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Salutations, Olio aficionados! 👋

Happy Hump Day and welcome to the 65th edition of Weekly Olio - your trusty source for giggles, wisdom, and a dash of intrigue courtesy of our tantalizing thought piece (yes, buckle up for Publisher's Parmesan). 🧀

The Quote󠀢 💭

The Tweet 🐦

Did you know that fungi could survive even in space? From being accidentally discovered in 1988 as unwanted residents on the Russian space station Mir, fungi’s ability to survive in space has continued to evoke interests from all parts of the scientific community. This thread is a great primer on the current research around the ability of lichen (a form of fungi) to thrive in space and Mars like environments. It also talks about how fungi could be key to helping humans build colonies and live on Mars.

The Infographic 💹

Another fantastic infographic from our friends at Visual Capitalist. The 100 most valuable brands in the world are collectively worth more than $5 trillion with Apple leading the way. Interesting point - the biggest circles are all tech behemoths headquartered in the United States.

The Short Read 📝

My Heroku Values - by Adam Wiggins

Adam Wiggins calls himself a digital toolmaker and builds software products for a living. His last company, called Heroku, is a cloud platform as a service supporting multiple programming languages. It was acquired by Salesforce for $212M in an all-cash deal in 2010. Since then, he has been working on independent projects.

This GitHub post by Adam is a collection of values that he holds dear as a builder and is relevant for anyone looking to build a business. Published in 2013, these values hold true for anyone looking to be a founder. Do give it a read. The list also has a few interesting book recommendations!

The Long Read 📜

The Bronze Trade Origins of Cities- by Arpit Gupta

Arpit Gupta is an Associate Professor of Finance at NYU Stern School of Business with research interests in Household Finance and Real Estate.

The article explores how the ancient trade of bronze, a metal alloy made from copper and tin, influenced the emergence and development of cities and civilizations. It argues that bronze was a valuable and scarce commodity that required long-distance trade networks, specialized skills, and political organization. It also shows how bronze enabled technological, cultural, and artistic innovations, such as weapons, tools, writing, and sculpture.

This edition of Publisher’s Parmesan is brought to you by AI Mastermind.

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Enter AI Mastermind - a low-cost, decentralized, massively scalable AI skills training solution, that leverages both AI and the human touch, to enable a strategic solution for large-scale, meaningful AI skills development at an affordable price.

Publisher’s Parmesan 🧀

Young India and its luxury dream

The world’s top fashion brands are flocking to India, hoping to penetrate a market that has more retail space, better-defined online shopping experiences and, most importantly, a growing young population that isn’t shy to live the high life.

With a population of over 1.4 billion people, India boasts a massive Gen Y and Z demographic that is indulging in luxury brands like never before. The pandemic has only fueled their desire to experience the finer things in life, and they are not holding back.

Unlike their parents and grandparents, Indian millennials and post-millennials are more inclined towards aspirational spending, preferring to splurge on high-quality brands that reflect their cosmopolitan personality and allow them to show off their status. They are not afraid to spend big bucks on luxury items that catch their fancy, and this attitude is bringing India closer to its dream of luxury.

According to a Bain’s study, India's luxury market is expected to triple in the next six years and reach a staggering $200 billion. The emerging upper-middle-class, coupled with the expanding HNIs (high net-worth individuals) and the emergence of Gens Y, Z, and Alpha, are driving this growth. In fact, Euromonitor International predicts that India will have a whopping 35,000 HNIs by 2025, and this number is expected to increase by 41% in the next five years.

What's more, India's consumer market is expected to become the world's third-largest in the next three years, following China and the US, according to a report by BMI, a Fitch Solutions company. The report predicts that Indian households' expenditure will exceed $3 trillion by 2027, with over a quarter of households having a disposable income of $10,000 or more annually.

The Indian luxury market is not just growing in size; it's also evolving in terms of what defines luxury. From Balenciaga to Brioni, dozens of international fashion brands have entered the country, and the existing hundreds, including the likes of Valentino and Louis Vuitton, have expanded their offerings. All are looking to reach that digitally active shopper, besides the rich and the super-rich set, who are no longer looking at international travel as the only way to shop.

With a growing economy that's expected to rise 6% this year, faster than China or the US, India seems like the next big playground for luxury brands. So, if you're looking for the latest Balenciaga bag or a Louis Vuitton scarf, India's luxury market has got you covered. It's an exciting time for the Indian luxury market, and the future looks promising.

Let’s understand these shoppers a bit more…

Brands are targeting Generations Y, Z, and Alpha in India as these young generations are expected to become the major buyers of luxury by 2030, representing 80% of global purchases. Several Indian celebrities are now associated with international luxury brands, such as Deepika Padukone for Vuitton, Alia Bhatt for Gucci, and Ananya Panday for Jimmy Choo. Fashion houses are keen on impressing the young, as luxury shopping infrastructure in new markets like India has significant potential.

According to Bain, India stands out as a rising star in the luxury industry. During the pandemic, Indian luxury consumers changed their buying behaviour from sporadic to habitual. Once the malls opened after the COVID-19 restrictions were lifted in India, new sets of consumers emerged. One set included those who visited the mall for the first time, and the second set comprised those who used to buy luxury items only while travelling abroad. Since international shipping was closed during the pandemic, these buyers became comfortable with buying luxury items in India.

Digital entertainment, rising incomes and social media have changed people’s mindset and increased access to luxury. In the past, people used to dream about owning the latest LV bag, conduct price research for years, and then plan to splurge on that one bag during a foreign trip. Nowadays, luxury items are available at the malls and online, and people can buy them as and when they like. The buying behaviour has shifted from sporadic, deeply considered buying to habitual buying.

From one store to few stores to so many stores…

In 2023, the Jio World Plaza opened in Mumbai, becoming the second most popular luxury retail destination in India after Delhi's Emporio which has been around for 16 years. Spread across an area of 750,000 sq. ft., the Jio Plaza houses the largest Cartier and Louis Vuitton stores in the country and is also the first location for Saint Laurent and Balenciaga in India.

Towards the end of the year, a 90,000 sq. ft. store is set to open in south Mumbai, a joint venture between Aditya Birla Fashion and Retail Ltd and the high-end French retail chain, Galeries Lafayette. Additionally, The Collective, a luxury multi-brand retailer, plans to open 20 more stores across India.

Although international brands have been eyeing India's potential for over two decades, opening a store in India wasn't an easy task. High import duties, strict retail regulations, and limited premium retail spaces were among the challenges. Louis Vuitton was the first major luxury brand to have a presence in India, with a small store in Mumbai's Taj Mahal hotel. It was only five years later, in 2008, that DLF Emporio Mall offered the brand a retail space in one of Delhi's prime locations, alongside other high-end brands such as Italy's Bottega Veneta.

Today, the situation is different, with new retail spaces opening up. Bénédicte Epinay, CEO of Comité Colbert, the French official luxury association representing about 95 of the world's top luxury brands, suggested that the launch of new luxury malls, such as Mumbai's Jio World Plaza and the Phoenix Mall of Asia in Bengaluru, has to some extent addressed the problem of limited luxury retail infrastructure in India.

Indian fashion is now looking forward…

Indian fashion is gaining recognition on the global stage, thanks to recent events such as the Dior show at Mumbai's Gateway of India, Dhruv Kapoor's Milan show, Falguni Shane Peacock's return to New York Fashion Week, and Gaurav Gupta's debut at Paris Couture Week. These events have highlighted the country's unique design and craft traditions.

The Dior show in particular was a historic moment for Indian luxury and craftsmanship. It was the first time a major Western brand had included India in one of its seasonal calendars. According to experts, this event has had a significant impact on the Indian market.

Gaurav Gupta, who will be presenting his new collection at Paris Couture Week, believes that Indian fashion is becoming more global while still maintaining its Indian identity. With support from companies like Reliance Brands and the Aditya Birla Group, Indian designers are expanding their reach internationally. Last year, Manish Malhotra and Anita Dongre both opened flagship stores in Dubai, while Rahul Mishra launched a new brand during Paris Fashion Week.

Despite the challenges posed by the COVID-19 pandemic, the luxury market in India has remained strong. As a result, luxury brands are increasingly looking at India as a potential market for growth. Experts believe that the country's unique cultural heritage and design traditions make it an attractive destination for international brands.

How are the brands fairing in the market now?

Impressing Indian shoppers is not an easy task. When global brands entered India two decades ago, they were relying on the country's lavish weddings and royal families who were once loyal to luxury brands. However, this strategy did not work well, and several brands left the Indian market soon after. For instance, in 2006, Valentino opened its flagship store in Delhi through a franchising and licensing agreement with a local partner. Nonetheless, Valentino left India quietly after a few years, and the other brands struggled to establish their foothold in the Indian market.

According to Phyllida Jay, an anthropologist and author of Inspired By India: How India Transformed Global Design, it is inadequate to rely solely on the concepts of the erstwhile maharajas. Brands need to curate collections and experiences that cater to a variety of tastes and preferences to succeed in India. In a recent interview with Mint, Epinay emphasized the need for brands to offer local identities and experiences to resonate with Indian consumers.

Given the diverse tastes of Indian consumers, it is challenging to pinpoint their state-wise colour preferences, embroidery styles, and the right amount of bling. It is like finding the perfect shade of red lipstick, a daunting task.

India's cultural differences set it apart from other markets such as China, the US, Singapore, and Kuala Lumpur. In the past, luxury brands focused on promoting special collections related to festivals like Christmas and royalty in India. However, today, they have come to understand the importance of festivals like Diwali, Holi, and the wedding season in India. To maintain cultural relevance, many luxury brands have started launching products that cater specifically to Indian consumers.

For instance, Bvlgari launched a gold bracelet for men based on the traditional kada, and a few years ago, they released their version of the mangalsutra, which became an instant hit. Other luxury brands like Louis Vuitton and Christian Louboutin have also introduced collections tailored to Indian consumers while still keeping up with global luxury standards.

To this end, it helps to have a local partner. Not only will the partner help the brand find a suitable retail spot and break down for them the evolving demands of the Indian shopper but also assist them in understanding the country’s laws and regulations.

For instance, the government recently prohibited a specific type of rubber, causing some luxury shoes to be unavailable in India. Additionally, wildlife laws prohibit the use of a certain type of crocodile skin in luxury products. It can be challenging for foreign brands to navigate such complex regulations. That's why having a local partner can be beneficial. Once the brand establishes its presence, it can transition from a franchising model to a directly operated one.

Does the road, then, seem clear for India to become a major luxury economy?

There are differing opinions on this. Some experts believe that India is following a similar path to China and East Asia, where rising incomes led to consistent high growth and eventual domination of the luxury market.

However, others argue that India still lacks enough affluent buyers despite its large population.

Olio Jobs 💼

• Greenlight | Remote Atlanta - Product Manager

• TextNow | Remote US/ Canada - Web Growth Manager

• beehiiv | Remote - Customer Support Specialist

• Hims & Hers Health | Remote - Manager, Website Optimization

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We’ll be back in your inbox 2 PM IST next Wednesday. Till then, have a productive week!

Peeyush and Mohit

Disclaimer: The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual.