This story is from October 23, 2014

Global luxe labels take e-tail path for India mkt

Global luxe labels take e-tail path for India mkt
Global luxe labels take e-tail path for India mkt
Kolkata: From now on, you don't have to cajole an NRI friend or a relative abroad to courier you the elusive luxury fashion label you have been craving for. Reason? Most of the global luxury brands are taking e-tail path to reach mass buyers even in Tier-II and -III cities in India.
The luxury sector is buzzing with e-tail activity as the renowned brands want to overcome the barriers typically associated with introducing bricks-and-morter operations in India.
According to a recent report from McKinsey, online sales of luxury items in India are growing twice as fast as the overall e-tail domain.
On why e-tail path gets preferred by luxury brands, Vikram Chopra, CEO & founder, Fabfurnish.com, told TOI, “It is a great way for them to find foothold in an important market like India. Given the time it takes to get approvals, find right locations in India, going for offline retail is a big decision which needs long-term planning and focused execution. On the other hand, online helps them get relatively easy entry, start interacting with the market and test it without having to incur heavy establishment cost.”
Fabfurnish.com has launched over 10 tableware/glassware brands — Noritake, Lodge, Nauni, Stoelze — which were so far found at high-end hotels such as Taj and Hilton in India. The e-tail portal is talking to another 10 brands at the moment from across the globe.
In a survey by L2 Think Tank, the total business of the luxury brands is expected to soar from $3 billion to $57 billion (a rate of 40%-50% year-on-year) in India by 2025. According to KPMG, the overall market of luxury brands in India stood at $8.5 billion in 2013 and is expected to grow to $14 billion by 2016.
“Luxury shoppers are well-connected digitally and it becomes easier for brands to showcase themselves online. The e-tail path helps them position their brand and educate potential consumers about luxury. They can even reach out to tier-II cities,” added Chopra.

Recently, Jabong.com has brought international fashion labels like Dorothy Perkins, River Island to India. Fashionandyou.com has launched a “Luxury Lounge” section wherein they have crossed oceans to pick the best fashion brands like Salvatore Ferragamo watches, Coach handbags, Aston Martin sunglasses and Burberry & Versace handbags, which are otherwise not easily available offline in India.
Aasheesh Mediratta, CEO, Fashionandyou.com, finds e-tail as the easiest route to scan the market for sales potential without significant commitments and long gestation period. “Most importantly, it addresses the fundamental issue of reach. Further, it's an ideal situation to dip-test styles, local aesthetics and preferences. Also, e-commerce has conventionally been rooted in providing its shoppers the best deals which is possible due to optimised value chain,” he said.
However, according to industry experts, if precious luxury brands take the discount route on e-tail domain, they would face the risk of losing stringent price and brand positioning. Retailers' Association of India CEO Kumar Rajagopalan said, “All brands, including luxury ones, will embrace e-tail route for sure. But they should not imitate discount players. It would definitely hurt their top-end brand positioning.”
Radhika Ghai Aggarwal, co-founder & CMO, ShopClues.com, said, “The online medium also allows targeted selling for niche products sold by luxury brands, as well as analytics that provide valuable customer insight. The fact that e-tailing can be integrated seamlessly with other digital media like mobile and social is a big advantage.”
Myntra.com COO Ganesh Subramanian finds luxury e-tail segment the fastest growing segment which is projected to explode from $10 billion to $43 billion in the next five years.
The e-tailer is offering Harvard University branded sports casual wear, Stanley Kane, Supra, Superdry apparel, New Balance, 883 Police, JanSport, Time Force, Desigual, Scotch and Soda.
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