Luxury Trends – India Introduction: India, a country rich in heritage, culture, people and business with an economy that is the world's tenth-largest by nominal GDP and third-largest by purchasing power parity (PPP). Following market-based economic reforms in 1991, India became one of the fastest-growing major economies; it is considered a newly industrialized country (courtesy Wikipedia). The past decade, post a market slump and recession, India has shown a significant jump in average income due to FDI’s, Private Fundings for Startups and Business’ alike apart from increase in salaries. The spending power of an average middle class citizen has gradually increased even though the cost of living rising has made a deep impact in most metro cities. According to the 2001 census, there are 27 million-plus cities in India, among them Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Ahmedabad are the most populous metropolitan areas as also where the luxury sector exists and has been spawning. This luxury sector is fuelled by the unending desire of the uber rich to spend money, treat their purchases as a status symbol and use it as traction to climb higher and live the good life. The Spawn of Luxury India, especially the metropolitan cities today, are home to some of the best brands, high-end technology / electronics, commercial evolution etc. mankind has to offer to people who would buy them. Over the past decade some niche luxury elements have tunneled their way into the homes, lives and adornments of the highest strata of society. From aged spirits to high-end luxury apparel, from the world’s most expensive consumer electronics to expensive foods and ingredients, here are some luxury trends which have made a mark in today’s high-end living of the well heeled in India.

1. Luxury Spirits & Malts Spirits, alcohol, wines, whiskeys, are widely consumed in India. The typical middle class household today can afford to stock popular VFM brands such as Black Label, Absolut Vodka and Indian wines which are affordable. This makes way for luxury wines and spirits to pave a road to the house of the rich and famous as well as high-end bars, lounges, restaurants and food establishments. Starting with any wine list at a bar or high-end restaurant – gone are the days when you would only see a choice of red and white ‘Sula’ branded Indian wine listed alongside the cocktail and spirit menu, nowadays there is an exhaustive wine list as a separate part of the menu and it lists our Indian brands right up to world class brands such as Krug, Bollinger and Dom Perignon sold by the bottle with taxes which makes it even more expensive than what you would pick up at a store (especially heavy tax cities such as

Mumbai) you land up paying over 150% more than what you would at a duty free. Diners still buy these listed bottles in celebrations and corporate dinners. A couple of examples of the introduction of luxury spirits through various mediums are charted below:-

Four Seasons Sunday Brunch with unlimited Veuve Cliquot Champagne Sunday Brunches: The trendy new dining activity An introduction of Bollinger, Tattinger, Veuve Clicquot at Sunday brunches (going up to INR 5000/person) at the Shangri-La and Four Seasons Hotels (Mumbai) from cheaper varieties such as Sula Brut (A sparkling white from India) clearly shows the popularity of fine spirits and wines being in demand by the diners who grace these places apart from the food. This is being replicated alike in most 5 stars around the country. Note: The popularity has increased so much, that a younger more vibrant cousin of Sunday brunches is being launched on Saturdays in the guise of Saturday brunches with wine and more

The S.M.W.S. Launch In India, Mumbai (Nikhil Merchant, extreme left) Societies & Clubs: The new marketing strategy introduced on by brands, brand promoters and luxury installments alike Brands are continuously getting more and more innovative to attract buyers / customers. From home-grown brand building activities such as The Bombay Cocktail Club, a private pop-up bar with a home format or at an exclusive private club, created for the rich and famous by Diageo’s brand ambassador - Tim Judge was a sure fire way to showcase Diageos high-end spirits. From Johnnie Walker platinum editions to a limited edition Tanqueray No. 10, all these were showcased with world class cocktails which were served to guests. We moved on to more exclusive clubs such as the SMWS – Scotch Malt Whiskey Society which is a members only club wherein on signing up, members from around the world can enjoy exceptional single cask, single malt whisky which is bottled especially for the SMWS from over 120 distilleries.

Dita Von Teese at the Cointreauversial Party By Invitation Only: Brand building activities like ‘by invitation only bashes’ for the well-heeled is inevitable The nightlife of Indian metro cities is a much revered requirement by the citizens. There is an intrusion by many brands and luxury houses alike in the society parties of India vide sponsoring events ranging from Fashion, where Tiger Blanc Vodka recently sponsored many high society parties at the recently concluded LIFW – Lakme India Fashion Week, Bars and Restaurant launches. Similarly Cointreau hosts its ‘Cointreauversial’ nights in many different parts of India at high-end bars and lounges, with the inclusion of their brand ambassadress – Dita Von Teese who attended one event in Delhi, this brings about instant media attention since direct advertising for liquor / spirit brands in India is banned. This is the easiest way to catch media attention and get a spot on print / video media.

Louis XIII showcase at Rolls Royce, Mumbai (Nikhil Merchant, extreme right, Brand Ambassador – Vincent Cleme – extreme left)

Cohabited Luxury Tie-Ups: If not restaurants and sit-down dinners, luxury brands tie-up with alternate luxury houses to co-habituate and attract the same crowd. A two pronged approach is the best way to share the clientele. Usually luxury clients make up a very niche section and they are loyal to the brands which make the mark in the world. Marketing geniuses have identified that most luxury customers would associate another luxury product if the same was showcased in their realm. For example, Liquor brands such as the world famous and most expensive cognac the Remy Martins Louis XIII has many tie-ups with luxury cars such as Rolls Royce to introduce their exclusive 100 year old Cognac to Rolls Royce clients (A party thrown by Rolls Royce for their clients). They recently also launched their Louis XIII Rare Cask at a special ‘invite only’ event at UdaiVillas, a palace converted into a luxury hotel in Udaipur, India. The invitees were no Indian Media, but stalwarts from the spirit and liquor industry from around the world.

Louis XIII Rare Cask

2. Cigars – The Rich Man’s Smoke

They say the cancer stick is not worth the risk if you cannot have the best. The upper echelons of society are today re-discovering the joys of smoking exclusive tobacco, in the form of a Cigar. Through extensive travel and exposure to Cigar Lounges (usually associate with drinking fine cognac), the society is embracing cigar smoking as a luxury smoke. It is observed that luxury is also time, and to smoke an average cigar a person would require a good 1 hour or so of leisure time to indulge. Cigars are slowly making their way vide different mediums such as: High-end Dining Establishments: Restaurants and Hotel Bars are stocking up on humidors and sectioning off special areas for their patrons to enjoy cigars. With brands such as Armanteros (an Indian brand by the ITC group, which is also into hospitality) and imported varietals such as Cohibas, Monte Cristos, Patrons and Rocky Patels are traded in at these establishments by the brands themselves or promoters. The fact that these places and brands make these stogies accessible to Indian consumers is fact enough that the demand is slowly increasing amongst the people who can afford and smoke them (a single stick can go up to INR 1000 on an average, whereas a single cigarette is as low as INR 6 per stick.)

Club Connoisseur night of the Bombay Cigar Aficionados 1st Anniversary Party

Clubs & Events: Cigar clubs may not be a norm initially but they have been used as networking tools for the business crowd. There was a time when cigars were used as a luxury bait to lure businessmen into visiting lounges / hosted events / dos and land up networking with less emphasis on smoking. This has changed in the past 3 years where slowly but surely these clubs have morphed into serious spots for cigar lovers to enjoy a smoke. Personally, a small part is played by my own club which I am a co-founder of The Bombay Cigar Aficionados Club (our website www.bombaycigaraficionados.com is under development but has a sign up page), We host evenings once a month (every 1st Tuesday of the month mostly) wherein it’s an ‘invite only’ or through personal references. Made up of 6 founders in 2011, this club has grown from a small number 8 to a large group of 30 and still increasing. Our policies are quite strict yet it’s a casual home setting, and the best cigars are exchanged, bought amongst ourselves or sold to new members and sometimes brands sponsoring some of our events which we allow (though not too often) to raise awareness amongst peers. With this an interesting point to note is that even though cigar smoking is a premise, it goes perfectly well with Single malts as discovered here, hence we urge our members to pool in and bring a bottle to the evening which they are expected to take back. This results in a pool of excellent quality malts from around the world which we taste, exchange notes on and create awareness of various brands which we have tried and tested thus erecting an informal platform to showcase spirits too. Indian Brands making a Mark: Armenteros, A cigar company owned by the ITC group in India is making its presence felt in Indian markets after discovering the potential of cigar smokers in India. They have brought to our shores exclusive hand-picked cigars which are branded to them from Cuba, Nicargua etc. Having an Indian brand is a sign that cigars are the new luxury trend and it’s a matter of time before they become full fledged but not commercial as a good stick of cigar will still cost you and arm and a leg. Incidentally, Armenteros hosted our first anniversary bash (The BCA Club) in December 2012 with a resounding success of 80 high-net worth individuals who were invited to the do.

3. Luxury Wines It’s a given that the Dom Perignon’s of the world have made its way into India a long time ago, but this was not officially as they were not distributed here and were only available in houses of people who travel or at very high-end bars with unimaginable duties and taxes (though its still not changed). The transition ever since India started producing its own wine, has created such a buzz amongst the wine-drinking communities (a recent conversion, since Indian’s do not take alcohol with their meals and usually complete their drinking sessions before commencing lunch / dinner, but with the onset of brunches in hotels which serve wines / champagnes as well as the notion created worldwide that a glass of wine with food is a good thing, Indians are slowly converting to informed drinkers and embracing good wine and food which go hand-in-hand) that it is a wine boom which India is experiencing at this moment. All the more reason for the wine industry world over to sit up and take notice.

Massimo Sensi from Sensi Wines, Italy, Chianti, In India Introduction through Wine Paired Dinners / Lunches: World Brands are making their way into Indian dining scene in leaps and bounds. With the best brands entering our markets the premium ones usually do it subtly and with class. A fairly well planned event would be an introduction of wines from a brand by pairing it with classic good food from the best chefs in India. So for eg. A brand like Chianti came down with its 6th generation owner of this Italian wine making company and tied up with Four Season’s whose executive chef – Clinton Cooper paired the wines with a seven course meal for an exclusive dinner for 10 high-class guests from the media world, a brand head honcho and some industrialists. Many such wine brands have followed suit since.

Moet & Chandon Indian Brand Tie-Ups: A not so publicized fact, but our very own wine-region is today home to the world’s most luxurious brand of the sparkling i.e. Moet & Chandon. M&C has tied up with an Indian wine-maker (It is York Winery, Nashik – an article plug in Economic Times: http://articles.economictimes.indiatimes.com/2012-07-20/news/32764322_1_moncaro-riona-wines-sula-winery) in Nashik to produce, under their watchful eye, their introduction sparkling for India. This is a stepping stone to the world’s wineries that Indians take their wines seriously and a brand like M&C marketing its wine through an Indian brand is a classic example of brand tie-ups. It is a matter of time before other large wine-makers make a beeline to our shores. Michel Rolland Tasting with Dany Roland (Wife and Co-winemaker at Rolland Wineries, Nikhil Merchant,

Center)

Wine Marketers & Consultants: A large number of wine marketers are pushing more and more international brands on our shores. Though the lesser known wines from South Africa, Italy, France etc. make it here anyway through various means, the better known, traditional, old world wines too are finding a niche amongst the palate of a typical Indian luxury consumer. For eg. Ashwin Deo, Trinity Vitners (who incidentally also make their own labeled wines) are diverting to quality wine brands to bring it to its discerning consumers homes / establishments. They are the official Importers for Michel Rolland Wines and Champagne Jacquart. (Co-incidentally, he also has the Franchisee for Scotch Malt Whisky Society for India). Consultants

4. Artisanal Beers and Micro Breweries

With the onset of various spirits and wines making a foray on Indian shores, beers should not be left behind. Pop-up beer bars catering to only beers such as the Pint Room etc. are 100% beer bars which serve anything from local brews such as Kingfisher to imported brands such as Hoegaarden, Asahi etc. Though these branded beers are targeted at the classy masses there is a spurt of micro breweries concentrating on targeting the niche beer drinking crowd which usually are the well travelled and moneyed. It is a known fact that out of India, specialty brewed beers in micro breweries and artisanal beers are a given norm. In India being a novelty it commands a premium especially since the licensing, setting up with costs (overheads) are sky rocketing. Being a new concept starting first in Gurgaon, India, microbreweries are slowly making their way into India’s metro cities which command varietals of luxury elements. In Mumbai, the Gateway Brewing Co. is the oldest microbrewery, which started about 6 years ago, but has recently got active with tying up with food establishments to soon co-partner and brew artisanal brews for various hot spots of the city.

The Barking Deer Brew Pub in Mumbai

This being a brand new trend showing face as recent as half a year ago is here to stay and convert the luxury market trends to expensive, quality beers.

5. Branded Luxury Apparel

The introduction of Fashion TV channel about a decade and a half ago created quite a stir in the Indian Fashion market. With high luxury fashion labels sitting snug in the closets of the rich and famous from their travels to Paris, London and the other fashion capitals of the world, luxury brands were not far behind in making a beeline to our shores. With real estate showing up and redevelopment of old mills (structures) in the city being replaced by malls and entertainment sectors there have been a couple of malls dedicated only to high-end luxury apparel brands. Malls such as Palladium in Mumbai, DLF Emporio in Delhi, UB City mall in Bangalore etc. they are riddled with stores ranging from Gucci, Burberry, Louis Vuitton, Canali and the likes. These places make high-end luxury accessible to mainstream high-networth individuals by bringing the latest fashion and apparels right to our hands.

Louis Vuitton in India, Mumbai The concept of luxury fashion being available off the shelves started first in luxury stores housed in luxury hotels around India. Such as Taj hotels, Mumbai and elsewhere is home to major brands such as Louis Vuitton.

These apparel brands never go on sale, as is the practice worldwide. They cater to the chic crowd of the metro cities and change as per the seasons of the original houses. The pricing too is similar to what you may pay abroad, albeit with additional taxes.

Super Dry Store in Mumbai The only form of advertising they probably indulge in is through fashion magazines (Vogue, Elle etc.) and bill boards at prominent places / rich residential areas. Though marketing gimmicks are not far behind when brands go the whole hog during launches since it requires a lot of fan fare for media attention. For example the launch of the Japanese brand ‘Super Dry’ was done a few months ago in the city of Mumbai in the parking lot of a high-end mall. This created quite a frenzy for its uniqueness and the who’s who of the city were invited at this special event. Super Dry tee shirts are quite expensive and it is one of the preferred brands adorning the men of high society at casual do’s.

6. Food & Ingredients

Food is one of the biggest businesses in the world today. India is not left far behind when it comes to excellent cuisine. In recent times, i.e. since the last decade there has been this boom of world cuisine finding its way into the kitchens of India. There was a time when we were restricted to enjoying Indian cuisines, Indo-Chinese cuisine (a

modified version of Chinese to adapt to our palate, perfected by a high-end restaurant too called China Garden in Mumbai, which serves up slightly adaptive Chinese but at fine dine prices) and what we would call ‘continental’ which was a mix of varied world cuisine ranging from pasta to burgers (all of which was completely modified to make it relatable to our taste), but since the past few years there has been a mushrooming of varied ‘authentic’ world cuisine and the penchant to eat like the world does. So for eg. A fine-dine restaurant catering to Italian cuisine, would ensure authentic Italian cuisine is served up not only taste wise but the quality of ingredients (cheese, sauces etc.) right down to getting to specifics of putting together menus which are region specific to Italy (Sicilian, Tuscan etc.) Some key changes in the food scene in India are reiterated below:-

Lobster at a fine-dine restaurant – Botticino, Mumbai, Trident BKC Multi Cuisine and Fine Dines A spurt of standalone restaurants as well as restaurants housed in hotels catering to multi cuisine fare have been springing up in up market areas in most metro cities as well

as luxury hotels. With rich restaurateurs leasing / buying out hot spots from the city and opening up these establishments with the best in business, the day is not far when we can truly say we would have at least one type of restaurant with a particular cuisine. Currently there are two trends:-

a) Cuisine specific fine-dines such as Dum Pukht at ITC Hotels which caters to authentic Awadhi Indian cuisine, Wasabi by Morimoto for Japanese, Thalassa for Greek in Goa and many such examples.

b) Chef-centric restaurants where a highly popular chef (maybe from another country) runs the kitchen with his exclusive experiments with nuances of his place are incorporated in his/her dishes. A place like ‘The Table’ is an exclusive experience for diners who want a gourmet experience of sorts with European fare being dished out with menu changes as per ingredients and seasons. Another place called Ellipsis not only is home to an uber talented chef who dishes out fare from lobster to foie gras) but also gives emphasis on the bar menu by hiring the likes of New York and Co. as bar consultants.

Michelin Star Restaurants With fine-dine restaurants being a resounding success, even if briefly (turnover of such establishments failing and shutting down is also high), Michelin star restaurants are not far behind. Starting with Nobu in Delhi to UK brands such as Yauatcha and Hakkasan opening its doors more than a year ago, they are one of the most popular places for the elite to dine out whether to entertain, have a business lunch/dinner or have a family outing. Though Hakkasan and Yauatcha have beaten the odds of housing themselves at luxury hotels and are standalone places instead, large over 6000 sq.ft. with a full capacity every night, there are certain Michelin star chef’s too who have made a mark in the dining scene. The latest one being Chef Sergi Arola who is now in India at the J W Marriott, Mumbai with a spanking new gin-bar.

Fugu Fish at the Four Seasons Expat Chefs With world cuisine gaining popularity, a new trend which is making waves is the hiring of expat chef’s from various regions of the world to infuse some quality and authenticity in the restaurants. Inadvertently since these chefs travel and come from various spots in the world, they also know the best places to source ingredients not available in India but have a great demand or an introduction to in their dishes. For Eg. Chef C J Cooper the Executive Chef of Four Seasons is one of the rare licensed chef to handle and serve a dangerous delicacy which commands a high price. The Fugu fish from Japan. This fish is dangerous as its poisonous and if not cleaned properly and handled can lead to instant death. Chef Cooper being licensed to handle this place serves it up to his discerning guests at his hotel. Such ingredients bring about exclusivity to the place and command a

great attraction to the luxury clients who would otherwise have to visit restaurants halfway across the world. So from Champagne douzed Chilean sea bass to Wagyu Beef Steaks flown in from Japan by chefs themselves, most of these high-end foods are much in demand at luxury dining spots.

7. Real Estate When you think real estate, the only person who comes to mind is industrialist - Mukesh Ambani of Reliance Industries, one of the top 10 richest men in the world, he has built a home for himself in the most upmarket area of Mumbai costing $ 1 billion, named Antillia, one of the most expensive residences in the world. Real estate prices are anyway booming and the rich are moving out of large colonial bungalows, giving it up for redevelopment and either making high-rises for themselves or leasing out luxury apartments and making the top three floors as penthouses for themselves. With amenities like pools, parks, gyms etc made available in the property itself.

Proposed World One Tower Residential Project

The latest in luxury residences is the upcoming project called ‘ World One Tower’ in Lower Parel, Mumbai. This project is claimed to fame as being one of the most luxurious

residences in Mumbai as also one of the tallest in India as a residence. It boasts luxury apartments done to the hilt of the highest order, with full furnished automated bathrooms, splash pools for each individual apartment, a luxury concierge service which can help the resident to book a table at the worlds top restaurant in Spain to charter a flight or a helicopter ride to the interiors of India (using Vertu’s concierge service). Homes are becoming the new status symbol and using quality interior designers and architects from around the world to spending as much on interiors as they would on the real estate itself, the well-heeled of India are investing in realty like never before. Compiled by Nikhil Merchant, India, Mumbai Date: 15th May 2013