LUXURY IN TURBULENT TIMES Deepak Ohri – CEO, lebua Hotels and Resorts

Understanding Luxury

Do we understand luxury? Luxury ranges from conspicuous austerity to overt opulence

Luxury- The fine blend

Luxury in Recession

Are the last days near ?

Shift in spectrum Volvo Origin: Swedish, founded in 1935. Bought by Ford in 1999 Current Owner: Close to sale to Chinese manufacturers for around $3bn Aston Martin Origin: Origin in London, 1914 Robert Bamford and Lionel Martin Current Owner: An anglo-Arab consortium (a racer, collector, Adeem and Dar Investment, Kuwait) Jaguar Origin: 1945 in Britain. Became Britains’s largest car manufacturer in 1960 as British Leyland Current Owner: Ratan Tata. Jaguar in the same stable as Nano.

What luxury brands do wrong

LVMH Example Only very few LVMH brands are profitable like Louis Vuitton Multiple brands do not necessarily mean luxury

Innovation

Product vs. Experience The biggest tower does not define the most luxurious experience Today consumers pay for experiential luxury Creation of perception , value and unforgettable moments

New Trends in Luxury

Emerging Markets – Is it always the right strategy?

Luxury – Major Markets

JAPAN – Top five luxury Brands Source : Luxury Institute Survey - 2009

INDIA – Top 5 Luxury Brands Emphasis on Home grown Luxury Brands Slower adoption towards global luxury brands Most luxury products are worn as badges to show off Focus is more on fashion statement rather than eye for quality and craftsmanship Consumer Behavior Source: The Hindustan Times

Focus - Luxury Hospitality

The need to innovate Is there a real difference ? Is Innovation lacking? Time to change ?

The best hotel in the World.. Lebua is performing consistently in the top 5% of companies in the Travel & Leisure Sector world wide who have been measured using the TRI*M System (2005-2008). The highest recorded measure in this sector is 116, achieved by a hotel in the UK. A total of 10 companies have achieved scores above 100 of which three were hotels. In the past 9 months, lebua has been in the top 5% 7 times and scored 110 or over 4 times. Customer Satisfaction Survey

Questions ?