Fashion market study 1 1


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Fashion market study 1 1

  1. 1. Fashion Market Study Vasundhra Goel MA FMG JAN’2011
  2. 2. Plan of Presentation $ Objective $ Meaning of luxury $ Characteristics of luxury $ Global luxury market $ Entrance of luxury brands in India $ Face of Indian luxury market $ Luxury – Indian women $ Luxury product categories $ Women luxury market
  3. 3. Plan of Presentation $ Choice of brands $ Entry into India ??? $ Growing consumerism in India $ Indian luxury consumer $ What does the Indian consumer associate luxury with? $ Marketing strategy of luxury brands $ Key Brands – LV and Jimmy Choo -USP -Marketing Mix
  4. 4. Objective of the Project <ul><li>To conduct a research on Women’s Luxury Brands existing in Indian Luxury market. </li></ul>
  5. 5. $ LUXURY $ <ul><li>“ Luxury, derived from the Latin word luxus , means indulgence of the senses, regardless of cost.” </li></ul><ul><li>LUXURY BRANDS </li></ul><ul><li>“ Luxury brands are brands whose ratio of functional utility to price is low while that of intangible utility to price is high.“ </li></ul>
  6. 6. LUXURY BRANDS share characteristics <ul><li>$ Consistent premium quality . </li></ul><ul><li>$ Heritage of craftsmanship. </li></ul><ul><li>$ Recognizable style or design. </li></ul><ul><li>$ Limited production run to ensure </li></ul><ul><li>exclusivity . </li></ul><ul><li>$ Ability to keep coming up with new </li></ul><ul><li>designs. </li></ul>
  7. 7. Global Luxury Market
  8. 8. Entrance of High End Luxury Brands in India??? ?? <ul><li>$ A growing middle class. </li></ul><ul><li>$ Increasing number of working women. </li></ul><ul><li>$ Aspirational young earners who are </li></ul><ul><li>extremely brand conscious. </li></ul><ul><li>$ Higher salaries of employees in </li></ul><ul><li>corporate sector. </li></ul><ul><li>$ Faster development of several Tier 2 </li></ul><ul><li>and Tier 3 sectors. </li></ul>
  9. 9. Face of Indian Luxury Market <ul><li>$ India’s total retail market estimated </li></ul><ul><li>Rs 7,170 billion = 8 million consumers. </li></ul><ul><li>1 million = Luxury brands segment. </li></ul><ul><li>$ India's luxury marketplace represents </li></ul><ul><li>$4.76 billion. </li></ul><ul><li>$ Growing at the rate of 25% p.a. </li></ul><ul><li>$ Absence of quality locations. </li></ul><ul><li>$ Indian luxury market is 60% dominated </li></ul><ul><li>by men, if we remove the jewelry that </li></ul><ul><li>contributes 40% of total luxury market. </li></ul>
  10. 10. $ Indian market is dominated by Jewellery whereas Global market is dominated by Apparel and Accessories. $ Consumers spend most on “ Look Good “category of Luxury Goods such as Jewellery , watches followed by apparel.
  11. 11. <ul><li>$ Lack of customization for Indian fits. </li></ul><ul><li>$ Indian women are more comfortable with </li></ul><ul><li>accessories. </li></ul><ul><li>$ Women are more prone to splurge on </li></ul><ul><li>accessories such as shoes and bags. </li></ul><ul><li>$ “Women are top of the pyramid at </li></ul><ul><li>Louis Vuitton for handbags. They are an </li></ul><ul><li>important segment for LVMH.”-LVMH </li></ul><ul><li>Representative </li></ul>Luxury-Indian Women
  12. 12. Luxury Product Categories <ul><li>$ Electronics </li></ul><ul><li>$ Automobiles </li></ul><ul><li>$ Fashion industry </li></ul><ul><li>- Clothing </li></ul><ul><li>$ Fashion accessories </li></ul><ul><li>Leather goods (belts and bags) </li></ul><ul><li>Jewellery </li></ul><ul><li>Watches </li></ul><ul><li>Sunglasses </li></ul><ul><li>Fragrance </li></ul><ul><li>Skin care and cosmetics </li></ul><ul><li>Footwear </li></ul>
  13. 13. Women Luxury Brands
  14. 14. Choice of Brands <ul><li>$ For consumers who are already brand-savvy, luxury </li></ul><ul><li>names come under one of two distinct titles, </li></ul><ul><li>said classic brands and high fashion brands . </li></ul><ul><li>$ Classic names include Chanel, Gucci, Salvatore </li></ul><ul><li>Ferragamo, Christian Dior, Louis Vuitton. </li></ul><ul><li>$ Names that command consumers’ attention are </li></ul><ul><li>names like Armani, Versace, D&G. </li></ul>
  15. 15. Entry into India through…. <ul><li>$ Joint Venture </li></ul><ul><li>- Italian luxury fashion brand Dolce & Gabbana </li></ul><ul><li>operates a 51:49 single brand retailing venture </li></ul><ul><li>with real estate major DLF. </li></ul><ul><li>- Genesis Colour with Burberry . </li></ul>$ Franchisee Agreement - Bottega Veneta with Media Star Private Ltd. - Blues Clothing Company a licensee of several luxury brands like, Versace Collection, Corniliani etc. - Aigner and Cartier, are present through licensee agreements.
  16. 16. <ul><li>$ Zara Basics has firmed up its India plans with a </li></ul><ul><li>JV with the Tata Group subsidiary Trent Ltd. Zara </li></ul><ul><li>Basic like Zara Woman, Trafaluc, Textures Zara and </li></ul><ul><li>TRF. </li></ul><ul><li>$ Italian luxury fashion brand Dolce & Gabbana </li></ul><ul><li>operates a 51:49 single brand retailing venture </li></ul><ul><li>with real estate major DLF. Similarly, Marks and </li></ul><ul><li>Spencer the UK retail chain ventured into India with a partnership with Reliance Retail. </li></ul><ul><li>$ Aigner and Cartier, are present through licensee </li></ul><ul><li>agreements. </li></ul>Luxury Brands and its features
  17. 17. <ul><li>$ More wealthy people. </li></ul><ul><li>$ Increasing awareness. </li></ul><ul><li>$ Increasing Consumerism. </li></ul><ul><li>$ Greater Supply of Luxury Goods. </li></ul>Growing Consumerism in Indian Luxury Market
  18. 18. Indian Luxury Consumer <ul><li>$ Primarily resident in urban India. </li></ul><ul><li>$ Lives in a household earning more than </li></ul><ul><li>about INR800,000 a year, where the </li></ul><ul><li>chief wage earner is male, average age </li></ul><ul><li>36–37. </li></ul><ul><li>$ Owns a premium/luxury car . </li></ul><ul><li>$ Among women consumers, 65% are </li></ul><ul><li>housewives. </li></ul><ul><li>$ Most are educated to post-graduate level. </li></ul><ul><li>$ Travelling abroad for holidays at least once </li></ul><ul><li>a year. </li></ul><ul><li>$ Influenced more by glamour and style </li></ul><ul><li>and want to stand out in a crowd. </li></ul>
  19. 19. What does the Indian Customer associate Luxury with?
  20. 20. Marketing Strategy of Luxury Brands 4P’S Factor Luxury Goods Place Available in very selected stores or exclusive outlets at very high-end locations. Product Highly customized or limited editions of products, very high personal service levels. Pricing Premium pricing Promotion Predominantly premium. Above the line media. (For eg: Connoisseur magazines, travel channels etc.) Mostly celebrity appeals.
  21. 22. Target Market <ul><li>$ LV uses demographic targeting strategy to target their customers </li></ul><ul><ul><li>Both men and women </li></ul></ul><ul><ul><li>Age: ranging from young adults to seniors (22 – 65 yrs old) </li></ul></ul><ul><ul><li>Income: around $5,500 or above per month </li></ul></ul>
  22. 23. Unique Selling Point <ul><li>$ Fashionable </li></ul><ul><li>$ Durable goods </li></ul><ul><ul><li>Good quality product </li></ul></ul><ul><ul><li>Long product life </li></ul></ul><ul><li>$ Exclusivity </li></ul><ul><li>$ Prestige image </li></ul><ul><ul><li>Feel good </li></ul></ul><ul><ul><li>Fit into high-class society </li></ul></ul>
  23. 24. Marketing Mix
  24. 25. <ul><li>$ Main Products: Leather Bags and Wallets </li></ul><ul><ul><li>Handbags </li></ul></ul><ul><ul><li>Luggage </li></ul></ul><ul><ul><li>Cosmetic Bags </li></ul></ul><ul><li>$ Original Product Line: Monogram </li></ul><ul><li>$ Expanded its product line </li></ul><ul><ul><li>Monogram Denim </li></ul></ul><ul><ul><li>Monogram Multicolore </li></ul></ul><ul><ul><li>Monogram Vernis </li></ul></ul><ul><ul><li>Damier Canvas </li></ul></ul>Product
  25. 26. Product <ul><li>$ Offer more types of product including: </li></ul><ul><ul><li>Timepieces </li></ul></ul><ul><ul><li>Shoes </li></ul></ul><ul><ul><li>Agendas </li></ul></ul><ul><ul><li>Jewelry </li></ul></ul><ul><ul><li>Sunglasses </li></ul></ul><ul><ul><li>Belts, scarves & Accessories </li></ul></ul>
  26. 27. Price <ul><li>$ Premium Pricing </li></ul><ul><ul><li>Luxury image </li></ul></ul><ul><ul><li>Selling Point </li></ul></ul><ul><li>$ Never on sale!! </li></ul><ul><li>$ Price range: </li></ul><ul><ul><li>Handbags: $550 - $3,700 </li></ul></ul><ul><ul><li>Wallets: $200 - $700 </li></ul></ul>
  27. 28. Place <ul><li>$ Direct channels: Free-Standing Store </li></ul>
  28. 29. <ul><li>$ Department Stores: </li></ul><ul><ul><li>Macy’s New York </li></ul></ul><ul><ul><li>Bloomingdales </li></ul></ul><ul><ul><li>Saks Fifth Avenue </li></ul></ul><ul><li>$ Exclusive Distribution </li></ul><ul><ul><li>Limited number of stores and retailers </li></ul></ul>Place
  29. 30. Promotion <ul><li>$ Emphasize on personal selling </li></ul><ul><li>$ Don’t emphasize on sales promotion </li></ul><ul><ul><li>To reinforce their luxury image </li></ul></ul><ul><li>$ PR </li></ul><ul><ul><li>Sponsorship </li></ul></ul><ul><ul><ul><li>“ Louis Vuitton Cup 2007” </li></ul></ul></ul><ul><ul><ul><li>“ LVMH Young Artists’ Award” </li></ul></ul></ul><ul><ul><ul><li>LVMH Website - “The Magazines” </li></ul></ul></ul>
  30. 31. Promotion <ul><li>$ Advertisements: </li></ul><ul><ul><li>Message </li></ul></ul><ul><ul><ul><li>Convey luxurious image </li></ul></ul></ul><ul><ul><li>Means of media </li></ul></ul><ul><ul><ul><li>High-end Fashion Magazines </li></ul></ul></ul><ul><ul><ul><ul><li>Eg. Vogue, Elle </li></ul></ul></ul></ul><ul><ul><ul><li>Billboards </li></ul></ul></ul>
  31. 32. <ul><ul><li>Endorsements: Jennifer Lopez, Kate Moss, Uma Thurman, and Scarlett Johansson </li></ul></ul>Promotion
  32. 33. <ul><li>$ New advertising campaign </li></ul>Promotion
  33. 34.
  34. 35. A women’s right to shoes Unique Selling Point Bags and Shoes
  35. 36. Marketing Mix <ul><li>$ Product </li></ul><ul><li>-Women shoes </li></ul><ul><li>-Handbags </li></ul><ul><li>-Small leather goods </li></ul><ul><li> -Sunglasses </li></ul>$ Different Themes of Shoes -Tutti Frutti -Pom Poms -Doris Day -Candy pops
  36. 37. Marketing Mix <ul><li>The Styles </li></ul><ul><li>$ Jimmy Choo Day – There are a perfect array of shoes to wear by day, including leather mules, pumps, sexy boots and simple sling backs. </li></ul><ul><li>$ Jimmy Choo Evening- For night slip on the sex appeal. These shoes are utterly sexy, elegant and unique. </li></ul><ul><li>The Handbags </li></ul><ul><li>$ They are incredibly functional and stylish at the same time. The styles range from leather totes, to hobo bags and shoulder bags with bold hardware. </li></ul>
  37. 38. Marketing Mix <ul><li>$ Price </li></ul><ul><li>The shoes and accessories range in price from around $250 to over $1,000 per item. </li></ul>
  38. 39. Marketing Mix <ul><li>$ Place </li></ul><ul><li>Collection is available only through high-end department stores and specialty boutiques situated at Prime locations. </li></ul>
  39. 40. Marketing Mix <ul><li>$ Promotion </li></ul>
  40. 41. !!Thank you!!