The Hindu Business Line : `Consumers here are ready for our brand, and luxury'

In early 2000, the markets changed and we had two options, whether to bring down prices of our products or make them more upmarket. We decided on more luxury.

Valerie Lachaux, CEO, Dior Watches,

It's raining gems for Christian Dior fans in India. The fashion house from the LVMH Group has decided to seduce Indian consumers with the best and the latest of its Christal range of watches. Designed by John Galliano, who has often been inspired by India, the collection's launch and campaign starring Hollywood star Sharon Stone is in keeping with the brand's policy to bring its products to consumers around the world simultaneously. The Indian woman who would buy the sapphire- and diamond-studded watches is no different from Dior's client in Paris or Japan, says Dior.

In an extended interview, Valerie Lachaux, CEO, Dior Watches, and Shantanu Mukerji, Regional Manager (South Asia), Dior Watches, speak to BrandLine about Dior's entry into the country, its positioning vis-à-vis South-East Asian countries and its plans for India.

What was the state of the luxury watches market in India when you entered?

Valerie: We entered five years ago, in 2002, and we set up the LVMH Watches and Jewellery division, a subsidiary of the LVMH Group. This meant that we decided to enter the Indian market with the right team and right structure to seriously penetrate the market, and roll out our plans.

Shantanu: We came to India in 2002 and it's been five years. We were to some extent late. Though luxury is developing now, the watch category has been big for a while. It had already seen a lot of growth. We were slightly late in those terms. But we came with a very good business plan, a very good strategy, it has been five years and we're doing well.

Which were the companies present in the Indian luxury watches market at that time? What strategies did you implement to announce your arrival then?

Shantanu Mukerji, Regional Director-South Asia, Dior Watches

Shantanu: When we came in 2002 the luxury watches industry was dominated by certain very strong players. Like the brands from the Swatch Group, Cartier and others. I think there was a paucity of retail space, since whatever was available was taken up. Then we came with a promise of having a life product at prices known internationally, launched at the same time and after-sales service that was quickly developed in every city that we were present in. And in addition to that Dior Watches came in with products that were unique.

As part of strategy, there was a transition, which we implemented in India in 2005-early 2006, whereby we moved into true luxury. We moved from an average realisation of Rs 30,000 to about Rs 1.2 lakh. Although we were here for over five years, for Dior Watches specifically, the real traction, the real foray into luxury, came about very recently and has been in line with the global transition.

Valerie: Yes, the transition was important. When the brand existed in 1955, it was licensed to Dior, and then in the late '90s, the LVMH Group bought the company and we decided to totally reconstruct the product line and advertising and put it under the Dior umbrella, to benefit from the artistic direction of the designers of the fashion house. The positioning was to reflect the fashion from Dior in its watches, which started with Malice, feminine interchangeable watches at accessible prices.

In early 2000, the markets changed and we had two options, whether to bring down prices of our products or make them more upmarket. We decided on more luxury, to make it a high-end luxury brand. And in 2005 we launched Christal.

How has the Christal range done globally?

Valerie: Dior Christal is a very unique product in terms of look and material. It is for the first time that we've used materials such as black sapphire and set it on the bracelet. We've put all our craftsmanship into making the Christal range. It has been very successful, because the product is more luxurious, more valuable and today the Indian consumer is looking for creativity, looks, and competitively priced products.

Shantanu: In one word it is a unique combination of Swiss watch-making and French design. I think very few watches will have these qualities. The transition — specifically in India — we were not confident whether it was going to be a good decision, because the perception here is that one should have a low-entry price. But what we realised then is that it is not like people here want cheaply-priced products. When we started launching Christal, people here saw the cuts, the look, the product's timelessness. And the response was phenomenal, in fact much better than some of our other products that had lower entry prices.

Do you think Christian Dior can afford to remain an exclusively upmarket brand because the LVMH Group has other brands for the lower segments?

Valerie: Well, yes. This year the Dior fashion house celebrates its 60 years of existence and that means 60 years of creativity and luxury. What was important for us as far as watches are concerned was to propose to the consumer a truly timeless product, a truly reliable product, which is totally the case with Dior Christal. It is very conservative in design, holds all the attributes that any other watch would have, but is extremely creative and avant-garde.

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