This is what Vertu and Lamborghini needs to learn from Apple and Samsung in India

India has witnessed a significant drumfire in smartphone sector as well as luxury fashion. But when two have been collaborated for Indian ‘highheeled’ consumers, there were hardly any takers. Thanks to the price sensitivity of Indian buyers, luxury cell phones trimmed in gold and studded with precious stones are yet to come of age. Luxury brands such as Vertu, Mobiado and Lamborghini are known to have been suffering from a shortage of demand from consumers, according to The Economic Times.

Regulatory issues, lack of appropriate retail environment, high import taxes, smuggling, aftersales service and failures on part of the local distributors, ET informs, have kept the market for such embellished handcrafted pieces very limited and under-promising. "We are doing only 30% of what we aim to do," Charu Makin, director of Navshiv Retail, said a Delhi-based retailer that has exclusive rights to market and sell Mobiad.

While the smartphone makers including Samsung and Nokia have utilized Indian market to grow their revenue, luxury phones including Vertu and Mobiado are struggling to sell even 300 pieces annually.

Priced between Rs 1.5 lakh and Rs 7.5 lakh, the luxury phones are growing in the range of 8-14% in the past couple of years.
Plans to launch Lamborghini branded cell phones in India have been shelved for the time being as market conditions are proving to be unfavourable.

As per the financial daily, having tied up with Luxury Quotient group, Lamborghini is currently in talks with a few more Indian players to explore a partnership.
Targeting the affluent and the creamy rich, these brands have also partnered with luxury carmakers like Ferrari, Aston Martin and Bentley for co-promotional and co-development. Alike these, Tag Heuer, Dior and Ulysse Nardin, which sell phones in India have achieved a limited success in the sales front.

Talking to ET, a senior executive working at a multibrand retailer while analysing the issue said, "Customers look at these phones more from a fashion accessory point of view and not always happy about the technology within which makes it challenging for retailers to sell pieces worth lakhs to a value seeking Indian buyer.”

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