This is to attest that the undertaking entitled? Growth and Potential of Luxury International Fashion Brands in India? is submitted towards the partial fulfilment of the plan? Master of Fashion Management‘ by Kanan Gupta. It is an original work done under my counsel and the consequences are based on the research done by her. Name of wise man: Mr. Kislay Kashyap Asst. Professor Department of MFM NIFT. Patna Date: 01-03-2012 Topographic point: Patna 1|Page DECLARATION I. Kanan Gupta hereby declare that the undertaking entitled?
Growth and Potential of Luxury International Fashion Brands in India? submitted towards. partial fulfilment of the plan Master of Fashion Management is my original work and no portion of the undertaking has been copied from any other study or carried by person else or has been submitted for any other degree/award. However. any material taken from any other published beginnings has been appropriately referred and acknowledged at assorted topographic points. Name: Kanan Gupta Roll no: 17 Batch: 2011-2013 Centre: Patna Date Topographic point: 01-03-2012: Patna 2|Page ACKNOWLEDGEMENT
I owe my gratitude to many people who helped and supported me during the research and digest of my undertaking study. I would wish to thank my wise man Mr Kislay Kashyap for O.K.ing my undertaking and show my indebted gratitude for his counsel and suggestions at every phase of this study. My sincere gratitude is besides due to my seniors for their changeless encouragement and support. I would wish to show my thanks to all those people who were straight and indirectly involved in determining my undertaking by supplying valuable information and co-operation.
3|Page EXECUTIVE SUMMARY INTRODUCTION: This is a undertaking to analyze about the? Growth and Potential of Luxury International Fashion Brands in India? . If we look into the past. no 1 could conceive of that a luxury market would be in India. But over the old ages with the alteration in the demographics of the Indian consumer and with higher disposable income available. the luxury market in India has so emerged as one of the fastest turning markets in the retail section.
PROBLEM DEFINITION: The Indian Luxury Market is still a niche market and people have got a really low personal disposable income. though it has increased a batch from before but non so much to afford international luxury manner trade names and the people who have got a high disposable income deficiency adequate cognition about the international manner trade names available in India as the luxury international shops are limited to metropolitans merely. 4|Page Aim: The chief aims of the undertakings are? Analyze the Luxury Brand Awareness among the Indian consumers.
? Reasons behind clients purchasing Luxury manner Brands? Analyze the major international manner trade names in India. ? To analyse the Current Scenario and the Growth of Indian Luxury manner trade names and the Market. RESEARCH METHODOLOGY: ? The secondary research is through Magazines. diaries. articles and cyberspace. ? Primary research through focal point group interview with industry forces. clients. Hypothesis: ? Assuming that there is a strong range for the growing of international luxury manner trade names in India.
? Taking an premise that Luxury manner trade names do non hold much range in the Indian market. 5|Page CONTENTS Ch. No. 1. 0 2. 0 3. 0 3. 1 3. 2 3. 3 3. 4 3. 5 3. 6 3. 7 4. 0 4. 1 4. 2 4. 3 5. 0 5. 1 5. 2 5. 3 5. 4 6. 0 7. 0 8. 0 9. 0 9. 1 9. 2 Chapter Name Objective Research Methodology Literature Review Introduction India at Glance Geography People Understanding Luxury Defining Luxury Socio Economic Significance of Luxury Acquainting with Luxury Fashion Brand Major
Difference between Regular Brands and Luxury Brands Persona of Indian Luxury Industry Famous Luxury Brands and their finish in India SWOT Analysis Major Problems Faced by Luxury Fashion Industry Growth and Potential of Luxury Brand Growth of Indian Luxury Market Luxury Fashion Branding Strategies Final Summary Primary Research Findings Annexure Questionnaire Bibliography Page No. 7 8 9 9 9 11 13 14 15 16 17 21 23 26 31 32 33 35 39 41 43 54 56 56 58 6|Page 1. 0 Aim: The chief aims of the undertakings are? Analyze the Luxury Brand Awareness among the Indian consumers.
? Reasons behind clients purchasing Luxury manner Brands? Analyze the major international manner trade names in India. ? To analyse the Current Scenario and the Growth of Indian Luxury manner trade names and the Market. 7|Page 2. 0 RESEARCH METHODOLOGY: ? Secondary research through Magazines. diaries. articles and cyberspace. ? Primary research through focal point group interview with industry forces. clients. 8|Page 3. 0 LITERATURE REVIEW 3. 1 Introduction: If we look into the past. no 1 could conceive of that a luxury market would be in India.
But over the old ages with the alteration in the demographics of the Indian consumer and with higher disposable income available. the luxury market in India has so emerged as one of the fastest turning markets in the retail section. Through this study I have tried to give an estimation of the luxury retail market in India. how much it has penetrated and besides how much it is likely to turn. Besides I have tried to stipulate assorted factors that are important for the success of luxury trade names in India. While making out research on this undertaking I have come across many new findings.
The function the Indian market dramas in the planetary scenario and the place of India counterpart other states. Besides I understood about the responsibilities and legal demands for this section. I have tried my degree best to cover all the facets in respect to my research. India today is fast going a new universe of modern luxury. The state now teems with epicurean international trade names. spurring the acclivity of an Indian luxury market. One does non necessitate to go abroad to shop for luxury. Luxury goods and services sit aplenty right at place.
Indians. nevertheless. hold to recognize such. be informed where to avail of them. and be convinced of the convenience and easiness of entree to these luxury goods and services. In the same vena. aliens can besides see India to shop for same luxury. India can really good be placed on the planetary luxury-shopping map. There is. hence. a immense chance to pump premier the luxury market field in India. 9|Page 3. 2 INDIA AT GLANCE: Focus: Survey about India and its home grounds. India is one of the oldest civilisations in the universe with a kaleidoscopic assortment and rich cultural heritage.
It has achieved all-around socio-economic advancement during the last 60 old ages of its Independence. India has become self-sufficing in agricultural production and is now the ten percent industrialised state in the universe and the 6th state to hold gone into outer infinite to suppress nature for the benefit of the people. It covers an country of 32. 87. 2631 sq kilometer. widening from the snow-clad Himalayan highs to the tropical rain woods of the South. As the 7th largest state in the universe. India stands apart from the remainder of Asia. marked off as it is by mountains and the sea. which give the state a distinguishable geographical
entity. Bounded by the Great Himalayas in the North. it stretches due souths and at the Tropic of Cancer. tapers off into the Indian Ocean between the Bay of Bengal on the E and the Arabian Sea on the West. Liing wholly in the northern hemisphere. the mainland extends between latitudes 8°4? and 37°6? North. longitudes 68°7? and 97°25? E and steps about 3. 214 kilometer from north to south between the utmost latitudes and about 2. 933 kilometer from E to west between the utmost longitudes. It has a land frontier of about 15. 200 kilometer.
The entire length of the coastline of the mainland. Lakshadweep Islands and Andaman & A ; Nicobar Islands is 7. 516. 6 kilometer. 10 | P a g vitamin E 3. 3 Geography: Location: The Indian peninsula is separated from mainland Asia by the Himalayas. The Country is surrounded by the Bay of Bengal in the E. the Arabian Sea in the West. and the Indian Ocean to the South. Geographic Coordinates: Liing wholly in the Northern Hemisphere. the Country extends between 8° 4? and 37° 6? latitudes north of the Equator. and 68°7? and 97°25? longitudes east of it. Indian Standard Time:
GMT + 05:30 Area: 3. 3 Million sq km Telephone Country +91 Code: Boundary line States: Afghanistan and Pakistan to the north-west ; China. Bhutan and Nepal to the North ; Myanmar to the E ; and Bangladesh to the E of West Bengal. Sri Lanka is separated from India by a narrow channel of sea. formed by Palk Strait and the Gulf of Mannar. Coastline: 7. 516. 6 kilometer embracing the mainland. Lakshadweep Islands. and the Andaman & A ; Nicobar Islands. 11 | P a g vitamin E Climate: The clime of India can loosely be classified as a tropical monsoon one.
But. in malice of much of the northern portion of India lying beyond the tropical zone. the full state has a tropical clime marked by comparatively high temperatures and dry winters. There are four seasons – winter ( December-February ) . ( two ) summer ( March-June ) . ( three ) south-west monsoon season ( June-September ) . and ( four ) station monsoon season ( October- November ) . Terrain: The mainland comprises of four parts. viz. the great mountain zone. fields of the Ganga and the Indus. the desert part. and the southern peninsula. Natural Resources:
Coal. Fe ore. manganese ore. isinglass. bauxite. crude oil. Ti ore. chromite. natural gas. magnesite. limestone. cultivable land. dolomite. heavy spars. china clay. gypsum. apatite. phosphorite. soapstone. fluorspar. etc. Natural Hazards: Monsoon inundations. brassy inundations. temblors. drouths. and landslides. Environment – Current Issues: Air pollution control. energy preservation. solid waste direction. oil and gas preservation. forest preservation. etc. Environment – International Agreements: Rio Declaration on environment and development. Cartagena Protocol on biosafety. Kyoto Protocol to the United Nations Framework Convention on climatic
12 | P a g vitamin E alteration. World Trade Agreement. Helsinki Protocol to LRTAP on the decrease of sulphur emanations of N oxides or their transboundary fluxes ( Nox Protocol ) . and Geneva Protocol to LRTAP refering the control of emanations of volatile organic compounds or their transboundary fluxes ( VOCs Protocol ) . Geography – Note: India occupies a major part of the south Asiatic subcontinent. 3. 4 Peoples: Population: 1. 21. 01. 93. 422 Decadal Population Male: 9. 15. 01. 158 Growth: Female: 8. 99. 54. 828 Density of Population: 382 per sq. kilometer. Sexual activity Ratio: 940 per 1000 males
Nationality: Indian All the five major racial types – Australoid. Mongoloid. Europoid. Caucasian. and Negroid find representation among the people of India. Cultural Groups: 13 | P a g vitamin E Religions: Hindus constituted the bulk with 80. 5 % . Muslims came 2nd at 13. 4 % . followed by Christians. Sikhs. Buddhists. Jains. and others. Languages: There are 22 National Languages have been recognized by the Constitution of India. of which Hindi is the Official Union Language. Besides these. there are 844 different idioms that are practiced in assorted parts of the Country.
Literacy: Persons: 77. 84. 54. 120 Males: 44. 42. 03. 762 Females: 33. 42. 50. 358 GDP: Nominal GDP stands at US $ 1. 53 trillion as per 2010 nose count 3. 5 Understanding LUXURY AND AQUAINTING WITH LUXURY FASHION BRANDS: Focus: Acquiring introduced to the term? LUXURY? Luxury. derived from the Latin word luxus. means indulgence of the senses. regardless of cost. Luxury is something that everyone wants but cipher demands. its an country of immense comfort and the best of the best. 14 | P a g e A luxury trade name is a trade name for which a bulk of its merchandises are luxury goods.
It may besides include certain trade names whose names are associated with luxury. high monetary value. or high quality. though few. if any. of their goods are presently considered luxury goods. The luxury sector targets its merchandises and services at consumers on the top-end of the wealth spectrum. These self-selected elite is more or less monetary value insensitive and chooses to pass their clip and money on objects that are obviously opulence instead than necessities. For these grounds. luxury and prestige trade names have for centuries commanded an unwavering and frequently unlogical client trueness.
3. 6 DEFINING Luxury: The construct of luxury has been present in assorted signifiers since the beginning of civilisation. Its function was merely every bit of import in ancient western and eastern imperiums as it is in modern societies. With the clear differences between societal categories in earlier civilisations. the ingestion of luxury was limited to the elect categories. It besides meant the definition of luxury was reasonably clear. Whatever the hapless can non hold and the elite can was identified as luxury. With increasing?
democratization‘ . several new merchandise classs were created within the luxury markets that were competently called – accessible luxury or mass luxury. This sort of luxury specifically targeted the in-between category ( or what is sometimes termed as aspirant category ) . As luxury penetrated into the multitudes. specifying luxury has become hard. In modern-day selling use. Prof. Bernard Dubois defines? luxury‘ as a particular ( i. e. higher-priced ) grade of offer in about any merchandise or service class. However. despite the significant organic structure of cognition accumulated 15 | P a g vitamin E
during the past decennaries. research workers still haven‘t arrived on a common definition of luxury. Many other efforts have been made to specify luxury utilizing the price-quality dimension saying higher priced merchandises in any class is luxury. Similarly. research workers have used the uniqueness facets of luxury excessively. Prof. Jean-Noel Kapferer. takes an experiential attack and defines luxury as points which provide excess pleasance by blandishing all senses at one time. Several other research workers focus on exclusivity dimension and argue that luxury evokes a sense of belonging to a certain elect group.
3. 7 SOCIO ECONOMIC SIGNIFICANCE OF LUXURY: Several manufactured merchandises attain the position of “luxury goods” due to their design. quality. lastingness or public presentation that are unusually superior to the comparable replacements. Therefore. virtually every class of goods available on the market today includes a subset of similar merchandises whose “luxury” is marked by better-quality constituents and stuffs. solid building. fashionable visual aspect. increased lastingness. better public presentation. advanced characteristics. and so on.
As such. these luxury goods may retain or better the basic functionality for which all points of a given class are originally designed. There are besides goods that are perceived as epicurean by the populace merely because they play a function of position symbols as such goods tend to mean the buying power of those who get them. These points. while non needfully being better ( in quality. public presentation. or visual aspect ) than their less expensive replacements. are purchased with the chief intent of exposing wealth or income of their proprietors.
These sorts of goods are the objects of a socio-economic phenomenon called conspicuous ingestion and normally include luxury vehicles. tickers. jewellery. interior decorator vesture. yachts. every bit good as big abodes. urban sign of the zodiacs. and state houses. 16 | P a g vitamin E 4. 0 AQUAINTING WITH THE LUXURY FASHION BRANDS Luxury manner trade names have frequently been associated with the nucleus competences of creativeness. workmanship. preciseness. high quality. invention. & A ; premium pricing.
These merchandise attributes give the consumers the satisfaction of non merely having expensive points but the extra-added psychological benefits like the regard. prestigiousness and a sense of a high position that reminds them and others that they belong to an sole group of merely a choice few. who can afford the pricey points. The luxury sector targets its merchandises and services at consumers on the top-end of the wealth spectrum. These self-selected elite are more or less monetary value insensitive and take to pass their clip & A ; money on objects that are obviously opulence instead than necessities.
For these grounds. luxury and prestige trade names have for centuries commanded an unwavering and frequently unlogical client trueness. 17 | P a g e Luxury has ne'er been something easy to specify ; yet this enigma construct is something extremely desired by one & A ; all alike. I look at diging deeper into this enigma and aura of luxury goods by manner of comparing them against? regular goods‘ every bit good as foregrounding the features of the luxury industry. But before get downing with that. Lashkar-e-Taibas first effort to understand some common footings associated in the universe of high-end goods.
Luxury and Prestige trade names such as Rolex. Louis Vuitton and Tag-heuer represent the highest signifier of workmanship and command a steadfast consumer trueness that is non affected by trade names. These trade names create and set the seasonal tendencies and are besides capable to drawing all their consumers with them wherever they go. 18 | P a g vitamin E Premium trade names are those trade names like Polo. Ralph Lauren. Versace and Tommy Hilfiger that aspire to be luxury and prestige trade names but their selling mix schemes are more attuned to a mass market. albeit a luxury mass market.
They besides termed as mass Premium brands or luxury trade names. Fashion trade names are those that address the multitudes. LVMH ( Louis Vuitton Moet Hennessy ) is the largest luxury good manufacturer in the universe with over 50 trade names. including Louis Vuitton. the trade name with the world’s first interior decorator label. other celebrated manner trade names are Chanel. Gucci etc. 19 | P a g e Luxury is a Hub of Business Luxury trade names take the elements they feel passionate about. add design so develop it and show it to the clients that exceed their outlooks.
A luxury good is a merchandise at the highest terminal of the market in footings of quality and monetary value. Authoritative luxury goods include haute couture points such as vesture. accoutrements and baggage. However. many markets have a luxury section including for case. autos. vino and cocoas. Such trade names portion features like consistent premium quality. a heritage of workmanship. a recognizable manner or design. a limited production tally of any point to guarantee exclusivity. an component of singularity and an ability to maintain coming up with new designs when the class 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 wages that allows it to look as luxury. 20 | P a g vitamin E 4. 1 Major Differences BETWEEN REGULAR BRANDS AND LUXURY BRANDS: FACTOR REGULAR GOODS LUXURY GOODS Available at posh. PLACE Available at convenience and harmonizing to the merchandise class sole and selected locations? Highly customized or? Multiple mass discrepancies but PRODUCT standardized.
? Service degrees range from low to high. limited editions of merchandises. ? Very high forces service. Pricing Value for money Premium pricing? Pre- ? All sorts of media ( ATL. BTL ) used. ? Product functional and aspirational PROMOTION value entreaties. ? All sorts of mention group entreaties used. dominantly premium above the line media. e. g. Connoisseur. Magazines. 21 | P a g vitamin E Travel media ) ? Merchandises have the sole entreaty. ? Largely famous person entreaties. Luxury goods are Those goods for which demand is inversely relative to monetary value.
besides called as Veblen‘s goods. the demand for the merchandise is said to increase with the addition in monetary value. ECONOMIC DEFINITION BRAND EXTENSION DECISIONS Based on supporting your sod. ( R & A ; D based determinations to an extent ) . Based on marketing the luxury trade name. Drivers OF BRANDS Functional properties and invention. Tradition and trade name heritage. Beginning: Luxury Marketing. Samit khanna- IIM-A 22 | P a g vitamin E 4. 2 PERSONA OF INDIAN LUXURY INDUSTRY: Focus: Understanding the features of luxury trade names. CHARACTERISTICS OF INDIAN LUXURY INDUSTRY: 1. THE Meaning OF LUXURY HAS CHANGED: Luxury has moved from its?
old‘ significance of ownership ( besides known as conspicuous ingestion – Conspicuous ingestion is a term used to depict the munificent disbursement on goods and services that are acquired chiefly for the intent of exposing income or wealth instead than to fulfill a existent demand of the consumer. In the head of a conspicuous consumer. such show serves as a agency of achieving or keeping societal position. Discriminatory ingestion. a necessary corollary. is the term applied to ingestion of goods and services for the deliberate intent of animating enviousness in others ) of objects to the?
new‘ significance of the experience / fulfilment derived from possessing a certain object. 2. LUXURY MEANS DIFFERENT TO DIFFERENT Peoples: Luxury has no certified beginnings. But luxury stigmatization is said to hold taken birth in the West with the visual aspect of high-end trade names. But there is still no definite significance of luxury. for person luxury can be a necessity and vice-versa. If one can believe a luxury trade name is truly inexpensive. its non necessary that the other individual besides will believe the same manner. Luxury is yet to be defined. it wholly differs from individual to individual. 23 | P a g vitamin E 3. LUXURY IS A PRODUCT CATEGORY IN ITSELF:
This can be best clarified by the fact that both an expensive ticker and an dress can be considered to be luxury points. Therefore. all luxury sellers are non merely viing in their? technically defined‘ merchandise classs ( like makers of telecastings compete among themselves ) but for the billfold portion of luxury goods in entire. 4. Categorization OF LUXURY CONSUMERS: SRI Consulting Business Intelligence places consumers in 3 groups harmonizing to what luxury means to them: Luxury is Indulgence – This group is the smallest of the three and tends to include younger consumers and somewhat more males than the other two groups.
Their intent for luxury goods is to shower themselves in self-indulgence. They are willing to pay a premium for goods that express their individualism and do others take notice and are non excessively concerned with merchandise length of service or possible unfavorable judgment. They enjoy luxury for the manner it makes them experience. hence have a more emotional attack to purchases. They respond good to messages that highlight the alone and emotional qualities of a merchandise. Luxury is Reward – These consumers tend to be younger than the first group but older than the 3rd.
They use luxury goods as a position symbol to state? I‘ve made it! ? They are motivated by their desire to be successful and show this to others. Luxury trade names that have widespread acknowledgment are popular. nevertheless they don‘t wish to look munificent or hedonic in their visual aspect. They want to buy? ache? luxury that demonstrates importance while non 24 | P a g vitamin E go forthing them unfastened to unfavorable judgment. Selling messages that communicate acceptable exclusivity resonate with this group.
Luxury is Functional – these consumers tend to purchase luxury merchandises for their superior functionality and quality. Consumers in this section. the largest of the three. be given to be older and wealthier and are willing to pass more money to purchase things that will last and have digesting value. They buy a broad array of luxury goods. from graphics to holidaies. and behavior extended prepurchase research. doing logical determinations instead than emotional or unprompted. Messages that highlight merchandise quality and are information-intensive are powerful with this group. 5.
CUSTOMER LOYALTY IS MORE IMPORTANT THAT BRAND AWARENESS: Rather than concentrate on mensurating the trade name consciousness of a luxury company. mensurating client trueness is far more important a metric sing the success or failure of corporate scheme to link with the luxury consumer. 6. CERTAIN FACTORS WHICH PLAY A N IMPORTANT ROLE: In luxury selling there is a elusive interplay between three factors that most strongly act upon the luxury consumer to purchase: merchandise trade name ; trader or store’s trade name or service providers’ repute ; and price/value relationship.
25 | P a g vitamin E USERS OF LUXURY BRANDS IN INDIA: ? CEOs and other senior professionals ( in their mid-thirtiess and early mid-fortiess ) ? Entrepreneurs in new concerns? “Prodigal children” ? Actors and theoretical accounts? Franchisees. and little and average Retailers 4. 3 FAMOUS LUXURY BRANDS AND THEIR DESTINATIONS IN INDIA FOCUS: To measure about all the celebrated luxury trade names available in India and the topographic points where they are available. UB CITY- THE COLLECTION. BANGALORE: UB City is the biggest commercial belongings undertaking in Bangalore. India. Pioneered by the president of UB Group. Dr.
Vijay Mallya. it is built on 13 estates ( 53. 000 M2 ) of land and hosts 1. 000. 000 sq foot ( 93. 000 M2 ) of high-end commercial. retail and service flat infinite. UB City has four towers viz. . UB Tower ( 19 Floors ) . Comet ( 11 Floors ) . Canberra ( 17 Floors ) and Concorde ( 19 Floors ) . UB City has four towers viz. . yelahanka. The ulterior three towers are all named after aircraft. UB City will house the Group offices under one roof – UB Tower. Concorde & A ; Canberra will hold retail infinite on the lower floors and office infinite in the higher degrees. while Comet will hold serviced flats.
It will house commercial offices. Bankss. high-end retail shops. a five star hotel. 26 | P a g vitamin E serviced flats. eating houses. nutrient tribunals. saloons. wellness nines and coffeehouse. Multi-level parking countries will offer virtually limitless parking infinites. Besides on the design is an amphitheater with nutrient tribunals and landscaped gardens. UB City will supply parking infinite for over 1. 100 autos. Bing an environment friendly undertaking and maintaining in head the green milieus of Cubbon Park. tierce of the infinite has been earmarked for landscaped gardens. An elevated roof top helipad will supply a five-minute aerial commute to the airdrome.
Four floors of multi degree parking. in add-on to one common cellar for the full UB City and extended surface degree auto Parks. will supply UB City the singular chance of offering literally limitless auto parking infinite. BRANDS AVAILABLE AT UB CITY-THE COLLECTION: ? Louis Vuitton? Alfred Dunhill? Estee Lauder? Mont Blanc? Zimson? Rolex? Canali? Salvatore Ferragamo? Paul Smith? Lladro? Versace? Corneliani? Burberry? Jimmy Choo? Diesel 27 | P a g vitamin E DLF EMPORIO. NEW DELHI- DLF Emporio has been designed as a name synonymous with luxury – offering a
alone shopping experience where the speech pattern is on exclusivity. infinite and aesthetics. There is merely no other topographic point where such a wealth of interior decorator and premium ware. lifestyle merchandises and services are showcased under one elegant roof. The niceties of epicurean repose are traveling to be expressed at DLF Emporio in a manner found merely in the manner capitals of the universe. offering merely the right sort of tasteful and empyreal atmosphere to pull high value Spenders. 28 | P a g vitamin E DLF EMPORIO RETAIL MIXGreat attention is being taken to guarantee that the planetary retail community at DLF Emporio is the most premium.
Merely the finest signature trade names. interior decorator labels and high terminal life style merchandises co-exist here. Some of the trade names in DLF Emporio include Giorgio Armani. Salvatore Ferragamo. Louis Vuitton. Cartier. Fendi. Dior. Just Cavali. DKNY. Tods. Burberry. Hugo Boss to call a few. ESSENTIAL PLAYERS OF THE LUXURY MARKET IN INDIA: ? JEWELLERY- Cartier. De Beers. Tiffanys etc. ? CLOTHING- Louis vuitton. Varsace. Armani. Chanel. Gucci etc. ? ACCESSORIES- Fendi. Jimmy Choo. Ferragamo Salvatore etc. ? AUTOMOBILES- Mercedes. Volvo. BMW. Volkswagen. Nissan. Audi etc. 29 | P a g vitamin E 30 | P a g vitamin E 5. 0 SWOT Analysis:
Focus: To make the grind analysis and determine the major jobs faced by the international manner trade names in India. STRENGTH WEAKNESS 1. Brand Name/Brand Ambassadors 2. Customer Loyalty 3. Quality 4. Global Presence 1. Concentrated Market-only tube metropoliss 2. Government Regulations 3. High Monetary values 4. Percentage of mark audience is Less 5. Higher Operational cost-rents. OPPORTUNITY THREATS 1. Manufacturing the trade names in India 1. Fake branded material available in India itself instead than importing it 2. FDI Regulations 3. Globalization 2. Available at cheaper monetary values abroad 31 | P a g vitamin E 5.
1 MAJOR PROBLEMS FACED BY THE LUXURY FASHION INDUSTRY- 1. LACK OF AWARENESS OF BRANDS AMONGST INDIAN CONSUMERS: The Indian consumers are non cognizant of the trade names available in India. Most rich people who can afford the luxury trade names either live in smaller towns and metropoliss where there is no mercantile establishment or consciousness of the trade names. 2. Preference OF Buying FROM FOREIGN COUNTRIES: Peoples who are cognizant of the trade names and live in metro metropoliss and have a higher disposable income prefer purchasing from abroad as they travel a batch and so they prefer purchasing from abroad itself as they get a better and broad assortment of merchandises with lesser monetary values.
1. Duplicate AND KNOCK-OFFS: There are a batch of extra and knock-offs available in the Indian market. Most of these merchandises come from China. The same branded merchandise. which is available for 25000 Rs. . is available for 1500 Rs. When it is non reliable. Though the quality of these merchandises is non good. they appear to be the same and hence people don‘t mind purchasing them. But people in India do non believe in genuineness. if they see the name and the knock-off expressions exact. they buy that point as they believe in demoing off. 32 | P a g vitamin E 2. LACK OF RETAIL SPACE:
The luxury retail shops are located in 5 star hotels or promenades in selected metropoliss. as we all know that there are merely two luxury promenades in India. The collection-UB City. Bangalore and the DLF-Emporio Mall. New Delhi. because that is where the possible clients are most likely to come for shopping. hence the executable infinite available is really less. 3. Low CUSTOMER Employee turnover: The figure of clients who visit a luxury shop is relatively lower than a regular shop. Besides the luxury shop mercantile establishments are located entirely in certain countries and are sometimes non accessible by everyone. this factor besides affects the client turnover.
4. HIGH OPERATIONAL COST: The cost of runing a luxury mercantile establishment is high because the size of the shop has to be elaborated and besides it has to turn up at a premier location in major metropoliss. Due to the image that is associated with luxury merchandises. the cost of keeping the shop is high because it has to look cheerful all the clip. At the same clip these shops usually situated in 5 star hotels or large shopping promenades where the rents charged are really high and therefore the cost is further increased. 5. 2 GROWTH AND POTENTIAL OF LUXURY BRAND: Focus: Survey about the roots and the growing of the luxury market of India.
LUXURY is no alien to India. The former maharajas and princes led a life of deluxe luster. The lone manner to be apart of the elite as to be born into it. 33 | P a g e The life style as besides associated with hunting. Polo and her games of the rich. New money could ne'er acquire into this circuit. The aspiration was ever at that place. But the princes operated in a different conference wholly. The epoch of the selfmade millionaire was yet to get. So little ownerships. or copied manner designs with a few geegaws thrown in. became the tallness of luxury.
An winner of the seventiess could merely acquire by with a good froth mattress — no Omega. Rolex or BMWs. This tendency saw a displacement. a gradual 1. in the 1980s. Luxury began crawling into upper category places through little things and symbols. The color Television came in. the low pen was elevated to a Parker. successful self-made people began to be featured in magazines. The construct of luxury as a wages for accomplishment gained credence. though royalty and the nobility continued to stay the benchmark of the elite. The existent alteration came in the 1990s when more people started doing more money.
There was a sudden detonation of coloring material and things and objet D’arts began to look. In order to derive entree to luxury and category one could merely travel out and bear down it. What contributed to this displacement? India opened up to the universe. The liberalisation procedure brought more than high economic growing rates. It showed the people what was possible. In the procedure. it has altered mentalities. The IT revolution. and the attendant demand for Indian learning ability. has created a whole new strain of affluent planetary Indians. At the other terminal. an progressively unfastened economic system has created new B