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For his 35th birthday, Shagan Kumar, a consultant with a multinational company, decided to gift himself a new set of wheels. He had been driving a Toyota Altis for three years and wanted to upgrade to a luxury car. The BMW 3-series was his car of choice but at Rs 34 lakh, a little out of his budget. However, he decided to visit a dealer and test-drive it anyway. It was while he was at the dealer’s that he realised he could have his dream car at nearly half the cost. The catch: it was part of BMW’s Premium Selection, the company’s pre-owned car programme. The three-year-old, black beauty had clocked 23,000 km and was available for Rs 18 lakh. “I drove it and it felt like a new car. Plus it came with a two-year warranty,” says Kumar, who has been whizzing around in the ‘Beamer’ since April.Kumar is part of a growing tribe of young consumers who aspire to drive a luxury car but haven’t yet acquired the financial status required to own one. It is this market that the big daddys of luxury — BMW, Mercedes Benz and Audi — are hoping to tap with their respective pre-owned car programmes. While Mercedes and BMW have been in the business since 2010 and 2011, respectively, Audi entered the market in April.The pre-owned luxury car market, though small, is growing exponentially. Last year, while sales of luxury cars rose 20 per cent to 34,000 units, pre-owned luxury cars zoomed 60 per cent to 30,000 units. BMW’s sales jumped 40-45 per cent while Mercedes Benz saw a healthy double digit growth. The pre-owned car market is expected to soar 35-40 per cent every year. New Customer Base The pre-owned, or as some call it, the ‘pre-loved’ car market allows luxury car companies to attract a new set of customers. “We are increasingly seeing a new segment of younger buyers in the pre-owned luxury car segment,” says Joe King, head of Audi India. “These include young professionals and executives, first-generation entrepreneurs, etc. Over the past few months, there has also been an increase in salaried customers visiting us. They look forward to treating themselves to a nice luxury car. These customers form a completely new segment and that’s where we also see growth in the market,” he explains. A pre-owned programme also ensures brand loyalty and future business. “Premium Selection will bring more potential long-term customers to the BMW world,” says Philipp von Sahr, president, BMW Group India. “We hope that once a customer has driven a BMW, albeit a pre-owned one, he will move to a new one, once his pockets are deeper.” This also warrants more business for dealers. Of the 15 BMW dealers in India, 11 offer pre-owned cars as well. “The dealer needs to maintain that relationship with the buyer so that a few years down the line, when he is planning to upgrade, he takes his business to the same dealer,” explains Von Sahr. In future, he expects all dealers to provide Premium Selection vehicles. However, he foresees a space constraint. “Dealers will need to invest in larger spaces as, unlike a new car showroom where displaying a few cars is enough, under Premium Selection, they will need to display all the cars in their inventory.” IN THE DRIVER’S SEAT: (Clockwise from above) Eberhard Kern, MD and CEO of Mercedes Benz India; Philipp von Sahr, president of BMW Group India; Joe King, head of Audi IndiaOver the next five years Audi plans to have dedicated dealers for Audi Approved Plus — its pre-owned car programme — in the National Capital Region, Ahmedabad, Bangalore, Chennai and Kolkata. It is also looking at expanding in markets where it sees potential. “There is a big demand for new and Audi Approved Plus cars in tier-II and -III cities too,” says King. While earlier the pre-owned car business was dominated by grey market dealers and online sellers, the entry of the companies themselves has ensured quality control. Von Sahr says it also helps maintain brand image. “When pre-owned cars are left in the hands of grey market dealers, the brand suffers as there is no quality control. When we control the sale and purchase of pre-owned BMWs, we can do a quality check. For instance, no car that we sell is more than five years old or has run more than 1,20,000 km.” Each BMW Premium Selection vehicle also undergoes 72 checks before being certified. Similarly, all the vehicles being sold under Audi Approved Plus are checked for 110 criteria before they are certified. “The fact that the vehicles are technically conditioned to Audi standards, thus ‘free of defects’, is one of the major factors contributing to growth,” says King.The pre-owned car market is also more organised now. “With all the luxury car manufacturers present in the pre-owned car business, the segment is getting more organised,” says Eberhard Kern, managing director and CEO, Mercedes Benz India. Symbiotic RelationshipThe growth of the pre-owned luxury car market bears a direct relation to the growth of the new car market. As more people buy new luxury cars, more cars come into the market for second sales. “There’s a trend of customers’ ownership periods increasingly getting reduced over the years,” says Kern. “Currently, the replacement cycle is at two to four years for cars, compared to three to five years earlier.” Adds Vinay Sanghi, founder and CEO of cartrade.com, a networking platform of over 1,200 used car dealers: “Most high-end users don’t use a car for more than three to three and a half years. They change their cars much faster as they have the money and want to upgrade to the next level. Comparatively, middle-class users keep a car for five to six years.”High depreciation — as much as 30 per cent in six months — also makes it attractive for customers to go for a pre-owned car. Explains Narjeet Gill, manager, Premium Selection, Bird Automotive, a BMW dealer: “Most luxury cars are owned by businessmen and self-employed people who claim depreciation on their books. It makes sense for them to upgrade every three-four years.”Luxury car manufacturers are certain there is no fear of cannibalisation. “There is enough untapped potential for both the new and the pre-owned car segments to grow,” says Von Sahr. Adds Sanghi of cartrade.com: “In India, we only have 18 cars for a thousand people, so there is enough scope for growth of all segments.” Also, he feels the new luxury car and the pre-owned luxury car buyers are different. “If anything, the pre-owned luxury car buyer will eat into the market of premium cars such as Toyota and Honda, but not into the luxury car market.” Be prepared to see a lot more people driving around in luxury as the pre-owned car market makes it simpler for them to get behind the wheels of their favourite car. (This story was published in BW | Businessworld Issue Dated 15-12-2014)
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The Bucherer group has been making fine watches for the past 125 years. Its brand, Carl F. Bucherer, named after the group’s founder, has blended tradition with innovation; in fact, it is one of the few Swiss brands to have developed its own movement. Sascha Moeri took over as CEO of the Carl F. Bucherer brand in 2010. Before that he was vice-president at Milus International in Biel and responsible for the brand’s distribution in 30 countries. Born in Biel, the cradle of watchmaking at the foot of the Swiss Jura, Moeri has always been fascinated by watches. He spoke to BW|Businessworld. Edited excerpts:What makes a luxury brand? How important is innovation to a luxury brand? For us, luxury is strongly related to exclusivity. By crafting each timepiece with care and sophisticated skills that come from years of experience, Carl F. Bucherer watches have become real treasures. They are not mass produced and, therefore, reflect true individuality. As a luxury brand, innovation is a crucial part of our identity. We are constantly working on new developments that aim to be path-breaking for the watch industry. The Manero Tourbillion is one such example. The most important step for our brand towards autonomy was the development of our own in-house caliber family CFB A1000. One of the aspects of a luxury brand is that it is meant to last across generations. Given that, how does a brand like Carl F. Bucherer ensure it stays timeless? Carl F. Bucherer has an over 125-year history. Our watches are not designed to follow every new trend. Rather, they reflect lasting values like tradition, passion for the art of watchmaking, independence and technological perfection. Timepieces that are the achievement of advanced skills and a long tradition never lose their inherent fascination and are appreciated by all generations. However, the customers want to be surprised by new, extraordinary models and features. Therefore, it is essential for every luxury watch manufacturer to uphold the highest quality standards of traditional watchmaking, but strive for further innovations at the same time. Anyway, we stick to the idea that a watch expresses the individuality of the person who wears it. Because our watches are for those who do not go with the times. Where does India stand in the Carl F. Bucherer universe? Which are your top five markets? The Indian market is very promising for our brand. Indian consumers are interested in exquisite timepieces that truly reflect quality, beauty and exclusivity. We definitely see growth potential in the market, so we plan to further increase brand awareness and continue expanding our customer base. Which are your top five markets? In general, we have remained on course for assertive, yet measured expansion. Several markets are very important for Carl F. Bucherer. Obviously, we are very strong in Europe, thanks to our own distribution network and the long tradition of the Bucherer group which dates back to 1888. We are also developing a strong position in the US market and the Middle East. China remains a very strong market as well, because Chinese customers love products that are examples of advanced craftsmanship. Furthermore, we have plans for additional stores and points of sale in various Asian countries.Other watch brands have a headstart in India. How do you plan to capture mindshare? To differ from the competition is not so much a matter of presentation, but of defined values and trust. Our customers appreciate our timepieces a lot, because our brand DNA is very unique. As mentioned before, an important factor is our long tradition that dates back to 1888. The skills in watchmaking were not only passed down from generation to generation, but were improved through constant development and innovation. Thus, our watches are still the product of the same philosophy and engineering that already formed their predecessors and even feature some of the same components. Our watches don´t just show the time — they tell an interesting story of visionary courage and entrepreneurial spirit. Which are your most popular watches? Are they different for the Asia-Pacific region as compared to Europe? The entire Patravi line is very popular all over the world. For example, the Patravi ScubaTec meets all the needs and quality requirements of a high-performance sports watch and is the ideal companion for any diver.Another line that is very popular is the Manero collection — it reflects the art of watchmaking in its most authentic form.To answer the second part of your question: our timepieces aren’t designed with a specific market in mind, but to appeal to watch enthusiasts all over the world. There may be different preferences though. The masculine TravelTec is of interest to a customer in the US, Russia or the Middle East, whereas an Asian customer appreciates the sleek and clean design of a Manero Tourbillon. Who is a Carl F. Bucherer customer? Which are the most popular ranges in India? If I had to describe a typical customer, it would be a person who appreciates the combination of thoughtful design, outstanding functionalities and innovative technology. He or she takes pleasure in wearing timepieces that reflect individual character in an exclusive way. Moreover, our customers love craftsmanship. As all our collections blend state-of-the-art technology with exquisite design and expertise, all our models are doing very well in India. Each line does have a unique character and an incomparable charisma corresponding to each individual Indian customer. As India opened its doors to single brand retailers you had contemplated opening exclusive stores in the country. There were also plans to sell customised, one-of-a-kind watches in India. Neither has happened. Why?This is not correct. We have launched several editions of customised watches in the last two years. The Patravi ScubaTec SFV Special Edition is one such example. It is dedicated to the Swiss National Football team and expressed our and the whole country’s passion for the sports and this team.The watch was a big hit and the first series were sold out within a few weeks. The watch has been sold globally. Many of our customised watches are sold in Europe, the Middle East and in Russia. We also did a personalised version of the EvoTec only for the Indian market. If we do see potential to repeat this success story again in India, we will certainly do so. What are your future plans for India?This year we are introducing the new ladies watch collection Pathos in the Indian market. It combines the jeweller’s craft with the art of watchmaking. It is a beautiful timepiece made of faceted steel and rosegold. There has been a lot of talk in the global media about the Apple Watch and how it will affect the luxury watch market. Your comments? Certainly, the introduction of smart watches will cause some changes in the watch market because high-tech devices on the wrist provide owners with new functional possibilities. For this very reason, we do not consider smart watches a threat to exclusively manufactured timepieces. Both are status symbols in their own right, but represent completely different values. smita@businessworld.in Twitter:@smitabw(This story was published in BW | Businessworld Issue Dated 15-12-2014)
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Dressed in a Versace t-shirt, Armani Junior jeans and Fendi loafers, Anjan Jaipuria fits the description of a man about town. The only difference: he is celebrating his seventh birthday at a farmhouse in Delhi. Giving him company is his five-year old sister, dressed in a Burberry outfit that costs a lot more than the lovely silk saree that her proud grandmother is wearing. A few hundred kilometres away in Chandi-garh, Manjeet Gill is celebrating his daughter Mannat’s first birthday. While Manjeet sports all the elements of a luxury consumer — a Louis Vuitton belt, a Mont Blanc pen and a Rolex, his wife carries a Dior bag — no, not the iconic Lady D bag but the Dior diaper bag — to keep all the essentials that little Mannat will require. Meanwhile, Mannat herself is clad in a Baby Dior dress and sleeps peacefully in her Fendi pram.Say hello to luxury’s youngest consumers — kids. From Gucci booties to Baby Dior onesies, Armani Junior jeans for toddlers to Burberry trench coats for seven-year-olds, from Young Versace jackets to Miss Blumarine dresses, children today are wearing brands even before they can spell or, in some cases, pronounce these names. “As a luxury consumer you are always looking for the next thing. Once parents have spent on themselves, they start looking for the next avenue to spend on and that’s where the kids’ market comes in. Parents today are conscious of luxury brands. They want to buy the best for their children,” says Swati Saraf, president of Les Petits, a multi-brand luxury kidswear store at Delhi’s DLF Emporio. Saraf set up Les Petits three years ago when her sister had a baby and she realised that except for Burberry and Gucci, there were no luxury brands available in India for children.Just a few shops away from Les Petits is Armani Junior, that set up shop in September 2012 and is the only dedicated kidswear luxury brand in India selling apparel, shoes and accessories for children in the zero to 16-year age bracket. Gucci, which launched its kidswear collection globally in 2010, offers it at its Mumbai, Kolkata and Gurgaon stores. Burberry, whose kidswear collection has been a great success globally, contributing 19 per cent to its total revenue in 2012, has been selling it at its flagship store in Delhi since 2010. Globally, the market for children’s wear is projected to reach $156 billion by 2015, according to Global Industry Analysts (GIA), a US-based market research company. While there are no official figures for the luxury baby and kidswear market, industry sources project it to be around $10-11 billion. GROWTH PANGS: Right now, Indian parents have a long way to go, opting for brands that are loud and bold (Photograph Courtesy: Armani Junior)In India, the Associated Chambers of Commerce and Industry (Assocham) estimates the kidswear industry to be worth Rs 38,000 crore and growing at a compound annual rate of about 20 per cent to reach Rs 80,000 crore by 2015. Says P. Rashmi Upadhya, associate director-strategy, PwC India: “The luxury kidswear segment is still at a nascent stage and represents only a fraction of the overall market (less than 1-2 per cent). However, it is growing at a faster clip of 25-30 per cent compared to 20 per cent for the overall category.”Upadhya believes the reason the market is growing is because on the one hand, family sizes are becoming smaller and, on the other, there is an increase in two-income families leading to more disposable income. “Parents are spending more on children aged 0-14.”Saraf agrees and has the bottom line to show for it. For three years, Les Petits, which stocks luxury clothing and accessories in the Rs 7,000 -Rs 1.2 lakh range, has been growing at 25-30 per cent annually. On an average, a customer buys stuff worth Rs 35,000-Rs 40,000 at Les Petits. “Parents are seeing value in luxury apparel.” She cites the example of a couple who bought a Baby Dior dress for Rs 30,000 from her store for their one-year-old. They said they would pass it on to their granddaughter, making it an heirloom. However, she feels that it will take a few years for the market to mature. “At present, parents are extremely brand conscious. Nearly 70-80 per cent of our buyers only purchase products with big logos.” For instance, Young Versace as a brand does well because it’s bold and loud, with every outfit either having the Medusa or the Young Versace logo on it. While globally, the 8-12 years category tends to sell the most, in India the 0-2 category has the maximum takers. That’s because the birth of a baby is a big event in Indian families, involving a lot of gifting. The same is true for the baby’s first birthday. “We see a lot of clothes and accessories like diaper bags being bought as gifts,” says Saraf. The next big category is the 8-12 age group. It’s not only parents who are brand conscious and want their kids to be on the same fashion page as themselves, the latter constitute an independent buyer group too. Influenced by media and peer pressure, kids are better informed and know what they want. “Girls as young as five are selecting their clothes and accessories. In the 8-12 age group, clothes are nearly always selected by the kids themselves,” says Saraf. Experts agree that luxury is percolating to India’s tier-II and -III cities. And, luxury kidswear is no exception. This is not surprising as 45 per cent of ultra high net worth households live in these cities, as per the Kotak Top of the Pyramid Report, 2014. Saraf recently held a trunk show in Ludhiana and was amazed at the brand awareness of her customers. She cites the instance of a grandmother who came to Les Petits from Chandigarh and walked out, a couple of hours later, with stuff worth Rs 3 lakh for her grandchildren. Unique Eye Luxury, the franchise partner of Armani Junior, is seeing a lot of interest from tier-II and -III cities. While many shoppers for Armani Junior are Armani customers themselves, there are some for whom Armani Junior is their first interaction with Brand Armani. One thing’s certain. While they may have had to wait a long time for their first brush with luxury, today’s parents are ensuring that for their kids luxury is just a way of life. smita@businessworld.com Twitter: @smitabw(This story was published in BW | Businessworld Issue Dated 15-12-2014)
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Jean-Christophe Babin, 56, was the chief executive officer of TAG Heuer between 2000 and 2013, guiding the watch manufacturer to success in terms of both brand sales and profitability. In 2013, he took over as CEO of Bulgari, the Italian jewellery, watch and accessories brand which came into the LVMH fold in 2011.This year, Bulgari is celebrating its 130th year of operations. Over the years, it has come to be known for its jewellery designs and penchant for coloured gemstones, popular among Hollywood stars such as Elizabeth Taylor and Audrey Hepburn. In 1993, Bulgari diversified into the perfumes business and, a few years later, launched its range of accessories. Bulgari has also entered the hospitality sector with hotels in Milan, Bali and London. It opened its first store in India last week. Babin spoke at length to BW| Businessworld. Excerpts:Where does India figure in the Bulgari universe?India is one of the largest jewellery markets in the world, in terms of gold consumption. However, for Bulgari and its competitors, it is not yet a big market because most of the space is taken up by local players. But with the evolution of society and people becoming more nomadic, the historical bond between the jeweller and the family is dissolving, and is getting substituted by the global bond, which only a few global brands can ensure.Potentially India should become a very important market in the years to come but it is difficult to put a time of return. How long it will take will not only depend upon how good or bad a job I do (laughs), but also on the infrastructure provided in India. Today, Emporio is the only luxury mall in India, in terms of the environment and the service provided. For global brands like Bulgari, the market will grow as and when retail spaces grow. In India, it is very difficult to sell jewellery on the high street. You need locations like malls.So, as and when infrastructure improves, you will look at expanding in India?As a part of the LVMH group, we have done a collective assessment of all the new projects that are coming up in the market. We know that a good mall will perform if it has the right brands. If we feel that a mall in Mumbai or Bangalore has what it takes in terms of amenities and services provided, then we will probably move not only as a single brand, but collectively with a large number of LVMH brands as we have done at Emporio.Brands like Cartier have been in India for long. Do you think you will be able to gain mindshare?The Indians we are targeting are from the upper middle class and affluent sections of society. They have a deep knowledge of the West. Be it because of the Internet, or because they have studied abroad or travel frequently. So, even though we are opening our first boutique in India, people are aware of Bulgari as a brand.Our perfume collection has helped to develop a brand awareness in India. Perfumes allow the customer to interact frequently with the brand. We are one of the leading perfume brands in India, which is an advantage compared to our competitors because their brand recognition is not as strong as Bulgari’s.Of course, now we have a boutique and will intensify marketing efforts — from PR events to trunk shows to advertising. It will be much more than what we did before because then we only had watches, which were available at multi-brand outlets.Will the boutique in India sell everything from jewellery and watches to accessories and fragrances?The focus of the boutique will be jewellery, as it is our core business. It was started by the company 130 years ago, and it’s probably what will keep the company famous, 130 years from now. Watches, especially ladies watches, are a kind of natural extension of jewellery. We start with designing jewellery and then turn it into a watch. It is true for most of our collections. So jewellery and ladies watches are the two main categories.Then, of course, we have some men’s watches that are very successful.Perfumes are quite a different market. First, because of the price and, second, because of the volume it occupies. It occupies a lot of volume on very expensive real estate. So we will have some limited perfumes in our store, such as Le Gemme that we launched worldwide in Jaipur this February. Le Gemme will be very selectively distributed with only 5 or 6 points of sale, including our boutique. With a price starting at €300, it’s one of our most expensive perfumes.Bulgari has entered the hospitality sector with the launch of Bulgari Hotels. Will we see a Bulgari hotel in India anytime soon?Right now, we have three Bulgari hotels. We started with Milan 10 years ago, then added Bali and London. We have announced three more — Shanghai, Dubai and Beijing. These three will be opening around 2016-17. We are looking at another 10-15 projects. India could be within those. The Bulgari hotel for us is the ultimate in luxurious hospitality, and for that we have to keep it limited to ensure that we offer something unique and extraordinary that no other hotel can offer. We want the hotels to be located in trend-setting cities of the world. So if we have a hotel in India, it will probably be in Delhi or Mumbai.We have received proposals from people owning land, and we are assessing it project by project. It will be great to have a hotel in India because the hotel is kind of a super house of the brand. If the boutique is the house of the brand, the hotel is the temple. So we have to find the right location, the right partner, in the right city. We have a kind of a wishlist. If our had been matched three years ago, we would have come three years ago. In luxury, the key factor of success is to be patient. On the one hand, we have to be bullish because we want to grow, and, on the other, we have to be patient to get the right location.Earlier, we had a partner who was importing Bulgari jewellery for us in Delhi and Mumbai till 2010. From 2010 until now, we were present only with watches in multi-brand outlets.Now, we are coming back with jewellery and a larger assortment of watches. We will have a much larger collection of watches at the boutique than we do in multi-brand outlets.India is a young country. How important is youth for you? Will you be targeting them specifically?The point is not young or old. The point is to get more customers. Some could be in their 30s, others could be 10 years older. But the thing that makes a luxury brand successful is its capability to bring new people into its fold, especially in jewellery and watches, which are long-cycle businesses. They are different from fashion. In fashion, you have 2-3 collections in a year. The average price is also not that much. So it is a different business model. Jewellery and watches people buy occasionally because the prices are high. So, for us the key challenge is not so much age-driven but to increase the frequency of people coming through the door and interacting with Bulgari. They can have their first brush with Bulgari through a bag or jewellery or through a watch. And once we know each other, they can come back and buy another category.smita@businessworld.in Twitter: @smitabw(This story was published in BW | Businessworld Issue Dated 15-12-2014)
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Giorgio Armani, president and CEO of the Armani Group and sole shareholder of Giorgio Armani SpA, stands as one of the few independent fashion icons today. At 80, he has a world of experience in fashion, having started as a merchandiser at well known Milan department store, La Rinascente. Thereafter, he worked as a fashion designer for Nino Cerruti, and then as a freelance designer for various companies. He set up his own label in 1975.In 2008, he was conferred with the Légion d’Honneur. Before that, in 2000, New York’s Guggenheim Museum celebrated Armani’s social and cultural influence with an exhibition that has since been seen at the Guggenheim Bilbao, London’s Royal Academy of Arts, Berlin’s Neue Nationalgalerie, Rome’s Terme di Diocleziano, Tokyo’s Mori Arts Museum and Shanghai’s Shanghai Art Museum. The fashion icon in a free-wheeling conversation with BW|Businessworld. Excerpts:Do you think the Indian luxury market has potential?I would say so. India fascinates me. It is an amazing and vibrant country that is still going through a period of great change. In recent years, we have seen a growing interest in fashion, especially from Indian women who are constantly looking for more sophisticated and exclusive clothing and accessories. They have shown themselves to be very receptive to the Armani Group’s sense of style.Today you have four Emporio Armani stores in India and one Giorgio Armani store. What are your future plans for India?We have been present in India for six years with the Giorgio Armani, Emporio Armani and Armani Jeans collections. It’s a complex market that is constantly evolving. The intention is to develop the presence of our brand in the country through a thorough understanding of consumer and market dynamics.We started with the project to create the interiors of the residences and common areas of the World Towers in Mumbai in 2012. We then expanded our presence in the area with Armani Casa, thus offering Indian customers a more complete view of the Armani lifestyle.How important are emerging markets like India for Brand Armani? How much revenue can these markets contribute to the company in the next few years?Emerging markets have experienced a growing desire for luxury in recent years. The desire for sophisticated and exclusive goods has increased, and this undoubtedly represents an important opportunity for investment.You have always been a trendsetter, whether it is designing bomber jackets or dressing up stars for the red carpet. Have there been any defining luxury fashion trends in the last four-five years? What will be the upcoming trends in luxury according to you? Personally, I have never been linked to passing trends. Rather, I have always preferred to create a timeless style that is elegant and sophisticated, and based on the principles of quality, comfort, functionality and excellence in design.This is the philosophy that I apply to everything I do — from my fashion collections to interior design.What are the differences in the markets that Armani operates in? Isn’t the demand of the luxury consumer in, say, Europe different from America and the Middle East, for instance? How is the Indian customer different?The markets are undoubtedly different. The European market, for instance, is more settled, and therefore more rigid, while the American market is free from constraints and, hence, extremely receptive to new things. Emerging markets, including India, are bustling, demanding, dynamic and constantly being redefined, though they are united by a growing desire for luxury goods.Are your clothes customised according to the country you operate in? Are there any Indian inspirations in your designs or have you tried to customise the collection to meet Indian tastes?The underlying style and point of view of what I offer is unique and does not change based on the country. The Armani Group offers a rich and varied product offering, and consumers in every country have the possibility of finding out what they like the most. In the Giorgio Armani fall/winter 2014-15 collection, there are Indian inspirations. I have created a series of T-shirts made of wool/mohair yarn, whose colors are inspired by the exoticism of India.smita@businessworld.in;@smitabw(This story was published in BW | Businessworld Issue Dated 15-12-2014)
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Last may, for their tenth anniversary, Anurag Singh, an investment banker with a leading financial house in Mumbai, bought his wife Somya, a Judith Lieber clutch for a little over Rs 1 lakh. She, in turn, gifted him a Louis Vuitton laptop bag, costing another lakh or so. They celebrated their anniversary at the Ritz Carlton, Langkawi.Recently, for his parents’ 40th anniversary, 33-year-old Aditya Jain, a senior management executive with a multinational tech firm, booked a luxury cruise to Alaska at a cost of over Rs 10 lakh.For Teacher’s Day, Riddhima Mehta, a class XII student at a leading public school in Delhi, had her mother buy her a Rohit Bal saree for Rs 45,000. It was the first time she was going to wear a saree to school and it had to be special.Meet a whole new set of luxury consumers — young, upwardly mobile and aspirational. While some rake in profits from business, others draw astronomical salaries and even bigger bonuses. Still others have their parents to thank. Either way, they all spend lavishly on luxury.The Indian luxury market grew at a healthy 30 per cent, to $8.5 billion in 2013. It is projected to close 2016 at $14 billion, according to the KPMG-Assocham India Luxury Summit 2014 report.This growth is largely driven by a subtle — yet significant — change in the Indian luxury landscape. While a few years ago, the average age of a luxury consumer was above 50, today nearly 50 per cent of luxury consumers in the country are below 40 years, according to KPMG India’s internal analysis.Wooing The YoungSo whether it is luxury malls, automobile companies or hospitality chains, each of them is tweaking its marketing strategy to focus on the youth. Take Audi, for instance. India is its youngest market, with the average age of the Audi buyer being 30-35 years, while globally the average is 43-45 years. To connect with the youth, Audi has ventured into new areas, using music and brand channels like Audi YouTube and the Audi magazine. It’s also very active on social media, with over 3.6 million fans on Facebook. “Customer drive events like Ice Drive, Women’s Power Drive, Q Drive and the Sports Car Experience have helped us create a strong connect with our younger brand enthusiasts,” says Joe King, head of Audi India.When the Intercontinental Hotel Group (IHG), which has brands like Holiday Inn and Crowne Plaza, did a study on the next decade of consumers, it found that it would have to cater to a younger breed of “laptop and latte” workers. “To cater to these emerging sets of travellers who want consistent and innovative service, IHG’s Crowne Plaza brand is testing a series of new market-specific services and features ranging from in-room technology that ensures guests are always connected, to breakfast options available in easy ‘grab and go’ packaging,” says Gopal Rao, regional vice-president, Sales and Marketing, IHG South West Asia.To attract younger customers, Vivanta By Taj is conducting a series of “experiences”, ranging from art and installation projects to music. It also started music talent contests — especially for women performers — called Divas of Rock, for which it forged partnerships with Blue Frog and Sony Music.DLF Emporio, Delhi’s only luxury mall, is very active on social media, with over two lakh followers on Facebook and several lakh on Pinterest and Instagram. Its Treasury of Trousseau event targets young brides and grooms. It also has its annual design awards where it gets entries from several design colleges. The jury selects the best, and the designer gets to sell his/her designs at the Emporio pop-up shop for a year and intern with a top designer.Emporio is also launching a new app (for iPhone and Android) to provide information on offers, promotions and the latest collections of all brands under its roof.Have Money, Will BuyIndia is a young country, with two-thirds of the population below the age of 25. Also, several professionals and entrepreneurs earn between Rs 40 lakh and Rs 60 lakh per annum. “These are early adopters and have higher awareness and exposure levels to a globalised world — they are emerging as key drivers of the luxury market in India,” says P. Rashmi Upadhya, associate director, Strategy, PwC India. Moreover, there is a cultural shift. While previous generations saved, today’s youth wants to indulge without worrying too much about the future. Evidently, India’s household savings rate has fallen from a peak of nearly 37 per cent to under 30 per cent today. Sanjay Kapoor, managing director of Genesis Luxury, which brought brands such as Giorgio Armani, Jimmy Choo and Bottega Veneta to India, says: “Brands are recognising this phenomenon and, hence, there is great excitement to enter India and capture this young audience. China was at this point 15 years ago, but clearly the next big market is India.”The young are also more self-assured. Says Dinaz Madhukar, senior vice-president of DLF Emporio: “The youth of today knows exactly what it wants. It’s not just parents’ money. People are buying from their own money. They are millionaires in their own right.”The KPMG-Assocham report also states: “In recent times, rising income levels and aspirations have led to a growing segment of potential luxury buyers beyond traditional luxury shoppers. These consumers are typically from the upper middle class, looking to ascend the ‘consumption ladder’. An increasing proportion of luxury demand is likely to come from this segment, which belongs to a larger group likely to experience the highest income increase in India.”To tap this segment, companies are doing everything possible — from introducing products specific to Indian youth such as Canali’s Nawab jacket, to promoting entry-level offerings. Take, for instance, the iPad and iPhone cases that nearly all luxury brands offer with their logos embossed. These are typically priced below Rs 15,000 and hence accessible to a large number of young customers for whom the iPad and the iPhone are anyway an extension of themselves. Says Rajat Wahi, partner, Management Consulting, KPMG: “There is a lot of desire to attract consumers at an early age. Get them involved with the brand and then watch them grow.” Entry-level products like eyewear, ties and belts ensure that the brand experience is enjoyed by a larger audience. “The experimentation begins across these products and loyalty builds. This happens even as career growth is achieved by the young,” says Abhay Gupta, founder of Luxury Connect, an agency that trains staff for luxury companies. Celebrating LifeAccording to the Kotak Wealth Management Top of the Pyramid 2014 report, younger, self-made ultra high net worth individuals (HNI) are more inclined to celebrate personal occasions and success. “Ultra HNIs, especially young entrepreneurs, show more interest in creating an unforgettable experience to celebrate their success or to establish their identity. For example, a Delhi-based ultra HNI recently booked a trip to the North Pole to celebrate his fortieth birthday,” says the report.Also, while Delhi and Mumbai continue to be the biggest markets, a large number of consumers of luxury live in the non-metros. This is not surprising considering 45 per cent of the 1,17,000 ultra high net worth households (those having a minimum net worth of Rs 25 crore, mapped over 10 years) are in the non-metros, according to the Kotak report.The youth have always aimed high. With increasing incomes and easy availability of luxury, they are making their dreams come true. smita@businessworld.in @smitabw(With inputs from Chitra Narayanan)(This story was published in BW | Businessworld Issue Dated 15-12-2014)
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So you have tried and probably liked fusion food and you often experiment with fusion clothing (kurti and jeans being a favourite), but ever thought of giving fusion fitness a shot? Just like fusion food is all about mixing two different cuisines or two different styles of cooking, fusion fitness involves combining two styles of training into one workout. The idea being that if you normally favour one kind of exercise style you may be losing out on the benefits gained from other exercises. For instance, if your idea of exercise is to only spend 30 minutes on the treadmill, you miss out on flexibility or strength training.“For a complete workout, it is important that your exercise regime is a combination of all the components of fitness — muscular strength, cardio-vascular endurance, muscular endurance and flexibility,” says Arun Kumar, physiotherapist and fitness head at Snap Fitness. By combining workouts with disparate disciplines, you can get your body working in ways it wouldn’t otherwise do. And that’s where fusion fitness comes in. It gives you a range of benefits that are hard to get from any one workout — such as, a burst of endorphin-fuelled energy along with a calmer less-stressed mind. What’s more, the fresh mix-ups not only challenge your body, ramping up calorie burn, but also keep you motivated by spicing up the been-there-done-that routine. So if you are bored of your regular exercise regime and want to liven things up a bit or if you have plateaued in your existing routine and your body craves a change, try out any of the following fusion exercises. Though a rage globally, not all of them are being offered by gyms or trained instructors in the country but you can get yourself a DVD and follow the instructions. Piloxing: The workout created by Viveca Jensen, an American fitness expert, best known as Hollywood actor Hillary Duff’s personal trainer, combines Pilates, dance and boxing. A one-hour workout typically alternates between fast-paced boxing moves (punching while squatting, or lunging) and slower standing Pilates such as slowly raising one leg back, toes pointed while leaning forward. Ideally, you should wear weighted gloves as that increases the metabolism rate leading to more calorie burn but you can do the exercises bare-fisted as well. Yogalates: A workout that mixes yoga with Pilates, Yogalates combines the best of both exercises, giving you strength training and stronger core muscles from Pilates and a calmer mind from yoga. Yogalates requires you to hold a yoga pose and then add movement to it. For instance, you can do the boat pose and combine it with the criss-crossing of arms and legs. Yogalates leads to weight loss thanks to a full body workout with an emphasis on abdominal muscles, glutes, hips and thighs. Also, in Yogalates the emphasis is on the Pilates style of breathing where you hold the abdominal tight. This helps strengthen and tone abdominal muscles. “Though beginners find it strenuous, there is no hard and fast rule that you need to be trained in either yoga or Pilates to try Yogalates,” says Rashmi Ramesh, founder of Oris Dance and Fitness Studio in Mumbai who has been teaching Yogalates for the last three years and recommends doing it 2-3 times a week.Cy-Yo: Ever thought of combining cycling with yoga? No, it doesn’t involve you riding a cycle while holding an asana. Instead, it is a one-hour workout combining 10 minutes of yoga, 40 minutes of speed cycling on a stationary bike and then 10 more minutes of yoga to cool down and refocus the mind.Tread: If you want to burn anywhere between 600 and 1000 calories in an hour, try Tread — a fusion class that combines fast-paced treadmill intervals with muscle building resistance training. By alternating between the treadmill and strength moves every 10 minutes, your metabolism increases and stays in high gear for almost an hour, leading to high calorie burn. In a typical Tread class, you would jog comfortably for a minute on the treadmill, then run faster for a minute and then sprint all-out for a minute, with no rest in between. This pyramid will be done three times. After the third pyramid, you will reduce your pace to a slow walking speed for a minute. Post that, do 20 reps each of walking lunges and lateral side steps. Rep–eat the entire sequence three times.While cross-discipline exercises definitely have their benefits, Kumar warns that they are not necessarily the best option for beginners. “These workouts are generally high-intensity and are best suited for those who have crossed the intermediate level of exercise.” His advice: go for fusion when your regular exercise regime has become monotonous. (This story was published in BW | Businessworld Issue Dated 11-08-2014)
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Bless you! have some cognac,” I said cheekily as soon as Augustin Depardon sneezed. I seemed to have touched a raw nerve, for the global brand director of Louis XIII cognac, from the house of Remy Martin, did not seem to appreciate my casual remark. “Why do people in India think cognac is a medicine, or worse, a grandfather’s drink?” I thought it best not to mention my grandfather’s religious intake of a spoonful of cognac with a cup of warm milk at bedtime. To throw me off the scent (no pun intended), my parents passed it off as his “sleeping medicine” . And so the impression took root. Depardon’s irritation was justified though. Cognac has a cult following amongst connoisseurs who have been seduced for years by the exacting standards followed to ensure the authenticity of every bottle — every stage of production, from vineyard to bottle, tightly controlled. Cognac can only be made from specified grapes grown in a delimited region of France with the Ugni blanc grape being the most widely used. The grape is crushed to produce white wine which is then twice distilled in copper pot stills to produce a concentrate called the eau de vie which must be aged for at least two years in French oak barrels, though most are aged for longer. The master blenders then create unique cognacs by monitoring the aging of the eau de vie, tasting it regularly and deciding to shift it, when appropriate, from one oak cask to another so the flavours become rounder or dryer. The minimum alcohol content in cognac should be at least 40 per cent by volume and there should be no other additives except distilled or demineralised water, sugar, caramel and oak infusion. “While all cognacs are brandies, not all brandies are cognacs,” says Vincent Cleme, brand ambassador of Louis XIII for India and the Gulf. And here I was referring to their labour of love as a surefire remedy for the common cold!Another noteworthy factor is the aging of the cognac. The age refers to the youngest eau de vie used in the blend to prepare the cognac. Cognacs come with gradings of VS (Very Special) designating a blend in which the youngest brandy has been stored for at least two years in a cask, VSOP (Very Superior Old Pale — four years) and XO (Extra Old — six years). Unlike wines which are produced from grapes of a single vintage, cognacs are blends of a large number of eaux de vie which could be from grapes drawn from different years. Having chastised me suitably, Depardon asked me to try a glass of Sidecar, a cognac-based cocktail. I was surprised! Wasn’t cognac meant to be drunk neat or with hot water in a big balloon snifter glass? “Another misconception,” he smiled. While older cognacs, XOs, are mature and hence should be enjoyed neat, or on the rocks, younger cognacs are less balanced and can be enjoyed with ice, in cocktails or even as chilled shots. In fact, the Chinese, who happen to be the second largest cognac-loving people in the world (the Americans being the first), go to the extent of drinking it with green tea. Every once in a while one of the four big cognac houses — Remy Martin, Hennessy, Courvoisier and Martell — who between them produce 90 per cent of the cognac, launches a limited edition which is a blend of some of the oldest eaux de vie. On the subject of limited editions, I was part of the launch of one — the Remy Martin Louis XIII Rare Cask 42,6, an over 100-year-old blended cognac of which there was to be only 738 decanters, each priced at 18,000 euros — more expensive than other recent launches, including Courvoisier L’Espirit ($5,000), Delamain’s Le Voyage de Delamain ($5,000) and the Camus Cuvee 3.128 ($2,500). But not the most expensive, as recently a bottle of Croizet Cognac Leonie 1858 was sold at an auction for a whopping $156,760. Winston Churchill and Charlie Chaplin were known to enjoy their cognac; more recently, hip-hop artists such as P. Diddy and Kanye West have made the drink popular. Cognac also has a lesser known but older cousin — armagnac. Though over 700 years old, armagnac, made from four different varieties of grape in south-west France, sells only around six million bottles worldwide compared to over 150 million of cognac. Cognac and armagnac drinkers hardly ever see glass to glass and the jury is still out on which is the better brandy. It was time to taste the Louis XIII rare cask 42,6, so called because it has 42.6 per cent alcohol. Tasting itself is an art. You may not notice anything in particular or worse, be overwhelmed by the power of the drink if you don’t take your time. “Positioning your nose straight into the glass for nosing it, or gulping it down, may waste your entire experience and result in you concluding that the cognac is too strong,” says Cleme. At first sniff it’s the floral or fruity odours that one smells. In this case it was plum and dates. But with each sip, a change in the bouquet is noticeable. By the end of the evening, one thing was clear. There’s more to cognac than it’s healing properties. smitatripathi(at)bworldmail(dot)comTwitter: (at)smitabw(This story was published in BW | Businessworld Issue Dated 01-07-2013)
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If you are an itinerant foodie, tipping is an etiquette challenge that you would have encountered. How much should you tip once you’re done with your meal? You can face an uncomfortable situation if you get it wrong. Here’s a tipping guide to ensure you aren’t left red-faced. United States & Canada: Tipping is mandatory. Between 15-20 per cent is average.France: A 15 per cent service charge is automatically added to your bill. No further tips are required.UK: If service charge is not included leave 12-15 per cent.Germany: 5-10 per cent.China: Tips are not expected.Japan: Tipping is considered rude. Twitter: (at)smitabw(This story was published in BW | Businessworld Issue Dated 03-06-2013)
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Virgin group CEO Richard Branson tried to set a world record on his 60th birthday, a couple of years ago, by kiting across the English Channel. That he had to abort the mission due to bad weather is another matter. He’s also made several attempts to circle the globe in a hot air balloon. In fact, there’s a story about him having written a goodbye note to his family while marooned in a hot air balloon, 12,000 feet above the ground, after his pilot bailed out. Fortunately, he managed to land. Larry Ellison, the CEO of Oracle, enjoys taking part in regattas — a sea sport where many an experienced sailor has lost his life. Last year, director and producer James Cameron became the first person to dive 11 km to the deepest point in the ocean. Closer home, Vijaypat Singhania, the chairman emeritus of the Raymond Group set a world record a couple of decades ago when he flew a microlight aircraft from London to Ahmedabad. What is it about pushing the limits that gives these men a thrill like no other? Having achieved so much in life, defying nature and the elements seems to be the only challenge left for them to overcome. They love the adrenaline rush that comes with participating in an extreme sport or adventure. The large element of risk involved makes it all the more exciting — it’s almost a stress-buster for them. Now, many Indian travellers, so far content with taking family on beach and hill station vacations, are increasingly opting for adventure holidays. According to a recent TripAdvisor survey, 16 per cent Indians said they preferred an adventure holiday as opposed to 11 per cent globally. If you too are bored of the ordinary and itching to take the road less travelled for an adventure of a lifetime, read on. Forget bungee jumping off high bridges, river rafting through deep gorges or skydiving from 14,000 ft, those are for regular Joes. Try your hand at our pick of adventure holidays for that ultimate adrenaline kick. Be warned, they are not for the faint-hearted.THE END OF THE WORLD: Skiing enroute to the South Pole while dragging a sled is no mean featSouth Pole — The Final ConquestWith temperatures falling to -22 degrees Celsius in June and July, it may not be the ideal time for exploring the South Pole. However, it makes it to our list simply because it will take you at least six months of strength and resistance training to prepare for this life-changing adventure which requires you to ski for 6-8 hours daily, pulling a sled that weighs approximately 30 kg. Thankfully, the skiing does not require much skill. “It is similar to walking on ice,” says Annie Aggens of The Polar Explorers, a US-based travel company specialising in expeditions to the Poles. However, you do need good cardiovascular endurance and stamina to not only pull the sled but have enough strength to help set up camp in the evenings. The trip involves flying to Punta Arenas in Chile and on to Antarctica from there. The last 69 miles (approximately 111 km) to the South Pole have to be done on skis. With 24 hours of daylight, there’s no dusk to signal the end of a day’s exertion. Add to that the beautiful but inhospitable environment and you begin to realise why an expedition to the southernmost point of Earth is no cakewalk. But if you have the physical strength and stamina, you can join the elite club of a few hundred who have been to the end of the world. Of course, to enjoy an adventure of this magnitude you also need deep pockets as a two-week trip can set you back by over $10,000. Amazon AdventureHere’s a no brainer. When you return from your holiday, what do you think is going to get more people interested in what you did — lying on the beach or swimming with the piranhas? For those willing to test their survival skills, there’s no place like the Amazon. Take a jungle survival course or go in search of the anaconda with a local guide. On a two-week survival course, you are taken deep into the jungles of Guyana in South America. Here you are taught techniques on how to find water, make traps, hunt with a bow and arrow, start a fire without a match, build a shelter and even find your way out of the jungle. You sleep on hammocks and cook your own meals. And when you begin to feel comfortable with your surroundings, the instructor and the guides leave you. Yes, you pay them to abandon you in the middle of the jungle with nothing more than a machete or pocket knife! For the next few days you are on your own. Survive the jungle and live to tell the tale. You don’t need to be a national-level athlete for this adventure but basic fitness is required. Also it helps if you are not squemish about what you eat. Price: $2200-2500 for the course plus airfare. Climbing Mount KilimanjaroThis summer challenge the world’s tallest freestanding mountain — and your own determination. The trek will take between 9-10 days, depending upon the route, the weather and your guide. You will be required to hike between 3-7 hours daily. The good thing is that the climb to Mt Kilimanjaro is now well organised. So, you have porters who carry your luggage and decent camps to stay in. “We organise a hike in the Arusha National Park a day prior to the starting of the trek to help you acclimatise,” says Amit Kalsi, vice-president of private travel at Abercrombie & Kent. Needless to say, you need to be fit to undertake this adventure. Price: $3500-4,000 per person. Gorilla Tracking And TrekkingTracking gorillas in the wild is often touted as one of the 50 things to do before you die. Not surprising, considering there are just over 800 mountain gorillas in the wild, making them a rare species. Of these, nearly 350 are found in Uganda’s Bwindi Impenetrable Forest, a world heritage site. “Seeing these primates in their natural habitat is spellbinding,” says Mukti Datta, an Almora-based entrepreneur who went on a gorilla trek last year. “Tracking gorillas is not an exact science. They move around the forest at will, so you need to be ready for arduous climbing,” says Kalsi. Not satisfied with just gorillas, you can go in search of chimpanzees as well. However, you need to book these trips in advance as gorilla-tracking permits are issued to only a few people every day. Price: $2,000 onwards per person for a 4-5 day trip.smitatripathi(at)bworldmail(dot)comTwitter: (at)smitabw(This story was published in BW | Businessworld Issue Dated 03-06-2013)
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