Friday, March 28, 2008

India’s booming high end market attracts top Italian Luxury goods

by Jo Black

India’s rapidly growing high end retail market, which is expected to increase from the current $3.5 billion to $30 billion by 2015, has attracted Italy’s major high-end international companies, represented by their industry association Altagamma.

Italy is a style icon of today that has shaped attitudes the world over and India is no exception, said Sanjiv Goenka, Past President CII and Chairman, CII Creative Industries Council and Vice Chairman, RPG Enterprises, as he welcomed delegates to the Luxury Goods Forum 2008, organised by Confederation of Indian Industry (CII) and Altagamma in New Delhi on 26th March 2008.

Among those addressing the Forum were Mr. Kamal Nath, Union Minister for Commerce and Industry, Government of India, Leonardo Ferragamo, President Altagamma and Chief Executive of the Ferragamo Group, Paolo Trichilo, Charge d’affaires of the Embassy of Italy, Geetanjali Kirloskar, Director, Quadrant Communications Ltd and Armando Branchini, Executive Director, Altagamma.

We’re loyal to our brands: come and test us, Ms Kirloskar said. This new face of the Indian consumer was the focus of Geetanjali Kirloskar’s address. A new, increasingly affluent India, with a 400 million-strong upper middle class group with rising disposable incomes and a deep rooted entrepreneurial culture, is driving the luxury goods sector. She spoke about then importance of the socio-cultural change - not only are there more than 60,000 high net worth individuals in India, but, unlike in the past, the wealthy person no longer feels guilty about buying or flaunting premium global products. To broaden their base and increase the volumes of luxury goods market, she felt it was necessary to look beyond the two metros, to the large Indian cities, as well as combine global products with traditional luxury products.

Mr. Kamal Nath spoke of India’s increasing engagement with the world ” in a manner that is a win-win situation”, with Indian companies, such as the Tatas getting high-end brands like the Jaguar. India, he said, was an increasingly significant global player, and had invested over $2 billion in the US last year, much more than US investment in India. He spoke of the ‘mass of economic activity moving from the West to the East’. The growth of India was led by the private sector, he emphasised, adding that ‘India is now a country of aspirers, not merely a country of dreamers.’ He also said that India respected intellectual property.

While emphasizing the need for a ‘long-term consolidated relationship with India,’ Leonardo Ferragamo outlined four key factors that would help this sector grow faster in India - a reduction in duties for a free and fair luxury market, growing tourism in India, where tourists expect the best international quality, appropriate retail spaces, and university and design schools for technical and creative skills for high quality craftsmanship.

While Mr. Paolo Trichilo spoke of the strong relationship between India and Italy in all spheres from luxury goods to science and technology, Mr. Armando Branchini spoke of cooperation and competition in the sector.

An MOU signed between CII and Altagamma, in the presence of Mr. Kamal Nath, aims to strengthen economic ties in the luxury goods sector and well as further cultural relationships between the two countries. Mr. Sanjiv Goenka signed the MOU on behalf of CII, and Mr. Ferragamo on behalf on Altagamma.

 

 

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