LV In India Case Study

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In the LV in India case, there are a number of reasons outlined as to why a consumer would be interested in purchasing luxury goods. In Europe, luxury was all about exclusivity and, as such, was set at exclusive price points. In the US, luxury was about feeling special and was approached more democratically, introducing the concept of “luxury nibbling”, which enabled people to access a luxury brand and a few lower priced items to draw them in. The case continues this argument with the introduction of three categories of buying behavior as it pertains to luxury goods. The first being “luxury as superior functionality and quality”, where consumers are typically older, wealthier and willing to pay for high-quality, enduring items. These consumers usually …show more content…

India is a low-income economy. Can this dichotomy be reconciled? I definitely think this can be reconciled. I think that LV’s early relationship with the maharajas offer them solid ground in the market. This loyalty between LV and the maharajas established LV’s brand as exclusive and for the wealthy, which grants them a lot of benefits during their target of HNW individuals. I also think that while there is a lot of poverty in India, the middle and wealthy classes are rising. A couple of the statistics provided in the case suggest that India has the world’s second fastest growth in the number of HNW individuals. The “cocooners” are also likely to develop a taste for luxury as they adapt to higher income levels and more lavish spending habits. The case estimates this market at around 97 million people. Aside from the demographic adjustments, the luxury market in India is also growing at a solid rate. More specifically, and for the purposes of this case, the luxury products segment was estimated to be worth around $444 million and growing at a staggering 20% annually. Some companies, such as Bentley of the United Kingdom, were pleasantly surprised by their success in

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