November, 2010 - CII

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November, 2010 - CII

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Neelesh Hundekari, Principal & Head - Luxury & Lifestyle Practice, A.T. Kearney India; Armando Branchini, Executive Director, Altagamma;

Sanjay Kapoor, Chairman, CII Luxury Goods Forum, and MD, Genesis Luxury Fashion Pvt. Ltd.; Jyotiraditya Scindia, Union Minister of State for

Commerce & Industry; Thomas Varghese, Chairman, CII National Committee on Retail, and CEO, Aditya Birla Retail Ltd.; and Gilles Moutounet,

Vice President – International Business, Gitanjali Group, at the release of the CII – A.T. Kearney Report on ‘Luxury in India’

III cities with emerging population will lead the growth

story forward, and they present a huge scope, he said,

averring that luxury in India was on the brink of huge

potential.

A CII – A.T. Kearney Report on ‘Luxury in India’ was

also released on the occasion. Mr. Neelesh Hundekari,

Principal & Head - Luxury & Lifestyle Practice, A.T.

Kearney India, noted that growth in the matured markets

has reached a plateau. The Indian middle class, which

is a highly under-penetrated market, will give the luxury

market in India a huge fillip. The Indian luxury market

is currently estimated to be USD 4.76 billion and has

a latent demand of USD 3-3.5 billion USD, which is

ready to be tapped. The major component of this

market is jewellery. Another interesting fact emerging

from this study is that, if the jewellery component is

removed, 60% of the lndian luxury market is dominated

by men. The study identifies the hindrances as

supply chain constraints and scattered customers. It

suggests micro segmentation

of customers, streamlining the

real estate component and right

pricing for the Indian customer,

to hit this off the right way.

The first session on ‘Unique

Indian Luxury’ consumer – the

fascinating tale of the Indian

luxury market, discussed the

new vistas and trends in luxury

retailing – growth in HNIs,

increasing awareness with

international exposure and high

Fashion Show at the CII Luxury Goods Forum 2010

internet penetration, increasing consumerism with higher

spend on non-essential items and greater supply of

luxury goods.

Mr. John Hooks, Deputy Chairman, Giorgio Armani Group

wanted India to remove barriers in trade, to become

more accessible to luxury markets. The session also

examined successful business models to understand

the challenges for luxury profitability, and ensuring

price competitiveness compared to Dubai, Singapore.

Issues of marketing investments and revenue sharing

models between retailers and real estate players were

also discussed.

The deliberations also looked at opportunities for luxury

in India, collaborations in business, making India a

luxury tourism hub and the role of the media in the

luxury business.

The high-powered event concluded with a fashion

show hosted by the Gitanjali Group, showcasing Indian

apparels by designers Ashima-

Leena and Mirari jewellery.

CII’s first Luxury Goods Forum

was held in association with

Altagamma (an Italian association

of high-end luxury brands) in

2008 in New Delhi, wherein an

MoU was also signed between

CII and Altagamma to strengthen

economic ties in the luxury

goods sector as well as further

cultural relationships between

the two countries.

Communiqué November 2010 | 41

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