india's luxury market unlocking consumers' taste for the finer things
DESCRIPTION
TRANSCRIPT
![Page 1: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/1.jpg)
NCRD’S STERLING INSTITUTE OF MANAGEMENT STUDIESINTERNATIONAL BUSINESS
PRESENTED TO:PROF. DR. MANOHAR PANDIT
PRESENTED BY:VARSHA GOLEKAR (A-18)MANGESH DUBEY (A-)SHAHNAWAZSANTOSH RAJPUTKUNAL
![Page 2: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/2.jpg)
India's Luxury Market: Unlocking Consumers' Taste for the Finer Things
![Page 4: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/4.jpg)
ASSOCIATED WITH…
HIGH QUALITY CRAFTSMANSHIP UNIQUENESS CREATIVITY EXCLUSIVITY
INNOVATION
LUXURY GOODS
![Page 6: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/6.jpg)
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
![Page 7: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/7.jpg)
Accessories
Footwear: Jimmy Choo
Handbags: Louis Vuitton, Aigner,Leiber, Hermes, Prada
Small leather goods: Dunhill
Watches: Piaget, Tag Heur
Eyewear: Armani, D&G, Chanel
![Page 8: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/8.jpg)
Luxury Products & Services
Perfumes: Channel Jewellery & Gems: Cartier, Tiffany
Writing instruments: Mont Blanc
Luggage: Louis Vuitton Liquor: Henessy (vodka), Blue Label, rare wines Art
![Page 9: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/9.jpg)
Hike in the salary
High Standard of living .
Luxury becoming a status symbol.
Stylish appearance
Better Performance
Ungroup to move, recolor, or delete levels.
Increased durability
Luxury in India has become more accessible.
“Bollywood is an influencer”
Reasons for emergence of luxury retail in India
Advanced features
![Page 11: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/11.jpg)
Residents from up market 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’.
THE LUXURY TIMES
![Page 12: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/12.jpg)
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
![Page 13: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/13.jpg)
PERSPECTIVE
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.
![Page 14: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/14.jpg)
The Indian luxury market is evolving more rapidly than most of us had foreseen. The luxury market witnessed robust growth of 20% in the year 2009 and is estimated to have reached USD 5.75 billion in 2010. Luxury products have grown the fastest at 29% to reach a size of USD 2.05 billion, well above expectations of 23%. Services have grown at 22% to reach USD 0.95 billion and assets have grown at 13% to reach USD 2.75 billion
![Page 16: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/16.jpg)
Luxury Market Spend Allocation
![Page 17: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/17.jpg)
Luxury Wines and SpiritsSource: A T Kearney analysis
SECTOR FOCUS
![Page 19: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/19.jpg)
Personal Care
Total market and luxury market segmentation in India by value (2010)
![Page 21: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/21.jpg)
Classic luxury will co-exist with selective indulgence, guided by ‘trusted advisors’
![Page 22: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/22.jpg)
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
![Page 23: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/23.jpg)
Limitations of luxury in India
Lack of appropriate spaceAdjacencies important – nightmare McDonald’s Started with use of hotel spaceMakeshift space in malls/marketsEmporio – perhaps the first luxury mall in India
Expensive real estateLack of trained manpower
Specialized programs in Institutes
Lack of Indian products & brands FDI restrictions
![Page 26: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/26.jpg)
Scope for Indian brandsCan you think of an Indian luxury brand???
India’s strengths: excellence in craftsmanship, heritage, business potential Some suggested areas: hotels & hospitality, spas, jewellery, meditation (Mahesh Yogi), art, Indian fashion
Acquiring Western brands: Tata acquires Jaguar from Ford in the UK
Oberoi hotels: Rajvilas, Udaivislas, Amarvilas
![Page 27: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/27.jpg)
Aspiring middleclass
Privatization of airports providing a retail space for brands that fit in
modern life, work
Government showing interest in increase in FDI limits to 100% in single brand retail and 51% in multibrand retail
DRIVERS FOR GROWTH
![Page 28: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/28.jpg)
ESSENTIALS FOR LUXURY BRANDS IN INDIA
‘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
![Page 29: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/29.jpg)
STRATEGIES 1234
6
5
Customer engagement, personalized experience
1
•Maintain exclusiveness 2
•Separate line of goods available at lower cost
3
•Promoting luxuries as a wise investment; Villas
4
• ‘Targeted luxury’ 5
6 • Seasonal product branding
![Page 31: India's luxury market unlocking consumers' taste for the finer things](https://reader035.vdocuments.net/reader035/viewer/2022081518/54cc06234a795991738b4642/html5/thumbnails/31.jpg)
Traditional luxury brands dramatically accelerate their internet activities
1