Luxury Brands and 'Made in India'!!!

Whether Luxury Brands accept 'Made in India' Tag?

An article appeared in Business Standard today discussing the luxury brand's negative bias towards India.
Recent denial by Orient-Express luxury Hotels to collaborate with Tata's Indian Hotel Company and issues with the Land Rover/Jaguar Deal involving interested Indian parties has led to this conclusion that India still has to travel a lot to be a name in Luxury Brands.

Branding means adding appeal,meaning and value to products and services.Luxury Brands have been a forte of Western Europe with not even US and Japan able to penetrate no matter how hard and how good products they manufacture.
India is seenin the globalized world as a cost saving IT services destination.
Mass scale back-end services is very different to manufacturing luxury products.

'Made in India' tag as of now does not project the image luxury brands project.Consumers demand premium brands whereas luxury brands comamnd the consumer.

The brand faithfulness is deep penetrated in the minds of its consumers.Mercedes is still ahead even after better offerings from Lexus.

Brands have huge value.Around 30% of global wealth is in form of intangible assets such as Brand Value.
Phillips Morris bought Kraft for about 6 times its annual earnings.More than company and its products,it wanted its Brand.

Acc to Unilever Pears Soap is the first commercial brand in the world.

As far as India is concerned ,Global consumer firms outsourec -Manufacturing,design and distribution to India but keep the brand and earn huge margins from it.


India will have to wait to earn its place in the luxury segments.