The luxury e-commerce platform recently launched the third edition of its flagship property ‘The Luxe Life’. Tata CLiQ Luxury's head of marketing speaks to afaqs! about the future of luxury commerce in India.
Tata CLiQ Luxury recently hosted the third edition of its flagship property ‘The Luxe Life’ in collaboration with HSBC. The event took place at The Taj Mahal Palace in Mumbai, and saw participation from global luxury commerce leaders.
The Luxury commerce in India has evolved into a very personalised interaction between consumers and their preferred luxury brands. Mohua Das Gupta, head - marketing, Tata CLiQ Luxury, spoke to afaqs! about the role of intellectual properties, future and sustainability of India’s luxury commerce, and the essence of slow commerce.
According to Gupta, luxury has become more accessible, and as such, the consumption of luxury has become more conscious and purposeful.
What is the insight behind ‘The Luxe Life: Edition 3’?
‘The Luxe Life’ aims to unearth insights and trends about India’s ever-evolving luxury industry. We launched ‘The Luxe Life’ to drive discussions about slow commerce and purposeful luxury. The event gathered luxury thought leaders and creators to discuss the future of luxury and slow commerce through the lenses of technology, sustainability and innovation.
Can you elaborate on the ‘Moving Fast. Living Slow’ idea?
The theme ‘Moving Fast. Living Slow’ dwells on how the slow luxury experience is changing in relation to the rest of the world, embracing new technologies and forging ahead, following the COVID pandemic.
Renowned leaders shared their perspectives, as they explored new ideas, trends such as slow commerce and sustainability, luxury and metaverse, conversations and innovation driving Ayurveda’s re-emergence, understanding the new luxury customer, and more.
What is the slow commerce philosophy?
The definition of luxury has evolved, as have the consumption patterns of consumers. This is because of certain shifts witnessed in the industry, such as luxury becoming more accessible, the rise of conscious consumption and how consumers prefer to engage with brands that reflect their personal values and beliefs.
We truly believe that it takes time to make luxury and appreciate quality. In doing so, the focus is on giving attention to the finer elements - craftsmanship and heritage, as well as tranquillity and value of an experience.
Who is your core TG?
We have a strong portfolio of global brands across categories, and strive to offer a seamless and luxurious shopping experience to our customers. Our target audience is quite niche, i.e., the top five million affluent households, or 1-2% of the top consumers in India. The platform caters to a discerning and affluent audience segment that is digitally savvy and has a high disposable income.
What is the marketing strategy that the brand aims to employ in reaching out to this TG?
The overall marketing strategy will continue to emphasise on establishing Tata CLiQ Luxury as the go-to destination for online luxury shopping across categories, as well as building brand equity. We will focus on equity-based campaigns and launch new initiatives to drive content-led commerce.
Given that the majority of our consumers are digital savvy and keeping in mind our footprint in e-commerce, our approach is digital-first. We will continue to leverage digital and social in order to drive our brand messaging, deliver an engaging brand narrative, and reach out to both existing and new customers.
How has luxury e-commerce evolved in India over the years?
The luxury business in India is still in its infancy, and there is a long way to go. The industry is expected to grow at a healthy CAGR, despite the current retail inflation and market slowdown.
Some important factors that are boosting the industry, are the increase in disposable income of consumers, as well as the rise of newer consumer cohorts that buy luxury, the introduction of new brands, and increased exposure and awareness.
E-commerce has expanded luxury market's accessibility and reach, which has contributed to its rise. Given how factors such as increased Internet penetration, economic development, rising aspirations, etc., have contributed to the industry's growth, these factors will continue to fuel the growth of luxury e-commerce industry.
The luxury e-commerce market is growing at an average rate of 100% YoY. Some categories such as luxury beauty, fashion and watches, have high double-digit e-commerce penetration, while other emerging categories, such as fine jewellery, home and so on, will witness growth in the future.
What can consumers expect from Tata CLiQ Luxury in 2023?
Our overall strategy will continue to place a significant emphasis on building the platform as the luxury lifestyle destination for shoppers across the country. Apart from offering consumers a range of curated brands across categories, our aim is to also offer the best add-on services and improve on them.
There are several new global brands in the pipeline that we plan to launch over the coming months across categories. We recently introduced the home fitness and fine jewellery categories as well, and plan to add and build on golf and art in the portfolio. We will also look at expanding categories like beauty, kids and home.
Last year, we launched 13 international brands on the platform, namely: Aspinal of London, Baldinini, BCBG, Chiara Ferragni, Eugenia Kim, Kendall + Kylie (footwear), Liu Jo, Pollini, Loci, Mulberry, Phillipe Model Paris, Themoire and Twinset.
We plan to launch 10 more international brands over the next few months. Some of our other key launches include Gauri Khan Designs, Le Mill and The Collective.
As we continue to expand our portfolio of brands, our focus will also be on continuing to grow our customer base across Tier-II to IV markets.
What are the marketing trends that could shape luxury e-commerce in 2023?
Traditionally, luxury has been associated with a badge of status. It signifies indulgence, which involves heavy investment. Consumer preferences have shifted, as a result of technological advancements and cultural shifts in the industry. As a result, brands must innovate and align their marketing strategies to meet the ever-changing needs of their customers.
Some key marketing trends that will influence luxury e-commerce in 2023 include experiential marketing that could leverage offline and digital channels. Brands embracing various platforms and formats to reach out to their audience. New consumer cohorts that require marketing strategies to help drive penetration in these markets.
Creative brand collaborations will also be influential in shaping luxury e-commerce, since it could help drive brand awareness, and expand customer base and sales.