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Thursday, March 18, 1999

Will it be the rich man's Titan? 

Pummy Kaul  
New Delhi, Mar 17: GUCCI, the $970-million fashion brand, is winding up to be the Titan of premium watches in India. The brand, which is being distributed in India by the Bangalore-based Dream Time Watches, is looking at significant volumes--from 3,000 to 5,000 pieces in three years and a wide distribution network--50 showrooms by April 2000--in the premium watches market.

Gucci's two-hand strategy to strike: one, to keep its product range `affordable' and two, push its retailers to get closer to the consumer.``After studying the market for about one and a half years, we have found that the Indian consumer is very price conscious. So, if we want decent sales, we should be affordable. After all, we are making a heavy investment,'' says Ravi Venkatachalam, Gucci's exclusive distributor in India.

Gucci's strategy is in stark contrast to the other international brands which have entered the country--and are targetting only the super-premium end of the market. Take price. The Gucci range in India is priced atbetween Rs 10,000 to Rs 20,000, which makes it perhaps, the lowest priced among the other major luxury brands present in India: Omega, Tag Hueur, and Cartier.To be sure, the company plans to bring in the higher priced range--Rs 20,000 upwards--but only after two years, when it has established a volumes-led base. In the meantime, Gucci promises that it will not compromise on the latest designs. ``Our strategy will be to bring in the latest products but at an affordable price,'' says Ravi.

Another atypical thrust: to have about 50 retail showrooms in India by the middle of next year. Gucci is currently upscaling its 15 existing retail showrooms in cities like Delhi, Bombay, Calcutta, Chennai, Hyderabad, Bangalore and Pune. In each showroom, it plans to have a `Gucci corner' for a greater impact. These counters will have special pop material and ambience keeping in line with Gucci's image: trendy and sexy.

Besides expansion, promotion of its retail showrooms is high on Gucci's agenda. ``Most foreign watchbrands have promoted their brand in India. For me, promotion of my retailer is of utmost importance. If he's successful, I'm successful,'' says Ravi.

In a unique initiative, Gucci will promote the retailers/showrooms in each city by organising various activities. For instance, it will hold regular cocktail parties in each showrooom in each city. The parties will usually be planned to showcase new collections or in some cases, an event which goes with the brand's image.

The idea is to bring the real consumer/end-user to the showroom, get close to him, interact with him and build a relationship with him--particularly as the person who buys Gucci may not necessarily be the real consumer.This initiative, feels Ravi will spin-off a benefit: it will build a relationship between the retailer and the consumer and hopefully, lead to increased sales.

By April next, the company also plans to have at least two exclusive Gucci showrooms in Delhi and Bombay which will offer Gucci fashion accessories other thanwatches. The brand has about 200 exclusive boutiques all over the world.

The company is going to invest about Rs 1 crore this year on advertising and media--it's agency is Enterprise Nexus, Bangalore. Although Ravi claims that the brand's awareness is at an all time high in India, it has launched an ad campaign in some of the leading women magazines for effective media impact. Gucci, is also planning to launch Gucci table clocks, priced at Rs 10,000-12,000, and targetted mainly as corporate gifts.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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