Market Manipulation
Consequences Of Calculated Collaborations
Raunak Chopra, AIS Noida, XI F
From Diljit Dosanjh rocking the Coachella stage to Alia Bhatt and Priyanka Chopra serving glamorous looks at the MET gala, Indian artists are transcending geographical borders and popularising Indian culture across the globe. But let’s flip the coin over for a second. Is this representation a genuine effort to promote diversity or just a strategic move to tap into the ever-growing Indian markets?
India is currently the world’s largest growing economy, having a massive consumer base of 473 m active consumers with an estimated six-fold increase in the per capita income. As per a report by Band $ Company, India’s luxury market is expected to grow by 200 billion USD by the year 2030. The World Bank ranked India 63rd in 2022, from 142 in 2014, for ease of doing business. Number of millionaires in India was estimated to double from 796,000 in 2021 to 1.6 million in 2026. No, these are not random facts. Put them together, and it basically boils down to - a thriving consumer market, rising consumer spending, and a robust economic landscape; contributing to making India a mecca for global brands.
Couple this with collaborations with A-List celebrities who boast a mass following on social media, and it’s a well-engineered win, as evidenced by calculated collaborations like, Gucci with Alia Bhatt, Bulgari with Priyanka Chopra et al. Association of household name celebrities with brands has shown to increase sales by 4%. Times magazine reported that Deepika Padukone’s Instagram posts generated 25% of Louis Vuitton’s 20.2 million USD in media impact value during the Cannes Film Festival in 2023. On the flip side, celebs too reap the benefits of tactical collaborations as they get to walk the red carpet of prestigious events as illustrated by Aishwarya Rai and Alia Bhatt walking the ramp at the Loreal Paris Fashion Week as part of the sponsorship deal. Such deals allow celebs to be more visible, adding to their personal brand value and stay relevant for longer periods. So, it is always a two-way street.
While it is gratifying to see the West appreciate cultural diversity, ultimately it’s all part of an expansion scheme which capitalises on strategic partnerships and recognises long term growth opportunities. International companies are poised to establish a strong foothold and forge lasting connections with Indian consumers in the dynamic Indian market. A great example of strategic expansion would be when Rihanna coincided the release of her brand Fenty on Nykaa with her performance at the wedding of the century.
India’s presence at the Cannes Film Festival has grown manifold in the last 30 years. Today, there could easily be 300 Indians on the French Riviera, including actors, directors, and even some journalists. There is even an India Pavilion; and this despite the fact that India’s movie representation at the festival has been rather poor. Sure, filmmaker Payal Kapadia’s ‘All We Imagine As Light’ won the prestigious Grand Prix Festival at Cannes 2024. Preceding the big win, however, the spotlight shone brightly on the inapposite influencers, underscoring the priority paid to endorsements and social media traction.
India may be a smaller market as of now, but its robust growth rate of 33 percent as of 2022 positions it as the fastest growing Asian market and the second fastest in the world. In the luxury market segment, India secures the third spot, surpassing countries like Thailand and South Korea. Indian consumers have distinct preferences for product categories within the luxury segment, compared to their global peers. Indian consumers prioritise cosmetics and jewellery, using around 60 percent of their luxury spending on them.
The presence of Indian celebrities at high-profile events like the Met Gala is leveraged by brands aiming to tap into the Indian market. These brands strategically invite Indian celebrities to increase their visibility and appeal to Indian audiences.
These strategic appearances and partnerships are a part of a broader marketing strategy. By associating with popular Indian celebrities at globally recognised events, brands gain significant media coverage and social media buzz, which is instrumental in penetrating and expanding their reach in the Indian market. Thus, it barely comes as a surprise that Gucci signed up Alia Bhatt as its brand ambassador and turned out to be one of the top five performing brands at the MET gala, earning 20 m USD in revenue.
Now, this is not to take away from our desi celebs and their hard work. Surely, they deserve all the praise for talent and hard work they put in both on the big screen and social media screen. But before you pull out the tricolor the next time you see an Indian face on an international platform, keep in mind that behind all the glitz and glamour, there are whispers of market manipulation.