This Case Study discusses about Luxury Branding in India.

1. Hemanth Y
Adjunct Faculty-Army Institute of Fashion and
Design
Ex-faculty, NIFT
and Research scholar

2. Status of Luxury Branding in Indian
Context
Original Research Note / Case Study
Written By
Hemanth Y
IUP Journal of Brand Management ,December 2013
,10(4),ISSN-0972-9097,pg.66-70

3. Objectives of the Presentation
To understand the basic concepts and
strategies in luxury brands
To know the current status of Luxury
branding in India

5. “Luxury is a necessity that begins where
necessity ends.” Coco Chanel

6. Uu
U
It is
associated
with strong
involvement
of human
element and
value
recognition
from others.;
L
The word luxury
originates from the Latin
term “luxus” signifying
“soft or extravagant
living, indulgence,
opulence “2
X
It can also
refer to
lifestyle
U
Luxury is
consumer
and situation
specific..
R
It is about
Affluence
Y
It is an
aspect
which is
enjoyable

7. Luxury
• The word luxury originates from the Latin
term “luxus” signifying “soft or extravagant
living, indulgence, opulence “
• It is associated with strong involvement of
human element and value recognition from
others.
• It can also refer to lifestyle; the underlying
construct’s definition is consumer and
situation specific.

8. According to Collins English
Dictionary the term Luxury is
defined as
“Indulgence in rich and
sumptuous living and
indulgence rather than a
necessity”
The Oxford Advanced Learner's Dictionary
defines luxury as the enjoyment of special and
expensive things, particularly food and drink,
clothes and surroundings, as a pleasure or an
advantage that you do not often have and as a
thing that is expensive and enjoyable but not
essential.

9. luxury can be called as “It is more than
necessity”. It is associated with affluence and
superiority

10. Luxury and Fashion
• The term luxury came into being by the role
played by Fashion which has always had an
impact in the history of the great civilizations. In
Egyptian cultures, Greek and Roman Empires
fashion was a key social element that reflected
the society through apparel, accessories and
cosmetics. The value provided by luxury is
beyond the core function and it incorporates
culture and philosophy as it creates desires rather
than meeting customer’s need.

11. Fashion can also be called as high end
product called “haute couture” which is
derived from French word.
This product is non-wearable
and it is demonstrated in all
the fashion shows for
promoting the fashion labels
of designers

12. • Bearden and Etzel (1982, P.184) defines luxury
is more than necessity and have a degree of
exclusivity.
Research Point of View:
• The Study had discussed about various
distinctions between necessity and luxury

13. Figure depicting a Hierarchy of Luxury Goods Products (Alleres 1990)

14. Classification of Luxury Goods
• Alleres(1990) indicates that the luxury goods
can be interpreted in socio-economic class
and 3 levels of luxury goods exists based on
the degree of accessibility.
• According to this hierarchy it can be
understood as the inaccessible luxury level is
related to an elite socio-economic class, and is
identified with absolute product
distinctiveness

15. It is associated with products that are extremely
high-priced, which offer the owner
exceptional social prestige.
The middle level called as the intermediate
luxury level describes a category of luxury
products that is attainable by the
‘professional’ socio-economic class.
Bottom level is the accessible luxury level which
describes luxury products that are attainable
by the middle

16. Luxury brands and branding
• When we hear the term ‘luxury product’ the
first thing comes to mind is expensive. The
following literature gives brief idea about
luxury brands and the various dimensions of
luxury brands.

17. • Luxury products are often purchased simply
because they cost more, without providing
any additional direct utility over their cheaper
counterparts (Dubois & Duquesne, 1993)
• In the study it is also understood that
Americans are increasingly trading up to
luxury brands (Silverstein & Fiske, 2003) ,

18. regardless of their economic status, because
these products provide an opportunity for the
middle class to attain the perception of
prosperity (Schwartz, 2002)

19. • It is evident that the consumption of such
products displays individuals’ wealth,
differentiating them from others (Liebenstein,
1950).
• In American context, luxury brands are quite
common and even middle class don’t hesitate
to buy luxury brands
• In India the luxury brands are eyeing few
metro cities like Mumbai, Delhi and Bangalore
etc.,

20. Conclusion
•Elite class people are emotionally attached to the product though
it is highly priced
•Luxury brands are associated with the set of philosophy and
culture which is an intrinsic nature of luxury products
•No short term growth in luxury segment
•A T Kearney report says that there is 21% expected growth by
the end of year 2015
•Projected figure is 14.72$ Billion
•India is still an investment market

21. White Papers:
• Bearden, W. O., & Etzel, M. J. (1982). Reference Group Influence on Product and
Brand Purchase Decisions. Journal Of Consumer Research, 9(2), pg.183-194.
• Alleres, D. (1990), “Luxe - Strategies Marketing”, Economica, 1
• Liebenstein, H. (1950). Bandwagon, Snob and Veblen effects in the theory of
consumers’demand. Quarterly Journal of Economics, 64, pg.183–207.
• Mandel, N., Petrova, P. K., & Cialdini, R. B. (2006). Images of Success and the
Preference for Luxury Brands. Journal Of Consumer Psychology (Lawrence
Erlbaum Associates), 16(1), 57-69.
Websites:
• http://luxurysociety.com/articles/2010/05/defining-luxury-the-conundrum-of-
perspectives
• http://www.magicalmumbai.com/3071/luxury-brands-in-mumbai/
References:

22. THANK ME.