Plight of Luxury Brands in India

8/12/2019 Plight of Luxury Brands in India

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NATIONAL INSTITUTE OF FASHION

TECHNOLOGY

HYDERABAD

MASTER OF FASHION MANAGEMENT (2013-15)

MARKETING RESEARCH

ASSIGNMENT NO-2

“ PLIGHT ON LUXURY BRANDS

SUBMITTED BY! SUBMITTED TO!GAYATHRI"#S (11) MR" A" SRINI#ASA RAO

GREESHMA"# (12)

GUN$E PALLA#I (13)

KOMAL TAPASE(22)

SUBBARAO TELLAM(3%)

1



INDEX

2

SR

NO"LIST OF GRAPHS PAGE

NO"

1 GENDERWISE CLASSIFICATION OF THE RESPONDINGSAMPLE 31

2 AGEWISE CLASSIFICATION OF THE RESPONDING SAMPLE 32

3 OCCUPATIONWISE CLASSIFICATION OF THE RESPONDINGSAMPLE

33

5 INCOMEWISE CLASSIFICATION OF THE RESPONDINGSAMPLE

34

6 AGE GROUP MOST INTERESTED IN BUYING LUXURYPRODUCTS

35

7 IS LUXURY RELATED TO INCOME 36

8 RELATION OF LUXURY GOODS TO INCOME LEVEL 37

9 RANK THE FOLLOWING PARAMETERS ON YOUR PURCHASEPREFERENCE

38

10 REASONS FOR PURCHASE OF LUXURY PRODUCTS 39

11 QUALITY OF LUXURIOUS BRANDS ARE MORE SUPERIORTHAN OTHERS

4

12 VALUE DERIVE FROM LUXURY BRANDS IS MORE THANOTHERS

0

13 SERVICES PROVIDED BY LUXURY BRANDS IS BETTER THANOTHERS

41

14 LUXURY BRANDS ARE PREFER BY HIGH INCOME GROUPS 42

15 SOCIO ECONOMIC FACTORS WHICH AFFECT THE LUXURYSALES

43

16 WHICH BRANDS YOU PREFER TO SHOP 45

17 WHERE DO YOU PREFER TO SHOP 46

18 DO YOU STILL GO ABROAD TO SHOP LUXURY PRODUCTS 47

19 DO SALE OF LIFESTYLE PRODUCTS ONLY RESTRICTED TOMETROS

48



KNOWLEDGEMENT

Some works are so typical that are impossible for a person to complete it alone. Smmer!nternship "ro#ect is one of them. $e wol% not be able to complete my work withot

the help of my respecte% Faculty Guide PROF. MR. SRINIVASA RAO , an% or batch

mates& my family members. So it is my obli'ation to thank all of them.

EXECUTI#E SUMMARY

3



(he pro#ect has main emphasis on )(*+ ",!-*( / (*+ , S ! !!.

,ry bran%in' is a whole new ball:'ame alto'ether& both from the perspecti;e of the marketer

as well as the lry consmer.

P&'*+ T,+<

(he "li'ht of the ,ry ran%s in !n%ia

O.*+,/ ' + P&'*+!

1. (o st%y the ftre of lry bran%s in a %e;elopin' contry like !n%ia.

2. (o n%erstan% the cstomer psycholo'y towar%s lry bran%s an% the chan'in'

consmer beha;ior for an epensi;e pro%ct.

S*' ' S+4!

4



r st%y incl%es 'ettin' to know abot )what lry is an% why a person will prchase a

lifestyle pro%ct. $hat are the characteristics of lry in%stry= > how the consmer beha;es

in this se'ment. $hich se'ment on basis of %emo'raphics an% on basis of psycho'raphics is

intereste% in byin' a lry bran%= /or this we frame% sche%les an% also %i% ?alitati;e st%y

like sha%owin' to n%erstan% the tre beha;ior of the people. (hro'h this we were able to

analysis the consmer beha;ior towar%s lry bran%s.

"ost i%entification of the min%:set of the !n%ian lry consmer@ we ha;e con%cte% a

syner'etic strate'y bil%in' eercise& in an attempt to make sre that there are actionable points&

which will 'o on to ensre the best interplay between the most important factors for a lry

bran%& i.e. the pro%ct bran%& the bran% A reptation of the ser;ice pro;i%er an% the price:;ale

relationship of the lry bran%. (hereafter on the basis of st%y an% thro'h brainstormin'

continos %iscssion& we prepare% ?estionnaire for sr;ey.

"roblems associate% with lry fashion bran%s& theoretically as well as on a practical le;el&

an% the crcial nee% for a perception of eclsi;ity an% how this perception can be maintaine%

are a%%resse%. (his pro#ect contribtes to the specific an% still limite% knowle%'e on how lry

bran%s are %ynamic an% their nee% for consistency to'ether with renewal an% chan'e.

R67&* M+'4''8!

%escripti;e research attempts to %escribe systematically a sitation& problem& phenomenon&

ser;ice or pro'ram& or pro;i%es information abot& li;in' con%ition of a commnity& or

%escribes attit%es towar%s an isse.

$e ha;e %one %escripti;e research %esi'n followin' cross sectional st%ies with %ifferent a'e

'rop of people in lry se'ment. "ro#ect has information 'athere% from both from primary

an% secon%ary sorces& the primary sorces will be sr;ey %one.

5



CHAPTER 1

PRO$ECT PROFILE

7



P&'.: D,9,+,'9

“Plight of Luxury Brands in India”

OB$ECTI#ES OF THE PRO$ECT!

efore sellin' any bran% its tmost important to #%'e an% i%entify who is the tar'et a%ience

an% what is the perception they are hol%in' abot the bran%. esearchers can flfill all these

ob#ecti;es thro'h answerin' these for ?estions<

• $hy Dwhat are the benefits or ;ale people are 'ettin' thro'h a lifestyle pro%cts& this

prpose shol% be ;ery clear in the min%s of all researchers that why we are %oin' sch

a researchE

• /or whom Dwho are the tar'et a%ience for the lry pro%ctsE

• 'ainst whom D$hat is the basic %ifference between a "remim bran%& a ,ry bran%

an% -riffeE

• $hen D%eterminin' the opportnities for lry bran%s in a %e;elopin' contryE

THE OB$ECTI#ES OF THE STUDY ARE!

1. (o st%y the ftre of lry bran%s in a %e;elopin' contry like !n%ia

2. (o n%erstan% the cstomer psycholo'y towar%s lry bran%s an% the chan'in'

consmer beha;ior for an epensi;e pro%cts.

SCOPE OF THE STUDY

8



s the total stren'th of the ni;erse is lar'e an% the time associate% with obtainin' information

from the ;iewers is less& the sample siCe was 75 respon%ents.

r scalin' nit was time perio% of two week& for selection of sample siCe we ha;e se% non

probability samplin' techni?e.

$e %i% not se "!,!( SF",!- becase@ in this poplation members ha;e a

known probability of bein' in the sample. /or non:probability samplin' we %onGt nee% to %esi'n

a frame. Foreo;er in or opinion it wol% facilitate the research as the responses obtaine%

thro'h this sample wol% be more accrate an% honest.

S7: 6,;< 75 espon%ents

S7:,98 9,+< (he sample list contains lry se'ment consmers.

M+'4< e to limite% time span we ha;e con%cte% online sr;ey of consmers in !n%ia an%

referrin' to their byin' patterns.

Sorces of information< both secon%ary an% primary %ata se% for the research prpose

BACKGROUND OF STUDY

9



I9+&'4*+,'9

(he research metho%olo'y establishes a framework of e;alation an% re;alation of primary

an% secon%ary research. (he techni?es an% concepts se% %rin' primary research in or%er

to arri;e at conclsion an% fin%in's@ are also %ealt with an% lea% to a lo'ical %e%ction

towar%s the analysis.

P76 1! I49+,,*7+,'9 ' + &'.:!

(he problem with the wor% lry is that it is at once a concept& a sb#ecti;e impression an% a

potential term& often sb#ecte% to moral criticism

,ry bran%s are always in mch more %ilemma when they enter in a %e;elopin' contry

abot there ftre as the tar'et a%ience is ;ery few an% the consmer is sli'htly relctant to

shell ot that mch of money in one 'o.

n the basis of problem i%entifie% we %eri;e at the pro#ect title as

“Plight of Luxury Brands in India”

P76 2! D+&:,97+,'9 ' ,9'&:7+,'9 946 794 6'&*6

esearchers con%cte% an intensi;e secon%ary research to n%erstan% the concept of market

research& bran% perception the sellers an% byers are carryin' for the lry bran%s.

• "!F ( +S+B*

e to limite% time span we ha;e con%cte% online sr;ey of consmers in !n%ia an% referrin'

to their byin' patterns. /rom this sr;ey we ha;e collecte% for %istinct ;ariables attit%e&

belief& beha;ior an% attribtes of lry se'ment cstomers

11



• S+B ( +S+B*

Secon%ary %ata is the information alrea%y eists somewhere& ha;in' been collecte% for

another prpose. Sorces incl%e websites& ol% #ornals& an% ol% research papers. ata thathas alrea%y been collecte% an% pblishe% for another research pro#ect Dother than one in

han%E has been referre% for the pro#ect.

P76 3! C'*+,'9 ' 6*'947& 47+7!

Secon%ary %ata helps in n%erstan%in' the nitty:'ritties of the pro#ect. Sorces thro'h

which %ata was collecte% were websites Deconomictimes.com& mana'ementpara%ise.com&

etc.E& ol% #ornals& an% ol% research papers.

P76 <! D/',98 &67&* &7:!

esearch frame refers to a bor%erline into which researchers ha;e to perform their work. !n

or pro#ect the natre of the research is %escripti;e in natre as we or %escribin' the

perception of the tar'et a%ience for the lry bran%s& the tar'et a%ience is i%entifie% on

the basis of %emo'raphics an% psycho'raphics.

emo'raphic profile incl%es a'e& 'en%er& stats& e%cation& occpation an% income

whereas psycho'raphic se'mentation %epen%s pon the personality types an% lifestyle

pattern of the respon%ents. ata sorces are both primary an% secon%ary as %iscsse%

earlier. Bontact metho% is thro'h sche%les& inter;iewin' the respon%ents& sha%owin'.

P76 5! C'9*6,'96 794 ,9+&&+7+,'96!

12



n the basis of %ifferent ?estion aske% in the sche%les %ifferent hypothesis were

formlate% an% ;erifie% thro'h the help of ;arios tests. "ie charts& 'raphs were also ma%e

on the basis of responses researchers 'et in thro'h ;arios respon%ents. Bonclsion is

etracte% on the basis of all collection& tablation an% analysis %one.

L,:,+7+,'96 ' + &67&*!

1. Sample siCe of 75 to represent the entire ,ry byerGs stren'th is not a ;ery

si'nificant sample of entire poplation.

2. St%y was mainly con%cte% by means of con;enient samplin' so a representati;e

sample of the respon%ents col% not be obtaine%.

3. espon%ents were hesitant an% relctant to re;eal the entire information as tho'h

re;ealin' trth may lower their self esteem.

4. esearcherGs own limite% capabilities like personal biases& interpretation errors or

limite% knowle%'e to n%erstan% the respon%ents ;iew points also one of the ma#or

limitations of the pro#ect

13



CHAPTER-2

14



INTRODUCTION

=7+ ,6 >&?

(he problem with the wor% lry is that it is at once a concept& a sb#ecti;e impression an% a

potential term& often sb#ecte% to moral criticism. (hs& what is lry for some is #st or%inary

for others@ while some bran%s are ?alifie% as )lry bran% by one half of pblic opinion&

others are simply consi%ere% as )ma#or bran%s by the other half. "eal lry bran%s remain

attracti;e& bt the wor% itself has lost its clot an% sparkle becase of the economic %owntrn in

in%strialiCe% contries. (he wor% lry has fallen ot a little< a hin%rance to market

researchers& who wish to measre their cstomersG sensiti;ity to lry.

!n economic terms& lry ob#ects are those whose priceA?ality relationship is the hi'hest on

the market. y ?ality& economists mean Hwhat they know how to measre@ in tan'ible

fnctions. T6@ 7 M*,96 &'&+ 4,96 >& .&7946 76 +'6 ,* 7/ *'96+79+

.9 7. +' 6+, 7 ,8 &,* ' &'4*+6 ,+ *':7&7. +798,. 9*+,'96" (his

strictly economic %efinition of the lry bran% %oesnot incl%es the notion of an absolte

minimm threshol%. $hat conts& in%ee% is not absolte price& bt the price %ifferential between

HlryG pro%cts an% pro%cts with comparable fnctions. (his can ;ary from s1000 forcolo'ne to s10000.

s we see& this strictly economic perspecti;e %oes not help %ifferentiate the pper ran'e bran%

from the lry bran% an% a /(!! an% -!//+. +;en Ia'ar has always been cheaper

then "orsche& still the Ia'ar is more lrios than "orsche& which is consi%ere% as a sporty

car. /inally the economic approach canGt clear the confsion becase it is base% on the

followin' %ichotomy@ a bran% is or is not a lry bran%. et& as we shall see frther on& it is

time for s to reco'niCe that ior is a 'riffe for one part of its acti;ities& lry bran% for the

secon% part an% an pper:ran'e bran% for the thir% part. y wantin' to classify the bran% once

an% for all& we for'ot to make appropriate %istinctions accor%in' to its ;arios fnctions an%

processes. !t may help to %efine pper ran'e pro%cts as tan'ibles associate% with a specific

pro%ct cate'ory& while lry pro%cts are intan'ibles associate% with ;ales an% ethics.

15



Simltaneosly mana'in' the 3 types of action of a 'i;en bran% is precisely the challen'e that

lry bran% mana'ers face to%ay.

(he ,ry !n%stry ccor%in' to Fckinsey<

=7+ 4'6 + >& *'9*+ 7*+7 9*':766? =7+ 7& + 669+,7

7++&,.+6 ' + >& ,+:6?

,ry came from the ,atin wor% ), which means li'ht. (hat tells the lo'ic behin% the

lry items& they 'litter. (he secon% most important is lry mst be seen by consmers an%

others. (hat is why lry bran% eternaliCe their lo'o or name otsi%e. (he bran% si'natre

mst be seen eplicitly an% shol% be reco'niCe% worl%wi%e. Fa%e to perfection& lry items

stan% ot an% embo%y certain i%eals. ,ry %efines beaty& it is art applie% to fnctional items.

L>&@ 4&,/4 &': + L7+,9 '&4 luxus@ :796 ,9489* ' + 6966& re'ar%less of

cost" L>& .&7946 7& .&7946 '6 &7+,' ' 9*+,'97 +,,+ +' &,* ,6 ' , +7+

' ,9+798,. +,,+ +' &,* ,6 ,8" Sch bran%s share characteristics like consistent premim

16

(an'ible fnctions

"rice



?ality& a herita'e of craftsmanship& a reco'niCable style or %esi'n& a limite% pro%ction rn of

any item to ensre eclsi;ity& an element of ni?eness an% an ability to keep comin' p with

new %esi'ns when the cate'ory is fashion:intensi;e.

,ike li'ht lry is enli'htenin' Dcritics say they are blin%in'E. ,ry bran%s are the tan'ible

references to the most sophisticate% fashions of a 'i;en time. s sch& these bran%s implicitly

con;ey their own cltre an% way of life@ hence Saint ,arent is not Bhanel. (hey offer more

than mere ob#ects@ they pro;i%e reference to 'oo% taste. (hatGs why lry mana'ement shol%

not only %epen% on cstomers epectations@ lry bran%s are animate% by their internal

pro'ramme. (heir o;erall ;ision an% the specific taste which they promote& as well by the

prsit of their own stan%ar%s.

n a symbolic le;el& li'ht means life an% fertility. ,ry is ths both creation an% the ;ital

sorce of inspiration. !n effect& most lry instittions were fon%e% by creati;e 'enis& whose

constantly renewe% inspiration attracte% the attention of the rlin' classes an% the elite. elatin'

to lry re?ires two thin's< the monetary capacity to pay the price of ?ality an% a propensity

to appreciate the ob#ectGs artistic& creati;e an% sensos %imensions that is somethin' beyon%

mere practically. ,ry items pro;i%e etra pleasre an% flatter all sense at once.

,ry is the natral accomplishment of rlin' classes. !t is the natral accomplishment of the

rlin' classes. !t is in%ee% wi%ely acknowle%'e% that lry plays a classifyin' role accor%in'

to which a restricte% 'rop bon%s to'ether an% %istances itself from the rest of society in terms

of price an% preferences. !n this respect& lry bran%s are #st perpetatin' an% eemplifyin'

the si'ns an% the attit%es of the former aristocracy& yet has preser;e% the aristocratsG social

i%eal= ,ry ennobles both ob#ect an% its owner. Boats of arms ha;e %isappeare%& bt blaCons

an% bran% seals are to%ayGs ostentatios a%ornments. ot many lry symbols eist& bt those

that %o represent the past pri;ile'es of the +ropean aristocracy& li;in' a life of leisre& free of

all workin's& money an% time.

17



,ry constantly seeks to escape time constraints@ by focsin' on leisre or by concealin' the

effects of time with wi's an% face makep. s for perfme& it also helpe% to %istin'ish

aristocrats from common folk. s we can see& it is si'nificant that mo%ern lry bran%s ha;e

fallen from the cosmetics an% perfme in%stry& not to mention the other essential class

attribtes@ clothin' an% #ewels.

L>& .&7946 794 G&,6!-

'oo% %eal of confsion srron%s the meanin' an% relationship of these two terms. Fany

people se the term 'riffe if a presti'ios bran% is applie% to many %ifferent pro%cts. thers

claim that bran% can become a 'riffes.

!n reality& bran%s an% 'riffes mst be %istin'ishe% in terms of 'ron% that co;er an% they work.

Bonfsion has been case% by the fact that some famos names e.'. ior are 'riffes for one art

of their pro%ction an% bran%s for another. *ence& a 'riffe can become a bran%& bt the re;erse

is not tre.

(he law scarcely clarifies the %ifference between bran%s an% 'riffes< in its eyes& a 'riffe is the

fie% ima'e of a si'natre& set %own to be se% as a tra%emark. /ortnately& we can n%erstan%

the 'riffe concept by eaminin' the wor% itself.

'riffe has somethin' to %o with instinct& ;iolence an% li'htin'< it co;eys somethin'

npre%ictable& that leaps ot an% lea;e its mark. (he 'riffe is the mark of an inspire% an%

instincti;e creator. (he 'riffeGs specific territory is clearly that of pre creation. (he 'riffe is a

ni?e work of art that can ne;er be repro%ce%.

(hat eplains that mont lanc& "ont& *'o boss are no lon'er the 'riffe they are lry

bran%s. (hese are manfactre% in factory not in workshop an% they are pro%ce% in series not

one of its own kin%.

18



T,6 4,6+,9*+,'9 7:'98 + >& 794 + 8&,6 *79 . >7,94 +&'8

'',98 &7:,4"

P&,9*,6 ' >& :7978:9+!

*istorians an% sociolo'ists ha;e pointe% ot some of the basic principles of lry bran%

mana'ement< for instance& the necessity of protectin' clients from non clients by creatin' a

19

(he bran%

(he pper ran'e bran%

(he lry bran%

-riffe

Foney

ra

T >& 794 + .&794 66+:



%istance& a no mi area& or as economists wol% pt it& entrance barriers for those who are not

in;ite%. ,ry bran%s mst be %esire% by all bt consme% by the only few lcky ones. T,6

'+7&4 794 ,97&4 4,7*+,* ,6 &*+4 . 7 *':.,97+,'9 ' &7+,/ /,6,.,,+ ,9 +

:4,7 ,+ /& &6+&,*+4 4,6,'9. (hat is why lry awareness shol% be sperior to its

penetration.

,oss of control occrs preciosly when lry bran%s no lon'er protect their clients from the

non clients. (he infinite mltiplication of Jitton ba's also hin%ers the %istincti;e featres of

lry an% same 'oes with channel t:shirts.

(he 'enine lry bran%s ensre that both frame an% pictre the eterior an% interior are worth

the same. !f the two 'et %isconnecte%& the lry bran%s enter the realm of sham an% ab%icate in

fa;or of conterfeit.

,ry is always meant to be sli'htly ecessi;e< ecess in %etail& ecess in care& ecess in

precation& all reflectin' a tra%itional way of workin' which scarcely eists in this a'e of

stan%ar%iCation an% cost minimiCation. (his %oes not means that the past is a shrine& as some

lry bran%s nfortnately ten% to think< in worshippin' tra%ition so& they mi'ht en% p

%isappearin' alon' with a'ein' clients. (he challen'e mo%ern lry now faces is to please an% preser;e to%ayGs consmers.

*a;in' flly n%erstoo% that& Bartier intro%ce% steel in its watches& bt still presente% it as a

precios metal. ,ikewise& *ermes tra%itional croco%ile or leather sitcase is now a;ailable in

carbon fiber yet its interior still contains nmeros personaliCin' %etails an% ma%e of soft an%

sensal leather.

,ry bran%s perpetate an eceptionally hi'h le;el of ?ality. /or them a wi%e ;ariety of

sensations cont as mch as wi%e ;ariety of fnctions. (hat is why they se the finest materials

for their pro%cts an% etensi;ely cstomiCe them in or%er to pro;e how cstomer focse% they

are. either the rarity of the ob#ect nor the potency of the bran% ima'e can alone contine to

20



#stify the price %ifferential. s we see& lry %efines the i%eal %e'ree of personaliCation an%

sblimation of a 'i;en ob#ect a'ainst which the more basic bran%s can measre themsel;es.

BRAND A=ARENESS AND DESIRE!

T,6 '+7&4 794 ,97&4 4,7*+,* ,6 &*+4 . 7 *':.,97+,'9 ' &7+,/ /,6,.,,+ ,9 +

:4,7 ,+ /& &6+&,*+4 4,6,'9. (hat is why lry awareness shol% be sperior to its

penetration. (he nee% always to preser;e a %ifferential between bran% awareness an% bran%

%iffsion. (his was confirme% by S!B D1991E in their recent sr;ey of 12&500 people a'e% 15

an% abo;e thro'hot +rope. "resente% with a list of lry bran%s the participants were aske%

to say which ones they knew DawarenessE& which ones they %reame% of Dattracti;enessE an%

which ones& if any& they ha% prchase% in one form or other.

(hose who know the bran% are %i;i%e% into two frther 'rops of byers an% %reamers. y

analyCin' each bran%& it has ths been possible to i%entify 4 %ifferent sitations that is& for

cstomer types<

1. (he byers who still %ream of the bran% are a%%icts. T 7& .&7946 &'6+6" (hey

mst be encora'e% an% rewar%e% for their loyalty.

2. T .&6 ' 9' '98& 4&7: ' + .&794 7& *74 B76@ they are satrate%.

(heir %esire mst be re;i;e%.

3. T 9'9 .&6 ' 4&7: ' + .&794 794 4'9+ &*76 .*76 ' 7+/&

&76'9@ these shol% be encora'e% by ;arios means.

<" F,97@ +'6 9' .&6 ' 76' 4'9+ 4&7: ' .&794 7& *74 + ,94,&9+

'96"

21



B&794 A7&966 794 D6,&

I9+&'4*+,'9 +' + L>& S8:9+ ,9 I94,7

I94,79 >& :7&+ :7 .'': +' US 30 .,,'9 . 2015

o stran'er to harat& lry is all set for an nprece%ente% florish here as the !n%ian

consmer has o;ercome the 'ilt pan's associate% for a'es with in%l'ence. The size of the

22

Se%ction

wareness sa'eJitton

rmani

,acoste

ole

Bartier

nhill

Bhi;as

Bar%in



luxury market in India is estimated at around !"# $illion, and %hat&s $est, gi'en the right

im(etus, it could easily lea(frog to !)*$illion $y +)#"

!n%ians are lappin' p lry assets& ser;ices an% 'oo%s with ;oracios appetite& accor%in' to a

comprehensi;e sr;ey %one by ( Kearney for (he +conomic (imes. !n%ians splr'e L2.9

billion on lry assets Dessentially pri;ate #ets an% lry homes& cars or yachts an% artE& spen%

another L953 million on lry ser;ices an% top it by byin' lry 'oo%s worth L377 million&

sai% the sr;ey which was n;eile% here on (hrs%ay at +(Gs first:e;er lry conference&

ialo'e on ,ry.

e it pri;ate #ets& art& yachts& lry homes& top:of:the:line cars& spas& fine %inin'& tra;el&

holi%ays& #ewellery& state:of:the:art electronics& wines > spirits& apparels or personal care

pro%cts like perfme& the confi%ent !n%ian consmer is 'oin' for it all. )! ha;e arri;e% an% !

want it& is what resr'ent !n%iaGs creamy layer feels.

The ty(ical luxury $rand consumer is in the +#*!- age $rackets, usually an industrialist" The

sur'ey indicates that there is no guilt feeling associated %ith s(ending on luxury, according to

.eelesh /undekari of 0T 1earney. riefin' participants at the conference he sai% there was

stron' 'rowth in consmption of key lry items an% the potential was stron'er. (he !n%ianconsmer wants to 'et the best before others& %eman%s ;ale for money thro'h to'h

ne'otiations& an% looks forwar% to reco'nition an% respect.

(he conference was kicke% off by commerce > in%stry minister Kamal ath an% ,a%y ,ynn

/orester %e othschil%& fon%er > B+ of +, othschil% ,,B& the a%ience incl%e%

%esi'ners& hoteliers& lry bran% marketers& %ecision:makers& a;iation specialists& corporate

honchos an% elhiGs connoissers.

part from in%strialists& the bi' spen%ers i%entifie% in the sr;ey incl%e professionals& self:

employe% an% top 'ns workin' for lea%in' corporate. Bonsmers of lry are locate% across

23



the nation& be it Kanyakmari or Kancheepram in the soth& Ialan%har an% ,cknow in the

north& Srat an% "ne in the west or sansol in the east. Fmbai& elhi an% an'alore are the

top three cities in terms of rpee millionaires& sai% Fr *n%ekari as the a%ience soake% in the

fin%in's an% thirste% for more.

;ery interestin' fact hi'hli'hte% by the sr;ey was the potential of !n%ia to be a sorce of

lry 'oo%s for consmers across the worl%. Fanfactrin' of lry items in !n%ia can 'row

to L500 million an% !n%iaGs stren'ths incl%e tra%itional craftsmanship an% low labor cost.

(here are a nmber of challen'es too& for the lry bsiness an% this incl%e pacity of traine%

manpower& re'latory isses an% hi'h taation& the sr;ey pointe% ot. (he import %ty on

premim cars& for eample& stoo% at 205M while wines > spirits in;ite 185M cstoms le;y.

(he sr;ey also pointe% ot that that import %ty was hi'h in the case of personal care items&

fra'rances& leather accessories an% watches. ,ack of ?ality retail space was another reason

hamperin' 'rowth of the in%stry. $hile %e;elopment of ?ality space will happen once real

estate picks p& the in%stry nee%s to spen% on trainin' to 'enerate ?ality manpower. "oachin'

may not help an% sch ten%encies will only hrt the entire in%stry.

n the re'latory si%e& the sr;ey also hi'hli'hte% that restrictions on forei'n %irect in;estment

D/!E in retail was hin%erin' 'rowth of the in%stry. Since the lry market is not or'anise%&

the or'aniCations concerne% are not workin' to'ether on in%stry isses. s a reslt 'rowth

remains below potential an% re'latory isses are not bein' prse% ;i'orosly.

s compare% to markets like the S& Iapan& -ermany an% e;en Bhina& the siCe of the !n%ian

lry market is small bt the 'rowth potential is tremen%os. (he nmber of hi'h networth

in%i;i%als is increasin' an% the ten%ency to opt for 'lobal bran%s increases as more an% more

!n%ians tra;el abroa%& the sr;ey sai%.

ccor%in' to the ( KearneyGs report an% the report by Bonfe%eration of !n%ian !n%stry DB!!E&

the !n%ian lry 'oo%s market is reachin' for a 'rowth of abot twenty percent in the net year

24



D!n%ian ,ry e;iew& 2011E.

(he report obser;es that lry firms in this nation ha;e to choose from three %istinct paths.

/irst they may opt to catiosly trea% an% 'row in the !n%ian market by 'ettin' the ri'ht

fn%amentals. Secon%ly& sch firms may con%ct selecti;e trials an% a%opt a %istinct place in the

!n%ian market. (he thir% choice is to ac?ire the premier mo;er fa;orability in hi'hly probable

sectors by makin' %arin' marketin' mo;es. (his report also s''este% that the !n%ian lry

market has seen a 'rowth rate of o;er twenty percent in the last year an% it is approimate% to

reach aron% 5.8 billion& in lie with the pro#ections ma%e for the net fi;e years.

!t has also been seen that lry 'oo%s market ha;e enlar'e% initial anticipation of 23 percent

an% has rapi%ly enlar'e% to 29 percent. (he below chart shows the enlar'ement in lry market

in the year 2010& with relation to the lry market enlar'ement rate in !n%ia in 2009.

India Luxu! R"#i"$% &'((

25



FE= INTERESTING FACTS ABOUT INDIAN LUXURY BRANDS!

1E In a recent study, Glo$al 2onsulting firm 3c1insey disco'ered the follo%ing trends<

• ;erall !n%ian consmption will triple by 2025& an% 80 percent of the spen%in'

will come thro'h income 'rowth.

• Spen%in' across all economic se'ments is p 40 to 50 percent.

• (he 'lobal class of consmers& who by top:bran%e% an% lry items is

epecte% to 'row tenfol% by 2025 to 23 million.

2E India Luxury Trends +))4 di'ides consumers for luxury goods into four categories<

• L>& '&,9+4! Sorce of afflence is lar'ely tra%itional an% inherite% wealth.

Fost importantly& they ha;e hi'h le;els of eposre an% awareness to worl%:

class li;in'.

• N R,*! %e?ate spen%in' power. c?irin' orientation to lry.

26



• G++,98 T&< c?irin' spen%in' power. Spen% mainly on hi'h:en% white

'oo%s& e%cation of chil%ren& better hosin'& an% lar'er atomobiles.

• M,4 A9+! c?irin' orientation to lry& bt nlikely to in%l'e beyon% a

limit

(he beha;ior of consmer is a challen'in' isse incl%in' people an% what they by&

the reason of prchase& :7&+,98 794 :7&+,98 :,> 794 :7&+. (he beha;ior of

consmer is %efine% as< the acti;ities that are %one %irectly to attain& consme an%

%ispose the commo%ity an% ser;ice. (hese acti;ities incl%e %ecision process bein' %one

before an% after this action.

on' people of a society are the bi''est consmer 'rops of lrios 'oo%s. (he

reason is fleibility in pro;i%in' the re?ire% capital an% their ability in attainin' money

to pro;i%e lrios 'oo%s. *owe;er& we shol%nGt i'nore the competition of this le;el

to attract the attention in the society an% this chan'es the consmption mo%el of that

Society.

27



28



29



CURRENT STATE OF LUXURY RETAIL IN INDIA<

s %eman% for lry items contine% to 'row in !n%ia& hi'h occpation prices were worth

payin' for prime locations. e;elopers starte% bil%in' shoppin' centers an% malls that became

epic centers for retailers an% shoppers of lry 'oo%s.

Brrently -alleria in Fmbai& ,/ +mporio in ew elhi an% city in an'alore are most

attracti;e retail locations for lry bran%s an% ser;e as the Nhi'h streetsN of !n%ia.elow is a list

of the top lry bran%s that crrently resi%e in these malls.

t the B,, lry 'oo%s forom in october 2010& rman%o ranchini& +ecti;e %irector of

/on%aione lta'amma& a bsiness association of lry bran%s& state% that its members are

30



lookin' to stren'then their presence in !n%ia by increasin' the nmber of sin'le bran% stores

from 30 to 200 by 2020 .

CHAPTER <

31



+S+B* /!!-S

S7: S+7+6

1. -en%er wise classification of the respon%in' sample<

GENDER NO" OF RESPONDENTS

F,+S 33

/+F,+S 42

((, 75

32



Sample siCe which was taken for the research is 75& ot of which 56M are female > 44M are

male respon%ents.

2. 'e wise classification of the respon%in' sample<

AGE N'" O R6'949+618-24 12

25-34 22

35-44 1845-54 14

55 or more 9

Total 75

33



Faimm nmber of respon%ents are from a'e 'rop of 25:34 > 35:44& which co;ers 40M

of the whole sample siCe.

3. ccpation wise classification of the respon%in' sample<

Occupation No. of Respondents

Student 15

Service 32

Self Employed 28

34



4. !ncome wise classification of the respon%in' sample<

Income No. of Respondents

Rs 1!-19!999 7

Rs 19!999-29!999 18

Rs 3!-39!999 23

Rs 4!-49!999 14

Rs 5! or "ore 13

35



rin' the research process maimm respon%ents are co;ere% from 19&999:29&999 > 30&000:

39&999 income 'rop. (his 'rop is mainly consi%ere% as main tar'et cstomers for lry

items

FINDINGS FROM THE SUR#EY!

(P&,:7& R67&*)

(o n%erstan% the %ynamics of a'e on the rea%ership of lifestyle ma'aCines this information

is obtaine%<

=,* A8 8&' ,6 :'6+ ,9+&6+4 ,9 .,98 L>& &'4*+6?

AGE N'" O R6'949+6

18-24 12

25-34 2#

35-44 21

45-54 13

55 or more 3

Total 75

(&

&)&(

(**

Age group most interested in buying

luxury products

(+,&- &.,*- *.,-- -.,.- .. / 0/"

36



A976,6

ccor%in' to the respon%ents& 'e 'rop of 25:34 is most intereste% in byin' ,ry

'oo%s that is aron% 35M followe% by 'e -rop of 35:44.

!ncome sally affects the lifestyle an% attit%e of in%i;i%als which mi'ht shape choice of

the pro%cts yo by& to know more on this isse respon%ent 'a;e the followin' reply<

D'6 &*76 ' L>& ,6 4,&*+ &7+4 +' ,9*': /?

A96&6 N'" ' R6'949+6

es 69

o 6

A976,6

37



(he reslt was totally skewe% to one si%e an% respon%ents a'ree that "rchase of ,ry

"ro%cts is totally relate% to the !ncome le;el of an !n%i;i%al which is 92M.

!ncome sally affects the lifestyle an% attit%e of in%i;i%als which mi'ht shape choice of

the pro%cts yo by& to know more on this isse respon%ent 'a;e the followin' reply

=' 7& + '+9+,7 +7&8+ *6+':&6 ' >& 8''46 ' 89&7 7/ ,9*':

.&7*+ '?

Income No. of Respondents

Rs 1!-19!999 #

Rs 19!999-29!999 9

Rs 3!-39!999 17

Rs 4!-49!999 2

Rs 5! or "ore 23

A976,6

38



(hro'h the bo;e Bolmn Bhart it is totally clear that there is a clear linear relation between

the income le;el an% prchase of ,ry 'oo%s. s the income le;el of an in%i;i%al increases

so there is increase in "rchase of ,ry -oo%s.

(here are nmber of factors which affect the prchase preferences of the cstomers like

price& ?ality& a;ailability& etc. to know the actal impact of the followin' parameters on the

prchase preferences of the cstomers this ?estion was aske% to the respon%ents.

R79 + '',98 7&7:+&6 '9 '& &*76 &&9* ?

A96&6 N'" ' &6'949+6

"rice 20

Oality 26

;ailability 15

!n;ol;ement 9ecommen%ation 5

(otal 75

A976,6

Fost of the respon%ents prefer ?ality followe% by price an% a;ailability. (his response shows

that cstomers are rea%y to pay of ?ality.

39



"eople prchase pro%cts becase they fin% some sort of ;ale in it. !f the benefit is more

than the prchasin' price the pro%ct is beneficial for them.

(o n%erstan% what sort of benefits sally a cstomer %eri;es from a lry pro%ct&

followin' ?estion is bein' aske%<

= 4'6 '9 &6'9 &*76 7 L>& B&794?

#7 N'" ' R6'949+6

Oality 8

/lant Jale 31

!ntereste% in art 13

+clsi;ity 23

A976,6

!n opinion of espon%ents& ma#ority of "eople by lry pro%ct becase they want to flant

their speriority o;er others. /ollowe% by those people who really ha;e taste of art an%

eclsi;eness of the lry that is aron% 30M.

40



lways cstomers are lookin' for ?ality in pro%cts thatGs why they 'o for shoppin' of

lry pro%cts& to know more on this isse respon%ent 'a;e the followin' reply<7,+ ' L>& .&7946 7& :'& 6&,'& +' '+&6?

A96&6 N'" ' &6'949+6

Stron'ly 'ree 21

'ree 35

etral 12

isa'ree 7

Stron'ly isa'ree 3

(otal 75

A976,6r assmption is correct& abot 53M of the respon%ents belie;e in the sperior ?ality of

lry pro%cts.

"eople prchase pro%cts becase they fin% some sort of ;ale in it. !f the benefit is more

than the prchasin' price the pro%ct is beneficial for them.

41



(o n%erstan% what sort of benefits sally a cstomer %eri;es from a lry pro%ct&

followin' ?estion is bein' aske%<

#7 4&,/ &': >& .&7946 ,6 :'& +79 '+&6 ?

A96&6 N'" ' &6'949+6

Stron'ly a'ree 15

'ree 35

etral 16

isa'ree 6

Stron'ly isa'ree 3

(otal 75

A976,6

bot 35M of the respon%ents a'ree% that lry bran%s pro;i%es ;ale of the money. ,ry

pro%cts 'i;e more ;ale to the cstomers& so then it becomes beneficial to them.

42



(o ha;e a 'oo% relationship with the cstomers their shol% be 'oo% ser;ices for them& to

know more abot the ser;ices pro;i%e% by the lry bran%s followin' ?estion was aske%

to the respon%ents.

S&/,*6 &'/,44 . >& .&7946 ,6 .++& +79 '+&6 ?

A96&6 N'" ' &6'949+6

Stron'ly 'ree 17

'ree 36

etral 11

isa'ree 7

Stron'ly %isa'ree 3

(otal 75

A976,6

bot 36M of the respon%ents are of the ;iew that ser;ice ?ality in lry bran%s is more

sperior then other bran%s.

43



-eneraly people belie;e that lry items are for hi'h income 'rop& to know more abot

followin' ?estion was aske% to the respon%ents.

L>& .&7946 7& &&4 . ,8 ,9*': 8&'6 ?

A96&6 N'" ' &6'949+6

Stron'ly 'ree 16

'ree 35

etral 12

isa'ree 9

Stron'ly isa'ree 2

(otal 75

A976,6

*ere we can see that most of the responses are in fa;ior of or assmption that maine tar'et

cstomers for lry bran%s are hin' in come 'rop. bot 35M belie;e that lry bran% is

for hi'h income 'rop people.

(here are ;arios factors which affect the lry market in both ways either positi;e or

ne'ati;e. (o n%erstan% which factor affect most& the followin' information was 'athere%.

44



R79 + '',98 S'*,' E*'9':,* 7*+'&6 ,* 7*+ + L>& :7&+?

S'*,' *'9':,* 7*+'&6 N'" ' R6'949+6

Bhan'e in lifestyle Dlike hosehol% patternsE 22

etail boom 16

$orkin' women 15

ise in li;in' stan%ar%s 21

A976,6

Bhan'e in lifestyle is the factor which affects the lry sales most& followe% by the ise in

li;in' stan%ar%s an% etail boom. (hese factors are ;ery less skewe% that shows all the factors

affect the sale of lry 'oo%s almost at the same le;el.

$e classifie% bran%s into three maine parts local& lry > !nternational bran%s& to know

the byin' beha;ior of the people an% on this isse respon%ent 'a;e the followin' reply

45



=,* .&7946 ' && +' 6' ?

A96&6 N'" ' &6'949+6

,ocal bran%s 27,ry bran%s 33

!nternational ran%s 15

(otal 75

A976,6

*ere we can see that now a %ays most of the people prefer to shop lry bran%s. ma#or part

prchase lry bran% followe% by local bran%s. !nternational bran% has least share.

/ollowin' ?estion is frame% to fin% ot the impact of real estate DcommercialE& retail i.e

mall concept on the sale of lry pro%ct& like from where actaly cstomers prefer to

shop=

$here %o yo prefer to shop 5

46



A96&6 N'" ' &6'949+6

,ocal market 21

Falls 35

ran% otlets 15

thers 4(otal 75

A976,6

Fost of the people like to prchase from Falls followe% by local market an% bran% otlets. (his

shows that real estate DcommercialE mall concept ha;e sch a hi'h impact on the sale of lry

items.

!n%ia bein' a %e;elopin' contry is not an attracti;e hb for lry bran%s till recent years

bt now the scenario seems to be chan'in'.

D' ' 8' 7.&'74 +' 6' '& L>& &'4*+6?

A96&6 N'" ' R6'949+6

es 32

47



o 43

A976,6

/rom the abo;e pie chart we can see that now !n%ia is 'rowin' as a lry market for the people

who are real lry lo;ers an% they %onGt ha;e to 'o to forei'n lan%s to prchase one. "eople

are able to choose amon' the lar'e ;ariety of lry bran%s which are now present in !n%ia also.

(o n%erstan% the emo'raphic composition an% the wareness abot the lry bran%s

the followin' ?estion has been aske%<

D' 67 ' ,6+ &'4*+6 '9 &6+&,*+4 +' M+&'6?

48



A96&6 N'" ' R6'949+6

es 41

o 34

A976,6

(here is a mi of opinion abot the sale of lry bran% is more in metros or not. /rom the

abo;e pie chart we can see that there is a ;ery little skew between the respon%ents who sai% no

an% who sai% yes.

/or some lry is byin' a premim pro%ct once in a life an% for some byin' in few

months. (o n%erstan% the ftre of lry sales it is imperati;e to know how often one

prchases a pro%ct.

H' '+9 + ,948 ,9 >& ,9 +,& ,6+6 76 ''64 +' .,98 + '&4,97&

.&794?

T,: D&7+,'9 N'" ' R6'949+6

nce in a month 4

nce in a 6 month 12

49



nce in a ear 22

nce in 5 years 19

nce in 10 years 12

nce in a lifetime 6

A976,6

(he abo;e %ia'ram %epicts that there are most nmber of people who by lry bran%s once in

a year followe% by those who by once in fi;e year an% by those who by once in a 6 month.

(he -" is 'rowin' an% the mber of *!Gs are also 'rowin' at a ;ery hi'h rate& still

there are some reasons becase of which lry sales are not able to take a fli'ht in !n%ia.

(o n%erstan% those reasons lets see the followin' reslt<

=7+ 7& + &'.:6 .*76 ' ,* >& .&7946 7& 9'+ 7. +' +7 7 ,8+ ,9I94,7?

R76'96 N'" ' R6'949+6

Bonser;ati;e (hinkin' 14

,ack of r'aniCe% etailin' 22

50



*i'h entals 12

*i'h (aation 27

A976,6

ccor%in' to the respon%ents hi'h import %ty is main reason why sales of lry bran%s in not

takin' fli'ht. (he import %ty on premim cars& for eample& stoo% at 205M while wines >

spirits in;ite 185M cstoms le;y& followe% by the lack of serios or'aniCe% retailin'.

e to less sales lry bran%s 'enerally fall into trap of %iscontin' an% that 'oes ;ery tre

in case of a %e;elopin' contry like !n%ia. (o n%erstan% this ?estion followin'

information is 'athere%.

L>& .&7946 89&7 7 ,9+' + +&7 ' D,6*'9+,98 4 +' & S76?

A96&6 N'" ' R6'949+6

es 28

o 47

51



A976,6

(he reslt was aston%in' an% 71M respon%ents sai% that no& conterfeit pro%cts %onGt hamper

the sale of the lry sales. $hereas& 29M a'ree that conterfeit pro%cts %o hamper the sale of

lry pro%cts.

wareness is tmost necessary for any bran%. So& to n%erstan% the ways thro'h whichlry bran%s can make the people aware most abot their bran% in or%er to enhance both

awareness an% recall followin' information was 'athere%.

=7+ 6'4 I9+&97+,'97 L>& B&7946 4' +' '' I94,79 *'96:&6?

T*9,6 N'" ' R6'949+6

Sensory -ratification 16

Belebrity +n%orsement 27

$or% of Foth 14

"blic elations 18

53



A976,6

ron% 30M respon%ents sai% that the Belebrity en%orsement is most affecti;e techni?e to woo

!n%ian consmers followe% by the "blic elation techni?e like %one by the o%y Shop.

54



2" =,* .&7946 ' && +' 6' #7 4&,/ &': >& .&7946 ,6 :'& +9

'+&6"

A976,6

$e can etract from the abo;e 'raph that& 20 respon%ents who are sers of lry bran%s are

satisfie% with the ;ale %eri;e% from it. $hile sers of local bran%s are not %eri;in' the ;ale of

their money an% feel that by sin' lry bran%s& one can %eri;e their ;ale of money. !n short&

we can say that more than 50M of the respon%ents belie;e that& ;ale of money is more in

lry bran%s.

56



3" =,* .&7946 ' && +' 6' S&/,*6 &'/,44 . >& .&7946 ,6 .++&

+79 '+&6"

A976,6

57



$hen we talk abot the ser;ices pro;i%e% in each bran%& we can see that not only sers of

lry bran%s bt also sers of local as well as international bran%s belie;e that ser;ices are

'oo% in lry bran%s. So& there is a probability of shiftin' from local an% international to

lry bran%s at least by those who prefer 'oo% ser;ices while selectin' a bran%.

4. =,* .&7946 ' && +' 6' L>& .&7946 7& && . ,8 ,9*':

8&'6"

58



A976,6

Blearly ;isible from the 'raph that abot 70M of the respon%ents irrespecti;e of sers of bran%s

ha;e stereotypin' belief that ),ry ran% P Fst be for *i'h !ncome -rop. (his shows

that the main tar'et se'ment of lry bran% is hi'h income 'rop cstomers.

59



5" =,* .&7946 ' && +' 6' A8 8&' ,6 :'6+ ,9+&6+4 ,9 .,98 L>&

&'4*+6"

A976,6

(he abo;e 'raph shows the chan'es in bran% preferences %epen% on the a'e of the cstomers.

s we can see from the chart that& more lry bran%s is se% %rin' 25:34 years of a'e while it

shows a continos %ecline in sa'e of lry bran% with increasin' in a'e.

60



61



C7+& 5!

62



nalysis an% !nterpretation

ANALYSIS OF FINDINGS

T&94 A976,6 ' S7 ' L>& G''46!

• Bonsi%erin' that more than 200 top 'lobal lry bran%s are crrently at ;arios sta'es

of settin' p shop in !n%ia& which is consi%ere% to be amon' the markets offerin' bi''est

'rowth potential.

• (he crrent fi're of sale of ,ry 'oo%s in L5.1 billion an% (he !n%ian lry market

is epecte% to %oble by 2012 an% frther %oble by 2016 that is aron% L20 billion in2015.

A976,6 '9 .76,6 ' S*4!

• !n%ia has one of the hi'hest %tiesAtaes on importe% lry 'oo%s& which %ri;e the 'rey

market an% %ty free prchases& while the strin'ent re'latory en;ironment impe%es

in;estment by forei'n bran%s. (here are a nmber of challen'es@ too& for the lry

bsiness an% this incl%e pacity of traine% manpower& re'latory isses an% hi'h

taation& the sr;ey pointe% ot. (he import %ty on premim cars& for eample& stoo% at

205M while wines > spirits in;ite 185M cstoms le;y.

• lry retail prices ha;e Coome% to aron% s1&000 DL25E a s?. ft from aron% s400

DL10E two years a'o

• ne more interestin' analysis which came ot was that that more than 70M of the

respon%ents belie;e that Bhinese conterfeit pro%cts %onGt hamper the sale of lry

bran%s as the person who is intereste% in lry bran%s will not prchase the conterfeit

63



one. $hereas& some sai% yes it will hamper the lry bran% not only thro'h sales bt

also to the eclsi;e natre of the bran% will also be hampere%.

• ccor%in' to respon%ents& bran% awareness shol% be thro'h the me%im of celebrity

en%orsement that is aron% 30M. Fany famos personalities are linke% with lry

bran%s like Shahrkh Khan& Sonam Kapoor& ishwarya ai etc. secon% most attracti;e

techni?e is pblic relations which we can see is sccessflly %one by o%y Shop of

nita o%%ick.

• (here are ;arios resons why sale of lry 'oo%s is takin' fli'ht in a %e;elopin'

contry like !n%ia& the few main reasons which can be conte% are Bhan'e in lifestyle

Dlike hosehol% patternsE& etail boom& $orkin' women& ise in li;in' stan%ar%s

• ne of the srprisin' fin%in's of the st%y ai%e% by primary research with !n%ian Farket

esearch rea D!FE was the %emo'raphic profile of the !n%ian lry consmer.

ase% on their research an% fin%in's& 52 per cent of lry epen%itre is eercise% by

consmers belon'in' to the 25 to 34 year a'e bracket

• bot 36M of the lry consmers sai% they preferre% byin' abroa% as they belie;e%

the ran'e was a;ailable ahea% of !n%ia an% at a lower price& while 34M sai% they

shoppe% o;erseas becase the )show off ;ale was hi'her

e to less sales ,ry bran%s also fall into trap of %iscontin'& this is a main threat of any

lry bran%. (he retailer may trn the eclsi;ity of the bran% %own if he %i%nGt 'et the

proper retrns.

64



INTERPRETATIONS!

I+ 76 '94 +7+!

1E (here are a nmber of challen'es too& for the lry bsiness

2E pacity of traine% manpower&

3E e'latory isses an% hi'h taation& the sr;ey pointe% ot.

4E (he import %ty on premim cars& for eample& stoo% at 205M while wines

> spirits in;ite 185M cstoms le;y.5E !n%ia has an eponential 'rowth in market siCe of lry 'oo%s it is %e to

;arios factors like Bhan'e in lifestyle Dlike hosehol% patternsE& etail

boom& $orkin' women& ise in li;in' stan%ar%s.

65



C7+&

66



Bonclsions

5"1 C'9*6,'96!

(here are many mltinational lry bran%s which are enterin' in !n%ia with their fll pace like

Iimmy Bhoo& -cci& Bhristian ior& ,ois Jitton& Bartier& "ia'et& (iffany& Foschino& "ra%a&

/en%i an% others. Fore than 200 lry bran%s are present or in line of openin' their shop in

!n%ia. ll this rsh is re'istere% %e to hi'hest 'rowth in *!Gs which is aron% 25M per year

an% 'rowin' -".

(here are many other reasons becase of which market siCe of lry bran%s is also boostin'

which are Bhan'e in lifestyle Dlike hosehol% patternsE& etail boom& $orkin' women& ise in

li;in' stan%ar%s. ,ry bran%s can also increase their bran% awareness an% sales thro'h

celebrity en%orsements. (he thin's which are hamperin' the 'rowth of lry market is hi'h

import %ty& lack of or'aniCe% retailin'& Bhinese conterfeit pro%cts.

y keepin' the abo;e points in min% we can concl%e %espite bein' few %ifficlties lry

ran%s ha;e a 'reat ftre ahea% in !n%ia.

67



A94,>

6+,'997,&

/or )"li'ht of ,ry ran%s in !n%ia

1. *ow often %o yo 'o for shoppin'=

within a weekQQ within a monthQQ

within 6 monthsQQ within a yearQQ

&1 $ith whom 'enerally yo 'o for shoppin'=

S2/u3"444 /amily membersQQQ/rien%sQQQ Bollea'es 4444

3. $here %o yo prefer to shop=

,ocal marketQQQ FallsQQ

ran% otletsQQQ thersQQ

4. $hich bran%s yo prefer to shop=

local bran%sQQ

,ry bran%sQQQ

!nternational ran%sQQQ

5. n what parameters yo select bran%s=

"riceQQQQ OalityQQQ

;ailabilityQQQ !n;ol;ementQQQ

ecommen%ationQQQ

6. ank the followin' parameters on yor prchase preference= D1 P *i'hest > 5 P ,owestE

"rice QQQ

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Oality QQQ

;ailability QQQ

!n;ol;ement QQQ

ecommen%ation QQQ

7. "lease tell on a scale of 1 to 5& where 1 means )Stron'ly isa'ree an% 5 means )Stron'ly

'ree for the followin' statements on ,ry ran%s P

S+7+:9+S+&'98

78&A8& N+&7 D,678&

S+&'98

4,678&

Oality of ,ry bran%s are

more sperior then others

Jale %eri;e from lry bran%s

is more then others

Ser;ices pro;i%e% by lry

bran%s is better then others

,ry bran%s are prefer by hi'h

income 'rops

8. ccor%in' to yo which 'e 'rop is most intereste% in byin' ,ry pro%cts=

18:24QQ 25:34QQ

35:44QQ 45:54QQ 55 or o;erQQ

9. oes prchase of ,ry is %irectly relate% to income le;el=

esQQQQ oQQQQ

10. $ho are the potential tar'et cstomers of lry 'oo%s who 'enerally ha;e income bracket of=

Fonthly Salary<

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s.20& 000:s.29& 999QQ s.30& 000:s.39& 999QQ

s.40& 000:s.49& 999QQ s.50& 000:s.59& 999QQ

s.60& 000 or moreQQ

11. $hy %oes one person prchase a ,ry ran%=

OalityQQQQQ /lant ;aleQQQQQ

!ntereste% in artQQQQQ +clsi;ityQQQQQ

12. ank the followin' Socio +conomic factors which affect the ,ry market=

Bhan'e in lifestyle Dlike hosehol% patternsE QQQQQ

etail boomQQQQQQ

$orkin' womenQQQQQQ

ise in li;in' stan%ar%sQQQQQQ

13. o yo still 'o abroa% to shop for ,ry pro%cts=

esQQQQ

oQQQQ

14. o sale of lifestyle pro%cts only restricte% to Fetros=

esQQQQ

oQQQQ

15. $hat are the problems becase of which lry bran%s are not able to take a fli'ht in !n%ia=

Bonser;ati;e (hinkin' QQQQQQ *i'h entalsQQQQQQ

,ack of r'aniCe% etailin'QQQQQQ *i'h (aationQQQQQQ

16. ,ry bran%s 'enerally fall into the trap of iscontin' %e to fewer Sales=

esQQQQ

70



o QQQQ

17. o Bhinese Bonterfeit pro%cts hamper the ,ry ran%s in !n%ia=

es QQQQ

o QQQQQ

!f& es how QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ

18. $hat shol% !nternational ,ry ran%s %o to woo !n%ian consmers=

Sensory -ratificationQQQQQ $or% of FothQQQQQ

Belebrity +n%orsementQQQQQ "blic elationsQQQQQ

ame< QQQQQQQQQQQQQQQQQQQQ

-en%er< FaleQQQ /emaleQQQQ

Stats< Farrie%QQ Sin'leQQQQQ

'e< 18:24QQ 25:34QQ 35:44QQ 45:54QQ 55 or o;erQQ

ccpation< St%entQQ Self +mploye%QQ Ser;iceQQ

Fonthly Salary<

s.20& 000:s.29& 999QQ s.30& 000:s.39& 999QQ

s.40& 000:s.49& 999QQ s.50& 000:s.59& 999QQ

s.60& 000 or moreQQ

71



BIBLIOGRAPHY!

1. esearch Fetho%olo'y& Fetho%s an% techni?es DSecon% +%itionE y B. . Kothari

Dew 'e !nternational "blishersE

2. rticles relate% to ,ry bran%s& bran% awareness an% bran% perception thro'h )ran%

Fana'ement by Kaphler

3. -athere% information re'ar%in' economic con%itions of !n%ia thro'h $$$.

$ikipe%ia.com

4. $$$. !n%ianbran%e?ityfon%ation.com

72



5. -athere% secon%ary %ata of *!Gs from $$$.%spmerrilllynch.com an% $$$.

Bap'emini.com

6. $$$. +conomictimes.com

7. -athere% information re'ar%in' lry consmption patterns by *!Gs thro'h

$$$.hin%bsinessline.com

8. ea% articles relate% to ,ry etailin' in !n%ia thro'h $$$. Bre%itsssie.com.

9. rticles relate% to %ifferent factors affectin' sale of lry bran%s thro'h $$$.

Fana'ementpara%ise.com.

MAGAJINE!

1. -rni'& I. an% (. *nt. D1984E. 3anaging Pu$lic 6elations. ew ork< *olt& inehart

an% $inston.

2. /orbes. Farket Scan P Jo'e !n%ia ,anches September 2007.

3. (he ew ork (imes< Jo'eGs /ashion "hotos Spark ebate in !n%ia& *eather

(immons ' 31& 08.

4. Jo'e !n%ia< 'st 2008 !sse& a%;ertisin' a rberry mbrella.

5. Jo'e !n%ia< 'st 2008 !sses& a%;ertisin' a /en%i bib.

$OURNAL BOOKS!

)1 (he ,ry ran% Strate'y Bhallen'e& -est +%itorial& Journal of Brand Manag!nt

"#$$%& '( & 287‐289.oi< 10.1057Abm.2008.53.

73



7. ar%han& . D2003E. ptrin' "blic elations Fetanarrati;es< (he +ample of !n%ia.

) Journal of Pu)li*Rlations Rsar*h”& 15D3E< p. 236.

8. *an%book< obert ,. *eath De%itorE o;et 1994 Bo'et, 7" 899-:" Pu$lic 6elations in

India Gro%ing ;x(onential" Pu$lic 6elations <ournal, #) 8=:> 9, -"

51 (he ,ry ran% Strate'y Bhallen'e& -est +%itorial& Journal of Brand Manag!nt

D2009E 16& 287‐289. oi<10.1057Abm.2008.53.

('1The ?all 7treet <ournal ecember 6& 2010< Seekin' !n%iaGs Sper ‐$ealthy.

11. K< esai& . 8 1999 :" !n%ian siness Bltre< n !nsi%erNs -i%e"

NE=S-PAPER BLOG<

(1 +:paper& (he /inancial +press< Rhttp<AAwww.financialepress.comAnewsAlry:bran%s:

from:s:erope:make:beeline:for:in%iaA566233

2. +:paper& (he !n%ian +press<Rhttp<AAwww.epressin%ia.com

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