This story is from October 24, 2014

Global luxe labels log onto e-tail to expand in India

You don’t have to cajole an NRI friend or a relative abroad to courier you that elusive luxury fashion label you have been craving for. The reason? Most of the global luxury brands are taking the e-tail path to reach mass buyers even in tier II and III cities in India.
Global luxe labels log onto e-tail to expand in India
You don’t have to cajole an NRI friend or a relative abroad to courier you that elusive luxury fashion label you have been craving for. The reason? Most of the global luxury brands are taking the e-tail path to reach mass buyers even in tier II and III cities in India.
KOLKATA : You don’t have to cajole an NRI friend or a relative abroad to courier you that elusive luxury fashion label you have been craving for. The reason? Most of the global luxury brands are taking the 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 brick-and-mortar 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. Vikram Chopra, CEO & founder, Fabfurnish.com, told TOI, “It is a great way for them (luxury brands) to find a foothold in an important market like India. Given the time it takes to get approvals and find right locations in India makes going for offline retail a big decision, which needs long-term planning and focused execution. On the other hand, online helps them provide relatively easy entry.”
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.
“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 brought international fashion labels like Dorothy Perkins and River Island to India. And Fashionandyou.com launched a “Luxury Lounge” section stocked with top global 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 the easiest route to scan the market for potential sales without significant commitments and long gestation periods. Radhika Ghai Aggarwal, co-founder & CMO, ShopClues.com, said, “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 the luxury e-tail segment the fastest growing one — 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.
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, “They should not imitate discount players.”
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