luxury buying behaviour & role of culture : indian context
TRANSCRIPT
Luxury Buying Behaviour & Role of Culture : Indian Context
By Group 11 :
Anshika Jain Anand Roy Anirban Mandal Risha Bagchi Saikat Roy
Introduction
India will likely to experience longest growth in total millionaire wealth
Growth of luxury car segment
Growth of jewellery market
India’s Love Affair with Gold
Indian Culture
Flashback IndiaEnd 1800 to early 1900
The Patiala Necklace(Cartier) of Maharaja Bhupinder Singh.
Weighing a total of 962 carats, it contained 2930 diamonds including the famous de beer which was the world’s 7th largest diamond at 234 carat.
Maharaja of Mysore Krishna Raja Wodeyar 4- Doing A Mysore.
Maharaja Jagatjit Singh, a loyal customer of Louis Vuitton.
Fast forward1940-1980
Pre Independence: The swadeshi movement infused a desire to be self ruled and self governed led to a major upswing of the anti British sentiment and everything foreign was taboo. Khadi became a norm of the day and textiles made in the mills of the British empire were being discarded and burnt in the streets
Click icon to add picturePost Independence: In the post independence era, the single most contributing factor to development of luxury has been fashion and the influence of the film industry on fashion. Bollywood was an early trendsetter where costume designers like Bhanu Athaiya started experimenting with film fashion in 1960. Over the years, popular bollywood trends were the differentiator between an ordinary or fashionably luxurious attire. Gradually, situations and themes of Indian cinema became westernized, paving way to a diverse global fashion exposure.
The New Luxury
Dramatic changes from old luxury to new luxury
Post independence period Educated urban middle
class
Reasons for the difference : Cultural Dimensions
Power Distance Individualism vs. Collectivism Masculinity vs. Feminity
Uncertainty Avoidance Short term vs. Long term orientation
India’s Cultural Orientation
Other 32 Indian values
High family orientation
Savings orientation
India is largest market for gold
Festivals sees phenomenal increase in sales
Apart from festival weddings are the aspirational occasion for buying
World gold council campaign
The New Luxury
Young professionals-
knowledge based & influenced by west
High achievement orientation .
This segment diametrically
different from same segment 20 years
ago
International exposure due to globalization
Aspirations for Bigger car, holidays, quality services
With the change of times, there is a change in trend
The New LuxuryBesides several kinds of services the young would engage in
something that would have a symbolic value of having ‘Arrived’
Portrayal of Materialism in modern movies in comparison to the movies in pre 1991 era
Despite high urbanization,
geographical spread of growth is expected to go
beyond the top tier cities
By 2025 Urban areas will account for 2/3rd of future growth in Indian
market
There is a trend of impulse gratification.New money helping the middle class up its quality of life
The History of Big Fat Indian Wedding
The Mughals The Mauryas’ The Cholas
• People in India are united by their culture and tradition, despite their diversity.
• Deep rooted Indian culture – makes it difficult for standardized strategy.• Localisation of more culture specific marketing strategies is needed.
Buying Behaviour : Indian vs. Global Market
29%
7%
39%
5%
20%
Indian Market
Apparel Personal care Jewellery Art Wines & Spirits
43%
28%
14%
8%7%
Global Market
Apparel Personal care Jewellery Art Wines & Spirits
Source : AT Kearney Research report, 2009
Adobe Acrobat Document
Conclusion“There is no understanding of luxury conceivable which is nationally or
regionally bound” on a world marketplace.
-Wiedmann et al. (2007, p.3[22])
Good understanding and right management of Indian culture would facilitate Luxury Brands to thrive as India is the next big opportunity for marketers.
Firms need to workout major issues involved with culture and values.
Thank you