The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Anjani Sinha, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur.
On the 5th of April, 2015, The Economic Times published news about the Luxury brands such as Vertu, Mobiado and Lamborghini haven’t been able to fully tap the buying potential of that ‘quintessential high heeled consumers in India.
India is a potential market for big brands but there are several hindrances like regulatory issues, lack of retail environment, tax issues ,after sales services and failures . Mobiado launch was planned in March last year, but got withheld due to legal issues . Sale of Lamborghini cells have also been put on hold.
Vartu , another luxury phone player has been able doing pretty well in India. The sales are between 300 to 500 pieces per year. Like Vartu many such companies are trying to position their products in the luxury segment. The major problem with these goods is the perception of the Indian Buyers. Indian buyers need value for money .With the emergence of many players, who are competing to tap the affluent customers, would be really difficult. Partnering with the retail chains or online shopping can help in expanding the customer base .But, it can never guarantee the success. Indian market of 1.252 Billion is still far behind China and US to cater to such luxury brands.