So I am seeing a lot of people saying India doesn't have the market for luxury brands or people don't really have that kind of money. Well, first of all India is a country with second largest population in the world. It's impossible to judge India's luxury market. It's huge!
Let me give you an example since everybody is talking about Mercedes Benz in India.
In a country like India, Mercedes Benz is top luxury car marker to sell without giving any heft discounts. BMW & Audi are the ones who give a lot of discounts to customers. But it's not the discounts that drives luxury car market growth in India. It's their payment schemes. Mercedes, BMW & Audi allow customers to pay 50% of the car price with an EMI every month for 5 years and then they either take the rest 50% amount if you want the car or they will take the car back and you don't have to pay the rest 50%. So that means you're paying half the price of the car for 5 years and then you indirectly sell it to Mercedes.
That's what Apple is doing in India. Trying to give customers a relief by giving cash backs through Citibank, zero interest EMI etc. In fact, iPhone can be bought cheaper in India compared to USA. Here's how it works.
iPhone Price in India = Rs.89,000
(-) Citibank Cashback = Rs.10,000
(-) GST TAX Claim (If a company buys an iPhone they can claim for GST as they show it as an Investment) = Rs.10,680 [12% GST]
Total = Rs.68,320 (994USD)
That's less compared to US as the price starts from 999USD + Taxes.
Now obviously this is good for people who have companies and Citibank Credit Card but Apple is also giving zero interest fee for EMIs who are job working people and that is brilliant. It doesn't put a hole in your pocket at all.
So it's really not about the "MONEY"
US, UK and many developed countries just don't have that kind of Chinese Brand presence what they have in India and it's only because Indians want value for money. They will spend money if they think the product is good enough and holds value to it. iPhone is a great product and the quality is unmatched compared to any smartphone company but clearly Indians want more than that. How do you justify a smartphone with incomplete features? And it's a luxury product, how can that be an incomplete product?
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India's luxury market to cross $30 bn by year-end
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst