDS ?02
INDIA, A PRIORITY MARKET FOR GLOBAL LUXURY BRANDS ?
Can India be the new Eldorado following theslowdown of Chinese economy ?
THE IMPORTANCE OF FRANCE ANDFRENCH COMPANIES FOR THE LUXURYSECTOR IN INDIA
03
FRANCE - FASHION & LUXURY INDUSTRIES
Source: Website of the Ministry of Industrial Recovery, "La filière mode et luxe", April 2013, and Comité Colbert, 2012 data
MAZARS RECENT REPORT ABOUT FRENCH LUXURY & FASHION INDUSTRIES
To obtain the Mazars reports :email : [email protected]
AN EXAMPLE : THE TOP 10 MOST SEARCHED LUXURY HANDBAG BRANDSGLOBALLY
Source : World Luxury Index
FRENCH COMPANIES AND BRANDS ARE ALREADY WELL REPRESENTED IN INDIABUT CAN DEVELOP FURTHER
WHITE PAPER :
SOME CHALLENGES TO TACKLE FIRST INORDER FOR THE LUXURY SECTOR TOGROW MORE QUICKLY IN INDIA
04
RECOMMENDATIONS RAISED
FDI entryconditions
Local SourcingNorms
Access toe-commerce
Sub-branding Multiple brands Wholesaleretail in parallel
Import dutybarriers
Rates on saleof luxury goods
Industryspecific issues(per segment)
OTHER CHALLENGES
Rental costs
Limited Luxurymalls and high
streets. Need formore quality
luxury space andenvironment
Counterfeitsproducts
Manpower / Stafftraining and
retention
KEY FACTORS OF SUCCESS ON THEINDIAN LUXURY MARKET05
KEY FACTORS OF SUCCESS ON THE INDIAN LUXURY MARKET
Invest andinnovate with
a localizedstrategy
Be costeffective
Understandcustomersand market
Experience
IS A LOCALISED STRATEGY REQUIRED IN INDIA ?
SUCCEED WITH THE INDIAN CONSUMERS
• A country with complexities and traditions• Contrasts, contradictions and extremes• Outstanding service• Indian weddings• Religious festivals• Family• Bollywood• Royalty patronage
Succeed with the Indianconsumers
Succeed with the Indianconsumers
ILLUSTRATION
Understand Indian taste and createmerchandise suitable for Indian audiences
Example : Indian market for luxuryclothing is driven by the Indian wedding
estimated to be more than $1 billion.
Understand that the preferences of peoplebelonging to different states following
different cultures are not similar
Richie Rustic
• This one is theoddball who defiesstereotyping andhas the luxurybrands utterlyconfused.
• They operate outof all knownparadigms andcould pick up themost bafflingpurchases, for noapparent rhyme orreason.
• It is very difficult topigeon hole thissegment.
VivaciousVivant
• This is the classmostly self-madeentrepreneurs orprofessionalbusinessexecutives — thathas the money toenjoy the goodthings in life, anddocs so withoutguilt.
• The motto is workhard, and playsharder, andcelebrates successwith irreverenceand fun.
PoliticalProwler
• Acquisitive to thecore, has achildlike mentalityof covetingwhatever theysees new.
• Luxury brands talkin hushed tonesabout thisconsuming class,the origins ofwhose wealth areshrouded inmystery, but whois perhaps thebiggest contributorto the bottom linesof the high endbrands.
AffluentAscetic
• Very rich, but ascomfortable in aKolhapun chappalas in a pair ofJimmy Choopumps.
• A value seeker willnot buy luxuryunless it fulfills aneed.
• Years of socialistidealism and guiltOf conspicuousconsumption hasingrainedfrugalism.
• Finally they havethe temptation ofenjoying the fruitsof labour.
ClassyConnoisseur
• Hails from theultra-high networth segmentand consumesluxury for theirIntrinsicsatisfaction.
• Luxury is nonovelty but partand parcel ofeveryday living.
• Disceming with adiscreet style,everything has tobe just so for thisconsumer.
FlashyFlaunter
• Is the new richstatus seeker whochases aftervisible luxury.
• So will be seensporting fancywatches, drivinghigh-end cars,wearing designerclothes but will notinvest in theinvisibles —designer lingerieor top notchkitchen andbathroom fittings.
UNDERSTAND THE INDIAN CONSUMER : CLASSIFICATION OF LUXURYSHOPPERS IN INDIA
According to C. Narayan, the Indian luxury shopper can be categorized into the following segments:
Source : BusinessWorld (Chitra Narayan “Luxe for less”, Sept 2012)
INDIA AS A SOURCING HUB FORLUXURY PRODUCTS AND AS A SOURCEOF LUXURY BRANDS
06
INDIA AS A SOURCING HUB FOR LUXURY PRODUCTS
The Indian handicraftsmarket is estimated to be
worthRs. 46,000 crore
Exportsaccountfor close
to 60%of the overallmarket
with around 2/3 goes to 10“quality-conscious” markets
(including France)
Source : Exports Promotion Council for Handicrafts
JEWELLERY EXPORTS FROM INDIA
India’s market share in the global jewellery
0.5%
12.5%$12 billion-worth of exports for
Indian jewellers
1997
2014
Source : Gems and Jewellery Export Promotion Council (GJEPC)
THE WAY FORWARD ?
India as asourcing hubfor luxury ?
Can Indiancompaniesemerge as
globalretailers ?
Are there anyIndian brands
that canbecome big
globally?
Prospects ofIndia
IndigenousLuxury brands
?
ACCELERATOR FOR LUXURY :E-COMMERCE IN INDIA07
ACCELERATOR FOR LUXURY : E-COMMERCE IN INDIA
Mazars is present in 5 continents.www.mazars.co.in
Date
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CONTACT
Mazars
Nicolas RibolletEmail : [email protected]
