Selling to the super-rich

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It’s come a full circle. In the early nineties, when multinationals first started coming into India in a big way, they believed that targeting the upper and premium end, as they have done in many of the other global markets was the way to go in the country. But soon enough they learnt that a cookie-clutter, one market approach will not work here. Along the way, they re-oriented their strategies to take care of the local interests and target the larger market segments.

Today, at a time when management gurus like CK Prahalad are urging marketers to look at the “bottom of the pyramid” in emerging markets, these multinationals are also realising that the market opportunities at the high end are quickly blooming.

From Titan to Cartier, from Palio to Porsche and from Maruti to Mercedes and now to Mayback, the Indian consumer’s aspiration for the best in the class seems to be an unending saga. Today he is spoilt for choice. The world’s biggest brands are lining up their wares for the discerning Indian buyer.

So, despite initial doubts over Indians having the purchasing power, brands like Louis Vuitton, Bvlgari, Canali, Tommy Hilfiger, Ermenegildo Zegna, Valentino, Marco Ricci are rolling out the red carpet and others like Prada, Fendi, Gucci, Yves, and Versace are toying with the idea to follow suit.

Says Darshan Mehta, Director, Arvind Brands that markets Tommy Hilfiger, “The Indian consumer is well-travelled, affluent, brand conscious and wants to live the lifestyle of his international peers. His exposure to global trends has contributed a great deal in fuelling this global lifestyle over the years.”

Infiltration of cable television and fashion magazines had wet the mouths of the Indian consumers for branded western goods and now with the purchasing power apparently doubling in the past four years (the Household Income Survey projects the number of households with an annual income for Rs 1 crore to increase from 20,000 in 2001-02 to 53,000 in 2005), time is ripe for international brands to cash in on the aspiration and the ability.