LUXURY

Selling Luxury ….

Introduction
• A luxury brand is an expensive brand or an elite brand. • To some it is an object of desire,sometimes aspirational and sometimes almost lustful. • Richemont Annual Report defines it “ it is an object and a catalyst for thought…..The aim of a luxury brand is to awaken desire and pleasure.”

Bentley. Lamborghini. Tarun Tahiliani or brands like Versace Hotels & resorts : Amar Vilas (Oberoi) . Bugatti Couture: Indian couture designers: Rohit Bal. Rolls Royce. Ferrari. Mercedes Benz.LUXURY Luxury Products & Services Cars: Jaguar.

D&G.LUXURY Luxury Products & Services Accessories Footwear: Jimmy Choo Handbags: Louis Vuitton. Tag Heur Eyewear: Armani. Prada Small leather goods: Dunhill Watches: Piaget. Chanel . Hermes.

LUXURY Luxury Products & Services Perfumes: Channel Jewellery & Gems: Cartier. Tiffany Writing instruments: Mont Blanc Luggage: Louis Vuitton Liquor : Blue label .

The Market .76 billion. the luxury market in India is set to touch three times its current size at US$14. • The luxury market is growing at a rapid pace in the India with a compounded annual growth of 25 per cent.72 billion by 2015.estimated to be at US$4.. while many high-end luxury brands have quickly set up their outlets here. • Its present and future is endowed. • India has become the prime destination for top-notch global brands. .

which is simply trying to sell volumes. or a ‘mass-brand’. .Selling the brand… • Luxury Branding is an art of control – Control on marketing just the right amount. any more and the brand runs a risk of being labelled ‘run-of-the-mill’. neither more nor less. • Any less and the impact is dampened.

L’Oreal is a classic example of this. • But even then. • Some. which are at times at border between luxury and massive. associating with the best of celebrities. L’Oreal Paris is endorsed by Aishwarya Rai. Garnier.g. indulge in it. while another in-house mass market brand. • E. the ads are on the lines of showcasing class and quality.Sales Promotion Strategies… Ads (ATL) : TVCs: • A lot of Luxury brands don’t believe in TVCs at all. is endorsed by celebrities like Sonam Kapoor and Genelia D’Souza. .

g.Print Ads • Luxury brands may also indulge in print ads. . • Also ever seen Louis Vuitton ads in India Today? – We will have better chances of finding them in premium magazines like The Economist or GQ. We might find a Titan ad on any page of Times Of India. • They would be picky about the frequency (which is low) and the ads would be in very specific locations. • E. but selectively. but only a Times Life front page would carry Tag Heuer ads.

if at all organized. of ‘sale’s. . • E.Sales or discounts Luxury brands also do not offer frequent ‘sale’s. or mass discounts.g Louis Vuitton goes never for discounts . the no. Comparative to other brands. is much lesser.

• This is where all the CRM comes into picture. . • Luxury brands aim to please. maintaining databases. make the customer feel happy at being taken care of.BTL • BTL is something that luxury brands do endorse. season launch catalogs. sending out personalized mails. invitation to high-society events and dinners etc.

especially ones that have been in existence for a long time ( 50+ years ) also believe in building a heritage around themselves. or ‘Skoda: Obsessed with quality since 1895‘?). .Heritage • A few luxury brands. of having served with excellence over many years • (Heard about ‘Chevrolet: Since 1911‘. • An assurance of having survived the tests of time is the best quality assurance that a company can present.

• It makes Harley Owners into a unique. enabling the show off factor. super-exclusive cult of people. • Harley Davidson is quite successful in building a cult around itself – be it through the HOG (Harley Owners Group) Membership. or BTL promotions of ’a breath of fresh air’.Cult • The Harleys and Diesels of the world come in this category. Classic ‘we believe’ campaign. .

generating new revenue streams and building upon existing customer relationships.Strategic Partnership • Strategic partnership between luxury brands is an ideal way of elevating brand image within the high net worth individual’s network. • Strategic alliances between luxury brands enable those involved to make the most out of each other’s communication channels. • By creating unified marketing messages and maximising exposure and marketplace standout. luxury brands are able to deliver unparalleled and unmatchable experiences. • Brand partnerships add value and importance. • To work in collaboration with another prestigious brand will enable to target exclusive clientele. .

.Internet • The internet has now become the number one source of information about luxury products for high net worth individuals. • Presence online is very important. but the luxury brand’s positioning still needs to be pitched as exclusive. despite the high accessibility of the internet.

• Impart a memorable web experience on social media sites such as Facebook. . • Deliver aspirations. Twitter. exceed expectations and stimulate imaginations. and also through online apps. Small World. • Feel they are important and that owning a piece of the brand will enrich their lives. • One-to-one relationship with the consumer..Contd.

watches. • Ensure that customers continue to think highly of the brand • Loyal customers . • Strong relationships with both luxury media and journalists within the worlds of fashion. beauty. golf and exclusive destinations with glamorous hotels and properties.Public Relations • Maintain high-level day-to-day and strategic public relations. cars. jewellery. restaurants. • Understand what’s important to high net worth individuals and know how to communicate with them. yachts. interior design.

A study… • Luxury brands need localised strategies .

India has the fastest-growing population of millionaires in the world. • When they first entered India. they created splashy advertising campaigns targeting the old money elite. • Part of the problem is that Western luxury brands don’t seem to understand Indian consumers. . But the results were poor largely.• According to Forbes.

the current strategy of establishing a large retail footprint supported by traditional mass marketing is not working. in order to succeed in India. luxury brands need to localise their marketing strategies. Furthermore. .• A private report on luxury in India produced by management consultants AT Kearney and The Economic Times revealed that the newly affluent lack sufficient knowledge and awareness of luxury brands to drive significant sales. • Indeed.

and speaking to each of them in the specific cultural register that they respond to.• This goes further than just putting an Indian print on a bag or collaborating with a local celebrity. • So. . religions.1 billion people. festivals. it’s about understanding the difference between the flamboyant nature of a Punjabi customer and the more reserved nature of a Gujarati. • A multitude of cultures. colours and tastes make up this land of 1. languages.

• It ensures you are connecting personally to your consumer and customers respond to this. . • When creating invitations for potential consumers in the Punjab in northern India. luxury brand Montblanc — which successfully operates nineteen retail points across first. for example. second and third tier cities in India — has regionalised all their marketing material. the invitations are more lavish and the language more boisterous than those sent to consumers in southern India.• For example.

• Brands like Louis Vuitton and Rolls Royce have also localised their approaches.g. identifying important events and celebrations amongst potential clients and arriving with personalised gifts or a surprise car service for the occasion. As shown : A Rolls Royce picnic set . • E.

..Conclusion . • Those brands who are willing to better understand and connect with the local Indian consumer will be the ones who are most successful. • Getting traction in the Indian sub-continent has been a challenge for every Western luxury brand that has tried to crack this complex new market.

Thanks… .

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