Koenigsegg, the Swedish sports car, finally knocked the Indian doors early last month. The car would be sold through The ESTD (InterGlobe Established Products), in India.
“The Indian luxury market has huge potential and will grow exponentially in the next few years. In fact, the market size will become Rs 67,500 crore ($15 billion) by 2015,” says Nigel Harwood, CEO, The ESTD (InterGlobe Established Products). The company would also be selling luxury bikes, yachts, submarines and beach crafts. The ESTD is a part of Interglobe Enterprises, better known for its airlines service –Indigo in India.
William Penn, with 17 stores in India, and sells luxury pen brands like Mont Blanc, Cartier, Caran d’Ache, witnessed a 20 per cent growth last year. Meanwhile, German luxury car Porsche, saw a rise in its sales from 94 units in 2009 to 136 in 2010. The order booking in 2010, according to Ashish Chordia, Director, Porsche India, stood at 300. He hopes to sell 500 Porsche cars in 2011. Amongst watches, luxury watch brand Jaeger – LeCoultre has tripled its turnover since its launch in 2008. Jewellery brand, Geetanjali saw about 35 per cent growth.
But with the Indian luxury market inundated with both global and Indian brands, the brands know how to market the product in a cluttered market space. But the focal point is who their target audience is and what forms the nucleus of their marketing strategies?
Who’ll buy?
Every brand, irrespective its sector, targets a segment of consumers. William Penn, the luxury pen retail store that has 18 luxury pen brands in its kitty, targets predominantly SEC A1 and A2 male individuals in the age group of 35-55 years. “William Penn targets individuals who are conscious of their status in society, believe in status symbolism, upwardly mobile, like to keep abreast with new trends, lifestyle choices and fashion,” says Nikhil Ranjan, CEO, William Penn.
Experiencing it
For luxury brands, taking the traditional media route is not only a wastage of money and space but derailing its exclusivity tag too. Most brands feel that giving an experience of the product to their target group helps in building brand loyalty. “The Western market is more about understated luxury, the Indian market (like the rest of Asia, except Japan) is about ostentatious consumption. As a result, people wish for instantly recognizable products with the brand name and/or logo prominent,” feels Nirmalaya Kumar, Director of Centre for Marketing, and Co-Director for Aditya V Birla India Centre at London Business School.
Porsche India’s live marketing initiatives best exemplifies this strategy. The company targets consumers who want a car which is exclusive, high on luxury. Therefore, the brand organises a yearly event in Delhi’s top schools. The students are given driving lessons through a fun drive package. “It is a long term strategy; the students are given an experience of driving a Porsche. Tomorrow when they grow up, they will identify with the brand,” Chordia notes. A similar road show was held in Aamby Valley (known for its premium luxury housing), in Maharashtra too.
Some other live marketing initiatives include an event organised by William Penn at Delhi and Mumbai stores. The event, ‘Different Strokes’, was a fountain pen workshop where pen aficionados met and watched master nib designer, Yukio Nagahara, craft and customise nibs. Customers were invited to bring along a fountain pen, irrespective of brand, for a complimentary nib repair, adjustment and grinding by the designer.
On the other hand, Giantti, Geetanjali’s luxury retail store, organises in-store campaigns, wherein, consumers are invited to experience the brands. “It is all about giving our target audience an experience of what Geetanjali stands for. We do not believe much in discount oriented campaigns, as jewellery is an indulgence and not a daily need. Therefore the campaign focused on experience,” says Shardah Uniyal, General Manager, Marketing, Geetanjali.
Comments