News: French luxury brands bullish on India

(BL 31/03/2007) New Delhi - `India is in fashion, and it's a fashion that's here to stay', was the unanimous view of the representatives of the French luxury brands - Chanel, Louis Vuitton, Lanvin and Cartier - who are currently on a visit to India.

"India is a very strategic market, and the market is close to fulfilling its potential," says Damien Vernet, General Manager, West Asia and India, Louis Vuitton.

Equally optimistic about the potential of the Indian luxury market is French luxury brand Lanvin. In fact, while West Asia and emerging markets of China and Russia contribute 25 per cent of Lanvin's worldwide sales, the brand is now betting big on India. "If you look at the number of Indians who walk into our Paris, Dubai and London boutiques, and just extrapolate that, India could easily add a couple of percentage points to our sales in the next five years," says Paul Deneve, Director-General Delegue, Lanvin.

Meanwhile, several luxury brands are in the process of finalising their initial retail expansion plans in India. In fact, Kolkata, Bombay and Bangalore may see exclusive Cartier stores, as soon as Igor Baschet, Area Manager, Cartier, identifies the projects and partners. "The elite in India are growing at 20 to 30 per cent. India already has about 36 billionaires, with 14 of them who are new to the list," says Baschet, whose company sells its watches from 12 outlets in eight cities.

Luxury brands, which have so far only found an environment compatible with their ethos in boutiques located at five star hotels, are now looking at the booming retail market. "There have been a few obstacles, the lack of retail markets is a pressing one. If it weren't, we would have many more shops in India," says Louis Vuitton's Vernet.

Luxury hotels may continue to be the preferred destination, but malls are where luxury retail is headed.

Lanvin's Deneve, who visited India a few years ago, plans to take a recce of the recently evolved mall culture. Chanel, which will be setting up at least seven shop-in shops this year, is planning its next boutique in Mumbai and is open to the idea of tying up with a retailer. FICCI estimates the Indian luxury market at close to $2.2 billion in 2006, and growing at 20 per cent.