19bsp1766

Nishant Shetty

1.Based on the article and your own thoughts, explain the key challenges
faced by luxury brands in the Indian market
Indian market is a market of n number of opportunities and a huge market
base. I feel the luxury market is yet a developing market with a huge potential
and will be growing in future. The key challenges faced by luxury brand in
Indian market are
1.taxation and tarrifs –the most important barrier faced by luxury brand is
taxation as in India the tax duties on luxury brand are very high. In India the tax
slab for luxury goods can go upto 18 to 28% and also import duties average
between 30 percent to 40 percent on luxury goods brought from overseas for
local retail.
2.government regulations-this is the most common thing that brands may face
that is change in government regulations so the brands have to adapt
according to the legislature eg change in taxation polices, change in foreign
regulation etc.
3.counterfieting(copycats)-one of the most important challenges faced in India
that whenever a product is in the market actually this happens in luxury
watches, shoes segment there is a lot of counterfeiting that is happening in the
Indian market that is hampering luxury brands business
4.infrastructure-the important barrier that luxury brands face is unavailability
of quality infrastructure whenever they try to open their outlet in tier 2 and
tier 3 cities they have compromise on quality of infrastructure in India
2.What strategies do you recommend to overcome these challenge?
There can be many ways these luxury brands can overcome challenges
1.starting a migratory entry segment product by luxury brands. As Indians have
a very conservative approach they can use these brands and then up switch for
future
2.using strong digital presence as an important medium for marketing as well
as selling products which partly may also save infrastructure cost as well
3.Inorder to save tax luxury brands can work with Indian local companies or
also make in India thing in order to save taxes this will be for feasible and also
to understand the need of customer as well
4.creating more educational awareness of buying luxury brands and avoid
counterfeited products