Documente Academic
Documente Profesional
Documente Cultură
Submitted by:
C.S Kushal Chowdhary
Sweta Das
Sushant yadav
Ruchi Sharma
Rashmi Nandal
Sudip Kumar Chokshi
Garima Tiwari
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ACKNOWLEDGMENT
Lastly we would thank all the group members who are associated with
this project.
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TABLE OF CONTENT
EXECUTIVE SUMMARY
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Around two decades ago no one could imagine that a luxury market
would exist in India. But over the years with the change in the
demographics of the Indian consumer and with higher disposable
income available, the luxury market in India has indeed emerged as
one of the fastest growing markets in the retail segment.
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OBJECTIVE:
To study the Current Scenario and the Growth of Indian Luxury Market
SUB-OBJECTIVE:
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Luxury, derived from the Latin word luxus, means indulgence of the
senses, regardless of cost.
Luxury denotes:
1. Something that is an indulgence rather than a necessity.
2. The quality possessed by something that is excessively expensive.
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Luxury brands have often been associated with the core
competencies of creativity, craftsmanship, precision, high quality,
innovation, & premium pricing. These product attributes give the
consumers the satisfaction of not only owning expensive items but the
extra-added psychological benefits like the esteem, prestige and a
sense of a high status that reminds them and others that they belong
to an exclusive group of only a select few, who can afford the pricey
items.
The luxury sector targets its products and services at consumers on
the top-end of the wealth spectrum. These self-selected elite are more
or less price insensitive and choose to spend their time & money on
objects that are plainly opulence rather than necessities. For these
reasons, luxury and prestige brands have for centuries commanded
an unwavering and often illogical customer loyalty.
Luxury has never been something easy to define, yet this mystery
concept is something highly desired by one & all alike. We look at
delving deeper into this mystery and aura of luxury goods by way of
comparing them against ‘regular goods’ as well as highlighting the
characteristics of the luxury industry. But before beginning with that,
lets first attempt to understand some common terms associated in the
world of high end goods:
Luxury and prestige brands such as Rolex, Louis Vuitton & Cartier
represent the highest form of craftsmanship and command a staunch
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consumer loyalty that is not affected by brands. These brands create
and set the seasonal trends and are also capable to pulling all their
consumers with them wherever they go.
Premium brands are those brands like Polo Ralph Lauren, Calvin
Klein and Tommy Hilfiger that aspire to be luxury and prestige brands
but their marketing mix strategies are more attuned to a mass market,
albeit a luxury mass market. They also termed as mass-premium
brands or luxury brands.
Fashion brands on the other hand are those that address the
masses.
LVMH (Louis Vuitton Moet Hennessy) is the largest luxury good
producer in the world with over fifty brands, including Louis Vuitton,
the brand with the world's first designer label.
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have a luxury segment including for instance, cars, wine and
chocolates.
DIFFERENCE BETWEEN
REGULAR GOODS AND LUXURY GOODS
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Source: Luxury Marketing-Samit Khanna IIM-A
CHARACTERISTICS OF THE LUXURY INDUSTRY
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Luxury has no certified origins. But luxury branding is said to have
taken birth in the west with the appearance of high-end brands. To get
an insight into what luxury today means to different Americans, we
take a look at the table below, compiled by American Demographics in
2003, to understand how to develop target strategies for various
segments.
2. Luxury is a product category in itself
This can be best explained by the fact that both an expensive watch
and an artwork can be considered to be luxury items. Therefore, all
luxury marketers are not just competing in their ‘ technically
defined’ product categories (like manufacturers of refrigerators
compete amongst themselves) but for the wallet share of luxury
goods in total.
3. The meaning of luxury had changed
Luxury has moved from its ‘old’ meaning of ownership (also known
as conspicuous consumption - Conspicuous consumption is a term
used to describe the lavish spending on goods and services that are
acquired mainly for the purpose of displaying income or wealth
rather than to satisfy a real need of the consumer. In the mind of a
conspicuous consumer, such display serves as a means of attaining
or maintaining social status. Invidious consumption, a necessary
corollary, is the term applied to consumption of goods and services
for the deliberate purpose of inspiring envy in others.
4. Aura is more important than exclusivity
Exclusivity is something that cannot be ensured to a great extent
and neither is it the prime requirement of a luxury consumer. The
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consumer bases his decisions on the relevance of the aura of the
brand to his fulfilment or actualization needs.
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brands that have widespread recognition are popular, however
they don’t wish to appear lavish or hedonistic in their appearance.
They want to purchase “smart” luxury that demonstrates
importance while not leaving them open to criticism. Marketing
messages that communicate acceptable exclusivity resonate with
this group.
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was to be born into it. The lifestyle was also associated with hunting,
polo and other games of the rich. New money could never get into this
circuit.The aspiration was always there. But the princes operated in a
different league altogether. The era of the self-made millionaire was
yet to arrive. So small possessions, or copied fashion designs with a
few geegaws thrown in, became the height of luxury. An achiever of
the 1970s could only get by with a good foam mattress — no Omega,
Rolex or BMWs. This trend saw a shift, a gradual one, in the 1980s.
Luxury began creeping into upper class homes through small things
and symbols. The colour TV came in, the humble pen was elevated to
a Parker, successful self-made people began to be featured in
magazines. The concept of luxury as a reward for achievement
gained acceptance, though royalty and the aristocracy continued to
remain the benchmark of the elite. The real change came in the
1990s when more people started making more money. There was a
sudden explosion of colour and things and objet D'arts began to
appear. In order to gain access to luxury and class one could just go
out and charge it. What contributed to this shift? India opened up to
the world. The liberalization process brought more than high
economic growth rates. It showed the people what was possible. In
the process, it has altered mindsets. The IT revolution, and the
consequent demand for Indian brainpower, has created a whole new
breed of wealthy global Indians. At the other end, an increasingly
open economy has created new business opportunities, which has
resulted in a slew of new, extremely successful first generation
businessmen. They are millionaires. They spend. They sport Vertu
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mobiles. But they may not even be comfortable with English. All of a
sudden, wealth is no longer the preserve of the elite.
In today’s deluxe India, the children of your domestic staff are wearing
Levi’s and lee. For the brand conscious and trendy, it has to be
Swarovski encrusted seven of all mankind jeans, specially made for
the Indian market. We can look more into the qualitative as
quantitative insights of the luxury market with context to India.
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Fashion Weeks
Indian Designers
Fashion Magazines
QUALITATIVE INSIGHTS
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I’ve Made It ”. This can be related to the luxury categorization which is
based on the fact that luxury is seen as a reward, both for
achievements in life as well as showcasing these achievements to
others.
2. The Luxury Marketing Council Worldwide has established a
chapter in India, with the aim of promoting luxury in India. Their task
will also be to build synergy between various luxury brands interested
in India by way of sharing of consumer insights as well as best
practices.
3. Even the Asian region is not uniform in its preference for luxury in
terms of need fulfillment .Therefore, it becomes important to delineate
the needs of the Indian consumer from the other Asian regions to
target them better. This agenda gains importance because many
Indians look at acquiring luxury from places such as Hong Kong,
Tokya, China etc.
Eg. It is interesting to note that Singapore consumers are more of
connoisseurs compared to Hong Kong consumers who want Talk-
Value from their luxury goods.
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Quantitative Insights
1. As far as quantitative estimates are concerned, there will be
135,000 millionaires (in US dollar terms) in India by 2009.
2. The affluent market is set to grow at a rate of 13% in India, and
by 2009, there will be approximately 1.1 million affluents here.
3. The wealth potential of India’s affluents was to the tune of US$
203 billion as of 2005.
It is not just the big Indian cities like Delhi, Mumbai and Bangalore
where the rich are located. A small town like Nagpur had nine
millionaires in 1995-
1996. By 2001,
that figure
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increased to 425, with a growth rate of 91 percent. A high end luxury
brand like Ermenegildo Zegna, whose customers include Bill Clinton,
Pierce Brosnan, Shah Rukh Khan and Al Pacino, recently made a
presentation in Ludhiana and Jalandhar.
Source: www.pallasweb.com
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report. In terms of numbers, O&M says there were 61,000 high
networth individuals (HNIs) in India in 2003. The World Wealth Report
puts HNI growth in India at 14.6 per cent per annum, nearly double
the global rate.This is likely to be much higher. More than the
numbers, it's the attitude that has changed. Indian consumers have
shown a pronounced desire to consume. Instead of making yearly
trips abroad to shop.
It is, thus, the emergence of mass affluence combined with
aspirational mindsets and lifestyles that are helping to stimulate
consumer demand. The rapid growth of the Indian middle class
means that a larger number of consumers are able to afford luxury
goods than ever before.
o India ranked first for the fifth time, on the Global Consumer
Confidence Index – June 2007, conducted by The Nielsen
Company.
o Indians were judged the world’s most optimistic consumers, with
high financial confidence about their income for the next 12
months.
o Higher disposable incomes, easy availability of credit and high
exposure to media and brands has increased average
propensity to consume considerably over the years.
o India ranked first for the third consecutive year, on the Global
Retail Development Index – 2007, conducted by AT Kearney
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across 30 emerging economies. India is ranked as the most
preferred retail destination for international investors.
o Modern retailing outlets are increasingly matching up to global
terms, by 2007-08.
o Increasing number of domestic and international players are
years of age.
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WHERE'S THE MARKET- THE PRESENT SCENARIO
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LUXURY MALLS IN INDIA
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AFFLUENT CONSUMERS OF LUXURY
They are what is being termed Global Indians, the ones who are
traveling abroad at the drop of a barbour hat. They are acquisitive,
brand conscious and, above all they want the best and they want it
now. If they can buy in their city so much better.
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TOP DRAWS
The five top purchases of the affluent Consumer
• Watches & Jewellery • Apparel & Accessories
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THE EXISTING PLAYERS IN THE INDIAN LUXURY
MARKET
JEWELLERY:
The top Luxury Jewellery brands in India today
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The world famous jeweler was back in India in 1997, when the curbs
on luxury goods imports were eased, with its watches, pens and
eyewear. The jewellery has had to wait. Cartier retails its jewellery
only through exclusive boutiques. The company is now shopping for
the right real estate in Delhi and Mumbai.
De Beers is coming to India now for its EBO, its already present in
MBO’s. The world’s largest diamond trader is about a year away from
starting an exclusive outlet here in India. For De Beers, India is a key
market. Almost 10 per cent of its global retail business or around $7
billion comes from India. The company has been doing research on
the Indian market. The firm conducted a study along with Ledbury
Research, according to which the growth of millionaires in India has
been at the fastest pace in 2007.
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CLOTHING:
AUTOMOBILES:
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More than 5,000 luxury cars were sold in 2006, up from 3,000 cars in
2005 and just 1,000 in 2004. Both financiers and companies like
BMW India believe that the market will hit 10,000 units by 2010. Over
80,000 millionaires in metros and mini-metros have fuelled increasing
demand for these vehicles priced at Rs 20 Lakh and above. Car loans
have also come up with competitive equated monthly installments
(EMIs) to attract the common individual with big dreams. Top of the
line marques like Mercedes-Benz, BMW, and Audi are now available
at an EMI very close to those of premium cars like Honda Accord,
Toyota Corolla, and Hyundai Sonata. In the volume car market, 75%
of all sales are financed, while 60% of luxury cars are financed.
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VOLVO S 80
BMW 5 SERIES
AUDI A 4
BMW 3 SERIES
MERCEDES BENZ C CLASS
VOLKSWAGON PASSAT
TOYO TA CAMRY
SKODA SUPERB
NISSAN TEANA
LUXURY CARS AWAITED
MODEL COMPANY
Evolution X Mitsubishi
Minis BMW
AMV8 Vantage Aston Martin
Brooklands coupe Bentley
C30, C70 Volvo
Hummer General Motors
Lexus LS 460 Toyota
Cruse Chevrolet
Source: www.luxurycarwheelsindia.com
T2 Gucci
Fendi Chanel
Jimmy Choo Versace
FCUK Bvlgari
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Burberry Mango
Moschino Lapidus
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POTENTIAL OF LUXURY MARKET IN INDIA
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PROMISING GROWTH OF LUXURY MARKET IN INDIA
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Indian luxury market to touch US$ 452 million
Luxury car makers are pouring in to woo the nouveau riche (Audi,
BMW are the most recent entrants). A recent article in the Christian
Science Monitor talks about how the luxury product makers are trying
to tap the lavish spending that occurs around the wedding season by
timing their new product introductions, market promotions etc. An
average Indian wedding ($34,000) costs almost 30% more than the
average American wedding ($26,327), with rich Indian families
spending as much as $2 million dollars.
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Indians are lapping up luxury assets, services and goods
with voracious appetite, according to a comprehensive
survey done by AT Kearney for The Economic Times.
Indians splurge $2.9 billion on luxury assets (essentially
private jets and luxury homes, cars or yachts and art),
spend another $953 million on luxury services and top it
by buying luxury goods worth $377 million.
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• Personal consumption is 67% of GDP in India; only the US
is higher at 70%.
• 1.2 million Indians are “extremely rich”, with an estimated
83,000 having net assets of over US$ 1 million (19.3% p.a.
increase).
PRESENCE OF
SOME HIGH PURCHASED LUXURY
BRANDS IN INDIA
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group is a well established menswear brand for the last 80 years; the
company was started in 1923.
Presence in India
2003 - Entered India through franchisee partner, Bin Hendi
Enterprises of Dubai and launched its first store in the Oberoi hotel,
Delhi.
2004 - Launched one more store in Mumbai.
2005 - Launched 2 more store in Bangalore and Mumbai.
But at the present there are only 3 stores in India, one of the Mumbai
store has been shut down. The company has invested Rs.25crore
approx. in these stores in India.
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is only for men in India. Hugo Boss's Indian customers preferred
sportswear and this comprised a large percentage of its sales.
BOSS Orange
BOSS Orange offers casual collections for men and women who
enjoy dressing in style and wearing surprising looks. Unusual
materials, bold colors and beautiful details appeal to a clientele that
delights in experimentation.
BOSS Black
The women’s- and menswear collections in the BOSS Black line offer
versatile fashion ranges with a rich array of elegant "modern classics"
in business-, leisure- and formalwear: perfect looks that satisfy the
most sophisticated tastes.
Price Points
Men shoes Rs.13000-35000
Belts Rs.5000-15000
Wallets Rs.8000-15000
Ready-to-Wear Rs.15000-35000
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• The sales executives get 15000 p.m. + incentives.
• The store manager gets 35000 p.m. + incentives.
Positioning in Delhi
The 1,350 square foot store showcases the Hugo Boss menswear
collection in the 5 star Oberoi hotel in Delhi and has been set up next
to Louis Vuitton, in order to give the ideal positioning and to get the
right profile of customers.
Marketing Strategy
• Global advertising campaigns.
• Do a lot of sponsorship activities both in sports and arts. In sport
they have been the oldest sponsor of F1 racing for the past 25
years. They also sponsor tennis and golf.
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Advertising
• They do not use TV for fashion, but they use it for perfumes
which are handled by Procter and Gamble. TV doesn’t make
sense for fashion.
• They use a lot of print media in the big global fashion
magazines and newspapers. Print is a very big medium for
them around the world.
• Taking into account the worldwide publicity which includes
sponsorships, events and advertising, they spend 8 per cent of
their net sales on advertising and promotions.
• In India the franchisees invest in bill boards and magazines.
Expansion Plans
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LOUIS VUITTON
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Key Initiatives
1997 - Ready-to-wear was launched.
2003 - Watches were launched.
Presence in India
2003 – Launched first store in Delhi.
2004 – Launched second store in Mumbai.
LVM has picked 51% in Mumbai’s LV Trading (LVT India), which has
two stores in the country’s financial capital and Delhi. It had entered
into a distribution agreement with LVM to sell Louis Vuitton branded
products in India.
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Expertise In
LVM specializes in manufacturing and marketing luxury products in
leather goods, ready to wear, shoes, watches, jewellery, textiles,
writing instruments, luggage, bags, sunglasses and accessories.
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Objective in India
• The objective of the company is generating a customer base
and building brand loyalty among Indian customers.
• The company hopes to reach one million lifestyle consumers in
India, and offer them superior service and a truly Louis Vuitton
experience.
• The company aim to increase the contribution of Indians to
Louis Vuitton's market share worldwide.
• Louis Vuitton is not worried about local turnover while
formulating its expansion strategy
Pricing
The price positioning of Louis Vuitton is at a premium segment.
Majority of its leather products retail at Rs 25,000 upwards.
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Marketing Strategy in India
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Manufacturing
French luxury goods giant Louis Vuitton has set up its first Asian
manufacturing plant at Pondicherry through a 50:50 joint venture with
Dilip Kapur's Hidesign. The plant is expected to come up on a 30 acre
plot within a year.
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VALENTINO
Key Initiatives
1965 - Valentino is recognized as the top name in Italian Haute Couture.
1969 - Begins his Boutique line of clothes
1970 - Launch of his first Ready-to-Wear collections
1971 - Opening of the first menswear shop in Rome
1978 - Launch of the Valentino perfume at a gala evening in Paris
1996 - Valentino is named Cavaliere del Lavoro
2004 - Launch of V perfume which will be followed by V for men
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Presence in India
Italian couture brand Valentino opened its flagship store in Delhi’s
Shangri La hotel in 2006. The store is a product of a franchising and
licensing with Mafatlal Luxury (P) Ltd.
Target Customers
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This brand targets high end customers with an age group from 15
years and above.
Strength
Its image of glamour, exclusivity and strong style make Valentino a
brand well known for the sophistication and elegance of its creations.
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DIOR
Established his main fashion house in 1949; Christian Dior New York,
Inc. Christian Dior remains a leader in the world of fashion after more
than 50 years. Yet Christian Dior has grown far beyond its high
fashion origins to become one of the world's leading luxury goods
holding companies, through LVMH Moët Hennessy Louis Vuitton, led
by Bernard Arnault. While Christian Dior continues to lend its name
and prestige as the parent company to Arnault's luxury goods empire,
it remains a tiny part of the company's overall sales. Christian Dior is
organized into two main divisions: Christian Dior Couture and LVMH.
With EUR 350 million in sales, Christian Dior Couture represents just
2 percent of the company's total sales of more than EUR 12 billion in
2001. Christian Dior operates a network of 130 boutiques around the
world.
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Key Dates:
1946: Dior launches his own fashion house.
1947: Debut of Dior's "New Look" line revolutionizes women's fashion.
Principal Competitors
Bulgari; Cartier; Chanel; Gianfranco Ferre; Gianni Versace; Gucci
Group; Hermès International; I Pellettieri d'Italia; LVMH Inc. (U.S.);
Montres Rolex; Puig Beauty & Fashion Group; Compagnie Financière
Richemont AG; S.T. Dupont; Tiffany & Co.
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Presence in India
In 2006 French fashion house Christian Dior announced its foray into
the Indian market under the franchisee run by khote family and set up
its first boutique in the The Oberoi hotel in New Delhi. Kalyani Chawla
is the brand ambassador and spokesperson of CDC in India.
Product Portfolio
The group's principal activities are the production and sale of:
Christian Dior Couture, Champagne & Wines, Brandy & Spirits,
Fashion & Leather Goods, Perfumes & Cosmetics and Selective
Retailing.
Footwear’s
• Christian Dior Shoes are extremely durable and classy at the
same time.
• The Christian Dior shoes for women are noted for their subtle
colors with designs that show the true feminine side of a
woman.
• Christian Dior sneakers are just right for one’s daily walks
especially if one wants want to feel light and comfortable, and
not to mention that they are very affordable for anyone to have.
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Pricing
Prices of the products ranging from cosmetics, shoes, leather bags,
costume jewellery and dresses would be slightly higher in India than
in Paris and other Middle East countries due to the different tariff
regime and import duties.
Price Points
Hand bags Rs.19500-300000
Belts Rs.13000-20000
Women Shoes Rs.17000-55000
Women Apparels Rs.17000-1000000
Watches Rs.46000 and abv.
Target Customer
Christian Dior has engineered a remarkable commercial breakthrough
based on top quality, highly creative products that appeal to a
youthful, refined clientele. The company is undoubtedly the biggest hit
of today's fashion world.
Objective in India
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Focus would be to establish the brand in India rather than just making
profits.
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HOW LUXURY BRANDS
CAN ENTER IN THE INDIAN MARKET?
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FDI up to 100% allowed under the automatic route for cash and
carry wholesale trading and export trading and FDI up to 51% is
allowed, with prior Government approval for retail trade in ‘Single
Brand’ products. However, FDI in retailing of goods under multiple
brands, even if the goods are produced by the same manufacturer,
is not allowed under the current guidelines.
o Policy Framework
This route involves foreign company entering into a licensing
agreement with a domestic retailer or partnering with Indian
promoter owned companies.
o Franchisee Route
100% Foreign Direct Investment is allowed in wholesale trading
which involves building of a large distribution network.
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International firms can enter into agreements with domestic players
and set up base in India. Share of MNCs is restricted to 49% in this
route.
o Joint Venture
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o Steep import duties mean luxury fashion products are priced 15
percent higher in India than in their country of origin and a
reduction in rates will actually increase government revenue from
their sales.
o We pay around 45 percent taxes to import our goods to India and
this affects the retail pricing of the product.
o The pricing of these items is almost 15 percent higher.
o The high duties apart, the fact that there is a flourishing market in
India for foreign luxury goods can be gauged from the fact that
brands like Kenzo are looking to ramp up their presence in the
country despite the global financial meltdown.
o Owned by LVMH, one of the biggest luxury groups in the world,
Kenzo has ready-to-wear, accessories and home furnishing lines.
For the moment, it has introduced only its men’s wear and
accessories sections and plans to shortly introduce a women’s
wear line.
PORTERS FIVE
FORCE MODEL
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5 FORCE HIGH MEDIUM LOW
Buyers •
bargaining
power
Suppliers •
bargaining
power
Threat of new • •
entrants
Threat of •
substitutes
Competitors •
rivalry
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• There are limited brands as a result they are competing to cater
to the same audience.
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• High capital cost.
SWOT ANALYSIS
STRENGHTS WEAKNESSES
OPPUTUNITY THREATS
1. Manufacturing the brands in India itself 1. Fake branded stuff available in India
rather than importing it 2. Available at cheaper prices abroad
2. FDI Regulations
3. Gloabalization
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MAJOR PROBLEMS AFFLICTING IN THE INDUSTRY
The cost of operating a luxury outlet is high because the size of the
store has to be elaborated and also it has to located at a prime
location in major cities. Due to the image that is associated with luxury
products, the cost of maintaining the store is high because it has to
look upbeat all the time. At the same time these stores normally
situated in 5 star hotels or big shopping malls where the rents
charged are very high and hence the cost is further increased.
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3. LOW CUSTOMER TURNOVER
5. DUPLICATION
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6. LACK OF AWARENESS OF BRANDS AMONGST INDIAN
CONSUMERS
The Indian consumer is not very well informed about the various
luxury brands, only may be 5% of the population is well versed with
various foreign brands. The Indian consumer is not aware of the
quality standards that these brands possess and hence resists from
buying these brands as they find them overpriced.
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Limitations of the Government framework
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LUXURY BRANDS URGE RATIONALISATION
OF TAXES
i.e. the lack of appropriate retail space and High Streets, resulting
in them having to rent space in 5-star hotels at exorbitant prices.
o The 112% tax on luxury cars is a great barrier, Coupled with the
poor road infrastructure, it resulted in customers ending up with the
feeling that they were not getting value for their money.
o They said there was an emerging 97 million strong middle class
segment with a huge consumer mindset who believed in
demonstrating their wealth and wanted nothing but the best.
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Market Research
Research Objective:
• To analyze the consumer’s preference and awareness of the
present Indian luxury market.
• To analyze the awareness of consumers with regard to celebrity
endorsements and their attitudes towards it.
Management Objective:
• To study the gender product preference of products pertaining
to luxury sector.
Research Methodology
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Data Collection
Q1) Gender
( ) Male ( ) Female
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Q2) What brand comes to your mind first when you think of luxury?
( ) Calvin Klein ( ) Versace
( ) Mercedes Benz ( ) Others
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Q3) What factors influences you in buying these brands?
( ) Famiy & Friends ( ) Brand/Designer name
( ) Advertising ( ) Others
18
16
Number Of Respondents
14
12
10
8
6
4
2
0
a.Family & b .Brand ? c Adverising d Others
Friends Designer Name
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Q 4) What Medium of Advertisement appeals you most for Luxury
Brands?
( )Newspaper & magazines ( ) Hoardings
( )Television ( ) Others
18
15
11
( ) Mumbai ( ) Delhi
( ) Bangalore ( ) Abroad
( ) Others
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Q6) Out of these which ONE product will you choose to buy a luxury
brand?
( ) Jewellery ( ) Clothing
( ) Digital Accessories ( ) Time Wear
( ) Cosmetics
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Q7) what factor motivates you to buy a Luxury product?
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( ) Attention ( ) Interest
( ) Desire ( ) Conviction
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( ) Strongly Agree ( ) Agree
( ) Disagree ( ) Strongly Diasgree
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a.Tag Heur Amitabh Bacchan
b.Ried & Taylor Sushmita Sen
c.O'lay Maharani Gayatri Devi
d.De Beers Shahrukh Khan
Number of Respondents
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FINDINGS
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• Calvin Klein has the highest top of mind awareness with 36% of the
respondents followed by Mercedes Benz.
• 34% of the respondents feel that Mumbai is a shopping destination for
luxury brands followed by Delhi and then Bangalore in the third place
with 24% favoring it. And 10% felt that Abroad is the shopping
destination for luxury brand which is again good for our domestic luxury
market as people for seeling for these products and brands in India
rather than countries abroad for luxury products.
• It brought out the product preference of the consumer. 16 out of fifty
respondents opted for Clothing as product they would buy in luxury
brands followed by cosmetics and then jewellery.
• Attention was the highest motivation factor to buy a luxury product
followed by Interest which shows that the consumer perception regarding
luxury brand is becoming more positive. The consumer now is gradually
taking keen interet in knowing the attributes of these products rather then
going just for the brand name but still majority opts for these luxury
branded products to seek attention.
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wrong and were unable to identify the brands with their brand
ambassadors. This shows that consumers in this segment are becoming
more aware of such brands endorsed by celebrities and the marketers
can use this promotional tool to attract more consumers towards their
brands.
• We also found out the gender product preference through the coding
sheet. In clothing the ratio was same for both men and women. 5 out
of 22 male preferred time wear in luxury product whereas in female it
was 3 out of 28. In cosmetics it was 4 out of 22 men and 9 out of 28
women.
• In the brand awareness associated with their brand ambassadors we
found that female were overall more aware of this. Out of the total of
24 in two correct answers 15 were female and out of the total of 11 in
three correct answers 8 were female.
• The luxury market in India is growing with a pace and the reasons
for growth were found out to be the following:
SUGGESTIONS
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Respect: Connect with luxury consumers as a selective target. Luxury
brands need to respect this point of difference in all interactions between
the brand and the consumer
Segment: Acknowledge luxury consumer subsets. Luxury brands need to
identify, differentiate and prioritise the most profitable subsets for targeted
strategies.
Insight: Identify what is important to the defined target. Motivations could
be based on personal and non-personal factors.
Connect: Brand interactions really matter. For example, respondents
cited that friends and family are an important influence on luxury
consumption
Experience: Establish emotional connectivity. Deep and meaningful
relationships need to be developed in order to win the soul of the luxury
consumer.
Indianness: Embrace and celebrate the Indianness brand. India has a
very powerful and unique identity, and this needs to be leveraged within a
luxury brand context.
Consistency: Adopt a truly holistic approach, to ensure that all brand
interactions, whether advertising or customer service, are consistent with
the brand positioning. Contemporary Indian society is challenging
traditional consumption patterns. The Indian consumer is ready to
embrace luxury consumption.
CONCLUSION
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The starting point for identifying successful Luxury brand strategies in
India has been established by identifying certain salient aspects of
luxury brands that remain constant as well as identifying the stage of
mindset of the Indian consumer towards these brands.
The focus is now towards ‘how many’ more luxury brands will enter
the market to gain a first mover advantage, which is of significant
importance in India. Apart from ‘how soon’, we primarily focus on
‘How will’ luxury brands cater to the mainly aspirational needs of the
Indian consumer.
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ANNEXURES
QUESTIONNAIRE
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Q1) Gender
( ) Male ( ) Female
Q2) What brand comes to your mind first when you think of luxury?
( ) Calvin Klein ( ) Versace
( ) Mercedes Benz ( ) Others ( pls Specify)________
Q3) What factors influences you in buying these brands?
( ) Famiy & Friends ( ) Brand/Designer name
( ) Advertising ( ) Others ( pls. Specify)________
Q 4) What Medium of Advertisement appeals you most for Luxury Brands?
( )NewsPaper & magazines ( ) Hoardings
( )Television ( ) Others ( pls Specify)________
Q6) Out of these which ONE product will you choose to buy a luxury brand?
( ) Jewellery ( ) Clothing
( ) Digital Accessories ( ) Time Wear
( ) Cosmetics
Q8) You buy Luxury Brands that are endoresed by Famous Celebrities?
( ) Strongly Agree ( ) Agree
( ) Disagree ( ) Strongly Diasgree
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BIBLIOGRAPHY
Articles
Books
Websites
1. unitymarketing.com
2. hindustantimes.com
3. brandchannel.com
4. Wikipedia.com
5. eluxury.com
6. Luxurymarketing/India.com
7. Forresterr.com
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