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Luxury Marketing in India


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Luxury Marketing in India

  2. 2. T HE L UXURY T IMES Residents from upmarket south Mumbai households drink milk from happy cows‘. Priced at Rs 75 a litre, the milk is extracted from Jersey-Holstein cows which listen to soothing music and consume specially grown fodder. In 2010, a consortium of industrialists in Aurangabad placed an order for 150 Mercedes cars worth Rs.65 crore. (Customer profile: Entrepreneurs in their 30s and 40s) Hero Cycles has forayed into the premium bicycle market by launching cycles priced at Rs 43,000, under the brand name ‘Urban Trail’.
  3. 3. P ERSPECTIVE Luxury market grew at ~20% in 2010-11 and is valued at ~$5.8 billion, currently. World Wealth Report by Cap Gemini Merrill Lynch estimates the number of Indian high net worth individuals with liquid assets of over $1 million at 1,53,000. A study by Wealth-X, estimates that there are 8,200 ultra-high net worth individuals (UHNW) in India with a combined fortune of $945 billion.
  4. 4. R ECENT T RENDS Jewellery, electronics, cars, fine dining, apparel, accessories, wines and spirit witnessed maximum growth. Luxury has gone beyond Delhi, Mumbai and Bangalore to Chennai, Hyderabad and Pune. North Mumbai and Gurgaon have emerged distinct hubs for luxury goods.
  5. 5. D RIVERS OF GROWTH Aspiring middleclass with rising disposable incomes- the game changer Privatization of airports providing a retail space for brands that fit in modern life, work, career, travel and international lifestyle. Government showing interest in increase in FDI limits to 100% in single brand retail and 51% in multibrand retail
  6. 6. P ROGRESSION OF B RANDSLuxury/Prestige brand• Rolex, Louis Vuitton, CartierPremium brands• Ralph Lauren, Calvin Klein, Tommy HilfigerFashion brands• Numero Uno, Titan, Fast track
  7. 7. ATTRIBUTES OF L UXURY G OODS Creativity Premium Exclusivity pricing. Attributes of Luxury GoodsInnovation Craftsmanship High quality Precision
  8. 8. B OTTLENECKS Infrastructure challenges and regulatory constraints Import taxes on luxury goods, which at the federal level are between 30%-40% 51% cap on the foreign ownership of their Indian units, which luxury brands fear risks diluting their name and harming their business models.
  9. 9. E SSENTIALS FOR LUXURY BRANDS IN I NDIA ‘Expansiveness’ (meeting divergent needs) Must tell a story (identity) Relevant to the consumers’ need Align with consumers’ values as luxury goods are forms of expression or identification for a luxury consumer Must perform
  10. 10. S TRATEGIES FOR M ARKETING OF L UXURY G OODS Customer engagement, personalized experience Maintain exclusiveness Separate line of goods available at lower cost; refurbished cars and line extensions P ™romoting luxuries as a wise investment; Villas ‘Targeted luxury’ memorabilia is given to the target segment in an attempt to fuel their desire for owning the product; Miniature models of Mercedes cars, key chains of Rolex watches
  11. 11. F OCUS AREASPrice-value relationship Reputation of the service provider Product brand
  12. 12. N EW TERRITORIES OF LUXURY BRANDING Services Real estate Hospitality
  13. 13. H IDESIGN : A HOMEGROWN LUXURY BRAND Hippie brand born in the late 1970s. The Puducherry-based company caters to the upmarket luxury end of the business. French multinational Louis Vuitton has bought a stake in the company The company has introduced ‘Holii’ range of accessories, in partnership with Kishore Biyani’s Future Group.