Understanding why India is not the obvious market for Western luxury brands – CPP-LUXURY


Over the past few days, DIOR hosted a grand open-air fashion show in Mumbai at the Gateway of India monument – with a collection that pays tribute to Indian craftsmanship in fashion. Dior has collaborated with the Chanakya School of Craft, which has been gloriously reviving and maintaining the most rare Indian crafts. For two past haute couture collections including in 2021, Dior has actually commissioned some pieces with the Chanakya School of Craft.

Unlike recent DIOR events and shows in Paris and abroad, the Dior event in Mumbai was overshadowed by the unfortunate timing of the event, just days before the gigantic event hosted by India’s richest family, the Ambani’s, (also one of the richest in the world) to launch a mega cultural centre (Nita Ambani Cultural Centre) over festivities that lasted 3 days and gathered the creme de la creme of India’s society but also top media and VIPs from abroad.

Dior’s event in Mumbai was barely covered in India, obviously, the concentration of A-list Bollywood, actors, singers, performers, influencers, media, VIPs, celebrities being at the Ambani event. Ironically, there was a ”duel” was between world’s richest man Bernard Arnault who owns Dior and Mukesh Ambani who controls much of India’s luxury market but also major investments in other industries. For the inauguration of the Nita Mukesh Ambani Cultural Centre, the Ambani’s have also flown-in international celebrities such as award winning Zendaya and supermodel Gigi Hadid.

Nita Mukesh Ambani Cultural Centre, Mumbai

The new cultural centre, which was inspired and created by Nita Ambani, a former dancer herself, is one of the finest such centres in the world, is aimed at promoting Indian culture and arts. The series of events to celebrate the opening included grand Bollywood productions of unseen proportions, gathering more superstars than ever. There were also exhibitions (history and importance of fashion in India)  but also debates and conference type events.

The event exuded a new wave dominating Indian society which is the pride of being Indian and how proud Indians are of their country and the vast heritage of India as a leader in many industries. An overwhelming number of attendees (over 2,000) wore traditional Indian outfits (Indian-made) as well as Indian high jewellery. This is what makes India radically different from any other major global emerging market such as China or South America. Several already established Indian couture designers have stood out, with spectacular gowns worn by celebrity attendees.

India vast heritage in craftsmanship both in fashion and jewellery has become a ‘barrier’ the expansion of major international luxury brands in India – the only profitable product categories being shoes, handbags and watches. The least profitable are luxury fashion brands with Western apparel styles, including bridal as well as fine jewelry and high jewellery. India boasts an unrivalled bridal sector, which caters to a multi-billion dollar wedding industry – Indians being known for their incredible spending on wedding, regardless if hosted home or abroad.

Nita Mukesh Ambani Cultural Centre, Mumbai

Nita Mukesh Ambani Cultural Centre, Mumbai

India has an incredible heritage and tradition in other luxury hotel sectors such as hospitality, with iconic luxury chain such as TAJ Hotels, Oberoi Hotels or The Leela Hotels – with most of their properties concentrated in India, including palaces. TAJ is the chain with the biggest international presence, operating luxury hotels in many countries including the U.S. India also excels in the luxury beauty industry with products of the finest quality but also with an expanding gourmet and fine dining venues in top destinations worldwide.

Nita Mukesh Ambani Cultural Centre, Mumbai

Nita Mukesh Ambani Cultural Centre, Mumbai

Indian investors nowadays own landmark luxury hotel properties abroad too – the soon-to-open Raffles London at the OWO (operated by Accor), Great Scotland Yard Hotel in London operated by Hyatt. Mukesh Ambani’s Reliance Group acquired the Mandarin Oriental, New York in 2022.

While the contribution of the new centre to developing and preserving India’s culture is undeniable, mention must also be made that the Ambani family controls the group which represents through exclusive deals (including franchising) the majority of international luxury brands which have stores in India – predominantly fashion and accessories. The Ambani family also owns iconic luxury hotel group Oberoi Hotels, therefore, the grand event in Mumbai was a great showcase of Ambani’s focus on luxury.

Oliver Petcu not in Mumbai

Nita Ambani performance at the opening of NIta Mukesh Ambani Cultural Centre in Mumbai

Nita Ambani performance at the opening of NIta Mukesh Ambani Cultural Centre in Mumbai

 


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