Luxury gets dearer
With the sharp dip in the value of Euro, most designer brands now come way closer to the dream versus reality line of the common man, surprisingly making them barely affordable (as opposed to non-affordability of course). However, the same does not reflect in the price tags of luxury goods back home, something that most people were expecting to follow.
Mehar Bhasin, celebrity grooming expert who we got in touch with in New York, where she is currently holidaying, is happily surprised with this trend. “It is amazing to see how much cheaper these designer brands are now. From shoes, jewellery to clothes, everything has become accessible to people here,” she informs us. Calligrapher and a regular on the social circuit, Anita Kumar, who regularly shuttles between London and India echoes the same. “It is true that prices have substantially reduced in Europe, in fact I was surprised to pay almost 50 per cent less on my latest Burberry purchase,” she says, adding that the luxury market in India will not be affected by the price dip, even if it does take place.
“Luxury goods in India are targeted at a niche segment, which would rather look for convenience over the moolah that one could save from shopping abroad,” she opines. Designer Anupamaa Dayal, who frequently travels abroad, says that she prefers picking up designer goods on trips abroad than shop here. “For people who travel a lot, it’s not difficult to pick up stuff. I mostly shop for handbags and cosmetics when I am travelling,” she says.
She informs that for her own brand Anupamaa, she retails more in dollars and has altered the pricing accordingly.
Designer brands in India are made available after a complicated process of several duties and import tariffs, which makes it very different from retailing in stores abroad.
FDCI President, Sunil Sethi explains, “The fluctuations in currency happen at regular intervals and duties are paid according to the rate at the time of buying. So, the rates are marked keeping this in mind and can’t be adjusted every time a currency rate goes up or down,” he says adding that a better way to redeem value would be to offer a discount on the goods instead. Charu Sachdev, whose group handles many luxury brands says that the spring-summer collections available in stores now were bought when the Euro was expensive. “Any changes in Euro will reflect only in the pricing of the fall-winter collections due to hit the stores in September,” she says.
While Tikka Shatrujit Singh, advisor to the chairman, Louis Vuitton tells us that a luxury brand is not only about the goods, but also the service. “A customer who walks in a store expects to be treated generously and with a certain sense of luxury. He not only pays for an item, but for a dream as well. Gestures like champagne greetings and bouquets, as thank you notes can’t be replicated anywhere abroad, but in your home country where people recognise you,” he tells us.
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