My inaugural address this morning at the CII Economic Times Luxury Dialogue on Marketing Indian Luxury to the Global Elite

Good morning Ladies and Gentlemen….

It is my privilege to welcome you all to the 4th CII Economic Times Luxury Dialogue. This annual event has become a coveted platform for luxury brands to share insights and learnings, offering a deeper perspective into the ever-evolving luxury space.

It is a conduit which sets trends, debates ideas and works towards solutions in the truly unparalleled - Luxury sector in India.

Luxury…is the search for timeless value. It goes beyond currency or bullion which fluctuates at the best of times. Indian Scriptures advocate creation of wealth, rather than the mere pursuit of money. This then is the underpinning of the Indian concept of luxury. In understanding this concept, Goddess Lakshmi – the beloved Goddess of Wealth - could well be the starting point.

Dharma (Right conduct), Artha (a meaningful existence), Kama (aesthetic enjoyment) and Moksha (Emancipation)…These are regarded as the 4 goals of human life. A complete life must find space for all four goals and strike a balance. It seems clear thatRight conduct should precede Meaning and Desire. It was Chanakya, Guru to Chandragupta Maurya – India’s Ceasar, who threw down the gauntlet and boldly stated that Wealth was the foundation for Prosperity and Welfare. For when you had secured wealth, you were in a position to develop positive virtues.

Luxury then is one of the highest manifestations of wealth. It expresses the desire to move beyond mere accumulation of money.

? The more you have it, the more you want it…

? The ordinary has to be extra ordinary, luxury is more than extra, …it’s MORE

? It is about taste and not merely money -“Wealth Whispers Money Screams”

? It is ultimately about the unattainable. More implicit, less explicit, more intelligent, less obvious. Driven not by need, but by desire

? It is all about fantasy…Luxury is about personal transformation & reinvention

? It is a 'Personal State' of mind, intertwined with an authentic experience

? Luxury is all about Happiness

These conventional notions have paved the way for Luxury:

1. It is essential for a luxury brand to have Heritage or a quality of timelessness. It may take decades to get that quality of timeliness, but you can create the impression of timelessness sooner rather than later with “Uncompromising Quality”

2. Luxury brands must perform – “Badge Value” is only a justifier - giving the consumer “Permission” to buy. The consumer must think “I am investing (in myself)” as opposed to “I am spoiling myself ”

3. A luxury brand must encompass the entire gamut of associated experiences, especially the thrill of the hunt – The journey is as important as the destination

4. Luxury Must Be Expensive - Luxury should be priced lower than the consumer's expectation of value, but higher that what he or she wants to pay for it. Price is what you pay –Value is what you get

5. A Luxury Brand Must: Tell a story & Be relevant to conventional needs

6. A Luxury Brand Must have an Emotional Connect -Consumers want to know the brand is really ‘For Me, About Me, Understands Me, Fulfills Me, in essence is really ME’

Luxury can best be summed up in these 5 P’s

Perfection Passion Privilege Prestige Publicity

In India, since time immemorial, items of luxury have been an indispensable part of every established life. In its more durable manifestations, luxury is the yearning for permanence in beauty. Heirloom items at households are an expression of this. Beauty transcends the inanimate objects…

Beyond jewellery…there is brocade, the gold thread and even encrusted jewels in ceremonial garments, tassles and sashes decorated with gems, finely engraved condiment boxes, detailed embroidered tablecloth, ceremonial daggers, utensils made of precious metals, even for grain storage.

India has for long been viewed as a destination for exceptional luxury, both at the product level and the experiential level. Earliest writings on India have described it as a place of intrigue, overflowing with novelties and luxuries, both absolute and relative. Writers of ancient Greece reported it as a paradise of plenty, with rich soils and hills of gold dust; with trees that gave wool and reeds that yielded sugar. In the 13th Century Amir Khusrau described the immense treasure of gold and gems he came across in his travels through India. At Warangal, he exclaimed, in awe….

“The sapphire dazzled the eye in the sun. The lustre of the rubies illuminated the darkness of the night. The emeralds had a fineness of water that could eclipse the lawn of paradise. The diamonds would have penetrated into an iron heart like an arrow of steel. The gold was like the full moon of the twelfth night.”

He describes a temple made with golden bricks, sandalwood plaster and roof and walls inlaid with emeralds and rubies.

Marco Polo, the famous Venetian traveller of the thirteenth century, observed of the trade at Guntur: “the big stones going to the Indian kings and the great Khan, and the refuse of the finer stones to Europe”.

But India was not just a producer of product-level and experiential luxury. It pioneered the new forms of luxury through processes that were not known in many other parts of the world.

The ‘Dancing Girl’ statuette, adorned with the ancient noble metals of India – Gold, Silver and Bronze - is an outstanding example of this. "She's about fifteen years old I should think, not more, but she stands there with jewels and bangles all the way upher arms. A resplendent necklace - A girl perfectly, for the moment, perfectly confident of herself and the world. There's nothing like her, I think, in the world."

This is how archaeologist Mortimer Wheeler described the iconic statuette of the Dancing Girl, which dates back to 2500 BC and was excavated from Mohenjo-daro in 1926. This is one of the earliest examples of lost-wax casting in the world. However this is also art and luxury invested with imagination – the dynamism of the statue’s stance and detailing is as striking as the process through which it was produced.

These are but a few outtakes of the iconic luxuries of India, and more than a few of traditions from which they emerge, whether in jewellery making, metal casting or textile manufacturing - these have continued to this day. These works of art are today marked and marketed globally for their historic and aesthetic worth.

The treasures of India have since, become HEIRLOOMS of the world. It would be hard to imagine a museum or private collection in the world which does not feature a rare Indian treasure.

Fast forward to the present….The Indian luxury market is expanding at an approximate and remarkable rate of 25% and is expected to cross $18.3 billion by 2016 from the current $14.7 billion.

A 25% growth rate in a developing economy is no mean feat and the way forward lies in crisscrossing challenges through strategic navigation, global partnerships, and strengthening the vast, existing indigenous talent pool.

Some critical factors have contributed towards luxury trends in India:

- The rise in disposable income being key to the growth.

- The more interesting trends of course are that luxury has gone beyond the metros and permeated into tier 2 and tier 3 cities and this is a wave which is here to stay.

India’s affluent is not new to luxury. We are a nation built from erstwhile princely states – the excellence of our luxury products stems from time-honoured skills of stupendous proportions. Historically, the world has looked towards India for inspiration in our palaces, jewellery, apparel, customised royal automobiles and railway carriages, cuisine, art, hospitality, and wellness.

Rather than being just a source of raw material, this tradition presents an immense opportunity as a premium product in itself to be marketed abroad. Now is the time for these Industries to change the status quo & create global ripples, by ensuring consistent quality, appropriate packaging & vociferous marketing.

To be noted, is yet another mindshift in the perception of luxury. A shift that has a domineering influence on the Luxury industry.

Today, true luxury is no longer about just “possessing” but also about “experiencing.” Seeking status in ‘DOING’ rather than ‘OWNING’.

A world, where the difference in the needs and aspirations of the consumer, is indicative of the role of identifying and serving more detailed & diverse customer segments than has been typical of traditional marketing efforts.

This mindshift offers a great opportunity for India….. Marketing Indian luxury experiences can also get the requisite thrust by Royal patronage which, since time immemorial has been a defining feature of luxury in our country. Whether it was the Rajputs of Rajasthan or the Nizams of Hyderabad, luxury in India has been associated with the Royal Dynasties, adding to its aspirational aspect. Considering the fact that International brands have been using the same to connect with the Indian markets, why can’t Indian brands use them as Brand Ambassadors of Indian luxe in the global market?

Similarly Indian celebrations have a reputation for being the most lavish and extravagant occasions across the globe. Selling this idea of a Royal Destination Wedding to the world has all the potential to turn into a real game changer. A study by Business Insider (2015), puts the Indian wedding industry worth at more than $40 billion a year -- and it's growing at an estimated 20 percent a year.

Luxury is all about EXPERIENCE and experience is all about SERVICE….A virtue embodied in the Indian ethos of ‘ATITHI DEVO BHAVA’…

We have an array of Indian luxury products and the challenges they face, while also looking into the global luxury consumer. We also observed how the definition of the luxury for the global elite is changing, and so are the new areas of buying and investment.

Thus, we can summarize it all by using the acronym C.H.E.E.S.E.

• Consumers with
• High Net Worth seeking
• Exquisite
• Experiences that portray
• Status & Extravagance

And to get the CHEESE, we need to offer I.C.E.

• Indigenously
• Curated
• Experiences.

Last, but not the least, I would be remiss if I didn’t highlight a global phenomenon in the perception of luxury, resulting from Shifting VALUES. The shift to a new type of luxury – A more deeper, truer, authentic…..A RESPONSIBLE kind of luxury – one that is very close to my heart. Allow me to elaborate….

With each passing day, qquestions are being increasingly raised about the ethics of luxury goods. The 2007 film Blood Diamond fuelled so much concern that few diamonds of any sort were worn at the subsequent Academy Awards.

A new luxury consumer is emerging – Consumers that are part of an affluent, global elite that is increasingly well educated and concerned about Social and Environmental issues. These consumers use luxury products as a Symbol of Success. The Definition of Success and the way it is perceived by others – is CHANGING. A sense of shared responsibility is pervading the more affluent sections of society, with corresponding changes in the tastes and aspirations of affluent consumers.

Many successful people now want the brand they use to reflect their concerns and aspirations for a better world. Over consumption is no longer a signal of success and is being replaced from Conspicuous to Conscientious Consumption

A new type of luxury whose deeper values are fully embodied in the sourcing, manufacture, marketing and distribution of products and services is gaining prominence. Authentic luxury brands are those that provide the greatest contributions to all affected by their creation and that identify their consumers as having the means and motivation to respect both the planet and people….Signalling a shift From LUXURY to DEEPER LUXURY

In sum….While the ethos of luxury…be it product or experience still remains unchanged – bespoke, aspirational & exclusive; the deliverables have changed from ‘satiating the worldly senses’ to ‘satiating the soul and beyond’ – giving rise to the endorsement of Responsible Luxury.

Ladies and Gentlemen, I eagerly look forward to energising and intellectually charged deliberations on the evolving luxury landscape and ideas to streamline and facilitate sustainable solutions.

What better way to move forward than, with this ode to India – inspired by Lanza’s symphony…

As the snow-capped Himalayas rise

In timeless majesty before our eyes,

Beyond the fields, through the pines,

Exquisitely, the Ganges Shines.

Above the skies of this enchanted land

A crane flies over a colourful band

No less than the Maharajah's caravan,

Unfolding like a painted fan.

Armies, Kings, Poet’s, Sages

See them all parade across the ages,

With men and women in old bazaars

And mystics peering at the stars.

All make a song only India can sing,

Softer than a heron’s wing.

A priceless treat, a sensory feast,

India…THE JEWEL OF THE EAST!