The Hindu Business Line : Lladro wants to be niche brand in Indian market

Lladro of Spain, famous for its premium porcelain figurines, wants to brand itself as a very, very niche brand, said Ms Angelique O'Brien, Chief Executive Officer, Lladro India.

To that end, its new focus is "high porcelain," large articles, the prices of which will start from Rs 10 lakh. While prices now start from Rs 8,000, the average spent on an item in India stands at Rs 60,000. The new plans also include tapping the wedding and home décor market. The brand is diversifying into porcelain jewellery, chandeliers, bath accessories and the like. "The market for figurines is limited but not so for porcelain products," Ms O'Brien explained. These items will be launched in India in January. The chandeliers cost around Rs 55 lakh. Lladro, which recently formed the joint venture Lladro India Pvt Ltd with its long-time Indian counterpart SPA Agencies, is shoring up its retail presence in India by redesigning its boutiques and setting up a few more. By the end of 2007, it expects to have 10 company-owned boutiques up and running. It now has five. The joint venture, which will pump in $10 million into India (apart from real estate costs), has spent around $8,00,000 on its three-storied boutique soon to be opened in Chennai, Ms O'Brien said.

Turnover from the Indian business is $2 million; worldwide it is $300 million. It is expected to touch $7 million in the next three years, Ms O'Brien said. "For some reason, Indians are crazy about limited and signed editions," she said, adding that Lladro has made figurines based on Indian characters and motifs both in limited editions and open issues. MrDavid Lladro, a second-generation family member, is visiting Chennai this week to meet customers and sign figurines, she said.

In India, the biggest markets for Lladro are Delhi, Mumbai and Chennai, in that order. Around 33 per cent of the sales come from the non-metro cities and smaller towns such as Ahmedabad, Chandigarh, Kochi, Ludhiana and Varanasi. Lladro also takes on commissions, and is now working on a bust of an African head of state. It sees a big market for such exclusive work in India, Ms O'Brien said.