A STUDY ON THE PSYCHOLOGY BEHIND CONSUMPTION OF LUXURY

GOODS IN INDIA AMONG GEN-Z

Submitted in partial fulfillment of the requirements for the award of the

Degree of Bachelor of Business Administration (Honors)
of Christ (Deemed to be University) by
B PRRANAUV
2023395

Under the guidance of

Dr. RASHMI RAI

School of business and management

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST (Deemed to be University)

BANNERGHATTA ROAD CAMPUS

BENGALURU

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 TABLE OF CONTENTS
CHAPTER 1
INTRODUCTION… ..………………………………………………………....... 1
1.1 Background………………………………………………………………… 2
1.2 Need of The Study………………………………………………………… 7
1.3 Statement of The Problem/Title of The Study……………………………..7
1.4 Scope of The Study…………………………………………………………...7
1.5 Objectives of The Study……………………………………………………..8
1.6 Limitations of The Study……………………………………………………8
CHAPTER 2
LITERATURE REVIEW…………………………………………………………..9
2.1 An influencer on Online Impulsive Buying Behavior………………………10
2.2 Purchase decision among generation z………………………………………12
2.3 Social media influencer, brand awareness…………………………………..13
2.4 Effectiveness of Influencers…………………………………………………15
2.5 Summary…………………………………………………………………….15
CHAPTER 3
RESEARCH METHODOLOGY…………………………………………………17
3.1 Operational Definitions/Terms………………………………………………18
3.1.1 An influencer on Online Impulsive Buying Behavior…………………...18
3.1.2 Purchase decision among generation z…………………………………..18
3.2 Hypothesis…………………………………………………………………..19

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1.INTRODUCTION

Throughout its consumer history, India just has affluent elites such as maharajas, higher
class, and kings who buy luxury goods. The comparatively modern economic
development of the middle class, along by an increase in income, is driving widespread
purchasing of luxury goods. In the setting of India, this qualitative research investigates
why customers purchase luxury, what they feel luxury is, as well as how its perception of
luxury influences their purchasing behaviour. The current research investigates luxury
conceptions collected from literature and attempts to explain luxury purchasing behaviour
in India. According to the results, psychological and cultural elements in Indian society
have a significant role in influencing luxury spending. While the data provide minimal
evidence for homogeneous luxury taste, Indian consumers to share cultural features such
as extravagant consumption of commodities and show of wealth at social gatherings.

Luxury in Indian society emphasises ostentatious expenditure and prestige, symbolises

riches for people, and expresses social identity and status. Luxury brands have grown to
reflect more than just their conventional meanings. They live in the imaginations of
customers as a means of self-expression and identity, as evidenced in the fashion and
leisure categories. Celebrity endorsements are widely regarded as a standard strategy for
increasing awareness and marketing in any business. This study tried to provide current
insights in the arenas of celebrity and luxury businesses. It is intellectual in character,
with academic contributions of writings derived common factors with varying degrees of
relevance in the sphere of branding of fashion brands. As technology improvements have
altered considerably, this research explored the diverse attitudes of Gen Z consumers'
purchase behaviours. The study suggests that celebrity endorsements have a minor
influence on luxury businesses since Gen Z shoppers are more likely to use Facebook and
internet technologies. During the research, it was discovered that changes in consumption
habits focusing on images of famous physical appearance had a greater influence than
two factors, namely celebrity competence and celebrity trustworthiness, which is an
entirely new method. The study intended to provide current views in the arenas of
celebrities and luxury products.

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The goal of this study was to better understand who luxury goods are, why individuals
purchase them, and the numerous other variables that influence their consumption in the
Indian setting. The following are really the authors of the study primary goals:

1. The luxury goods market and the many forms of luxury products
2. Why do people in India purchase expensive goods
3. The psychology of those who buy expensive items

On a daily, we hear the word "luxury" used interchangeably. It is a more subjective

phrase since it is influenced by a variety of social and interpersonal circumstances. It is
more than a product or service; it is a way of life. Luxury products are one-of-a-kind,
special commodities that frequently come at a high price. These are often purchased for a
special goal, such as personal or psychological, rather than for practical objectives. A
subset of luxury customers feels that the names they wear & buy set them different and
determine their social status.

The Global Luxury Market is expected to reach $429,762 MN by 2023, with a CAGR of
3.9 % to 2023. Luxury goods include high-end things in terms of quality. In the most
general, these objects are seen as status symbols for people. The economic development
in the Japan and LAMEA areas has significantly benefitted the personal luxury goods
business. Consumer purchasing power and living conditions are likely to rise, bolstering
the growth plan. Because of developments in online marketing and an increase in the use
of online technology for product promotion, the personal luxury goods industry is
increasing. The growth of luxury e-commerce sites would be supported by a rise in the
acceptability of technologically inventive and high-tech goods.
China, India, S Korea, the United Arab Emirates, among Brazil are all rising markets with
appealing opportunities for luxury goods manufacturers. The market has expanded
because of rising GDP and increased sales of high-end items. The global luxury market
has seen a spike in sales in recent years because of a change in client tastes toward greater
items and a choice favour good products over low-cost competitor. Depending on the
product type, the global luxury goods market is segmented into designer clothes and
footwear, accessories, perfumes, gold, travel products, premium pinot noir & spirits, and
others. The designer clothing and footwear segment led the sector in 2015, accounting for
38.8 percent of overall market share. The others category, consisting of includes pen and
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electronic devices, was the fastest expanding section, with a CAGR reaching 6.0 percent,
due to technological advancements and hence increased demand for hi-tech.

The market is segmented based on product category, gender, method of sale, and
geography. The overall revenue generated by luxury products such as designer clothes
and shoes, cosmetics, personal accessories, expensive champagnes, jewellery &
timepiece, or other luxuries is known as the cost luxury goods market penetration.
Designer clothing and footwear are the most popular in this industry, followed in
jewellery and watches. However, the category of accessories or other luxury products is
likely to grow fast throughout the forecast period, especially in developing markets.
Demand for all product categories is likely to rise as manufacturers place a premium on
craftsmanship and product quality.
The following are some of the primary variables influencing the global consumption of
luxury goods.

 Disposable Income

Individual discretionary income has a significant impact on the luxury goods industry. It
allows customer to buy more on luxury items and better their lives while also broadening
their investment alternatives, resulting in increased sales of animal accessories and travel
products. Given the continuous growth in disposable income, demand for luxury goods is
predicted to climb significantly throughout the study period.

 Standards of living

Services and infrastructure are improving because of more discretionary money, better
lifestyles, and a change in corporate culture. The expansion of corporate organisations in
developing nations has pushed customers to carry costly and extravagant products.
According to the research and current history, consumers in developing countries would
increasingly gain understanding about fashion sense. Furthermore, the impact of this
component is predicted to last for a long time.

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  Growth in Online Sales

Online sales are a growing trend in the global luxury goods business. The development in
the number of online portals, and their popularity, fuelled the market's expansion. The
increases in the number of young professionals, along with their hectic lives, as well as
increasing technological expertise, are the primary drivers of internet sales. Furthermore,
online purchases allow for direct-to-home shipping, which is a significant incentive in
both urban and quasi buyers. Online sales were traditionally exclusively seen in wealthier
nations, but they have recently acquired popularity in poorer nations.

 Increase in the Rate of Urbanization

The expanding urban population is one of the factors impacting the luxury goods
business. Urban civilization has an impact on people's lifestyles. Furthermore, rural areas
currently house one-quarter of the world's population. According to Official Data, cities
housed around 70 per cent of the earth’s population in 2014, and also more people are
expected to relocate to cities all throughout forecast period. This factor's effect is likely to
expand throughout the forecast period, resulting in increasing demand for luxury
products.

 Asia-Pacific and LAMEA Markets

The Asia-Pacific region & Latin America or the Caribbean (LAMEA) constitute two
main regions with tremendous growth potential for this business. Customers are mostly
motivated to convert from ordinary items to luxury goods by technical advancements and
increasing consumer awareness. Throughout the forecast period, the continuous rise in
living conditions in all these countries has given appealing opportunities for market
players to grow their presence in the Asia-Pacific & LAMEA regions.

The luxury market in India is often recognised as being among the world's fastest
expanding. The Indian luxury market is expected to grow around $30 billion to ever more
than $1 billion through 2030, but Covid-19 has put the brakes on all industries, including

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the luxury sector. Economic growth, greater connectivity, and regulation changes are all
likely to accelerate the segment's growth in the upcoming years, providing a variety of
opportunities for luxury products to attract educated, wealthy, connected, and capable
customers. Deny the reality that India is considered as a growing market for luxury goods,
many companies have been forced to reconsider their business strategies in order to
flourish in this new climate. Because of the coronavirus pandemic, exercise enthusiast
clients have been restricted from visiting to gyms; as a result, desire for home exercise
machines has risen not just in India, but globally.

To capitalise on the potential offered by this transition, luxury companies such as Louis
Vuitton have designed the most exquisite range of at-home fitness training such as
dumbbell and skipping rope. Similarly, in the jewellery sector, we reacted by establishing
novel products such as work remotely gold, which includes light bracelets and pendants.
Spite of the fact as Covid had an impact on almost every industry, many companies,
including luxury sector, look to be on the mend. Consumers are ready to spend more on
weddings due to smaller guest lists, which looks to be a plus for the luxury market,
especially jewellery.

According to a demography scanner of the populace, the behaviour, habits, and attitude to
earnings of post-independence Indians have all changed substantially over the previous
five to six generation. Economic development is often dispersed over:

 The also before the generation, usually known as such generation born, was born
before the United States declared independence in 1947. (1925-1945)
 The post-independence generations are the baby boom, generation X, and
Xennials born after 1947.
 People born from 1980 and 1994 are referred to as millennials, sometimes known
as Generation Y.
 Centenarians, often members of Generation Z, are persons born between 1995 &
2012.
 The Alpha generations (born from 2013 and 2025) refers to a group of persons
born among 2013 and 2025.

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  Most individuals born during independence worked hard to get out of poverty so
that they could provide their children with basic requirements and a good
education. They laboured tirelessly to provide the necessities of life, such as food,
clothing, and shelter.
 The baby boomers and some others raced forward to build a level of life.
 Generations Y and Z want a sense of wellbeing, which drives demand for high-
end services and goods.
 Purchasing power was concentrated largely the responsibility of these few before
1990, when that was globalised. Their activities had a significant influence on the
initial few years of the luxury industry. Years Y, Z, etc Alpha are all on the rise,
necessitating yet another fundamental transformation.

People buy luxury products for a variety of reasons, almost all of these are related to the
powerful emotions we attach with the acquisition of costly physical objects. Whether but
whether a person is in an economic position to buy a particular item, they may opt to do
so anyhow to attain a specific feeling—for one, a sense of accomplishment via hard work
—or to gain approbation.

Consumer Irrational Conduct is one of the most investigated topics of the all the time, and
this is because consumers do not always respond rationally. A genuinely rational client
would make decisions based only on logic and his own general welfare. More costly
goods are of greater quality. Humans tend to concentrate on a product's positive elements
while neglecting its shortcomings. People, for example, anticipate the debut of I phone’s
next device, whether it was an iPhone, a Mac, or even Air Pods. Apple's accessories are
getting scarcer as the cost of their products climbs. People will be aware of these realities,
yet they continue to appreciate Apple items spite of the fact that they can be never
technologically better or different. Influences of Self-Esteem Purchase. When a person
has low self-esteem, they look for affirmation in the form of materialistic goods that are
appealing and draw attention. This happens, especially when a person cannot afford the
price of a luxury item. Luxury items may help individuals feel as though they belong in
certain surroundings. As previously said, acquiring such high-end products gives
individuals a sense of accomplishment. Some individuals may want to pamper themselves
after putting in a lot of effort on something, so they consider it a luxury in which they can

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enjoy. This is achieved by rewarding oneself with something they would not be able to
afford otherwise.

The number of customers eligible to access the luxury goods industry is fast increasing
throughout the globe as formerly communist nations transition to capitalism and formerly
the fourth economies become wealthier. Economic development and greater spending on
luxury have a direct link. This is consistent with the classic economic pricing theory,
which holds that the wealthy spend more luxury, and they have more money. The
possibilities of Indian luxury markets are enticed by the expanding Indian economy and
its enormous population. After China, India has been considered as the next big luxury
market, with several overseas companies beginning to create a foothold. While India's
potential towards luxury consumption may have been delayed owing to wealth shortfalls,
the availability of financial support from the usual aunts and uncles’ structure in India
may give some explanation for the high demand and price of luxury products.
Furthermore, luxury goods costs are much cheaper in East Asia since American and
European luxury goods stores often sell a significant amount of their goods to East Asian
customers.

The expansion of fashion houses to developing nations or mass consumer is often related
with the emergence of mass and prestige (huge) brands in the North rather than highly
costly and exclusive brands. Given that India is experiencing significant infrastructure
construction, it would be a reasonable starting point to investigate luxury consumption via
the lens of big brands for such mass market or displays of luxury spending. According to
Chatham and Husband, Indian consumers are at the efforts have paid stage of luxury
consumption, which includes big-name overseas products or enormous brands. They see
ownership of goods as a sign of modernity, as well as a progression of social and
economic growth in five stages: I subjection, (ii) the beginning of money, (iii) exhibit,
(iv) fitting in, and (v) style of life Japan is seen to be approaching the end of its way of
life, but in emerging nations where money has only been obtained by a few parts of
society, luxury expenditure indicates economy in the most visible way. While India and
China have parallels in terms of population size and fast-growing economies, Indian
consumers' ideas of luxury vary from those of China, and cultural values play a
significant role in India's luxury purchasing. In perspective of how foreign brands invaded

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Japan and China via economic expansion and political liberty, India remains highly
distinct, with persisting lifestyles and preferences.

Culture is described as collective mental programming that separates members of one

mind which distinguishes the members from another. Culture may have a significant
impact on people's perceptions of rich. Cultural norms and ideas have a strong influence
on people's perceptions, dispositions, and behavior. In terms of luxury purchasing,
Western social traditions are quite well entrenched in current consumer theory. The
possible distinctions between Western ideas of grandeur and Indian ideals of conspicuous
consumption have yet to be scientifically investigated. While previous study has looked at
and contrasted Western versus East Asian societies, Indian norms may not reflect all
characteristics of a communal East Asian civilization. According to Hofstadter's
considerable cultural study, East Asian tradition of interconnected values varies from
Western autonomous values. show that Indians may have similar interdependent
Confucian socialist cultural norms. Power distance, individuality and unity, masculinity
and femininity, long term orientation, and long and short orientation have been identified
as five cultural aspects of interdependent vs dependent cultural values. These five cultural
aspects may be used to compare Western, non-Western, and Indian civilizations. Power
distance is widespread in a hierarchical culture, and so luxury expenditure may identify
an individual's social rank.

A collective culture embodies Asian characteristics such as the behavioral standards of

exhibiting affluence via expensive things. Success and luxury expenditure may reflect
masculine attributes of accomplishment, assertiveness, and performance. Societies with a
high level of uncertainty avoidance prefer to adhere to accepted standards and reference
groups, that might explain the success of some foreign huge luxury brands. In contrast to
Western culture's short-term orientation, long-term orientation stresses ordering
connections like status in life and class of luxury ownership in society. It is possible to
claim that worldwide desire for luxury products is part of global consumerist culture.
Global luxury brands, in this sense, may express general acceptance and transfer over
cultures. On the global market, "there is no notion of luxury conceivable that is nationally
or geographically bound." Instead, concerns such as whether luxury items are almost
acceptable in certain nations would be more pertinent, but this has no bearing on the
fundamental features of luxury views. They argue that, while consumers in different areas
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of the world buy or prefer to purchase luxury products for seemingly disparate reasons,
they share similar values and, regardless of national of roots, their basic motivating
operators are the same: a finance, functional, personal, and social aspects of premium
value perceptions. Companies' brand portfolios have shifted in favor of global brands or
internationally shared consumption symbols because of the advent of global consumer
culture in their marketing communications. It is worth noting that customers are prone to
correlate brand globules with consumer perception, perceived prestige, and buy intentions
of such a brand over local rivals, even when quality and price are not actually higher.
This, however, is restricted to a brand-specific context, and it is uncertain if consumer
choice for a global brand is also influenced by regional (national) social traditions or by a
mix of social and psychological variables in global consumer culture. It is unclear, for
example, whether views on luxury consumption in the world are connected to the
merging of country globalization and international consumer culture or to brand globules.
It is essential to note Bollywood superstars' effect on Indian society, such as their
sponsorship of luxury products. Bollywood's glitter and reputation may impact India's
views of luxury and eventually make a significant contribution culture. Thus, cultural
aspects theory may have a significant impact on people's appraisal of riches.

1.2 Statement of purpose

1.3 Scope of The Study

The psychological influence a person has when it comes to purchasing luxury good is
used as a model. By gathering data from the perspective of consumers, new insights may
be gleaned. Additionally, the study attempts to find out the various factors that influence
the decision-making processes. Because it focuses on the impact that websites have on
purchasing behavior, which is something that all merchants must be correct in order to
understand how other people's views might influence the behavioural patterns of
contemporary purchasers.

1.4 Objectives of The Study

The goal of this study was to better understand who luxury goods are, why individuals
purchase them, and the numerous other variables that influence their consumption in the
Indian setting. The following are really the authors of the study primary goals:
9
 1. The luxury goods market and the many forms of luxury products
2. Why do people in India purchase expensive goods
3. The psychology of those who buy expensive items

1.5 Limitations of The Study

This research has several important practical consequences. To begin with, perceptions of
luxury conveyed via media and culture are impacted by common cultural characteristics
as well as differences in psychological motives. While there are common collectivist
cultural standards in India, individual behavior may be better understood by
understanding the connections between cultures and psychological elements that
influence luxury buying. In Indian communities, for example, luxury expenditure may be
indicative of social rank and social class. As a result, luxury goods makers that are
cognizant of both socio- cultural variables are more likely to please Indian customers by
aligning luxury product qualities and marketing messages with their collective local
cultures and psychological motivations. Effective marketing communications, for
example, might adapt to Indian traditions on a collective level, while ownership of luxury
could boost social representation on an individual level.

Second, an understanding of cultural construction via associations with promotion of

national cultural, reference groups, and global purchase patterns may increase luxury
products organizations’ understanding of Indian customer perceptions of luxury.
Bollywood superstars, for example, play a role in establishing trends (norms) of
manufactured culture and serve as key reference groups. Foreign luxury businesses may
use local celebrities to promote cultural values and emphasize essential psychological
components of purchasing, such as luxury as emblems of increased status, money, and
prosperity Furthermore, this research demonstrates that distinguishing and merging
brands and local images or conceptions of luxury to be congruent with Indian values may
assist foreign luxury businesses in satisfying Indian customers. Traditional luxury items
connected with Indian culture would be conveyed with a strong emphasis on Indian
values, although utilitarian goods with worldwide reputation would keep their original
identity or premium brand. In summary, there is a need to align a luxury product's image
with the Indian identity, which includes both national cultural norms and foreign
influences from global consumer culture, as well as individual and non-personal aspects.
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 LITERATURE REVIEW

(Dr. A. Senthil Kumar 2020) The trend has been around a long time, and its origins can
be traced back to the early 18th century. It is regulated primarily in Italy and the
surrounding region of Europe, and the major corporations are controlled by families, with
the majority of them controlled by the fifth generation. The biggest issue that this
business has in Asia has always been its inability to adapt to clients who have a strong
desire but lack the financial means to acquire their items. The primary aims of this project
were to: I evaluate the developments, problems, and various issues faced either by luxury
industry; ii) investigate the firm's adaptation to changes in consumers’ tastes; iii) identify
the generational shift from Gen X to Millennials in personal taste for luxury goods; and
iv) discover the relationship among both demographic characteristics and purchase
behavior of luxury goods. To achieve the aims, primary data was obtained from 181
respondents of various ages in and around Bengaluru, Karnataka, using a suitable
sampling strategy. The secondary data has been collected first from financial records of
three multinational corporations that existed throughout 2009 and 2019. This study will
aid in the comparative of the luxuries industry in the region the with rest of the globe; and
it will be valuable for corporations in strategizing to get a competitive advantage within
the sector.

This study explores the motivations of customers who use room sharing services to fulfil
their need for premium clothes brands. A thematic analytic approach is divided into six
stages. The Style Lend blog, also known as "The Style Lend Insider," was used to
generation- data in a form of testimonies from both rents and lenders. According to the
findings, there are eight major sorts of motivations for sharing closets. Fashion
entrepreneurial intention, hedonic experience, social, sustainability, utilitarian, social,
desire for uniqueness, and thus no burden of ownership is among these motivations. Our
research also gives theory and practice insights into key parties involved in premium
brand collaborative consumption behaviors. Luxury fashion manufacturers might also use
this closet swapping opportunity to recycle last season's apparel to create room for the

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current season. Closet sharing allows premium fashion firms to be more accessible to a
bigger number of buyers. (Racheal Louis Vincent 2021)

In this article, we will discuss how repeat purchase has become a significant component
for marketers, particularly in the luxury goods sector. Repeat purchase not only saves
money (as compared to gaining new consumers), but it also enhances sales. Both previous
and contemporary studies have been interested in discovering what motivates customers
to make further purchases. The goal of this academic study is to look at the link with
Hedonic Value (HV), Satisfied (S), Consumer Inertia (CI), and Report Shows (PA) and
Repeat Buying Behavior (RPI) for premium brands among Malaysian Generation Y
customers. As a result, eight luxury brands were chosen to research Malaysian customer
behavior in the context of recurrent buy intention. This is really a quantitative approach
that gathered data on 134 respondents with the goal of evaluating hypotheses through data
analysis. The findings show that HV and S have a positive and substantial connection of
RPI, with S becoming a greatest predictor of RPI. Advertisers in Malaysia may utilize the
data to help them develop promotional strategies to keep their present customer base
while also attracting new clients to buy their luxury products in their targeted audience.
This study may also inspire present scholars to do further work in the realm of luxury
brands in bridging the gaps between premium companies and RPI. (Mohammad Hussain
2017)

Internet penetration in India reached 26% in 2015, up over 6 percent in 2010. Despite its
enormous untapped potential, India is now the world's second-largest internet market
(Statista.com). According to the Allied Chambers of Commerce and Business of India
[Chambers of commerce and industry - PwC (2015)] analysis, the value of the Indian e-
commerce industry is now over $17 billion. In 2016, the e-commerce sector is expected to
grow by 72 percent. (Anita Sharma 2018) In light of all these amazing figures, a survey
was performed to help explain the age profile, goals, and preferences of net users and
customers. The study was specifically designed to answer the following questions: (1)
estimating internet use and mobile internet use in various ages (is internet only a medium
for young people?), (2) internet access as customer (online shopping) and his\her internet
use objective (product pages scour or comparison shopping), and (3) friendship between
customer buying style and online use including proof of factor structure. According to
(Khare, 2016), for Indian assessment of Consumer Style Assessment, the sample includes
12
350 participants ranging in age from 17 to 66 and separated into distinct generations. The
findings pointed to a few surprising discoveries and a large opportunity for additional
investigation, and one is the usage of both the internet by participants in contrast to online
generations, which is the polar opposite of the widely held belief that the internet is
primarily a medium for young people. (Anita Sharma 2018)
Humans and luxury have been associated for millennia, and it was generally reserved for
society's elite. However, with fast globalization, acquiring luxury things has become
accessible to the average individual all around the globe (Hader, 2008; Eng. with Bogaert,
2010; Brun but also Castelli, 2013). Global luxury brand expenditure has surged and is
anticipated to reach USD 40,000,000,000 by 2020. (ASSOCHAM, 2013). Asian nations
such as Japan, Singapore, Hong Kong, and South Korea have established luxury markets,
while India and China are also fast expanding (Chadha and Husband, 2007; Dasgupta,
2009). Previous study on luxury purchasing emphasizes the importance of culture and
demography in affecting luxury purchase (Hung et al., 2011; Godey et al., 2013). While
the definition and opinions of luxury may differ between cultures and nations (Miller and
Mills, 2012), the motives and goals for purchasing it may be identical (Hennig’s et al.,
2012). Researchers have looked at the meaning of anatomy that luxury brands, frequently
from the practitioner's or conceptualism point of view (Fionda and Moore, 2009; Miller
and Mills, 2012; Chatterjee and Varshney, 2013), rather than from the consumers.
(Varsha Jain Subhadip Roy Ashok Ranched, 2015)

The growth of the Indian luxury market indicates changing Indian luxury consumers.
There is also an increase in the number of high-net-worth households (HNHs) at a
compounded annual growth rate of 16 percent in the last five years. The major portion of
the income of HNHs is allocated to the non-discretionary expenses and nearly half of the
HNH’s population is below 40 years (Kotak Wealth Management, 2016). This signals
that the presence of young spendthrift consumer base with increased disposable income is
driving the luxury consumption in India. The Indian luxury market once considered as
impenetrable has become an attractive destination for the marketers (Das, 2015).
Engagement in lavish lifestyles and aspirations to join their western counterparts by
owning and possessing internationally famous brands to maintain their global
consumption standards have resulted in the rise of luxury consumption in India. India’s
consumption story has shown a sharp contradiction in relation to its recent past. A few
13
decades ago, however, Gandhi’s philosophy permeated the Indian society. Of the many
vows he took, Aparigraha (non-possession) focused on the minimal consumption and his
famous insight that “The world has enough for everyone’s need but not enough for
everyone’s greed” reflected a preference for a sustainable lifestyle if not complete disdain
toward materialistic lifestyle. (Nikita Sharda, Anil Kumar Bhat, 2018)

Despite growing wealth disparity and social and political unrest, Morocco has seen an
exponential increase in luxury goods demand. Increased political freedom, the
proliferation of international trade treaties, and a mild deregulation of the audio-visual
industry, together with rising internet usage, have thrust Moroccan citizens into the
limelight of globalization (Nicolas Hamelin 2016), Consumption of conspicuous things
is expressly prohibited in Islam, yet consumption numbers plainly depict a different
reality. A professional pollster delivered questions to prospective luxury goods purchasers
in Morocco. There was an aggregate of 296 surveys completed. According to the findings
of this study, there is a substantial positive relationship between luxury product buying
intention and consumption in western news outlets as well as Facebook. The study also
examines the demographics, as well as the professional and individual motivations of
Moroccan luxury goods consumers.

Throughout its consumer history, India has always had affluent elites such as maharajas,
upper class, and kings who buy luxury goods. The comparatively modern economic
development of the middle class, which has resulted in an increase in spare cash, is
driving widespread purchasing of luxury goods. In the setting of India, this qualitative
research investigates why customers purchase luxury, what they feel luxury is, and just
how their opinion of luxury influences their purchasing behavior. The current research
investigates luxury conceptions collected from the field and attempts to explain luxury
purchasing behavior in India. According to the results, psychological and cultural
elements in Indian society have a significant role in influencing luxury spending. While
the data provide minimal evidence for homogeneous luxury taste, Indian customers can
share cultural features such as extravagant consumption in luxury and show of wealth at
social gatherings. In Indian culture, luxury displays ostentatious spending and prestige,
symbolizes riches for people, and transmits social identity and status. (Teck-Yong Eng.
2010)

14
Despite the fact that India has the world's biggest millennial population, there have been
few studies that identify the primary reasons that contribute to luxury goods purchase
within this generational group. As a result, the goal of this paper is threefold: first, to
establish and empirically test a conceptual framework capable of measuring the
friendship between lavish value perceptions and purchasing behavior among young
Indian luxury consumers; and second, to investigate the moderating gender difference in
the relationship between lavish perceptions and purchase intentions. The global personal
luxury goods industry is expected to expand by 6–8 percent in 2018, reaching over €280
billion (Bain & Company report, 2018). Millennials are the luxury market's primary
growth driver (Giovannini et al., 2015). In sum, millennials drove 85 percent of luxury
growth in 2017. (Bain & Company, 2017). According to Bain & Partners, by 2025,
teenagers will account for 40% of the global personal luxury segment (Solomon, 2017).
According to prior studies, millennial is more willing to spend money on luxury items
than prior eras (Higgins and Wolf, 2016). They are quickly becoming the world's largest
generational group. Understanding and recruiting millennials has been a key area for
many firms due to their relevance in delivering worldwide commercial prospects.
Millennials, often known as "Generation Y" (Gen Y) or "young consumers," are
individuals born between 1980 and 2000 and 1997, according to Pew Poll. (Sheetal Jain
2018)

(Shamindra Nath Sanyal 2014) The goals are to study consumers' attitudes toward
luxury goods, with a focus on Indian consumers, and to choose a the themes (cognitive,
affective, and behavioural) from the 'attitude scale to luxury items' proposed by Dubois et
al. (2005) for both the 'none available' item spaces as mentioned in Rossiter (2002) or
Stegemann et ala .'s priori category of attitudes toward luxury using the C-OAR-SE
methodology (2007). An empirical study was conducted among urban respondents from
various socioeconomic strata in Kolkata Conurbation, West Bengal, India, to explore
consumers' attitudes toward luxury items from an Indian viewpoint. We offered three
hypotheses in which attitude and behavioral control regarding luxury brands, individually,
positively impact the propensity to utilise the items. Furthermore, aspiration to consume
premium brands has no beneficial relation on actual consumption. Finally, we identified
the 'nonassessable' item spaces as specified in the a prior categorization of views to
luxury by a qualitative approach (Shamindra Nath Sanyal 2014). The data confirm the

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notion that consumer purchase intentions influence actual consumption of premium
brands. The results demonstrate the complexities that exist between measurements of
attitudes, subjective standards, and purpose.

The luxury market sector in India is expanding at a breakneck pace. However, empirical
investigations in this subject are few. The primary goals of this research are to first
develop and experimentally evaluate a theoretical framework for measuring the influence
of value judgments on the intention to buy fashion products among Indian consumers.
Second, to ascertain the function of gender in comprehending the link between luxury
value characteristics and purchasing intent. In this study, researcher-controlled sampling
was used, and questionnaires were distributed via personal interviews with real
consumers of premium fashion companies. AMOS was used to investigate presented
assumptions using structural equation modelling (SEM). According to the findings of the
statistical research, conspicuous value is by far the most important indicator of customer
intention for Indian luxury customers, followed by eudaimonic status and social value.
The study's findings also demonstrated that gender had no moderating effect on the link
between luxury value characteristics and purchase intent among Indian customers. (Sita
Mishra 2018)

Winning away Gen-Z will be critical to many companies' and retailers' post-pandemic
plans: thus, according to McKinsey & Company, the consumer group presently represents
for 40% of worldwide customers over $150 b in spend federal power alone. Furthermore,
according to Bain & Company, Gen-Z spending might account for 40% of the worldwide
market for personal goods by 2035. As this generation, born among 1997 and 2012,
steadily enters the labor field and acquires financial independence, they are poised to
drive even greater rates of spending once the economy recovers. There has never been a
greater variety of methods to reach young customers, and millennials have never grown
more outspoken about what they really want nor to expect from businesses. Teenagers
want fashion firms, from their preferred resale sites to influence brands, to not only reflect
but also function as an extension on their ideals and values. (M.C.Nanda 2020)

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3.1 METHODOLOGY

The data science is divided into sections: first, the research issue will be investigated, then
the research technique will be explained, and finally, the study's methodology will be
justified. Third, how the survey was constructed, how data for outcomes was acquired, as
well as how analysis was performed. Following that, the study's ethical problems will be
examined. Finally, a brief chapter conclusion will be supplied.

3.2 Data collection

The access of a home directory from a local retail research organisation also affected the
selection of the three cities. For the interview, 100 people were chosen at random. These
cities gave a comprehensive overview of India's urban population. For the sake of this
research, city-dwelling people are more likely to really be exposed to worldwide brands
and trend in luxury spending. To assist avoid misinterpretation of meaning owing to
translation, all interviews were done in English. The constructs (measures) discussed in
the preceding section led the data gathering operation.

3.3 Sample size

This section goes through how the present study's questionnaire was created. The
structured self-administered questionnaire is used in this research, and all of the items are
closed ended. We received 100 responses for the research.

3.4 Research design

The absence of theoretical knowledge of views of fancy consumption in India, set against
recognised consumer perception and cultural perspectives, necessitates a relaxed and
open approach to the study inquiry. As such, this analysis is founded on interpretative
philosophy in the sense that current theories guide the work and the phenomena of

17
interest there in data to offer the foundation for research hypotheses and advancement.
This research conducted focus group discussion and personal interviews to get in-depth
information and understanding of customers’ perceptions of luxury. Data were gathered
in three major Indian cities: Delhi, Mumbai, and Calcutta (Kolkata). These important
Indian cities, which are physically far from one another, were selected to represent India's
variety. The two major cities where one may readily obtain luxury goods are Delhi and
Mumbai. Despite being one of Asia's poorest cities, Calcutta's reputation for
workmanship draws many Indians who want to acquire traditional Indian jewels and
apparel. This study's three locations would offer contrasting distinctions in luxury
consumption, spanning from western luxury products to greater traditional crafts. The
selection of diverse cities would aid the research in capturing any discrepancies and/or
missing aspects of the luxury analysis for the three locations. Data was gathered based on
two criteria: respondents earning an average yearly salary of $5,000 to $25,000 and being
degree holders and at a management level in their employment. But even though the
median wealth in India is modest in comparison to that of industrialised nations, the price
of living and the pricing of commodities in India are comparatively cheap.

3.6 Objective

To investigate customer sentiments about premium items.

To determine the motivating factors of luxury goods consumers,
To investigate the luxury notion as well as the underlying consumer culture theory that
drives the luxury items industry.

3.7 Limitations and future research

This research does have some drawbacks. The current study is confined to India. Because
the findings are compatible with the post-materialism hypothesis and Indian shoppers
have been experimentally shown to participate in materialistic luxury buying, the causes
leading to consumption behavior may vary between nations. More research may be
required to provide a solid theoretical foundation for the relationship of capitalism and
increased brand with consumption behavior in the other advanced and developing worlds.

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The study used a sample of color customers in India. Inclusion of age groups may offer a
more complete insight of the luxury market.

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