‘Next Chanel will be from India’
Corporate India buying stake in Indian luxury brands is a good thing. And, the next Chanel will be from India. This was the dominant view at a panel discussion on the luxury sector at Business Standard Manthan in New Delhi on Thursday.
India always had the right ingredients for luxury, said Alexis de Ducla, director of Mathieu Lustrerie, a south France-headquartered luxury lighting company. “What was lacking was investment and vision, but that too has developed in the last few years,” he added. “In my opinion, the next Chanel will be from India, and within the next five years.”
Pushpa Bector, senior executive director and business head, DLF Retail, meanwhile said corporate India picking up stake in Indian brands was a promising sign.
“An interesting trend started during the pandemic, where corporate houses started understanding the power of Indian luxury brands and started providing financial support, while also providing a certain structure and order to the businesses and helping them expand globally,” Bector said speaking on the topic, ‘Ramp to resorts to retail: How can luxury in 2047 redefine a developed India’.
Luxury encompasses the Indian hospitality industry, which has always been at the pinnacle.
“If you really think about it, whether in terms of goods, whether in terms of travel or anything, even if you go back ten years, India already had among the finest hotels,” said Kapil Chopra, founder and CEO, The Postcard Hotel and founder, Eazydiner. “We have had some absolutely exceptional hotels, which have kept the flag going high for a long time,” said Chopra, who is also former president of The Oberoi.
Abheek Singhi, managing director and senior partner, Boston Consulting Group, was of the opinion that the Indian economy is going through an aspirational phase, which will continue for the next couple of decades.
“Adam Smith talked about land, labour, and capital as the three factors of production. There are no constraints on capital and land, too, is available. Labour, and skilled craftsmanship from the country can become a competitive advantage for Indian luxury to grow,” Singhi said.
There was also a view that luxury could drive the charge on sustainability, and this view came from Nikhil Sethi, partner, national head, FMCG, KPMG India. He also said, “For luxury to drive growth, it is imperative that luxury products make their way into the daily lives of people, much like in the developed countries” A sustained investment or maintaining premium price points, which are not necessarily on a par with global price points, will also help in making Indian brands bigger and register their presence on a global scale, he added.
Talking about global luxury brands adapting to the Indian markets, Ducla said, “I think it is proof that the brands are very much interested in India. However, it is also important for them to look at these as collaborations and for them to also showcase the Indian artisan in these collections.”
Global brands too are increasingly tapping into the wealthy Indian customer. Take the example of French luxury brand Dior showcasing its Fall 2023 collection at the Gateway of India in Mumbai, its first in the country, said Bector.