New Delhi | Mumbai: From tying up with brands ranging from Ferrari and Porsche to flying down Swiss watchmakers to showcase the art of horology, real estate companies are increasingly looking to luxury brands to facilitate cross platform marketing, lift sentiments and boost sales in a tepid market.
Consultants said while cities like Delhi and Pune have responded more encouragingly to such partnerships in the past, real estate companies said the partnerships are in keeping with the modern luxury consumers in India who are increasingly looking for bespoke experiences.
Very recently, as part of its marketing strategy, One Mahalaxmi, a residential project by DB Realty and Radius Developers initiated some luxury brand collaborations through experiential events in Mumbai. An event of the company on Sunday with Navnit Motors had Ferrari displaying the New Ferrari Portofino and GTC4Lusso T besides a partnership with Art of Time, the official retailers for Cartier & IWC Schaffhausen timepieces in Mumbai. The company also collaborated with Porsche Centre Mumbai for an exclusive display and test drives of its new Macan model before.
Nabil Patel, director, DB Realty said such partnerships help in giving the the real estate brand a luxury appeal.
“There are plenty of luxury brand categories across different sectors that can accentuate a luxury consumer’s overall lifestyle. These could be wide-ranging from automobiles and apparel, to interior design and architecture, from gourmet brands and alcohol to jewellery and sophisticated home appliances. The possibilities are endless,” he added.
Ritesh Mehta, senior director and head- West India, residential service, developer initiatives at JLL India said there are three different kinds of tie ups emerging between luxury brands and real estate companies: tie ups for designing and architecture, luxury spa and restaurant brands tying up for concierge services or sports tie ups with sports stars for sports amenities and other services.
“The best buildings are on sale and are not getting the desired price. Overall sentiments in the luxury market are not great. Customers have been in the wait and watch mode as some developers stood by promises while some failed miserably,” said Mehta.
“From a sales perspective, the tie ups related to sports or extra curricular amenities have been more successful than the ones around designing and architecture. Some cities like Pune and Delhi had more interest for such partnerships. But, just getting tie ups alone will not fetch results or a premium. If the project overall has a theme which ties in with international concepts or promising amenities, then there is a market,” he added.
Besides working with brands in curating such experiences including with Sotheby’s in London for No.1 Grosvenor Square, the Lodha Group through a partnership with Swiss luxury watchmaker Bovet flew down Swiss watchmakers to showcase horology techniques last year, while earlier this year, with art gallery DAG, it flew down Catherine Grenier, director of Swiss sculptor Alberto Giacometti’s Giacometti foundation for a tete a tete on Picasso and Souza for its potential customers.
“Brand collaborations are the future of luxury, as likeminded brands come together to create truly unique and well-rounded experiences. We collaborate with various partner brands to host experiences featuring art, craftsmanship, high fashion and culinary creations,” said Vinti Lodha, advisor, Lodha Luxury.
India Sotheby’s International Realty CEO Amit Goyal said luxury real estate taps the same audience as auction houses, golf clubs, luxury car companies and luxury fashion or watch brands. “It is the same ultra high net worth individual who consumes these products. It therefore makes sense to collaborate with each other and create experiences that are all immersive for the consumer,” he added.
Reeza Sebastian, president, residential business at the Embassy Group which tied up with luxury hospitality brand Four Seasons for private residences in Bengaluru said the asssociation lends tremendous credibility to the developer. “A brand like Four Seasons has only 2500 such homeowners around the world. There is a fair amount of limited inventory that we are talking about and they would pick the partner based on a very high assessment of delivery capabilities. These branded residences command an almost 40% premium over other non branded developments. The global citizens are looking for more sophisticated offerings and unparalleled exclusivity.”