Luxury Portable Consumer Electronics in India

PROSPECTS

Luxury mobile phones loses its charm

Luxury mobile phones has been the category driving sales of luxury portable consumer electronics. However, it is reaching maturity, as companies such as Apple and Samsung, backed by their technological advances in mobile phones, have created more appeal amongst aspirational and affluent buyers compared with brands such as Louis Vuitton, making luxury mobile phones less attractive.

The imposition of higher taxes on imports will hamper growth

In February 2018, the Indian government announced rises in the customs duties on several products, including luxury mobile phones and luxury wearables. This increase in import duties was part of the Modi government’s efforts to incentivise domestic manufacturing and encourage businesses to source components locally.

Manufacturers are adopting omnichannel strategies

Traditionally, manufacturers of luxury goods have always aimed to offer their niche clientele an exclusive shopping experience through retail stores, where they get to see, feel and try the products. However, as India’s economy grows, and people have more disposable income, there is a new generation of aspirational or first-time buyers who want to own these products, but do not necessarily want to experience a unique shopping experience by paying a visit to a retail outlet.

COMPETITIVE LANDSCAPE

Luxury wearables is experiencing competition

Luxury wearables is starting to see rapid growth in luxury portable consumer electronics. In 2017, major players launched new products in the market to cater to consumer demands.

The landscape for luxury portable consumer electronics is highly consolidated

Very few players offer products in luxury portable consumer electronics. As luxury wearables have only very recently been offered in India, luxury portable consumer electronics has been dominated by luxury mobile phones, in which players such as Vertu Corp, TAG Heuer, Christian Dior and Porsche Design are the only major players.

New product launches

In January 2018, TAG Heuer launched its Connected Modular 41 series. This watch is an Android-enabled device and is priced around INR76,000 (USD1,200).

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