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PRESENTED TO PRO. RISHABHA NAYYAR
PRESENTED BY LIKENDRA VERMA PGP -2
WHAT IS LUXURY?
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.. 3.Luxury speaks a level of exclusivity, unusualness”
CHARACTERISTICS OF THE LUXURY INDUSTRY
Luxury means different things to different people
Luxury is a product category in itself
The meaning of luxury had changed Aura is more important than exclusivity Luxury is Functional Luxury is Reward Luxury is Indulgence
THE LUXURY GROWTH DRIVERS
The increase in the number of millionaires across India.
Robust economy Entrepreneurial drive
India has over 2.0 million households earningy
usd $ 100,000 or more annually
Double income family There were around 62000 ultra high net worth individuals in India in 2010-11 India is now the 12 the largest market globally for luxury products over the next couple of years it is likely to emerge among the top 10 luxury markets.
The highest growth in Indian luxury industry has been recorded in Delhi across all brands closely followed by Mumbai .The south of the countryBangalore ,Hyderabad and Chennai – is in catch-up mode
WHERE TO SPEND MONEY?
packages precious stones
Luxury market 2007
11.10% 10% 18.40% Accessories Home and others fashion and clothing fragrance and cosmetics watches and jewellery
Household Apparel Home
Luxury market 2012
décor/ crystals pens
Accessories Home and others fashion and clothing fragrance and cosmetics
LUXURY CONSUMER PROFILE
Consumer profile Includes professionals, inheritors and the entrepreneurs. Profile of the Indian luxury consumer, leaning on the latest study by research group KSA Tecnopak: -
“Primarily resident in urban India Lives in a household earning more than about INR800,000 (US$18,000) a year, where the chief wage earner is male, average age 36–37 Owns a premium/luxury saloon car such as a Honda”
RESEARCH METHODOLOGY Project has information gathered from both from primary and secondary sources. Quantitative method, used questionnaire by using • Likert scale • Ranking scale • Open ended and close ended question SAMPLE Sample Size: 30 Sample Frame: Pune City Sample Unit: working professionals of Pune Sample age:-23 to 35 Sampling Method: Simple Random Sampling Constraints: Time, No. of Respondents Survey: Questionnaire
STATISTICAL ANALYSIS AND FINDINGS
About 90%respondence agree that Purchase of Luxury Products is totally related to the Income level of an Individual .Income usually affects the lifestyle and attitude of individuals which might shape choice of the products you buy. In luxury brands most of the respondents prefer quality followed by price and availability. This response shows that customers are ready to pay for quality. In opinion of Respondents, majority of People buy luxury product because they want to flaunt their superiority over others. Followed by those people who really have taste of art and exclusiveness.
About 70% of the respondents are of the view that service quality in luxury brands is more superior then other brands. According to survey most of the people prefer to shop luxury brands followed by local brands International brand has least share. 50% of our respondents prefer to shop from malls than local market followed by branded outlet. This shows that real estate (commercial) mall concept have such a high impact on the sale of luxury items.
Due to less sales luxury brands generally fall into trap of discounting and that goes very true in case of a developing country like India. To understand this question following information is gathered.
Most of the people like to purchase from Malls followed by local market and brand outlets. This shows that real estate (commercial) mall concept have such a high impact on the sale of luxury items. According to respondents celebrity endorsement is one of the best way to promote luxury brands than word of mouth or public relation.
LOCALIZATION OF RICH LUXURY
To stay in India, foreign brands have to adapt to India and they have to localize.
Indians are intelligent and they wouldn't buy any product just for its label. Lots of coffee brands like barista lavazza, hard rock café, costa café planet mocha these brands are trying to change their tastes . Brands like McDonalds ,pizza hut, dominoz pizza have changed their quality of product service and tastes according to Indian culture and beliefs.
EXISTING PLAYERS IN THE INDIAN LUXURY MARKET
Cartier:- Cartiers SA is a French jeweller and watch manufacturer persuaded a number of Maharajas to reset their jewels using Cartier designs in india.
De-beers:-For De Beers, India is a key market. Almost 10 per cent of its global retail business or around $7 billion comes from India.
CLOTHING: LVMH(Moet Hennessy Louis Vuitton) is a French holding company and one of the world’s biggest luxury goods conglomerates. It is the parent of around 60 sub-companies that each manage a small number of prestigious brands. LVMH have a category of : Wines andspirit(DomPérignon, MoëtChandon, Veuve, Clicquot and Hennessy), Perfumes (Christian Dior, Guerlain and Givenchy), Cosmetics (Bliss, Fresh and BeneFit), Fashion and leather goods (Christian Lacroix, Donna Karan,Givenchy, Kenzo and Louis Vuitton), Watches and Jewellery (TAG Heuer, Ebel, Chaumet and Fred).
TOP 10 LUXURY CARS IN INDIA
MERCEDES BENZ E CLASS 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
FASHION INDUSTRY & LUXURIOUS BRANDS India is among the most brand conscious countries in the world, with 35% of Indian survey respondents reporting to buy designer brands. Between 2008 and 2012, the Indian fashion industry is expected to grow 178%. Fashion Weeks - Wills Lifestyle India Fashion Week - Lakme India Fashion Week Aim to make India a global fashion destination
Indian Designers Increasing visibility in the global fashion arena Anamika Khanna,Manish Arora Ritu beri showcase their work at the Paris Fashion Week. Fashion Magazines Play an important role in generating awareness of luxury products from a global perspective Face association Bollywood Celebrity endorsments’ to create hype
PROMOTION OF LUXURY BRANDS
Celebrity endorsement for luxury brands is one of the best way to promote. Brand association with regional movies has been going on for some time, but what has changed is the entry of up market products in tune with the increasing aspirations and purchasing power in regional markets. Ex. adidas &reebok
Brand experts say that regional movies give them a much better reach to the target audience as the market is clearly identified. Promotions through magazines ,hoarings ,sponsorships are the other ways to promote the brands.
ISSUES AND CHALLENGES
Luxury is not just about selling an emotion but also delivering an experience Therefore, getting the right
space is critical.
Biggest issue is the lack of proper infrastructure The government policies also don't support luxe retail. Bureaucracy and high market-regulation are another bother.
India imposes 45-65 percent taxes on luxury goods
unlike China's 20 percent.
CONCLUSION In 2011 recovery in the luxury goods market has continued with retail expenditure on branded luxury products forecast to expand by 17.3% in dollar terms year-on-year. There are many multinational luxury brands which are entering in India with their full pace like Jimmy Choo, Gucci, Christian Dior, Louis-Vuitton, Cartier,, Prada, Fendi and others. Now the majority of luxury players have at least a limited online offer. Above given statistics of growth of luxurious brands are proof of success of brands in the Indian market. So we can say that Indian luxurious brands are making more space in Indian market.
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