Professional Documents
Culture Documents
Growth of Luxury Market & Products in India
Growth of Luxury Market & Products in India
Market
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GROUP MEMBERS
ACKNOWLEDGMENT
It would be very unfair if we did not thank the many people who helped
us survive the birthing of this project. My teacher who has been so kind.
My group members without whom this project wouldn’t have been
possible.
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TABLE OF CONTENT
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S.NO TOPICS P.NO
1 Introduction to Luxury Brands 1
2 Difference between regular goods and luxury goods 4
3 Characteristics of Luxury Industry 5
4 Indian luxury market 7
5 The growth of indian luxury market 8
6 Consumer profiles: luxury products in india 9
7 An overview of Luxury products consumers in India 12
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 OF THE PROJECT
OBJECTIVE:
To study the Current Scenario and the Growth of Indian Luxury Market
SUB-OBJECTIVE:
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GETTING TO KNOW 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.
Luxury is something that everyone wants but nobody needs, its an area of
huge comfort and the best of the best.
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 and money on objects
that are plainly opulence rather than necessities. For these reasons, luxury
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and prestige brands have for centuries commanded an unwavering and
often illogical customer loyalty.
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INTRODUCTION TO LUXURY BRANDS
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
consumer loyalty that is not affected by brands. These brands create and
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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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production run of any item to ensure exclusivity, an element of
uniqueness and an ability to keep coming up with new designs when the
category is fashion-intensive.
Keeping it simple and realistic, luxury is anything and everything that you
may truly desire; it can be short lived or a life long desire – it is ‘your’
emotional connect and reward that allows it to appear as luxury.
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DIFFERENCE BETWEEN
REGULAR GOODS AND LUXURY GOODS
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CHARACTERISTICS OF THE LUXURY INDUSTRY
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bases his decisions on the relevance of the aura of the brand to his
fulfilment or actualization needs.
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INDIAN LUXURY MARKET
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sport Vertu 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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Consumer Profile: Luxury products in India - Presentation
Transcript
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India Luxury Products Market is estimated to grow at 25% over next
5 years Estimated Luxury Products Market, USD mn Growing Economy
One of the fastest growing economies in the world with 6% growth over
the last decade Market Potential PRESENTING TREMENDOUS India
has the 2nd largest population and the largest youth OPPORTUNITY
FOR LUXURY population in the world BRANDS IN INDIA
Emerging Market World’s third largest diamond jewelry market,
and growing swiftly ($5bn by 2013) Total domestic jewlery is worth $
27 bn.
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INFLUENCERS Source: AT Kearney Research Report Results of Survey
% of respondents who rated the option among top 3
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store boutiques +400 stand alone stores +2500 in-store boutiques …BY
SELLING EVERY DIAMOND AS A DREAM
The numbers might seem unbelievable, but the luxury market currently
stands at a staggering $14.4 million. With increasing buying power, not
necessarily just among the nouveau rich, the luxury market appears to be
merrily singing along at an annualized growth rate of 30%.
To put in perspective, the country has about 1.6 million households
earning over Rs 45 lakh or more per year, spending about Rs 4 lakh per
year on luxury or very premium goods and services. While growth in such
households is slated to rise to about 14%, there is an emerging “wanted
luxury†class waiting to jump on to this premium bandwagon.
There are a set of consumers in India who understand luxury and value
the heritage behind it. However, there are another 8-9 million consumers
who can afford luxury, but are not yet oriented to its finer points and so
don’t understand its value. They are not active consumers, but they do
veer towards luxury.
Attracted to the finer things of life, these consumers are more
individualized than ever, expecting every product, service and experience
to address their unique needs. Gone are the traditional demographic
segments — there are some new, mind boggling statistics, especially
since incomes continue to explode at the top rungs.
With its 280 million urban populations, India plays host to 28 million of
the rich and upwardly mobile that’s 10% of the urban population.
While 1 million are luxury consumers, 6-7 million are very affluent, while
another 9-10 million are mid-affluent. Yet another 11-12 million
categories the mass affluent, according to a Technopak study.
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How & why Luxury market is Booming in INDIA?
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
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 setting
more than 60% of the population will be in the working age group
(15-60) till year 2050.
o • The median age of 23 years, opposed to the world median age of
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o • India is home to about 20% of the global population under 25
years of age.
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Source: IMD World Competiveness Yearbook 2006
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LUXURY MALLS IN INDIA
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India’s luxury products market: demand is $3-3.5
billion, up 120-150% from current levels.
Luxury retail looks beyond metros and malls
“India’s overall luxury market will grow 21% to become almost three
times its current size by 2015,” predicts the Luxury in India report, jointly
released by the Confederation of Indian Industry and AT Kearney on 7
October.
India has around 127,000 millionaires. There was a 50.9% rise in the
number of high-networth individuals (HNIs), or those with investable
assets of $1 million or more, in 2009, according to the Asia Pacific
Wealth Report by Merrill Lynch Global Wealth Management and Cap
Gemini released in September. Their total wealth grew 53.8% from the
previous year, it said.
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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
The demand for Luxury life style products has resulted in Starcom
launching a specialist solutions unit, named C that will focus on lifestyle
marketing and communications to the super-rich. While C will operate
through the spectrum of lifestyle sub-segments — from premium and
prestige to luxury and indulgence, the agency has decided to indulge the
picky, rich consumer who is changing in a number of ways.
It’s not only the wealthy who desire the halo of luxury. Never before
has the luxury market seen an audience and community of highly affluent
buyers as interest in learning what constitutes the best of the best. They
have accumulated an incredible nest egg, by either having made a lot of
money on the bourses, sold businesses, or dabbling in knowledge sectors.
They now have enough time to savor and sample the best of the best, be it
wine, travel, apparel, cars, fine jewellery or a lavish holiday. This
community — the wannabes — is hungry to learn, and wants to be
educated in a sophisticated fashion, about what constitutes the best.
A demanding clientele:
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Money does beget more money. And with a strong, rich populace in a
position to demand and get the best-of-the-best, especially with their
liquid portfolios, sophisticated marketing techniques are called for.
Advertisers and marketers are dabbling in new marketing intimacy
techniques, one-to-one marketing, and intelligent coddling by brands that
have not traditionally used to customizing their marketing programs.
The brief is clear. In addition to the search for the memorable, the unique
and services that have high value, there is the hunger to know. With more
households spending about Rs 4 lakh a year on premium products —
which works out works out to a market potential of Rs 72,000 crore —
this is one segment that simply cannot be ignored.
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JEWELLERY:
The top Luxury Jewellery brands in India today
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.
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AUTOMOBILES:
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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TOP 10 LUXURY CARS IN INDIA
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T2 Gucci
Fendi Chanel
Jimmy Choo Versace
FCUK Bvlgari
Burberry Mango
Moschino Lapidus
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Demand for luxury watches surges
With growing middle-class income, luxury watches have found an
eruption in demand in the post-economic slowdown era. Leading
producers like Titan Industries, Timex, Timond, HMT and Gitanjali are
currently facing a demand which surpasses supply.
In the past two years, high-end luxury watch brands have grown by 20-22
per cent, as against 7-8 per cent growth in low-end watches.
Still, the surge in demand seems to have not been expected. “Indian
companies start manufacturing such watches at least six months in
advance to meet seasonal demands. Anticipating lower domestic
production, local retailers start their bookings in global markets at least
six to eight months ahead of occasions like Christmas, New Year, etc.
But, the current unseasonal demand was not anticipated six months ago,
due to uncertainty over the global economy, resulting in demand
outstripping supply,” said Vinod Agarwal, president of the Watch Trade
Federation.
Tastes seem to have changed over the past nine-odd months, with low-end
consumers upgrading watches to price points between Rs 8,000 and Rs
10,000. Titan Industriestries have, therefore, introduced many new brands
in the high-end segment to leverage market sentiment. “In future, if the
trend continues, which is very likely, we will introduce many innovative
and stylish brands to meet consumers’ demand,” said Titan its chief
executive officer, Harish Bhat.
Titan had also introduced the Swiss-made brand, Xylys, in the upper
segment and all these brands have been received well by consumers.
“Whatever we produced, we sold,” Bhat added.
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The Rs 10,000-crore watch industry share has been classified in two parts.
The low range sector, with a price between Rs 500-3,999 dominates, with
over 60 per cent of market share. The Rs 4,000-17,000 range constitutes
30-35 per cent; the rest is with super high-end products. Volume-wise,
about 45 million watches, including clocks, are sold in India annually,
with an annual growth rate of seven to eight per cent.
“Good movement has been seen in the high-end watch market. Since we
entered into this business about a year and a half ago, it is for the first
time that high-end watches have seen such stupendous demand,” said
Mehul Choksi, chairman of Gitanjali Gems. The company recently
launched the ‘Morellato’ and ‘Chronotech’ brands in the luxury segment,
well accepted by consumers.
“There is a growing need of concessions for consumers. If introduced, the
demand will increase significantly. Gitanjali is shortly introducing price
concessions to lure more customers,” said Choksi
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Rolls Royce On A Rolling Spree In India
The fast growing luxury car market in India has prompted many luxury
car makers from the world to surge into it with more potential. All these
companies are interested to gain the maximum by either creating their
identity or through the expansion. The latest entrant is Rolls Royce which
is in the segment as the most sought after brand among luxury cars. The
cars are driven from BMW camp and the need has arisen to the company
to meet the demand in the Indian market by expanding the dealer network.
For BMW India seems to be the second largest market in Asia.
There are just two dealers for the Indian operations, one in Delhi and the
other one in Mumbai and the CEO mentioned that there could be two
more dealers in short time preferably in Punjab and Hyderabad. He said
since the company has been receiving good demand for its products in
India the company’s UK unit will enhance the production volume to
reduce the wait period. He expressed the hope that in 2011 Rolls Royce
may hit the three digit volume in the Indian market. The CEO said in
addition to the existing two models, there will be an electric version of
Phantom called 102EX. This, he said, would be on display at the Geneva
Motor Show slated for next month which would reflect the demand for
such versions in the global markets. He said this 102EX would be a one-
off car making some explorations on power drive from alternative fuels.
He said this could be drivable at the event of being a research tool.
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French Luxury products mission to New Delhi and
Mumbai, 20th to the 27th November 2010
A growing market for French companies in Luxury !
Ubifrance’s Lifestyle department in Paris in collaboration with the French
Trade Commission in India organized a market prospection with BtoB
meetings in New Delhi and Mumbai for 12 leading French brands
including 3 recognized as ‘Patrimoine Vivant’ (Living Heritage) in
various sectors such as Table accessories, Furniture and home decor,
Eyewear, Jewelry design and Pret-à-Porter.
All of them were delighted to discover the facets of the prosperous luxury
market in India for exporters.
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Top 12 Most Expensive Luxury Products of 2009
Once thought immune to the ebbs and flows of economic fluctuations, the
year 2009 snatched away the reputation of luxury sector for being
recession-proof, but thanks to the aspirational consumers, who inspired
the manufacturers to increasingly bring out the exceptional products of
luxury. Our list closes the year that gloomed around the globe with some
of the unmatched products of desire with the hope to see better year ahead
for each one of us and of course, a better growth in the luxury segment
worldwide.
January 2009
La Fraicheur Wine Coolers
The month as usual started off sluggishly but in the light of the festive
season, who better than a true wine connoisseur would know the
importance of perfect wine accessory to make the occasion really special.
La Fraicheur, an Amsterdam-based company, brought the limited edition
wine coolers encrusted with diamonds and crystals with a hefty price tag
of $145,000.
February 2009
Yves Saint Laurent’s armchair
The month of love saw the most blinged-up souvenirs like the diamond-
studded kitchen knife, world’s most expensive pen and the embellished
portrait, but Yves Saint Laurent’s armchair stole the show at Christie’s.
Auctioned in Paris for a whopping $28 million, this brown leather
armchair became the most expensive piece of 20th-century design ever
auctioned.
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March 2009
The Nightingale of Kuala Lumpur
For much part known for the International Women’s Day, the month of
march saw a range of products aimed at women, however, to make it to
the top in our list of “most expensive” is the $30 million diamond dress
by Stylo. Dubbed the “Nightingale of Kuala Lumpur,” this $30 million
dress left Victoria’s Secret far behind in the race for the most expensive
couture, with the second runner-up being the $20 million diamond dress
designed by jeweler Chris Aire, but just in tune with the $30 million
diamond studded bikini created by Susan Rosen with Steinmetz
Diamonds.
April 2009
$4.2 million designer tiara for a pet
While the month of April saw Mr. Mervis decorating a $30,000 cupcake
with diamond toppings and the queen of bling, Paris Hilton adding a little
more sparkle to her life with a $400,000 diamond-encrusted dashboard,
Leon Verres thought to bring out the most exclusive and most expensive
champagne of all times. However, long after making the pet fashion go
mainstream, Paris Hilton inspired a Thai jewelry designer, who crafted a
tiara worth $4.2 million for his pet dog. Using precious stones given to
him by his mother, the designer encrusted 250-carats of emeralds and
diamonds in titanium to make the tiara for his really pampered pooch.
May 2009
Ferrari Pontoon-fender Testarossa
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June 2009
Most expensive bridal gown
As the buzz surrounding Slumdog Millionaire continued even after its big
Oscar night back in February, there was still scope for the world’s most
expensive curry to coincide with the DVD launch of the Oscar-winning
flick. However, amid all the talks of slowdown, cutbacks and layoffs,
there were still manufacturers who kept the spending spree alive. The
month saw some of the world’s most expensive products, like this world’s
most expensive espresso machine, the world’s most expensive magazine
and Vi-spring $84,425 eco-friendly bed, but to steal the show was the
most expensive bridal gown in Vietnam, valued at $117,000. This white
silk and satin bridal gown from Vietnam is decked out with 222 diamonds
and 100 red rubies. Showcased at the Ruby Plaza trading center in Hanoi
on June 28, this shimmering gown is a creation of young fashion designer
Huy Vo. The gemstone-made flower on the gown has 22 big rubies and 8
big diamonds. A big water drop-shaped ruby that symbolizes love has
been used for the pistil. It took 40 days to complete this unique gown.
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July 2009
August 2009
“Star of India” Rolls-Royce
If you think there are very few things in the list that actually amazed you,
consider a $21,495 haircut. Amazed! Gotta be. The Sultan of Brunei
known for his classy taste, made the statement with the world’s most
expensive snip, but to match the grace and aura of the Sultan, our list
includes the renowned “Star of India,” a one-off 1934 Phantom II 40/50
HP Continental “All-Weather Convertible,” that belonged to the Maharaja
of Rajkot. Priced at $14 million, this prized Rolls-Royce is also
considered to be the world’s most expensive car.
September 2009
World’s most expensive diamond encrusted BlackBerry
The kings followed this month too, but it was the bling king this time
around. Alexander Amosu unveiled the world’s most expensive diamond
encrusted BlackBerry after a slew of BlackBerrys in precious metals
including the Pearl Limited Diamond Edition, Tellor and the Pink
BlackBerry Bold. This limited edition, $200,366 BlackBerry is crafted in
solid 18 carat yellow gold and encrusted with 4,459 brilliant cut diamonds
(weighing 28.43 carats). Only three will ever be made and of which one
handset has already been sold to a client in the Middle East.
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October 2009
Victoria’s Secret diamond bra
The month was all set to buzz with the machine-gun-packed $1 million
Batmobile followed by the $1.4 million Dartz Monaco Red Diamond
Edition that also boasted of whale penis leather interiors, only to find
Pamela Anderson with a stop sign on their way to the blue waters.
However, in the later half of the month Ukrainian designer Verlingieri
Lesya brought in the hottest fashion trend with her $10,000 Swarovski
corsage, probably inspired by the corsage worn by Sarah Jessica Parker in
Sex and the City. But, for an elegant yet sexy look, the embellishments
were completed by Victoria’s Secret $3 million diamond bra. Designed by
the Italian jewelry house Damiani, it took 15 artisans about 800 hours to
craft this one-off bra with an 18-karat gold harlequin-patterned net and
embellished with 2,355 colorless and cognac diamonds. This diamond-
studded stunner has a 16-carat heart-shaped champagne diamond pendant
dangling in the middle.
November 2009
World’s most expensive bauble
With things setting more into festive mood by the end of the year, it was
obvious to see more liquor flowing through the streets. To come up first
in the league to stimulate our senses was the world’s most expensive beer
at $1200 for the 12-liter bottle of Vieille Bon Secours ale, followed by
Dalmore Oculus that almost set record for world’s most expensive whisky
at $46,400 in an auction at Bonhams. However, as we approached
Christmas, the world’s most expensive bauble with a price tag of
$136,000 set our pulses racing. The one-of-a-kind tree decoration is made
of 18-carat white gold and is plastered with over one and half thousand
stunning diamonds. Surrounded by two incredible rings made of 18-carat
fat gold wire, it features 188 red rubies that took a year to complete the
designing and manufacturing. It was dreamed up by a 38-year-old, Mark
Hussey, the owner of 30-year-old family business, Hallmark Jewelers.
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December 2009
World’s most expensive furniture
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POTENTIAL OF LUXURY MARKET IN INDIA
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PROMISING GROWTH OF LUXURY MARKET IN INDIA
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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PRESENCE OF SOME HIGH PURCHASED LUXURY BRANDS
IN INDIA
HUGO BOSS – The name denotes success, perfection and a style that
transcends international borders. This German luxury fashion 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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country: Boss Black and Boss Orange and the product category 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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• Indians prefer to buy luxury goods in Europe or Singapore or
Dubai, as they feel that it is cheaper abroad.
• Most Indians feel that the latest launches take a while to come to
India. After-sales service is also a major concern for people.
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HOW LUXURY BRANDS CAN
ENTER IN THE INDIAN MARKET?
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.
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This entry route is widely used, with many international brands setting
up shop. There exists the master franchise route and the regional
franchise route for India entry.
o Franchisee Route
100% Foreign Direct Investment is allowed in wholesale trading which
involves building of a large distribution network.
o Joint Venture
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How taxes and Duties are affecting growth of INDIAN LUXURY
Market?
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.
SWOT ANALYSIS
STRENGHTS WEAKNESSES
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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
SUGGESTIONS
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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.
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Case study
Nita Ambani to buy 25K pieces of crockery from
SL
DEC, 2010, 05.36PM IST, SAGAR MALVIYA & RESHMI
DASGUPTA,ET BUREAU
She would have to be, especially when her shopping list includes 25,000
pieces of chinaware for her high-rise home. She's settled for 106-year-old
Japanese brand Noritake, whose 22 carat gold/platinum-trimmed
porcelain crockery has fans round the world.
Interestingly, the big-ticket order has not been placed at the exclusive
Noritake showroom in Mumbai's Kemps Corner, a stone's throw from the
Ambani tower. Rather, corporate India's first lady has chosen Sri Lanka
for this acquisition as Noritake is 70-80% cheaper there than elsewhere in
the world, including India. This is because the Japanese brand has its
largest manufacturing facility in Sri Lanka, and exports its fine china to
over 100 countries from there.
M Deva Raja, General Manager of Noritake Sri Lanka, said the company
has an enquiry from Ambani for more than 20,000 pieces but has not
supplied anything yet. A Reliance spokesman declined comment.
"Noritake is a must-buy for anyone who visits Sri Lanka," said Santosh
Desai, chief executive, Future Brands. "However, an order of such a scale
is unheard of for the brand which is an elite icon. But then again, a 27-
floor residence is also unheard of."
Even a 500-room five-star hotel with five restaurants (the only other
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entity which could conceivably put in a similarly-sized order) would draw
the line at that price tag, particularly if a cheaper option was available.
Her thrift, therefore, was complimented by social commentator Shobhaa
De.
"If she is indeed buying her crockery from Sri Lanka, I would say that she
is a practical Gujju housewife, cost-conscious and sensible and I admire
her for it," Ms De said. "Why should she pay five times more for
something here? She is setting a good example for others to follow!"
Noritake's Raja said the company was studying the specifications in the
order and whether they will be able to supply that many pieces.
However, all of it may not be headed for Antilia, said a source. "Mrs
Ambani has bought Noritake crockery several times in the past, especially
during Diwali for gifting." Noritake, originating in a village of the same
name near Nagoya in Japan, has been an A-lister ever since it hit the US
market a little over 100 years ago.
Cleverly appealing to both the mass market and the high end with a
technologically superior and diverse product range, Noritake has been a
favourite with homes, hotel chains and airlines for its delicate designs and
durable quality.
Nita Ambani heads to another country to buy Crockery for the most
expensive home on the planet
Living in the world’s most expensive house, doesn’t mean that you have
no limit to your expenses specially when it comes to splurging on the
interiors and other small accessories for your palatial home. And this,
Mrs. Nita Ambani knows quite well.
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The dotting wife knows that hubby dearest works hard to give her all the
luxuries in the world. No wonder, the wife of India’s richest man, Mukesh
Ambani, went all the way to Sri Lanka just to go crockery shopping. This
is because the brand she has selected offers 70-80% cheaper crockery in
Lanka.
What is surprising is that, the huge order has not been placed in the posh
Noritake showroom in Mumbai’s Kemps Corner which is a stone’s throw
from the Ambani Tower but she has chosen Sri Lanka for this acquisition.
Noritake offers products at cheaper rates in Lanka as the brand has its
largest manufacturing facility in Sri Lanka and exports its fine-china to
100 countries from here.
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Nita, who holds a qualification of an interior designer, has previously
gifted Noritake crockery to friends and family as a Diwali gift. So maybe
all the purchase from Lanka is not headed towards the 27-floor residence.
M Deva Raja, General Manager of Noritake Sri Lanka, said the company
has an enquiry from Ambani for more than 20,000 pieces but has not
supplied anything yet. A Reliance spokesman declined comment.
You can see a remarkable difference in cost when you compare the prices
of the same products sold in India and in Sri Lanka. A 50-piece dinner set
with 22 carat gold/platinum trimmings could cost $300-500 in Sri Lanka
while the same would be priced between $800 and $2,000 in India.
Multiply that by 500 (to cover Nita Ambani’s 25,000-piece order) and the
price could have hit $1 million at the upper end in India.
Shobhaa De, an Indian critic, says,”If she is indeed buying her crockery
from Sri Lanka, I would say that she is a practical Gujju housewife, cost-
conscious and sensible and I admire her for it,” Ms De said. “Why should
she pay five times more for something here? She is setting a good
example for others to follow!” Gujju stands for Gujaratis who are the
natives of the state of Gujarat, India. Gujaratis are often known to be
stingy.
Sri Lanka, The Pearl of the Indian Ocean, is known for its natural beauty,
lush tropical forests, white beaches and diverse landscape throughout
along with a rich biodiversity. The country lays claim to a long and
colorful history of over three thousand years, having one of the longest
documented histories in the world.
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CONCLUSION
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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BIBLIOGRAPH
1. unitymarketing.com
2. hindustantimes.com
3. brandchannel.com
4. Wikipedia.com
5. eluxury.com
6. Luxurymarketing/India.com
7. Forresterr.com
8. www.luxurycarwheelsindia.com
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