It might look like that the western world is introducing the concept of luxury over here, but Ivan Coste-Maniere, professor of luxury marketing at SKEMA Business School, France, believes that Indians always knew what luxury is. Coste-Maniere has set up several luxury goods, cosmetics, advertising and event management companies in countries as diverse as Belgium, Tanzania, Ivory Coast, Switzerland and Japan. He has been a consultant for brands such as YSL, Fendi, Gucci, Lavallee, DHV Diamonds, Dassault and BETC Design. FE’s Rahul Sharma caught up with Coste-Maniere recently to understand his view on the luxury market in India, the situation in Europe and how luxury brands can market themselves in India. Edited excerpts.
What does luxury mean to you?
To me, it’s a kind of unique positioning, something which is true and right for you and you only. That is a definitive luxury definition. But it has something which has been co-related and associated to overflowing usage of useless things. It’s a mental positioning.
How is the luxury market faring in Europe now?
Most Europeans are so used to luxury products and services so they keep on buying. Some countries are getting older and have less people vying for this because the older you grow, the least likely you’ll change. On one hand, it’s very helpful because that means they have already forged a strong relationship with the brand. On the other hand, the brand must be very special, it should have a longer life cycle and reduce the cash flow in the long run. Now more and more fashion brands are likely to be known in India like D&G, Cavalli, most of them being Italian. French companies have not been doing it (promoting themselves in India) that much. May be, Louis Vuitton, a little bit. As for the rest of the brands, almost none of them have been affected.
What is your take on the luxury market in India?
The sky is the limit. Because you as Indians have been taught luxury long ago. You have been stopped from thinking about it because of poverty, political reasons, lack of food, etc. These have been forcing you to go back again. There have always been these kinds of things. The luxury goods today are much better, because they talk to everybody. Because of advertising and people travelling across the world. Also everybody is discovering time as the most luxurious asset. Time, plus aesthetics, is the market for you. Spas and massages have been luxury, gold has been luxury, silk has been luxury. So, the one and only thing missing now is brands, it could be in lifestyle, or in the form of a duty free shop. That’s all. And you’ll be ready to take off.
Are foreign brands cashing in on the opportunity?
Foreign brands have not done enough. There aren’t that many top level American luxury brands. It’s always been European. This is also related to culture and roots. If you respect monuments, you respect tradition, etc. And none of them are really losing money. They have been investing money in malls, advertising, so as to be noticed. But they didn’t lose money.
Are Indian brands making efforts to be in the international market and be seen as a luxury item?
I am fond of Hidesign, the leather accessories brand. It is far above world standards. I love Neemrana Hotels. They are the first multi-ethnic Indian brand. Marketing is your problem. You’ll be taking off sooner or later. Within 2-5 years the advantage will be gone. Then it is definitely a big market for France, Italy and Spain. There is place for everyone. The bigger the competition, the more it will be forcing these countries to run faster.