Fashion Industry expert and writer Imran Amed thinks it’s only a matter of time before the Web 2.0 revolution hits luxury in India

The e-commerce site for Neiman Marcus

After consecutive years of explosive revenue and profit growth, many luxury brands and retailers are beginning to grapple with the consequences of what could prove to be a challenging 2008.

The economies of North America and Western Europe are experiencing varying degrees of softness, and the much-vaunted luxury explosion in Asia, while still promising, will take years to deliver a return on the large investments that have been made, even with astronomical growth rates. Empty luxury shopping malls in China and ongoing structural challenges in a nascent Indian market are proof of this.

Thankfully, there is a bright spot on the horizon that is still undeniably promising for the luxury sector in the West. Just consider these striking facts: The Saks 5th Avenue website is now the second largest contributor to revenues after its iconic New York flagship. Its closest competitor, Neiman Marcus, reported that its online site generated revenues in excess of US $500 million in 2007. European luxury brands from Gucci to Louis Vuitton are also reaping the bonanza of the online luxury frenzy, recognising the luxury consumer’s increasing comfort with and desire to buy goods online.

But in India, luxury e-commerce has yet to take off. For now, Indians seem to value the experience of walking into a bricks-and-mortar store more than the convenience of shopping online. Even if customers wanted to shop online, broadband internet penetration in India remains stubbornly low and unreliable, meaning that it is harder to use bandwidth-intensive shopping experiences that have become standard fare on pioneering luxury e-commerce sites like Net-a-Porter.

The good news for India is that the potential for luxury on the internet is not limited to e-commerce. Today, a luxury brand’s homepage is arguably the single most important point-of-call for consumers looking to learn about a brand’s heritage, products and DNA.

Unfortunately, when consumers turn to many luxury brand websites, they often don’t find anything new and different. Sure, they can find recent ad campaigns (which are already in every magazine), images from the most recent runway shows (which are ubiquitous on the internet anyway), and a video or two (these are few and far between). What consumers really seem to be looking for is an opportunity to engage with the brands and each other.

Let’s talk!
In recent years, a wave of emerging interactive technologies has transformed how people spend their time online. Referred to generally under the umbrella-term Web 2.0, online tools such as blogs, social networks and wikis have marked a shift from an era of one-way ‘read-only’ communication on the internet to one which is characterised by a collaborative dialogue among groups of individuals.

Net-a-porter’s online fashion magazine, Notes

In the luxury space, passionate groups of consumers, in their millions, are talking about luxury brands on blogs and social networks. In France, Café Mode’s independent perspective on the latest runway shows and fashion trends has become so influential that L’Express, a leading daily newspaper, now houses the blog on its own website and pays its blogger a salary. Manolo, an American who writes a popular blog on shoes and celebrity, earns a six-figure salary from his blog and has a column in the Washington Post. Every month, hundreds of thousands of Japanese visit @Cosme, a Japanese consumer review website dedicated to the cosmetic industry. The recommendations are so influential that they can make or break a cosmetics brand in Japan.

Some of the most prolific participants in these communities, said to be about 1 per cent of internet users, may know more about the brands than the brands even know about themselves. As trusted authorities, these experts have the potential to become a brand’s most fervent evangelists — or detractors. What’s more, through the active engagement of these passionate communities, luxury brands can also gain valuable feedback to understand what consumers want and what they expect.

But where is the ‘Blogger’atti?
It’s a mystery to me that India (a country that loves nothing more than to debate and discuss everything) does not yet have an indigenous fashion blogosphere. Indians are notoriously chatty — the Indian blogosphere is already buzzing with technology and Bollywood news. Indians are smart shoppers who like to research before they shop. They actively seek recommendations from friends and family, making word-of-mouth recommendations extremely powerful. Finally, blogs and social networks are not bandwidth-intensive, so are still easy to access even in India’s low bandwidth environment.

Given all of this, it’s only a matter of time before Indians, particularly those of the younger generation, like their luxury compatriots elsewhere in the world, begin to actively turn to the internet to learn more about luxury brands.

The only question is: Who will be the first to answer their questions? The luxury brands, or the bloggers?

Futurist and Love Travel Guides author Fiona Caulfield holds forth on the future of luxury travel

The serene Amanpuri from Amanresorts

The future of luxury travel is defined by five core elements: Time, Privacy, Involvement, Exclusivity, and Authenticity. Brands and companies that understand these concepts, deeply and truly, will be the ones that delight discerning customers and succeed in the decade ahead.

Time
As one gets older, the clock ticks louder and seemingly faster. In this accelerated, Blackberry-fuelled world with over-scheduled lives, it is clear that our most precious commodity is time. The luxury traveller does not have time to waste on bad experiences, and every minute counts.

Brands that understand the currency of time will provide real value. Anticipate exponential growth in private aviation, helicopter shuttles, iris scanners at immigration, in-room check-ins, 24-hour concierges and personal shoppers.

Wellness experiences that deliver ‘feel younger’ as well as ‘feel better’ results will be particularly successful. Also, expect to see a rise in anti-Jet Lag services and products. Who has time to feel anything other than great?

Privacy
Swimming naked in a pool in Rajasthan for the second time in as many days, it dawned on me: Being nude in India is the ultimate in luxury. Complete, 100 per cent privacy in a country of over a billion people is true luxury. Each hotel room at the new Aman in Delhi has a pool, each offering complete privacy and bare bliss.

Brad and Angelina could have gone anywhere and everywhere in India; all Presidential and Royal suites opened their doors to the Brangelina brood. Nevertheless, in lieu of everywhere, they chose to spend their personal time elsewhere. Elsewhere, in Goa, a low key, simple cluster of bungalows, guarantees total privacy. A peak luxury experience with not a gold tap, 1,000-thread count sheet, or Husein painting in sight.

Monacle magazine awarded the Peninsula Hotel the best room innovation for the delivery hatch: a true enabler of guest privacy that secured a spot in the Travel Top Ten. India’s “high touch” mantra in many luxury hotels appears to me, to be a touch too much.

Involvement
Many believe that luxury is defined by things, owning more and more of the so-called right things. Wrong! This is so last decade (or was it even the decade before?). Future Luxury will shun hyper-consumption and instead embrace unique and involving experiences. Philanthropic Travel will become a cornerstone of luxury travel.

Owning the latest monogrammed handbag is so Posh! We wouldn’t want to be seen with one. We would, however, want to build a clinic in the Karakorams, research marine life in the Seychelles, learn Flamenco in Argentina, or master Ashtanga in Mysore. In India, one may hang out with head-hunters in Nagaland, track Bengal Tigers with the head of the World Wild Life Fund and tour the New Delhi Railway Station with a street kid, which raises awareness and money for the Salaam Baalak Trust.

The Gem Palace in Jaipur, where you can design your own jewellery

Exclusivity
At the pointy end of life, the true way to impress is not simply to do, but to do things few others do: like shuttling into space or climbing K2. Sailing around the world is no big deal, unless you are with Craig Venter on his boat Sorcerer, tracing Darwin’s original voyages and discovering new life species.

Exclusivity and bespoke customisation are now the green fees for luxury travel. A round with Tiger and a set with Venus would be ideal. Greaves and Cazenove Loyd are two outstanding UK travel consultants that consistently over deliver on accessing exclusive Indian experiences for their clientele.

In India, design your own jewellery with Munnu Kasliwal, owner of the Gem Palace, who does this for only two visitors annually. Else, play elephant polo with India’s best team, or dine with a Maharajah.

Authenticity
New luxury recognises the lust for the authentic; it is not about creating a homogenised and pasteurised bubble of 7-star sameness; we luxuriate in what makes our destination unique, the essence of the place.

Chai at Triveni in Delhi, a Paratha at Samovar in Bombay and a breakfast of Idli Vada at Brahmins in Bangalore, all make the luxury travellers life richer, for only a few rupees.

Luxury vagabonds want authenticity, albeit in style, safety and comfort. They effortlessly mix the high and the low, the 7-star and the no star. They search for the hyper-local and when shopping, the provenance of the object will matter as much, if not more, than the object itself. In Mumbai, they shop at Bombay Electric, Shrujan and Dhoop. In Delhi, at Intach and Kamala, and in Bangalore at Cinnamon and The Ants.

Fiona Caulfield is the author of India’s first luxury travel guides. The series comprises Love Delhi, Love Mumbai and Love Bangalore. Love Chennai, Love Kolkata and Love Rajasthan are her upcoming titles. For details, log on to www.lovetravelguides.com