Amit Ankit Anjusha Bushra Rati Vickey Retail Management
Related to -
Psychogenic needs; (mental needs)
it is not necessary for survival
LUXURY Defining Luxury The emotionalism of luxury “ Purchase of luxury items gives the buyer an immense amount of joy which surpasses the economic value of the product.” Luxury brands live in people’s hearts & minds Luxury brands have range Can be teamed with many products Luxury brands have permanence Don’t go out of style/are classic Characteristics
What Consumer Get
sense of a high status
that reminds them and others that they belong to an exclusive group who can afford these expensive goods.
The overall sales of luxury goods in the year 2009 is expected to be more than US$150 billion and Asia contributes 10% to it.
The concept of luxury is now not confined to only to Europe and US, the Asian subcontinent contributes major to it, with India and China as the newly emerging markets.
A trip to the mall can mean stocking up on thousands of dollars worth of designer goodies before eating a three-course meal at one of its fine dining establishments
Fine Living Top 10: Luxury Malls
The Grand Canal Shoppe's offer visitors world-class dining and elegant shopping in a unique, inspired surrounding.
The Grand Canal Shoppe's are guaranteed a truly European shopping experience.
The Grand Canal Shoppe's Las Vegas, USA
With a focus on big-name fashion houses such as Alexander McQueen, Bulgari and Chanel -- complemented by weekly fashion shows
Galleries Lafayette Paris, France
Blue water in the British county of Kent combines high-end international designer outlets
(such as A/X Exchange, Lacoste and Storm)
There’s plenty else to keep shoppers entertained too, such as a multiplex cinema, a luxurious fitness center and an extensive food court
Blue water Kent, England
Ranked the No. 1 shopping center in the United States, Bal Harbour Shops in Miami.
Stores with an outlet in the complex include-
Tiffany & Co., Vilebrequin, Yves Saint Laurent, Jimmy Choo, Just Cavalli, Harry Winston, Fendi, Emilio Pucci, Escada, Bulgari, and Saks Fifth Avenue
Bal Harbour Shops Miami, USA
Having all the usual designer store suspects -- Harvey Nichols, D&G, Gianfranco Ferre, and Ermenegildo Zegna,
The Landmark boasts the 113-room Landmark Mandarin Oriental Hotel as well as the chic Oriental Spa.
The Landmark Hong Kong, China
Armed with their Black Amex, shoppers here are able to flit in and out of 100 designer stores such as Tommy Hilfiger, Yves Rocher and Diesel.
The three-story wonder is built underground near Red Square and is, quite simply, one of the grandest malls in the world.
Okhotny Ryad Shopping Center Moscow, Russia
The bustling buildings here combine luxury shopping and fine dining with office and residential space
With outlets including Cole Haan, Dean & Deluca and Sisley, the mall also features an Equinox Fitness Club.
The Shops At Columbus Circle New York, USA
The Walk also houses outlets by designers such as Louis Vuitton, Calvin Klein), Emporio Armani, Mulberry, and Links of London.
The mall also provides residents and visitors to the capital with a complete shopping and leisure experience.
The Walk Edinburgh, Scotland
With the DFL Group finishing construction at the end of 2007, The Emporio shopping mall in New Delhi
Consist of 90 high-end Indian and international stores, such as Kimaya, Ensemble, Ashish N Soni, Rajesh Pratap Singh, and Abraham & Thakore
The Emporio New Delhi, India
Packed with designer boutiques, including Harvey Nichols, Debenhams, Bois & Chiffon, Reiss, Missoni, and Marc Jacobs
The mall also encapsulates several world-class restaurants and bars, including Lebanese cuisine at Karam, brasserie-style food at St Maxim’s, seafood at Salmontini, international fare at Sezzam, and fondue at Après
Mall Of The Emirates Dubai
LUXURY The Luxury retailing in india
Reasons for emergence of luxury retail in India.
Hike in the salary .
High Standard of living .
Luxury becoming a status symbol.
better performance & advanced features
Luxury in India has become more accessible. Bollywood is an influencer
LUXURY Luxury Products & Services Cars: Jaguar, Mercedes Benz, Lamborghini, Rolls Royce, Bentley, Ferrari, Bugatti Couture: Versace Indian couture designers: Rohit Bal, Tarun Tahiliani May not include prêt designs Hotels & resorts Amar Vilas (Oberoi), Four Seasons
LUXURY Luxury Products & Services Accessories Footwear: Jimmy Choo Handbags: Louis Vuitton, Aigner, Leiber, Hermes, Prada Small leather goods: Dunhill Watches: Piaget, Tag Heur Eyewear: Armani, D&G, Chanel
LUXURY Luxury Products & Services Perfumes: Channel Jewellery & Gems: Cartier, Tiffany Writing instruments: Mont Blanc Luggage: Louis Vuitton Liquor: Henessy (vodka), Blue Label, rare wines Art Not Luxury: Mango
LUXURY The Sachdev Group – Priya Chatwal & Charu Sachdev Brands: Lanvin, Alberta Ferretti, Jean-Paul Gaultier, Moschino, Stella McCartney Promoters of Luxury in India Genesis Colors Sanjay Kapoor of Satya Paul fame Brands: Aigner, Canali, Kenzo, Paul Smith, Just Cavalli Murjani Group Gucci, Jimmy Choo, Calvin Klein, Bottega Veneta Brandhouse Retail (S.Kumar Group) Escada, Dunhill JV’s in the pipeline DLF with Armani Hermes with Neelam Khanna (PRS Oberoi clan) Reliance Retail TSG International Marketing Pvt Ltd
LUXURY Emporio The first Indian luxury destination: Officially inaugurated: Sunday, 30th Aug Developer: DLF 130 luxury brands Apparel: Dolce & Gabana, Canali, Louis Vuitton, Chistian Dior Jewellery: Cartier, Harry Winston, Leather Goods: Tods Men: Paul Smith, Armani Watches: Piaget, Chopard, Jaegar Indian designers: Rohit Bal, Tarun Tahiliani, JJ Valaya
LUXURY The story in India Luxury is not new to India but the modern form is yet to evolve Branding Lasting customers relations Signature look Virgin market
LUXURY The story in India Ermenegildo Zegna First store opened at Crossroads in 1999. Closed in 2005 A 3000sqft store opened at Taj, Mumbai in 2007 Third store to come up at Emporio Jimmy Choo Launched India store through Murjani Group in Sep08 Located at Nariman Point, Mumbai Worn by Aishwarya Rai, Preity Zinta Internationally launching sunglasses, fragrances & handbags LV’s association goes back to the Maharaja’s for luggage First store opened in 2003 at Oberoi Hotel, New Delhi Second store opened in Mumbai in 2004 Now opened at Emporio Louis Vuitton
Luxury Market Spend Allocation
LUXURY Limitations of luxury in India
Lack of appropriate space
Adjacencies important – nightmare McDonald’s
Started with use of hotel space
Makeshift space in malls/markets
Emporio – perhaps the first luxury mall in India
Expensive real estate
Lack of trained manpower
Specialized programs in Institutes
Lack of Indian products & brands
LUXURY Scope for Indian brands Can you think of an Indian luxury brand? Acquiring Western brands: Tata acquires Jaguar from Ford in the UK Oberoi hotels: Rajvilas, Udaivislas, Amarvilas India’s strengths: excellence in craftsmanship, heritage, business potential Some suggested areas: hotels & hospitality, spas, jewellery, meditation (Mahesh Yogi), art, Indian fashion
Challenges to overcome
-Though Indian has become brand conscious and are ready to invest in luxury goods yet the scope of international luxury retail is limited, as there is still a percentage of people who do not see luxury retail as a necessity.
Lack of retail space
-Except for five star hotels Indian retail space has still failed to match international standards. For an international brand to find a large retail store space is still a dream, as apart from high rentals, shortage of retail space still exists.
Lack of High Fashion Street
-There is no street that is coming up as a high fashion street. Like New Yorks’s Fifth Avenue and London’s fashion streets, India has a long way to go before it can compete in both space and name, to call its retailing spaces as fashion streets.
-When consumer is ready to spent huge amount of money in buying a luxury product he would not like to compromise on the quality and services provided by the brand. Being a foreign brand satisfying the consumer becomes little difficult.