[India Property, Real Estate India] The right people, products are key in cou...

[Noida Property 7]

India Property

With its motto of “When your own initials are enough”, Bottega Veneta doesn’t believe in literally spelling out luxury.

Away from the logo mania and the concept of the “It” bag, the Italian fashion brand entered the Indian market two years ago. Right around the time when the financial downturn hit the world, they opened a store in Mumbai.
The brand now sells in Bangalore and New Delhi.
On his first visit to the country, Marco Bizzari, president and chief executive, spoke about doing business in India, recession troubles and how Bottega Veneta is relevant in India’s logo-driven market. Edited excerpts:
How has business in India been so far?
Two years ago when we signed with our partners, we didn’t think we would grow so fast.
The so-called emerging countries have huge opportunities. In countries like India it’s important to find the right people to run the business. It’s not about making products for the country. There are enough products already; it’s just a matter of choosing the right ones.

Managing the business is key. It’s more important than any other thing. What happens normally is that you are presented with a fantastic business plan, and many companies are tempted especially in these times of financial instability. But if you want a long-term relationship, you need to go step by step.

Opening shops slowly and when you have got a customer base, then you can grow and open more stores.

You came to India during the economic downturn. Were you nervous?
At the beginning we were nervous in the right way. We didn’t know what was going to happen next week. Any day could bring bad news. The only way we could work was do our job and be focused. We didn’t want to grow 10 shops in a year. What’s important is not making short-term decisions.
How have things changed since then?

From a consumer point of view, their behaviour changed dramatically. They were buying fewer pieces, but maybe of greater value. You took your time, went to the store, listened to the story of the brand, and checked a few other stores. When you buy, you will buy in the long lasting value of the product. It’s not by chance that our main customers were the Japanese. When you want to test your product you send it to Japan because they look at everything.

There’s been a lesson that despite the crisis, brands should be careful about changing strategy. Many brands changed strategy to become more and more quality oriented even if they were fashion-driven just six months ago. You cannot cheat the customer. The brands should be loyal to who they are. We were exactly where the world was going. We were never logo-driven. That was key to recover from the recession.

How do you position the brand in a logo-driven market like India?
Ideally, you should not enter the market (laughs). They are still in the logo phase. But we keep in mind that many in India are travelling and they are exposed to luxury everywhere.
That is why we can satisfy so many in India. Even when Bottega was growing in a logo-driven world, there was always a customer that’s self-confident enough that they wish not to show what they have, but they know they have something special. It is very intimate.

How do you deal with competition from Louis Vuitton?
It’s the kind of competition that’s not really competition. Louis Vuitton started much, much earlier. Awareness of the brand in India is much higher. We look at competitors, but really we just look at making our own business. I am happy for them, but we are doing business in a completely different way. We can’t compare with their history.

Is the luxury retail space available in India conducive to your expansion plans?
That is the major constraint. The way in which you can develop the luxury business, at least looking at the way things have happened in the mature market, the birth of departmental stores dedicated to luxury helped in their growth.

Think of Neiman Marcus and Saks Fifth Avenue in the US. It’s the same for Japan and Korea. What is missing in India is this area where you can build a luxury mall.

There are constraints, the real estate prices are high, but sooner or later this will have to change. Otherwise it’ll be very difficult for the luxury companies to really develop the market. We really don’t know if the retail space in India is going to develop through departmental stores or hotels.

Would you instead take your merchandise to the client’s home for them to choose and buy?
In certain countries, including in India, we provide this kind of customer service for our loyal clients. But only if there’s a particular connection with the client.

Is the merchandise in India up-to-date with the international launches?
Yes it is. We are planning to bring our RTW (ready-to-wear) to India as soon as a shop is able to present all product categories for us. We are exploring more locations.

The customs and duties are constraints for development in emerging markets. It’s the typical situation in Brazil and China. The price gap increases and when people travel, they prefer to buy elsewhere.

http://www.livemint.com/2010/11/03205824/The-right-people-products-are.html?atype=tp

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Posted By Noida Property 7 to India Property, Real Estate India at 11/04/2010 02:30:00 PM