E-commerce is bridging the gap in infrastructure: Montblanc CEO Baretzki

'We should expand our presence in cities that we are already present in', said Baretzki

While affordability remains an issue, the growing acceptance of e-commerce has also meant consumers are open to making big-ticket purchases through them, Baretzki tells Arnab Dutta

How has the market for luxury products in India changed over the years?

India has a very diverse yet rich history of luxury products such as jewellery. At the same time there are a large number of new consumers who are getting exposed to luxury items now. When I first came to India in 1999, luxury products used to be confined to major hotels as there was hardly any other infrastructure available for them to be showcased. But the market now has a fast growing network of infrastructure for luxury products. With the large number of malls coming up in every corner of the country that provides suitable infrastructure for luxury products, its growth is accelerating.

Is the buying behaviour of Indian consumers any different from those in say, China or the USA?

Contrary to general perception that the nature of consumers changes dramatically with the change in geographies or regions, we have seen only a minor difference between consumers in India and other markets. Our best-selling products in the world are also the best-selling items in India. Today, there is not much difference between the bigger markets like the US or China and that in India, when it comes to consumer preferences.

Is affordability still a big concern for Indian consumers?

The issue is not about affordability; it is about value. Montblanc is well-known for not only its craftsmanship but also for the value it offers. Also, we give priority to the local customers and try to reach out to them in the way they understand. Since our journey began here 25 years ago, we have moved closer to customers. We are now present in seven cities and have 13 boutiques. Further, with rise of e-commerce in the country, we are able to deliver to over 150 towns, which covers a very large geographical area. It also means, we are no longer focussed on a handful of customers.

Where does India as a luxury market stand vis-a-vis China?

I hear a lot of comparison between India and China in terms of their similar sizes of population and the consumer market. But other than them having a large number of cities, it is difficult for me to compare the two. That is because the infrastructure, the level of development and the markets are quite different. In China, we are present in nearly 70 cities and the number of suitable locations that we can be present in in China is much larger than in India, solely due to the gap in infrastructure. In India, on the other hand, e-commerce is thus becoming crucial for our growth.

Can you please explain how e-commerce would facilitate luxury retailing? Won't the price be a barrier?

E-commerce for me is not just about conversion into sales numbers, but more of how many new consumers we can reach and how efficiently we can interact with them. It is a major factor now in bridging the gap between the other markets like China and India as it provides a much faster way to reach our consumer here. That said, it is a question of time and maturity of the system when customers feel confident about making high-value purchases through online portals.

How many locations Montblanc plan to be present in next few years?

While I don’t have number in mind, there is a huge scope to expand our physical presence in many more cities in the near future – cities like Kolkata, for example. Also, we should expand our presence in cities that we are already present in. Next year, for example, we are preparing to open another boutique in Mumbai’s Max City mall. I think, being present in 20 locations in the near future will be a realistic goal.