Top of the pyramid

MARKETING: Promoters of luxury products are getting together to share experiences and insights in India.

India's millionaire count is turning the ticker fast. In 2005, the country had an estimated 83,000 dollar millionaires (that's financial assets of $1 million or more), according to an American Express report titled Inside the Affluent Space. This figure is projected to grow annually at 12.8 per cent up until at least 2009.

And why stop at millionaires? In 2005, there were 711,000 individuals with liquid wealth of $100,000 or more, a figure expected to reach a staggering 1.1 million by 2009.

That's a lot of money. And while investment bankers should be salivating, so should marketers of luxury products. Not that the world hasn't noticed India's sudden wealth (India's billionaire count, though way behind America's, is among the top three now). Witness all the action in the luxury space.

Among the more interesting trends is the way the market is being nudged up the sophistication curve (wine tasting sessions are but the tip of this iceberg). It is a concerted effort.

Recently, the Luxury Marketing Council Worldwide launched the Luxury Marketing Council of India, headed by Devyani Raman, who pegs the luxury segment at $444 million at the moment. "Even at $444 million," she says, "it is really at a nascent stage in India right now "" but growing all the time."

The job of the council, with Amex as its founding member in India, is to get together members with "the right mental makeup" and discuss industry issues, explore best marketing practices, bring together top managers of luxury brands and gain an insightful understanding of the Indian market.

"We are ready to join like-minded companies to better understand the customers," says Robert Hennin, vice-president and country manager, India, American Express, "We understand the marketplace and know our customers well. We can provide value to these like-minded brands."

"The power of collaboration," intones an enthusiastic Raman, who also represents Leading Brands of the World, a luxury consultancy helping brands set up business in India.

The learnings are coming thick and fast, too. "The clients that we are talking about are completely price insensitive. Everyone wants to get a greater share of this pie. It is easier to retain these customers than to get new ones," feels Gregory J Furman, president, The Luxury Marketing Council.

Inside the Affluent Space has much to say about this consumer. It shows that "affluent consumers in India have a very clear idea about what they expect from their lifestyles and from those who provide it to them".

Further, "If businesses want to attract and retain these customers, they need to be very clear about these expectations too."

In India, the council plans to rope in, as members, high-end Indian brands in art, textiles, artists, singers, experiences, travel, hotels, spas "" anything to do with luxury that can spin the bucks.

Sharad Kachalia, director, marketing, Navnit Motors, which is Rolls Royce's Mumbai dealer, feels that working hand in hand will be win-win for all luxury brands.

Rolls Royce has a unique strategy "" it began with a one-to-one whisper programme (a ghost-to-ghost hookup, so to speak) among its client base, and then met these individuals to enthuse them with the car and take them on a test drive. "This inspired these clients to buy," says Kachalia.

Show money, get luxury.