The dynamic and lively Ms Christine Lagarde, Minister for Foreign Trade, France, attired in an Indian dress purchased from a store at Crescent in the Moon, in an exclusive interview with the Retailer. In her opinion, Indian market offers a fascinating array of luxury products and quality of most of these products is at par with those available at Paris

Retailer: Is India ready for luxury retail?
Christine Lagarde: To establish a luxury industry in India or anywhere else in the world it is a prerequisite that the brands go by a process, wherein first you identity the right market, thereafter, find your target buyer and alongside also establish the culture which is most eminent to facilitate the trade for Luxury from a consumer standpoint.

Retailer: How did the Luxury Brands thought to enter Indian market?
CL: The leaders of Luxury trade Louis Vuitton-Moet Hennessey (LVMH) has made considerable headway to enter the Indian market which would further pave the path for other luxury brands like Hermes, Estee Lauder, Chanel in India. With initial spadework having been done by a superb brand like LVMH, it builds up confidence for other brands that can than follow suit.

Retailer: Is the government policy helpful in the entry of luxury brands in India?
CL: Lowering of tariffs would greatly facilitate the entry of luxury brands to India. Luxury products by their very characteristics are expensive and the tariffs that are being imposed further made the availability of these products to the Indian consumer highly priced in which case the Indian consumer would be much inclined to buy these products outside India on their travel overseas. But, Mr Kamal Nath, Minister of Trade and Commerce, seemed keen on offering French watches, fashion and wine to the Indian consumer which encourages us to sense that India might be offering some relaxations in the future.

Retailer: Would luxury brands also follow the franchising path in India?
CL: Franchisor laws are very strict in France, therefore, product distribution is the larger norm rather than business format franchising because we feel that franchisors are not completely qualified to create systems and processes to transfer complete business know how, therefore, product distribution is an advised format. Moreover, there is a very strong and stringent legal system which controls franchising.

Retailer: Is Carrefour planning to enter India?
CL: Carrefour is very keenly looking to enter India and is looking for a partner in India through franchise arrangements.