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Indian Consumers Are Sophisticated

Business World Nov 17, 2015

Buyers of luxury products in India are looking for outstanding quality and design By Smita Tripathi Nicolas Luc Villeroy, 54, has been head of the Tableware Division at Villeroy & Boch since 2005, and was appointed to the Management Board in May 2012. His responsibilities have included strengthening sales channels with trading partners and consumers. He has successfully driven the development of gift collections for the growth markets of Russia, Middle East and China. Set up in 1748, Villeroy & Boch is a premium tableware brand that also has bathroom and tile divisions. In India it is a recent entrant, having set up its first store in 2013. Villeroy, a descendant of the founder, discusses the importance of the Indian market, changing tastes in luxury, etc. Excerpts: Q. How important is India for Villeroy & Boch? India is a very interesting market within the emerging economies and due to its huge size and social structure a challenge, no doubt, but we are set up well in the country and we do believe in our plans and in achieving our goals very strongly. For Villeroy & Boch, India is a relatively new market as we opened our first shop with our partner Genesis Luxury in 2013, and the results are very encouraging right now. In total we have four shops in Mumbai, Kolkata, Bangalore and Delhi and two are planned for 2016. Q. FDI in single-brand retail outlets is now allowed, but you still decided to enter India through a joint venture with Genesis Luxury. Why? India is an important market for Villeroy & Boch with a huge size, a rich culture and a complex social and economic structure. When we decided to enter the market with our tableware, the best way to go was to cooperate with Genesis who knows the market very well, and brings valued experience in the field of premium and luxury brands into our partnership. As Genesis Luxury Fashion is one of the most successful luxury operators in India and already cooperates with many premium and luxury brands, the joint venture enables us to extend our local presence.  <table style="width: 300px;" align="right" border="1" cellpadding="5" cellspacing="5"><tbody><tr><td><img alt="" src="http://bw-image.s3.amazonaws.com/VB_Samarkand_300-3.jpg" style="width: 300px; height: 300px; float: right;"></td></tr><tr><td>Golden Glow: The Bone Porcelain Samarkand collection was developed in keeping with the opulent colours and classic gold ornamentation of the oriental tradition</td></tr></tbody></table>Q. What is the inspiration behind most of the tableware collection? Is there any India-inspired range in the Villeroy & Boch tableware collection? Villeroy & Boch is a brand with a rich history since 1748 and has got its own emotional power and a very unique style. Our products present a convincing combination of tradition and modernity, industry, and culture which is significant for the brand. As a premium provider for tableware, we have to consider contemporary trends because they reflect on consumer demands. Our Premium Bone Porcelain Samarkand for example, was developed in keeping with the opulent colours and classic gold ornamentation of the oriental tradition. It is particularly appreciated by those for whom traditional values and exquisite products are important. The demand and taste of Indian consumer is very discerning. They are looking for our premium collections — not just for our porcelain products, but also the stemware and accessories for example. Villeroy & Boch, with its positioning of a European premium lifestyle brand, has the required assortment to meet these sophisticated needs. And yes, we also plan to launch a first India-inspired piece soon, which is a platter featuring Lakshmi and Ganesha. Q. What are the major hurdles you face in India? Initially one of the bigger hurdles Villeroy & Boch had to face was the bureaucracy for creating a joint venture in India, but now we have successfully managed this, so this is behind us. Now Villeroy & Boch is faced with the challenge of transporting products and overcoming long distances in such a geographically large country like India. Q. What’s the ratio between institutional and retail sales in India? Unlike in Europe, the institutional sales in India come through the retail shops, which is quite unusual for Villeroy & Boch. Villeroy & Boch is strongly represented with the retail segment in India, but also the hospitality business is important and growing for the brand. Q. How does Villeroy & Boch tableware stand out in comparison to the competition? The Indian market for luxury products has been growing continuously in recent years. We believe in the Indian market for premium and luxurious products and we aim to become the first choice when it comes to premium and luxury products for the consumer’s table and home interior. As for competition, there are rarely any strong competitors for Villeroy & Boch despite the colonial heritage. Villeroy & Boch is the only brand having the most points of sale and our strength is our design, heritage and the large offering to really satisfy all kinds of different tastes, gifting and personal needs. Q. How is the Indian luxury consumer different from your customer in, say, Europe or the US? Indian consumers are very gift-motivated — very understandable in regards to weddings still being such an important occasion for quality gifting, as well as wonderful festivals such as Diwali. As a premium brand we offer premium packaging as well as a very high service level, which is highly valued in India.  <table style="width: 300px;" align="left" border="1" cellpadding="6" cellspacing="6"><tbody><tr><td><img alt="" src="http://bw-image.s3.amazonaws.com/VB_Samarkand_300.jpg" style="width: 300px; height: 300px;"></td></tr><tr><td>Villeroy & Boch designs reflect their European roots with a contemporary touch</td></tr></tbody></table>Q. You were integral to the brand’s expansion in France and Asia. Can you share some of your observations of how homeowners in Europe and Asia view tableware? Are they similar or different in taste? I would say there are both similarities and differences; it really depends on the countries. There is not “the” European or “the” Asian taste or habit. But in general we try to cater to different tastes. The segmentation of the Villeroy & Boch tableware range into three different lifestyles was very important to directly address the relevant target group in each area. “Metropolitan” is directed at the target groups that prefer a modern, purist environment. “Classic” comprises products for people who want to surround themselves with timelessly elegant furnishings oriented towards traditional values. “Country” offers typical country-house-style products. In both divisions, tableware and bath, we offer the original Villeroy & Boch designs worldwide. Our consumers expect the “original”, representing our premium brand. However, modern design is international and our designs do work worldwide. They reflect the signature of our European roots but are interpreted in a contemporary, cosmopolitan way and they can be well included in different interior styles around the globe. Villeroy & Boch is an international brand; hence, original V&B design is targeted at the global market needs, which also comprises the Asian lifestyle. Q. Do you think the concept of luxury has changed over the years? What are the new parameters? Over a very long period luxury meant nothing but rarity that was reserved for a “happy few” like kings, maharajahs, etc. Nowadays, many luxury brands are able to sell their products to a much larger base of customers. The challenge is to keep the right balance between rarity and ubiquity — or offering very special services like ways of customisation which makes the product then truly personal and individual. For me, rarity is still the main criterion for luxury, and my personal luxury is to spend quality time with my wife and children. Q. Do you believe that social media and an online site play a huge role in attracting young consumers? Are you shifting your marketing focus to include online platforms? Yes, we believe that social media and online are already very important channels that are used by not only young people, but of course by them in particular. The Villeroy & Boch Fanpage on Facebook and other channels like Twitter, Pinterest and Instagram are for example handled by a professional team at Villeroy & Boch since last year. We set up special online teams for these topics like e-commerce, social media and online in general as these fields are constantly growing and getting more and more important to attract, to bond existing and to win new customers. Our marketing teams who so far focused on printing brochures and more classical instruments also think “online” today. Q. What do you make of the Indian market in terms of tastes, pricing and growth? Well, ‘high’ is a relative term. The Indian consumer that we attract is sophisticated and looking for outstanding (European) quality and design. In general we offer more decorated premium and luxurious collections of our top range assortment in India than classic white ones. Regarding the pricing I would like to mention that we are a European premium brand that demands high standards of quality and design - both of the products, the packaging and also the presentation at the POS. All this plus the fact that our tabletop collections are produced in Germany and have to be shipped and imported to India is of course also reflected in the price that ranges in the upper segment. Villeroy & Boch has a good footprint in metropolises like Delhi and Mumbai. For the year 2016 Villeroy & Boch plans to extend our local presence with two more stores, possibly in cities such as Chennai, Chandigarh or Pune. (This story was published in BW | Businessworld Issue Dated 16-11-2015)