Why is it impossible to build an Indian luxury consumer brand?

Because India is not an aspirational country.

We don’t have a long tradition of craftsmanship and rich history of building excellent products. Our global perception is intelligent and hardworking but not cool or classy.

Italy is the home of modern fashion. France mixes fashion with wine. Germany has cars while Switzerland has watches. Even tiny Scotland has its whiskies. They are all developed countries that have been rich for a few centuries.

Japan is the only country that has been able to break this European cartel. Its mechanical watches are now challenging the Swiss monopoly. But Japan has just entered the hallowed corridors of luxury. Its electronics and cars were considered low-grade in Europe and the USA in 1960s and 70s.

Made in Japan carries the same ring for the Americans in the 60s and 70s USA as the “Chinese Maal” does for Indians now :).

But slowly and steadily, Japan moved up the perceived value index. Now its whiskies are stealing Scotch‘s thunder. Japan’s distinct, exotic culture also helped to make it cool.

Even the USA, the richest and most developed country, scores low on the luxury index. Apple is the only American global luxury brand. USA built Apple because of its massive edge over Europe in semiconductors.

China, despite its phenomenal economy growth, has no global luxury consumer brands. It’ll take a few more years to start knocking on the European doors.

India has just begun its journey. We’re at the first stage of economic development. Like Japan in the 1960s, we’re making reliable, affordable cars. It’ll be decades before we become aspirational for the rest of the world.

Until then, the wealthy Indians will continue to wear Gucci and Prada, drive BMW, and drink Möet & Chandon.