Ultimately, the magic of the brand is its ability to conciliate the eternal values, the craftsmanship and the spirit of travel."

President, LVMH (Louis Vuitton Möet Hennessy) group, Yves Carcelle, updates Nikhil Khanna on the Louis Vuitton phenomenon, even as their Mumbai store opens to media attention.

Tanned, fit and all kitted out in Louis Vuitton, Yves Carcelle, President, LVMH (Louis Vuitton Möet Hennessey) is on a roll. After a huge success in its New Delhi store where waiting lists for a new bag or a shoe can extend up for months, LV has now opened a spiffy new one at the Taj Mahal Palace and Tower, Mumbai. In Delhi, every dame, grande or petite, has to have her Louis Vuitton shoes to clip-clop in or her LV bag to dip in. In Mumbai, the store has seen monogrammed bags flying out - it's called the 'Vuitton Voodoo' of buying. His staff consider him super human - he is behind his desk at 6 a.m. in Paris. In Mumbai for a bash, (and then some) Carcelle takes time off for an update.

Two years ago, when I interviewed you for this very magazine, you said that the time had come for India to be introduced to luxury goods. When questions where asked of how you thought a poor country like India can afford a Louis Vuitton store, you said that it was your experience that such markets (not poor but dynamically developing) are where LV has seen massive growth. You also said that more often, another luxury brand would open next to your store. (Both Bvlgari and Hugo Boss have opened next to the LV store in Delhi's Oberoi hotel.) What are your views on this scenario that you so presciently foresaw?

I'm glad what I said two years ago has come true! This country is indeed changing very dynamically. In Europe, for example, the changes are much slower than what is happening in India and China. Here, literally things become obsolete in six months. It also seems that starting a business in these parts is easier than it is elsewhere. Look at the number of people moving back to India to participate in the transformation of this country. I am amazed at the growth in the IT and telecom industry and how Indians are moving from Silicon Valley to Bangalore. The environment is changing very fast and Indians are the actors making that change. Given all of this, there is a definite market for luxury goods here - how big, I don't know. Our stores in Delhi and Mumbai are already competing with Louis Vuitton stores in European cities like Athens, Lisbon and Lyon. Of course, there is time yet for them to have sales numbers like that of Paris, London or Shanghai but this is just the beginning. That apart, there is a snowball effect when brands move in; the Taj Mahal Palace and Tower, for example, made structural changes to accommodate us, we hired and trained staff and we increased our general spend here. Luxury is not a product but a total environment - I'm glad my forecasts have come true.

How important is it for the persona of the designer to be a rock star? Is Marc Jacobs bigger than LV, or is LV more encompassing?

There have been situations with some brands, where people get so excited about the designer that they forget the eternal values of the brand. We worked with Marc Jacobs for five months before he joined the group. This meant his visiting stores and factories, followed by several discussions about the brand. He even did a pre-collection that was not edited to ensure that a perfect intellectual shape came into being. Ultimately, the magic of the brand is its ability to conciliate the eternal values, the craftsmanship and the spirit of travel. You are buying 150 years of craftsmanship and the myth of travel in the 19th century but you are also buying somewhere the images of Marc's last show. The result then is a sort of magical unity. Marc saw, for example, that the archives had records of painting on monogrammed leather and that was the inspiration for the amazing Stephen Sprouse bags, thus creating something that was very modern and very Louis Vuitton. He then worked with Murukami, suggesting that only an artist of Murukami's stature could create a new generation of monogramme. Two years later and the Murukami bags are still so fresh and lively - they have added a new page to the vocabulary of the brand, while showing that Marc has high respect for the history of the house.

As the brand spreads its wings, how difficult will it be, in the light of more customers, for it to preserve its aura of belonging to an exclusive club - for that really is what luxury is all about.

Quality always is the top of the list - we never compromise on quality and really, that's what keeps our customers happy. We sell only in the LV store environment and you have to admit that here in India, two stores for a billion people is pretty exclusive! We create new things constantly so buyers will be tempted season after season and we have a strong tradition of special orders where customers can order something very specific just for themselves. To me, the essence of luxury is to come to the House of Louis Vuitton and say, "I want that and that and can you design it for me?" Now, that's exclusive!

"You buy into the dream of Louis Vuitton. We're part of a sect and the more they put their prices up, the more we come back. They pull the wool over our eyes but we love it." This is a customer statement. Your comment.

I love the fact that people are addicted and yes the quality we provide has a price. And we will not compromise on that. We never have sales; if you were a customer and you bought something that was taken down by 50 per cent the week after, you would be pissed off. If indeed there are price rises, it's due to currency movements and, to be honest, we live in a situation where currencies are completely out of control. I hope the currency situation will rationalise but we never increase the price to get people excited - that's never been our philosophy.

At some point in time, LV will have to start looking at markets that are not just Japan oriented. Is the thrust into India and China a realisation of this?

Japan is a huge market for luxury goods - we are opening our 49th store there soon. However, we are also seeing other geographies growing rapidly. The last three years have been astounding for North America - the opening of our store in New York reinforces this. It is the largest LV store in the world which shows the weight the American market has. Then come the positions of the European Union and that of China - well, Greater China at any rate. Success in India and more recently South Africa, show that the saga continues.

In India in particular, have you found any quirks or trends that are completely unique to the market?

The Indian customer is sophisticated and completely international - but yes, they will probably not go for boots with fur given the climate! Our experience shows, both in Delhi and Mumbai, that they are aware of what is coming out, they know about the products and we have seen a phenomenon we see only in very style conscious markets - the trend of reserving a product nearly two or three months before it comes out.

You got off a flight at 12 a.m., checked into the hotel and went straight for a party. You were there till 3.30 in the morning and then began meetings at 8 a.m. This was followed by a luncheon that had Mumbai's great and good. You then attended more meetings, hosted a reception and went to another party at which you were out until 4 a.m. How do you do it?

Ah! It's the Louis Vuitton adrenaline. When I retire from this company, I will perhaps write a book on how to sleep three hours at night and still be in good shape the next morning!