Luxury retail is steadily climbing new heights in India, thanks in large part to the internet! Geographic boundaries are no longer a limitation for luxury aspirants. In India, luxury retailing is projected to grow at 25 per cent from 2013 till 2018 and is likely to touch the $18 billion mark from the current level of $ 14 billion. Having said that, India accounts for a mere 1-2% of the global luxury market.
Speaking to Indiaretailing on how online commerce has impacted luxury retailing in India, Nakul Bajaj, CEO of the luxury products’ online marketplace, Darveys.com, sheds light on the anticipated future of online posh shopping.
“There is immense opportunity in the online luxury fashion business,” Bajaj says. “Luxury products’ sales are steadily touching new heights.”
“Though the start was slow, luxury fashion has eventually garnered its place in the digital universe. Most brands now communicate with users both through their own branded online store and on multi-brand e-merchants. Technological innovations, increase in purchasing capacity of shoppers, a growing positive perception of the internet as a channel for safe and convenience shopping, higher average annual expenditure and need to own luxury fashion goods will boost growth in the coming years,” he adds.
Talking about the response that Darveys.com has garnered, Bajaj notes, “To become a member of the elite fashion culture at Darveys, our customers are requested to pay a membership fee of Rs 1000, which ensures extreme exclusivity and a priceless shopping experience. Despite minimal marketing strategies, Darveys has already acquired a building block in the luxury e-commerce world.”
“Darveys’ fundamental objective is to create a web platform in order to simplify the purchase of an aptly priced luxury fashion product from the comfort of consumers’ homes. Shopping for one’s favourite designer product(s) by going through our customer friendly shopping process has been more than a pleasurable experience for all our customers. Darveys is a gateway for the Indian populace to be able to browse the inventory of over 300 luxury label boutiques.”
Elaborating on key territories and shopper behaviour across the country, Bajaj opines, “Maximum orders have been tracked from Delhi, Maharashtra, Karnataka, West Bengal, Chandigarh, Haryana and Tamil Nadu. Darveys.com has successfully managed to touch and impress different parts of India!”
“But something really interesting is the kind of repeat purchases we receive from smaller tier II and III cities; it is higher than our overall average of repeat purchasers,” he points out.
The marketplace has tie-ups with 70-plus international label products (out of which 35 are exclusively available with Darveys.com). The products have been procured from 285-plus partner boutiques- set up across the globe.
“These boutiques are the authorised dealers of the brands. Hence, Darveys.com acts as facilitator of these brands, helping them in reaching potential customers in India. A few labels to name are: Tory Burch, Dolce & Gabbana, Chiara Ferragni, Prada, Hugo Boss, Love Moschino, Stella McCartney, Alexander McQueen, Valentino, Manolo Blahnik, Lulu Guinness, Cavalli and many more,” Bajaj informs.
Talking about the modus operandi of Darveys.com, Bajaj explains, “Darveys is set up on international marketplace model instead of the inventory-led model. Through us, boutiques across the globe get a platform to sell directly to customers; this allows a huge range of products which can be made available to Indians who initially never had access to these products.”