Luxury Market In India
Abstract
Luxury market in India is in a nascent stage and the industry experts see huge potential for luxury brands in Indian market in the future. It is important for the brands to attract new customers and even more make the existing customers brand loyal. This paper aims to study the decision making process in terms of attitudes of the customers, their motivation for purchase etc. specifically in the Indian context, and then to provide necessary recommendations for the luxury brands in India in terms of their target segments and positioning.
The paper theorizes that there are 4 important dimensions which affect the luxury consumption patter: financial dimension, functional dimension, individual dimension and social dimension. The customers
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These people might be looking for the following benefits:-
1. Self-directed pleasure: the hedonic experiences of using the product for one’s own pleasure
2. Self-gift giving: the use of a product for its utility that may enhance one’s emotions
3. Congruity with internal self: the brand image is the reflection of one’s own personality
Casaburi (Casaburi 2005) in his paper about the influence of culture on luxury products talks about the difference in motivation for the people in different culture. In emerging economy like China which is seeing a growth in western luxury products recently, people feel that luxury brand is something that gives them social status and acceptance in elitist groups. Most of the people in that economy don’t purchase luxury goods for personal utilitarian purposes, rather it is a conspicuous consumption.
Methodology
Step 1: Interviewing Store Managers
Our journey started with interviewing store managers of various luxury retail chains – ranging from Cartier and Louis Vuitton to Burberry and Rolex. The purpose of these interviews was:
a) To gather a basic knowledge of how the retail side of a luxury brand operates,
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For this, we created a questionnaire influence by the 6 characteristics of luxury products, viz., price, quality, aesthetics, rarity, extraordinariness and symbolism (Klause Heine 2012). We were working with the following hypothesis:
H0: Luxury has the same associations for everyone.
H1: Luxury has different associations for the two sub-categories: Affluent and Excursionists.
We asked 159 people (128 Excursionists and 31 Affluent) to associate words to ‘luxury products’ (Question: Which of these words do you identify with luxury?). The words used were: social class, prestige, lifestyle, high price, fortune, noble, self-image, unique, rare, ever-lasting, high quality, elite, high-end market, taste, beauty, limited supply and individuality. The results are summarized in Table [x].
Through the analysis of the results, we could reject our Null Hypothesis. Luxury, indeed, had different associations for both the sub-categories.
Step 3: In-Depth Interviews Based on 4
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