India: A land of contrasts, a destination for opportunities

Anita Khatri - In recent times, launching a luxury watch brand in India and grabbing a share of the market seems easier than ever before, but experience tells us that this is nothing short of a “chimera”.

In recent times, launching a luxury watch brand in India and grabbing a share of the market seems easier than ever before, but experience tells us that this is nothing short of a “chimera”.

Anita Khatri*

Just about every newspaper and magazine seems to be writing about India. And never before has India gained so much importance globally. In fact, the two biggest emerging economies waxed eloquent in every boardroom today are China and India - i.e. Chindia.

When I was asked to write from India for a magazine on fine watch-making by the Fondation De La Haute Horlogerie, I thought it would be most appropriate to add a new perspective to the already available information on India.

India is not a new market for the fine watch industry. Brands like Cartier, Patek Phillipe and Harry Winston have had their roots in designing special pieces for Indian Maharajas. With the current boom in the economy, it was but natural for the fine watch industry to strengthen its position in India, or for new watch brands to enter the Indian market.

In-roads into the domestic market is complex

Nearly 70 per cent of fine watch brands are already available in India, or are working towards consolidating their position in what can be termed as an extremely complex market. In recent times, launching a luxury watch brand in India and grabbing a share of the market seems easier than ever before, but experience tells us that this is nothing short of a “chimera”. To be fair, the low sales targets set in the early days now appear much easier to achieve in this market. Yet, for any fine watch brand, making in-roads into the domestic market is still extremely complex, nay difficult. From my own understanding and experience of monitoring many brands, I decided that the most interesting subject for the very first issue would be the complex nature and understanding of the new Indian consumer and his/her mindset.

India is a land of contrasts. 75% of the nation’s population (1 billion people), still resides in villages. This population is spread across 28 states and 7 union territories with diverse customs, culture and languages. Just to give you an idea: on a daily basis, Indians buy 72’329 jeans, 95’890 air tickets, 4274 washing machines, 9873 flat-screen television sets, and 2416 cars. The list goes on.

The new Indian consumer is willing to buy

The Indian consumer today is price-conscious, and the most important parameter when buying a product is a strong cultural trait - i.e., ’value for money’. It took 4 decades for condoms to be accepted by the Indian consumer. It also took a long time for the detergent market to change the perception that detergent powder can clean clothes equally well as scrubbing with detergent bars. Films and cricket, as most people the world over know, are a national craze and celebrities are subject, if not objects, of mass adulation.

Today, there is also a newer Indian consumer willing to buy, thanks to the IT boom and connectivity with the globe. The new-age Indian consumer who is exposed to the latest technology and globalization is individualistic, independent and informed. They are aware of all the brands that are available globally, and know exactly what they want. This new Indian consumer does not feel guilty of ’self-indulgence’. They want to let the world know that they have the capability to buy brands and make a statement to the world.

The Indian market is the place to be

Many young Indian consumers today, who are single and yet to be married, don’t have family responsibilities. Add to this, incomes of $4000+ a month, thanks to the booming BPO (business process outsourcing) and IT (Information technology) industry. These young and rich twenty- and thirty-somethings are India’s new consumers - they work hard and enjoy harder. They love earning but they love spending even more. No longer are luxury brands just the aspirations of the super affluent. The young, independent individuals are the “trendsumers” that the fashionable luxury watch and fine luxury watch brands would want to target.

In spite of the heterogeneity of India, in terms of price to value sensitivity, and cultural differences, the Indian market is the place to be for luxury brands. The key is the art of balancing complexities. ■

*India Consultant

© 2007 All rights reserved

  • Print
  • Ad a comment
  • Send to a friend










* : Mandatory fields
Articles from this issue
Hot off the press...