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India, the world's biggest buyer of bullion, will stop futures trading in precious, base metals and energy futures on Saturdays with immediate effect, in line with global practices, a move that could hurt already sagging volumes at the Multi Commodity Exchange.However, trading in futures of agricultural commodities will continue on Saturdays for now and will be reviewed after three months, the Forward Markets Commission, which regulates commodity futures exchanges, said in a statement.The move could further dent volumes, which are already down due to the imposition of the commodity transaction tax from July, and higher margins."Already volumes had been falling from July on MCX. With today's announcement we might see a further fall. Retail traders may opt to close their positions on Friday itself," said Sumit Mukherjee, an analyst with Karvy Comtrade in Hyderabad.MCX recorded an average volume of Rs 2015 crore on Saturdays from July to September, about 7 per cent of the daily weekday volume of 269.72 billion rupees, data from the exchange showed.(Reuters)
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Collecting wines is a painstaking process that involves visits to vineyards and auctions to get the right mix of varietals and maturities for many, Collecting wine is akin to building ass-ets. It is often compared to collecting works of art, luxury watches, designer novelties, vintage cars and antiques. A wine connoisseur collects prized and highly rated vintages as a reflection of his individual style and taste. A key part of building a personal and meaningful collection is to identify what your allotted budget is, including the storing capability of wines. Identifying the type of wine that you like is essential — whether it is Bordeaulaise or Burgundian, Italian or Spanish, Old World or New World, Boutique or Classic. You should decide an order of preferences and then let that determine your storage volumes. A well-balanced collection is one that has 60 per cent Old World wines, meant to be aged, and 40 per cent New World wines that are younger, robust and ready to drink. Buying wines while travelling abroad or while visiting a vineyard are the best ways to build a collection. Buying wines at vineyards is an excellent idea as the interaction with the wine maker or chateau owner is priceless. Auction houses are a great place to find rare wines that normally have limited access to the public.The most alluring aspect of auction houses for collectors is that not only do they sell obscure vintages, they also guarantee the authenticity of the seller. Another advantage is that a variety of bottle sizes is available. For example, a 6-litre bottle of Methuselah, a 9-litre bottle of Salmanazar, and a 12-litre bottle of Balthazar of rare vintage are more likely to be available at auction houses than a wine importer or sales agent. Three of my favourite auction houses for fine and rare wines are Sotheby’s, Christie’s and Hospices de Beaune. Modern auction houses like Zachys also offer the buyer the ability to bid online. Bidding in an auction is a very easy undertaking. One finds out about an upcoming auction on the house’s website. Often, the house itself may send emails. Sales are also conducted by contacting wine specialists or sales associates whose numbers are provided on the websites. The bidding can happen by representation or over the phone and, in the case of Christie’s, live online as well. Auction houses also allow private bids, which is a plus for the more discreet collector. CLASSIC BREW: At auction houses, one can find the rarest of wines that come with a certificate of authenticityHere are some classic wines that are bound to be on the lists of top collectors worldwide:• Chateau Margaux 1989• Petrus, Pomerol 2000• Chateau Latour 2001• Krug Clos d’Ambonnay 1995• La Tache 2002• Gaja Sori San Lorenzo 1999• Opus One, Napa 1985• Domaine de la Janasse, Chateauneuf du Pape 1998• Vega Sicilia, Ribera del duero Unico Gran Reserva 1976• Weingut Joh. Jos. Prum, Germany 1971Collectors' KarmaWhile building a wine collection one should make sure that there is a good mix of ready-to-drink wines and wines kept aside for ageing. This gives you the opportunity to enjoy the pleasure of tasting versatile wines while not opening a wine before it has matured. Storage and cellar maintenance are imperative, especially for wines kept at home. A temperature-controlled humid cellar or room is a must. The storage room should preferably be dark with low lighting so as not to disturb the wine. Storing at the right temperature is absolutely crucial to the longevity of the wine. Very often, wines served in India are over-exposed to heat and, unfortunately, tend to lose their lustre and pristine quality. Keeping the wine as still as possible and on its belly is imperative; friction to the bottle can damage the wine and make it unfit to drink. Also, for older wines, stillness is important for separating the sediment that tends to collect as the wine ages. There are many facets to owning a wine collection, including stocking wines that one would like to drink often. Cherishing the memory of a date or an anniversary is a lovely occasion to uncork a bottle of wine. To some, collecting subdues the curiosity of certain wine varietals or styles. To others, owning and collecting bottles is a matter of prestige — the rarer the wines in one’s collection, the greater the honour.Often, in my job as a wine consultant, I come across people who barely consume their prized vintages. These collectors also create impeccable leather-bound encyclopedia-like catalogues that are handed out to their friends as a glorious tribute to their research and passion for the wines collected. Last but not the least, some collect for the sybaritic passion of drinking and being able to taste fine and rare wines. Whatever the reason for collecting, a good wine is the essence of a good life. (This story was published in BW | Businessworld Issue Dated 07-10-2013)
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Concerned over the unwillingness of developed economies to push IMF quota reforms, Finance Minister P Chidambaram Wednesday, 18 September, said the decisions of the G-20 meeting should be implemented expeditiously to ensure credibility of the organisation."Most advanced countries have now clearly indicated their unwillingness to move ahead on International Financial Institutions (IMF, World Bank) governance and capital reform. This has hampered the credibility of G20 and makes it difficult to progress on other issues as well," he said at an Icrier event in New Delhi.The Minister said to be able to play a meaningful role in the global governance, the G-20 agenda should be sharper and focused only on those issues on which it can make a distinctive contribution, particularly, on economic and financial matters."Finally it is important to ensure that the decisions taken in G20 meetings are carried forward expeditiously," he said."In the backdrop of the upcoming WTO ministerial in Bali in December 2013, G20 leaders have called on all WTO members to show flexibility so as to achieve a successful conclusion in Bali," he said.In the recent G-20 Summit, Prime Minister Manmohan Singh had emphasised the need for early completion of the International Monetary Fund (IMF) quota reforms to increase representation of the developing countries in the multi-lateral body.Aimed at improving the voting share of developing countries and achieving a better representation on the IMF Board, the reform of the international financial institutions has been a key part of G-20 agenda. G-20 is a club of developed and emerging economies.Chidambaram said the membership of G-20 represents a different balance of power where both advanced and emerging countries come together as equal partners allowing for more inclusive deliberation and effective response to today's complex global challenges and opportunities."There is a clear recognition that the dimension of development challenge vary from country to country. Therefore, any policy that is recommended at the international forum has to be tailored to national circumstances," he said.Noting that the agenda setting of G-20 has an advanced country perspective, he said, this is highlighted by the emphasis given on the financial regulation and on transparency."As the crisis originated in the advanced country, it is natural that higher capital requirements and asset quality have been stressed in the Basel norms for the banking sector," Chidambaram said.Emerging markets have accepted these norms in the spirit of multilateralism, he said."However, in the context of a weak global recovery we should be careful that the pro-cyclical bias should not be a stumbling block in developing countries," he said."Since, growth in the emerging market is crucial to the strength of the global economy, it is critical the G-20 finds ways to develop strong links of coordination and cooperation and take up issues of emerging economies as otherwise G-20 may evolve as a loose forum instead of a powerful steering wheel of global governance," he added.(PTI)
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Now that you’ve got that S-Class and that bungalow on Mumbai’s Carter Road — not to forget the Birkin that the missus flaunts as arm candy — how do you announce to the world that you’ve arrived? And, how do you rub shoulders with the high and the mighty? It’s a no-brainer: you need to be a member of a club, one that oozes history, has a member list that reads like the who's who of society and is near impossible to get into, lending it exclusivity. Ankita Ramgopal trawls through the umpteen clubs across the country to come up with a list — some age-old and some spanking new.Calcutta Club, KolkataOne of the most difficult clubs to gain membership to, it was started in 1907 by a group of maharajas and barristers, both English and Indian, to protest against discrimination by the clubs that were around then. Ironically, desi dressing is frowned upon. Children are allowed only on some days, with restrictions. Waiting period: 10 yearsMembership privileges: Though women members were allowed after 2007, there is still a ‘Men’s Bar’.Royal Willingdon Sports Club, BangaloreSet up in 1918, this club has a long-standing reputation of keeping people out rather than letting them in. It provides an array of sports facilities — an 18-hole golf course, six tennis courts, a health club, a swimming pool, and more. The dress code has reportedly kept out many well-known personalities. Try clicking on its website — it’s members only! Waiting period: Membership’s been closed for yearsKarnataka Golf Association, BangaloreLocated in the heart of the city, and with a 117-acre golf course, it boasts of several celebrity members, including the likes of Rahul Dravid, Anil Kumble and Azim Premji. But if you’re looking for membership, Venkat Subramaniam, the secretary of the club, says you may have to wait a good 20 years. Besides golf, the club offers an array of facilities, including an Olympic-size swimming pool and health club. Waiting period: 20 yearsMembership fee: Rs 15 lakh (lifetime) Vintage and Classic Car Club of India, MumbaiHave a 1938 Cadillac or a 1924 Rolls Royce? This club is for you. The VCCCI club presently has 150 members which comprises the who’s who. Vijay Mallya, Sharad Sanghi and Manvendra Singh Barwani are among its members. Membership criteria: Owning a vintage or classic carPrivileges: Lifetime RTO tax, technical services, legal advice, etc. Royal Western India Turf Club, MumbaiIf you are a regular bridge jumper in India, you are sure to be acquainted with the Mahalaxmi Race Course, a horce racing landmark. Set up in 1880, its guest list has included Queen Elizabeth II of Great Britain, the Saudi Arabian king and the Shah of Iran. The club has approximately 1,600 horses in training at its stables. For a horse lover, this is the club to join. Of course, it helps if you’re acquainted with royalty. Membership fee: Life membership comes for Rs 10 lakh. In addition, there is a Rs 2 lakh club membership fee. A club membership is contingent on life membership. Privileges: Invitations to racing events; turf club members get preference in allocation of private boxes. And, there is access to a helipad! MEMBERS ONLY: Membership of newer clubs like Sanctum is mostly through referral Sanctum, BangaloreUnlike the clubs mentioned above, Sanctum is new —launched in May. It has 230 members, mostly through referral, says Manoj Varma, the founder. The club is modeled around London’s exclusive private members clubs. It offers cuisine crafted by Spanish chef Joaquin Arjona and a bar stocked with rare imported liquor. Membership: Mostly on referral, but application forms are also available (background checks involved).Privileges: Personalised services, including a 24-hour concierge service. Women get secure transportation.La Confrerie de la Chaine des Rotisseurs, Bangalore and GoaAlthough the inception dates back to the French Revolution, the Indian chapter, or The Bailliage de L’Inde, began in 2008. Each Bailliage in India hosts 5-6 high-end gourmet events annually. The menu is approved by the board, which consists of GMs of the top hotels and restaurants in the city. Membership: By invitation only. The application needs to be sponsored by two active members. The applicant is then invited as a guest to two events, where he or she is introduced to the club’s board and president. If approved, the application is sent to Paris for final approval. Privileges: Attendance to dinners (black tie), and to events centering on fine food and wine. SeaDream Yacht Club, MumbaiSail on an ultra luxury SeaDream yacht, and you are in. A seven-day voyage costs Rs 5-15 lakh for a couple. The boutique yacht accommodates only 112 guests, with a guest to crew ratio of 1:1, ensuring specialised attention. It sails in Indian waters beginning October. Membership: A trip on the yacht ensures membership.Privileges: Special offers, cocktail parties. Juhu Club Millennium, MumbaiA jacuzzi, a health café that serves garden fresh greens, low calorie snacks and drinks — for the super rich of Maximum City, this is the club to get away from the maddening crowd. Membership: Invitation only.Membership fee: Rs 5-9 lakh. (This story was published in BW | Businessworld Issue Dated 07-10-2013)
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Business sentiment among Asia's top companies deteriorated in the third quarter, led by businesses in export engines such as China and South Korea, ending three consecutive quarters of improving sentiment, the latest Thomson Reuters/Insead Asia Business Sentiment survey showed. The Thomson Reuters/Insead Asia Business Sentiment Index fell to 66 in the third quarter from 71 in the second quarter when it reached the highest level in more than a year. An index reading above 50 indicates an overall positive outlook. Some of the weakest readings came from north Asia's economies of China, South Korea and Taiwan, and regional trading hub Singapore, all of which turned in readings of 50 - highlighting the impact of a stuttering global economy. Optimism returned to India, lifting its sentiment index moderately higher at 67 after a drop last quarter. "Asian companies are still maintaining a relatively cautious outlook regarding their earnings growth prospects," said Fan Cheuk Wan, chief investment officer for the Asia-Pacific region at Credit Suisse's private banking and wealth management unit. "It could be partly related to the recent volatility across the emerging economies over the past three months." Asian equities, currencies and bonds have taken a beating over the last few months after the US Federal Reserve hinted it would halt its nearly five-year policy of flooding markets with cheap cash. "This market volatility also inevitably has an impact on the perception and business sentiment of Asian corporates as they are still assessing the global growth outlook," Fan said. The survey showed that shipping and financial sectors were the most negative with a third-quarter score of 50, a sharp drop from the shipping industry's reading of 80 and financials' reading of 78 in the second quarter. The poll conducted by Thomson Reuters News in association with Insead, a global business and management school, surveyed more than 100 executives in 11 Asia-Pacific countries across sectors including autos, financials, resources, food and retail. Of the 90 companies that replied to the poll, held between September 2-13, two-thirds reported a neutral outlook, just less than one-third were positive on their prospects and about 1 per cent reported a negative outlook. China showed no signs of improvement, with business sentiment staying flat for a third consecutive quarter as all eight companies surveyed said their business outlook remained neutral. However, markets have been comforted by the latest batch of economic data, adding to evidence that China may have avoided a sharp slowdown. "We do know that Europe continues to struggle and there was a soft patch a few months ago in China," said Craig James, chief economist at Commonwealth Securities in Sydney. "There's also the fact that while there's a recovery underway in the US, it's somewhat patchy. "So I think the export-orientated economies are basically suffering as a result of that," James said. "The good news is more recent data seems to suggest a little bit more momentum returning to some of the major economies and regions but there is a lag in effect." As recently as a month ago, investors were worried that China's economy was slipping into a deeper-than-expected downturn. But policymakers have stepped in with measures to steady the economy, from quicker railway investment and public housing construction to introducing policies to help smaller companies with financing needs. The survey showed that business confidence was steady in Japan at 63, its highest point since June 2010 among the 20 companies surveyed, which included Canon and pharmaceutical firm Daiichi Sankyo. "If we look at forward-looking indicators, we do see quite solid evidence showing that the global growth recovery should be providing support for an improved growth outlook for Asia," said Fan from Credit Suisse. Companies in Indonesia were the most negative with a reading of 25, a sharp drop from its second-quarter reading of 100 when it was one of the most positive. Indonesian companies are seeing an increase in their borrowing costs, with the central bank's surprise hike in interest rates last week. Wallowing near a 4-1/2-year-low, the Indonesian rupiah is the worst performer in Asia this year among currencies tracked by Reuters, having lost around 16 per cent against the dollar. However, there are some bright spots in Southeast Asia. The Philippines was the most positive economy with a reading of 100 - the only economy with a top score - compared to its reading of 94 in the second quarter. Australia was the second-most positive with a reading of 79, up from 75. (Reuters)
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Foreign direct investment inflows into India rose an annual 12.9 per cent in July to $1.66 billion, the government said in statement released late on Tuesday, the highest monthly inflow for three months. FDI inflows were $1.47 billion in July last year. For the first four months of the current fiscal year, FDI inflows were up 20 per cent from a year earlier to $7.05 billion, the Ministry of Commerce and Industry said in the statement. FDI inflows had declined to $22.42 billion in the fiscal year ended March 2013, from $35.12 billion in the previous year. (Reuters)
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India pushed import duty on gold jewellery up by half to 15 per cent, the finance ministry said on Tuesday, 17 September, setting it higher than raw gold duty in a move aimed more at protecting the domestic jewellery industry than stemming bullion imports. India imported gold jewellery worth $137.57 million in the four months from April to July this year -- a fraction of overall bullion imports, which were $2.9 billion in July alone. The government has curbed gold imports through measures including three duty hikes this year to a record 10 per cent and the central bank has put tight restrictions on importers that have sharply curtailed supplies. India, the world's biggest buyer of bullion, had imported a record 162 tonnes in May and creating a headache for the government which is trying to curb a wide current account deficit and support a weak rupee. Gold is the biggest non-essential item in India's import bill but jewellery is a tiny fraction of the purchases. The hike in import duty on jewellery had been a demand from the industry to ensure the viability of the domestic jewellery manufacturing, and avoid imports of cheaper jewellery from Thailand, Malaysia or elsewhere. (Reuters)
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The rupee saw its steepest fall in two weeks on Tuesday as investors preferred to take profits on their long rupee positions ahead of the U.S. Federal Reserve's two-day policy meeting outcome due to be released on Wednesday. Although the anticipated trimming of the Fed's massive bond purchases has caused some apprehension, markets expect a much longer road to rate hikes after former Treasury secretary Lawrence Summers dropped out of the race to become its next chief. The outcome of the Fed's meeting will be a key determinant of what the Reserve Bank of India chooses to do at its monetary policy review on Friday. With growth languishing at a decade-low and inflation remaining sticky, the new central bank governor will have a tough task at hand. "There was profit taking seen today ahead of the FOMC but good dollar selling by custodian banks helped," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with Andhra Bank. "I expect the Fed to taper by a maximum of $15 billion and that is already discounted by the market. I see the rupee rising to 61 to a dollar by end-September as hopes from Rajan are high," he added, predicting a range of 62.50 to 64.20 until the policy on Friday. The partially convertible rupee closed at 63.37/38 per dollar compared with 62.83/84 on Monday. The unit dropped 0.85 percent on the day, its biggest single-day fall in two weeks. It moved in a wide range of 62.95 to 63.6450 during the session. Traders said despite the stock market having been choppy the dollar sales seen from custodian banks helped pull the rupee off the day's lows. The BSE Sensex rose on Tuesday, although on its lowest volume in nearly 1-1/2 months, led by gains in technology shares that were aided by a weak rupee and attractive short-term valuations due to the recent underperformance of the sector. Most other Asian currencies also weakened versus the dollar. In the offshore non-deliverable forwards, the one-month contract was at 64.04 while the three-month was at 65.26. In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 63.46 with a total traded volume of $2.72 billion.(Reuters)
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The rupee has given up most losses on the day as foreign banks sell dollars on behalf of custodial clients, three dealers say. Pair at 62.99/00 vs Monday's close of 62.83/84 after rising to 63.6450 early in session. Dealers also cite hopes of good inflows related to banks bringing in dollar deposits from overseas Indians. Foreign banks are offering upfront financing for wealthy non-resident Indians (NRIs) of 90 per cent to set up dollar deposits in India following various RBI incentives, including cheap dollar/rupee swap rates and more relaxed terms on 3-5 year dollar deposits, private banking sources told Reuters. The dollar edged lower on Tuesday, but traded in a tight range before a two-day US Federal Reserve meeting which is expected to result in a scaling back of its monetary stimulus. (Reuters)
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Three years ago, when Supertech Group, an NCR-based realtor, was nearing its 25th anniversary, its chairman and managing director R.K. Arora asked his team: “What next?” Six months later, after an exhaustive internal survey of the luxury segment, they concluded that consumers wanted a “complete” branded lifestyle. A little over a year later, Supertech tied up with Armani, the iconic Italian luxury label, to offer branded luxury homes. Sporting a by-invitation-only tag, the 100 branded luxury homes (ranging from 3,000 sq. ft to 5,000 sq. ft) “for buyers with not just money but also class and taste” will be fully furnished apartments with interiors, fittings, furnishings and styling done completely by Armani. “The luxury buyer doesn’t want to just wear international brands, now he even wants to live in them,” says Arora. Last year, the Lodha Group, too, tied up with Armani for its ambitious World Tower — which it claims will be the tallest residential tower in the world. Soon, “after customer response”, it forged partnerships with other brands, including designer Philippe Starck, Pei Cobb Freed & Partners, Jade Jagger, Ken Smith and Six Senses Resorts & Spa.Experts predict that the next two years will see several branded luxury homes coming up in metros and major Indian cities. Hand-stitched leather sofas in bold colours with the iconic Lamborghini logo, Christopher Guy’s neoclassic work in mahogany and vineer, Phillipe Starck’s custom-designed metal sculptures doubling as chairs and handpicked pieces of furniture, wall-art and flooring inspired by textile art, Aston Martin’s young, sleek designs across a range of products, IPE Cavalli’s home solutions through its iconic furniture label Visionaire, Swarovski-encrusted residences, and many other brands behind such products are collaborating with brick and mortar developers to “curate” and outfit apartments, villas and penthouses in India. ‘Anyone with good taste and style will indulge in bespoke luxury. So the trick is for developers to ensure customisation’ Viraj Mahajan, Founder, The Furniture Library (Photograph by Sanjay Sakaria)According to consulting firm KPMG, between 2008 and 2012, around 182 luxury projects comprising 25,570 units across the cities of Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata were launched with a value of about $30 billion. In 2012 alone, around 5,000 such units were launched, and almost all were absorbed. The luxury housing market — 5-6 per cent of the overall sector — is growing at 25-30 per cent per annum. According to the World Wealth Report 2013, India clocked the second highest growth of 22.2 per cent in its high networth population, after Hong Kong. Currently, India boasts of 185,000 high networth individuals. For branded luxury homes, this is the target audience. One For All, All For One Even within the luxury segment, ‘branded’ homes are still an emerging and niche area. Anuj Puri, managing director of Jones Lang LaSalle, reckons that while developers are priming the mindset of target consumers by creating such a demand, the promise of having professionally designed interiors and exteriors, highly evolved and centralised facilities management, and various extras such as concierge services, valet parking and ultra-modern security measures lends these offerings high appeal. ‘The signature style of these brands is what makes them iconic. To deviate from the design philosophy altogether is blasphemous’ Seetu Kohli, Director, Ace Maison(Photograph by Ritesh Sharma)Strong economic growth in the past decade (the downturn notwithstanding), exposure of well-travelled Indians to global living standards, and the increasing upwardly mobile segment are some of the factors that have led to the increase in demand for luxury homes in India, says R. Karthik, chief marketing officer, Lodha Group. He adds that the global Indian now seeks the same brands and experiences in his home as in his clothes or the car he drives.The flip side to ‘branded’ homes is that everything is, well, branded. So, from the mother-of-pearl wall finish to the Swarovski-encrusted light fixtures, one luxury home is near identical to another, with little or no room for bespoke indulgence, typically regarded as the mainstay of most luxury brands. “Most branded homes lack flavour and individual taste. So the trick is for developers to ensure customisation — something that most luxury brands can’t offer beyond a point given the global design specifications,” reasons well-known interior designer Viraj Mahajan of The Furniture Library, which specialises in bespoke furniture. “As a designer, it’s important to understand your buyer; whether he likes his feet up while reading, what does he read… that’s how opulent, tastefully done homes are created.” In his view, branded homes are often an extension of seven-star hotel suites. Shehzad Khan, proprietor of The Gold Leafing Studio, while agreeing that bespoke services are limited in most branded luxury homes, feels many international luxury brands are waking up to blending Indian textures and designs with their international styles. Khan, for instance, is doing the champagne-coloured silver and gold leafing work for Armani Casa at Lodha Group’s World Towers. break-page-breakMarket analysts feel that both developers and luxury brands have to figure out how to meet customisation requirements. Neeraj Bansal, partner at KPMG, says that developers will have to keep a judicious mix of ‘fully furnished’ and ‘customised’ options. With so many projects that will eventually be rolled out, the litmus test will be in understanding consumers’ tastes and demands. Why would the luxe consumer, for instance, want to enter through a fairytale gate to reach his home simply because a developer has tied up with Disney? Or, what if the luxury consumer wants the iconic Regis Mathieu rose quartz chandelier while Swarovski, by virtue of its tie-up with the developer, offers its own shimmering piece? Or, what if the consumer wants vintage restored art and carefully collected furniture instead of the modern furniture that Lamborghini offers? Seetu Kohli, director at Ace Maison, which has tied up with real estate developers to bring a complete range of Christopher Guy, Lamborghini, Fendi Casa, and Aston Martin furniture and design solutions, says that while luxury brands offer tremendous choice, the luxury consumers need to understand that the labels cannot deviate from their original style statement. “The signature style of these brands is what makes them iconic. To deviate from the design philosophy altogether is blasphemous,” she says. Supertech’s Arora says that for the Armani Casa project, customisation will be extremely limited as the design label clearly spells out the details for various rooms and other areas. “You need to know what the brand stands for. The sensibilities of the brand and the consumer have to co-exist. There’s a reason why you pick up a Louis Vuitton bag. You understand its sensibility. You don’t complain saying it would look better with a gold-plated buckle on the side,” he says. ‘The luxury buyer doesn’t want to just wear international brands, now he even wants to live in them’ R.K. AroraChairman and managing director, Supertech Group (Photograph by Ritesh Sharma)But Om Choudhry, CEO of Fire Capital, a realty firm that creates luxury villas and penthouses in Whitefield, Bangalore, reasons that too many specifications might put off buyers. So, Fire Capital’s luxury brand Empyrean focuses on offering quality maintenance services and providing landscaped open spaces besides recreational facilities with high-end fitness equipment. Urged by consumer demand, however, by the year-end, it will announce tie-ups with two premium European brands for kitchen, bathroom and wardrobe fittings. For its forthcoming project in Kufri, Himachal Pradesh, it is tying up with a Swiss company to design, manage and maintain a row of exclusive, mega luxury villas.Beyond Interiors What is beyond debate is that the consumer is definitely sure of what he wants. No wonder then that branded luxury abodes are extending the promise of opulence to an even greater degree — concierge services, trips to Milan, tie-ups with hospitality chains to maintain interiors, lifetime warranty for wall finishes, and even complimentary tailored Armani suits hanging in the wardrobes. Sunteck Group, for instance, has a tie-up with the high-end luxury Vertu phones for its exclusive concierge service. “From booking movie tickets to sending customers to exclusive parties in Hollywood, you cannot imagine the value-added services that we provide,” says Kamal Khaitan, chairman and managing director of the company. The Lodha Group sent some of its buyers to Milan to meet the Armani Casa design team. Besides, it has tie-ups with renowned concierge company Quintessentially and Six Senses Resort and Spas for value-added services. The strategic partnerships between developers and international luxury brands gives credibility to the developer and helps the luxury brand establish a foothold in the market. Typically, the model works on either revenue-sharing or one-time fee model, wherein the developer, to share the brand’s tag, offers the brand a design fee or share in revenues. The real estate developer is assured of visibility. “Additionally, branding helps the property command a premium over non-branded properties,” says Bansal of KPMG. Though Supertech is still finalising the rates for its project with Armani, it is touted to be 75-100 per cent higher than other products in a similar non-branded, luxury category. What’s more, many feel that branded residences even create 20-30 per cent resale value.What the buyer gets is a pad designed by iconic brands. As a buyer who walked into the show villa of World Towers, exclaimed: “Armani is God and he’s made me a believer.” Clearly, branded luxury has its followers’ faith. BRAND VALUE: IPE Cavalli’s Visionaire label will feature many luxury homes in India (Photograph Courtesy: Visionnaire)(This story was published in BW | Businessworld Issue Dated 07-10-2013)
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