INTRODUCTION

We as a Media Company, one among many others are trying to make a difference by our presence in the market through a lifestyle media vehicle that is magazines and more to be added to our gear soon. It is our good fortune of being born in a legendry journalist's family that is Mr Dorilal Agarwal, founder of "Amar Ujala Newspaper" from Agra, Uttar Pradesh that we could start a venture this big. Disha Bharti Media Pvt. Ltd. also being a very distant vision and mission of our father Mr. Anil Agarwal again a well known name in the journalists fraternity, and our grandfather Mr. Dorilal Agarwal who bestowed upon us their literary insight to grow into the field of knowledge. It gives us immense pride and pleasure to introduce to you our Hindi Magazine, Titled "WOMEN ON TOP" which has been launched under an initiative, by Disha Bharti Media Pvt Ltd, Delhi. A, name often speaks volumes, henceforth defining WOMENONTOP as an exclusive and articulated Hindi Lifestyle magazine, from middle to higher class females would not be an overrated statement. The objective being, to give a sense of bliss and contentment in the present days of Hustle and Bustle, which is our magazine promises to give full INFOTAINMENT to the potential reader. That being girls and women from the age of 15-60 and above. It is through our worth-wide Media organ an effort has been made to integrate the readers of Delhi, NCR and Northern India and soon, we shall cover the entire Indian Continent. There are in-numerable magazines available in the market, dedicated individually to Fashion, Lifestyle, Finance, Movies, Education, Computers, Gadgets, etc. But WOMEN ON TOP is a combined effort with all the features, i.e. the content which has been accepted by the market.

And, so is not consisting of a particular segment of readers, whereas all age group enjoys the same. The magazine has articles that provide the best tips on FASHION, TOURISM, FOOD RECIPES, MOVIES, YOGA, HEALTH CARE, PERSONAL PROBLEMS, GARDENING, PETS and more, i.e. all the infotainment that a woman wants to read and know more about. We use the newest platform but the most effective as it reaches all over and among all at the same time every month. So we firmly believe, that this magazine, in future will surely add a name in the Indian Market counting it to have the maximum number of happy and satisfied readers, And we are sure that with your love and support we will and shall someday soon fulfill the dreams of our elders.

Introductory Perspective
Introduction to the Luxury Brands The problem with the word luxury is that it is at once a concept, a subjective impression and a potential term, often subjected to moral criticism. Thus, what is luxury for some is just ordinary for others; while some brands are qualified as luxury brand by one half of public opinion, others are simply considered as major brands by the other half. Peal luxury brands remain attractive, but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries. The word luxury has fallen out a little: a hindrance to market researchers, who wish to measure their customers sensitivity to luxury. In economic terms, luxury objects are those whose price/quality relationship is the highest on the market. By quality, economists mean what they know how to measure; in tangible functions. Thus, a Mckinsey report defines luxury brands as those which have constantly been able to justify a high price of products with comparable tangible functions. This strictly economic definition of the luxury brand doesnot includes the notion of an absolute minimum threshold. What counts, indeed is not absolute price, but the price differential between luxury products and products with comparable functions. This can vary from Rs1000 for cologne to Rs10000.

As we see, this strictly economic perspective does not help differentiate the upper range brand from the luxury brand and a FORTIORI and GRIFFE. Even Jaguar has always been cheaper then Porsche, still the Jaguar is more luxurious than Porsche, which is considered as a sporty car. Finally the economic approach cant clear the confusion because it is based on the following dichotomy; a brand is or is not a luxury brand. Yet, as we shall see further on, it is time for us to recognize that Dior is a griffe for one part of its activities, A luxury brand for the second part and

an upper-range brand for the third part. By wanting to classify the brand once and for all, we forgot to make appropriate distinctions according to its various functions and processes. It may help to define upper range products as tangibles associated with a specific product category, while luxury products are intangibles associated with values and ethics. Simultaneously managing the 3 types of action of a given brand is precisely the challenge that luxury brand managers face today.

The Luxury Industry According to Mckinsey:

Essential attributes of the luxury items.S Pricecame from the Latin word LUX which means light. That tells the logic behind the Luxury luxury items, they glitter. The second most important is luxury must be seen by consumers and Tangible functions others. That is why luxury brand externalize their logo or name outside. The brand signature must be seen explicitly and should be recognized worldwide. Made to perfection, luxury items stand out and embody certain ideals. Luxury defines beauty, it is art applied to functional items. Luxury, derived from the Latin word luxus, means indulgence of the senses , regardless of cost. Luxury brands are brands whose ratio of functional utility to price is low while that of intangible utility to price is high. Such brands share characteristics like consistent premium quality, a heritage of craftsmanship, a recognizable style or design, a limited production run of any item to ensure exclusivity, an element of uniqueness and an ability to keep coming up with 4

new designs when the category is fashion-intensive. SLike light luxury is enlightening (critics say they are blinding). Luxury brands are the tangible references to the most sophisticated fashions of a given time. As such, these brands implicitly convey their own culture and way of life; hence Saint Laurent is not Chanel. They offer more than mere objects; they provide reference to good taste. Thats why luxury management should not only depend on customers expectations; luxury brands are animated by their internal programme. Their overall vision and the specific taste which they promote, as well by the pursuit of their own standards.SOn a symbolic level, light means life and fertility. Luxury is thus both creation and the vital source of inspiration. In effect, most luxury institutions were founded by creative genius, whose constantly renewed inspiration attracted the attention of the ruling classes and the elite. Relating to luxury requires two things: the monetary capacity to pay the price of quality and a propensity to appreciate the objects artistic, creative and sensuous dimensions that is something beyond mere practically. Luxury items provide extra pleasure and flatter all sense at once.

Luxury is the natural accomplishment of ruling classes. It is the natural accomplishment of the ruling classes. It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences. In this respect, luxury brands are just perpetuating and exemplifying the signs and the attitudes of the former aristocracy, yet has preserved the aristocrats social ideal? Luxury ennobles both object and its owner. Coats of arms have disappeared, but blazons and brand seals are todays ostentatious adornments. Not many luxury symbols exist, but those that do represent the past privileges of the European aristocracy, living a life of leisure, free of all workings, money and time. 5

Luxury constantly seeks to escape time constraints; by focusing on leisure or by concealing the effects of time with wigs and face makeup. As for perfume, it also helped to distinguish aristocrats from common folk. As we can see, it is significant that modern luxury brands have fallen from the cosmetics and perfume industry, not to mention the other essential class attributes; clothing and jewels.

Luxury brands and Griffes:-

A good deal of confusion surrounds the meaning and relationship of these two terms. Many people use the term griffe if a prestigious brand is applied to many different products. Others claim that brand can become a griffes. In reality, brands and griffes must be distinguished in terms of ground that cover and they work. Confusion has been caused by the fact that some famous names e.g. Dior are griffes for one art of their production and brands for another. Hence, a griffe can become a brand, but the reverse is not true.

The law scarcely clarifies the difference between brands and griffes: in its eyes, a griffe is the fixed image of a signature, set down to be used as a trademark. Fortunately, we can understand the griffe concept by examining the word itself. A griffe has something to do with instinct, violence and lighting: it coveys something unpredictable, that leaps out and leave its mark. The griffe is the mark of an inspired and instinctive creator. The griffes specific territory is clearly that of pure creation. The griffe is a unique work of art that can never be reproduced. That explains that mount Blanc, DuPont, Hugo boss are no longer the griffe they are luxury brands. These are manufactured in factory not in workshop and they are produced in series not one of its own kind.

This distinction among the luxury and the griffes can be explained through following pyramid.

Griffe

Aura

Money

The luxury brand

The upper range brand

The brand

The luxury and the brand system

Principles of luxury management:

Historians and sociologists have pointed out some of the basic principles of luxury brand management: for instance, the necessity of protecting clients from non clients by creating a 8

distance, a no mix area, or as economists would put it, entrance barriers for those who are not invited. Luxury brands must be desired by all but consumed by the only few lucky ones. This outward and inward dialectic is reflected by a combination of relative visibility in the media with very restricted diffusion. That is why luxury awareness should be superior to its penetration. Loss of control occurs preciously when luxury brands no longer protect their clients from the non clients. The infinite multiplication of Vuitton bags also hinders the distinctive features of luxury and same goes with channel t-shirts. The genuine luxury brands ensure that both frame and picture the exterior and interior are worth the same. If the two get disconnected, the luxury brands enter the realm of sham and abdicate in favor of counterfeit. Luxury is always meant to be slightly excessive: excess in detail, excess in care, excess in precaution, all reflecting a traditional way of working which scarcely exists in this age of standardization and cost minimization. This does not means that the past is a shrine, as some luxury brands unfortunately tend to think: in worshipping tradition so, they might end up disappearing along with ageing clients. The challenge modern luxury now faces is to please and preserve todays consumers.

Having fully understood that, Cartier introduced steel in its watches, but still presented it as a precious metal. Likewise, Hermes traditional crocodile or leather suitcase is now available in carbon fiber yet its interior still contains numerous personalizing details and made of soft and sensual leather.

Luxury brands perpetuate an exceptionally high level of quality. For them a wide variety of sensations count as much as wide variety of functions. That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are. Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential. As we see, luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves.

Brand Awareness and Desire:

This outward and inward dialectic is reflected by a combination of relative visibility in the media with very restricted diffusion. That is why luxury awareness should be superior to its penetration. The need always to preserve a differential between brand awareness and brand diffusion. This was confirmed by RSIC (1991) in their recent survey of 12,500 people aged 15 and above throughout Europe. Presented with a list of luxury brands the participants were asked to say which ones they knew (awareness), which ones they dreamed of (attractiveness) and which ones, if any, they had purchased in one form or other. Those who know the brand are divided into two further groups of buyers and dreamers. By analysiing each brand, it has thus been possible to identify 4 different situations that is, four customer types:

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The buyers who still dream of the brand are addicts. They are brands proselytes. They must be encouraged and rewarded for their loyalty.

1. The buyers who no longer dream of the brand are called Blas, they are saturated. Their desire must be revived.

2. The non buyers who dream of the brand and dont purchase because of whatever reason, these should be encouraged by various means.

3. Finally, those no buyers who also dont dream of brand are called the indifferent ones.

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Seduction

Cartier Rolex Lacoste Armani Chivas Vuitton Dunhill Cardin

Awareness Usage

Brand Awareness and Desire

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Introduction to the Luxury Brands in India Indian luxury market may boom to US$ 30 billion by 2015 No stranger to Bharat, luxury is all set for an unprecedented flourish here as the Indian consumer has overcome the guilt pangs associated for ages with indulgence. The size of the luxury market in India is estimated at around $3.5 billion, and whats best, given the right impetus, it could easily leapfrog to $30-billion by 2015. Indians are lapping up luxury assets, services and goods with voracious appetite, according to a comprehensive survey done by AT Kearney for The Economic Times. Indians splurge $2.9 billion on luxury assets (essentially private jets and luxury homes, cars or yachts and art), spend another $953 million on luxury services and top it by buying luxury goods worth $377 million, said the survey which was unveiled here on Thursday at ETs first-ever luxury conference, Dialogue on Luxury. Be it private jets, art, yachts, luxury homes, top-of-the-line cars, spas, fine dining, travel, holidays, jewellery, state-of-the-art electronics, wines & spirits, apparels or personal care products like perfume, the confident Indian consumer is going for it all. I have arrived and I want it, is what resurgent Indias creamy layer feels. The typical luxury brand consumer is in the 25-34 age brackets, usually an industrialist. The survey indicates that there is no guilt feeling associated with spending on luxury, according to Neelesh Hundekari of AT Kearney. Briefing participants at the conference he said there was strong growth in consumption of key luxury items and the potential was stronger. The Indian consumer wants to get the best before others, demands value for money through tough negotiations, and looks forward to recognition and respect.

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The conference was kicked off by commerce & industry minister Kamal Nath and Lady Lynn Forester de Rothschild, founder & CEO of EL Rothschild LLC, the audience included designers, hoteliers, luxury brand marketers, decision-makers, aviation specialists, corporate honchos and Delhis connoisseurs. Apart from industrialists, the big spenders identified in the survey include professionals, selfemployed and top guns working for leading corporate. Consumers of luxury are located across the nation, be it Kanyakumari or Kancheepuram in the south, Jalandhar and Lucknow in the north, Surat and Pune in the west or Asansol in the east. Mumbai, Delhi and Bangalore are the top three cities in terms of rupee millionaires, said Mr Hundekari as the audience soaked in the findings and thirsted for more. A very interesting fact highlighted by the survey was the potential of India to be a source of luxury goods for consumers across the world. Manufacturing of luxury items in India can grow to $500 million and Indias strengths include traditional craftsmanship and low labor cost. There are a number of challenges too, for the luxury business and this include paucity of trained manpower, regulatory issues and high taxation, the survey pointed out. The import duty on premium cars, for example, stood at 205% while wines & spirits invite 185% customs levy. The survey also pointed out that that import duty was high in the case of personal care items, fragrances, leather accessories and watches. Lack of quality retail space was another reason hampering growth of the industry. While development of quality space will happen once real estate picks up, the industry needs to spend on training to generate quality manpower. Poaching may not help and such tendencies will only hurt the entire industry.

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On the regulatory side, the survey also highlighted that restrictions on foreign direct investment (FDI) in retail was hindering growth of the industry. Since the luxury market is not organised, the organisations concerned are not working together on industry issues. As a result growth remains below potential and regulatory issues are not being pursued vigorously. As compared to markets like the US, Japan, Germany and even China, the size of the Indian luxury market is small but the growth potential is tremendous. The number of high networth individuals is increasing and the tendency to opt for global brands increases as more and more Indians travel abroad, the survey said.

Few interesting facts about Indian Luxury brands: 1) In a recent study, Global Consulting firm McKinsey discovered the following trends: Overall Indian consumption will triple by 2025, and 80 percent of the spending will come through income growth. Spending across all economic segments is up 40 to 50 percent.

The global class of consumers, who buy top-branded and luxury items is expected to grow tenfold by 2025 to 23 million.

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2) India Luxury Trends 2008 divides consumers for luxury goods into four categories: Luxuriented: Source of affluence is largely traditional and inherited wealth. Most importantly, they have high levels of exposure and awareness to world-class living. New Rich: Adequate spending power. Acquiring orientation to luxury.

Getting There: Acquiring spending power. Spend mainly on high-end white goods, education of children, better housing, and larger automobiles.

Mid Affluents: Acquiring orientation to luxury, but unlikely to indulge beyond a limit

Objectives of the project:

Before selling any brand its utmost important to judge and identify who is the target audience and what is the perception they are holding about the brand. Researchers can fulfill all these objectives through answering these four questions:

Why (what are the benefits or value people are getting through a lifestyle products, this purpose should be very clear in the minds of all researchers that why we are doing such a research) 16

For whom (who are the target audience for the luxury products) Against whom (What is the basic difference between a Premium brand, a Luxury brand and Griffe)

When (determining the opportunities for luxury brands in a developing country)

The objectives of the study are: 1. To study the future of luxury brands in a developing country like India 2. To understand the customer psychology towards luxury brands and the changing consumer behavior for expensive products.

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Scope of the Study

As the total strength of the universe is large and the time associated with obtaining information from the viewers is less. The sample list contains retailers in NOIDA, Gurgoan, Delhi and Jaipur which are accessible for me. With such a large sample list and no grouping of information, it was essential to undertake NON RROBABILITY SAMPLING technique. I did not use PROBABILITY SAMPLING because; in this population members have a known probability of being in the sample. In my case because of there are huge number of readers that was not possible. I would have had to develop a frame in probability sampling case and it might further complicate the analysis. For non-probability sampling I dont need to design a frame. Moreover in my opinion it would facilitate the research as the responses obtained through this sample would be more accurate and honest.

Sample size: 150 Respondents

Sampling unit: The sample list contains luxury retailers in NOIDA, Gurgoan, Delhi and Jaipur

Method: Schedule was filled up through questioning the respondents. Shadowing of some Buyers was done to gain an insight into the mind of purchasers of luxury.

Sources of information: both secondary and primary data used for the research purpose

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Need of Study

Luxury came from the Latin word LUX which means light. That tells the logic behind the luxury items, they glitter. The second most important is luxury must be seen by consumers and others. That is why luxury brand externalize their logo or name outside. The brand signature must be seen explicitly and should be recognized worldwide. Made to perfection, luxury items stand out and embody certain ideals. Luxury defines beauty, it is art applied to functional items.

The problem with the word luxury is that it is at once a concept, a subjective impression and a potential term, often subjected to moral criticism . Thus, what is luxury for some is just ordinary for others; while some brands are qualified as luxury brand by one half of public opinion, others are simply considered as major brands by the other half. Peal luxury brands remain attractive, but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries. The word luxury has fallen out a little: a hindrance to market researchers, who wish to measure their customers sensitivity to luxury. Luxury brands are always in much more dilemma when they enter in a developing country about there future as the target audience is very few and the consumer is slightly reluctant to shell out that much of money in one go.

Hence, after a long discussion with seniors we came to do research on Future of Luxury Brands in India

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Research methodology

Introduction The research methodology establishes a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at conclusion and findings; are also dealt with and lead to a logical deduction towards the analysis.

Phase 1: Identification of the problem: The problem with the word luxury is that it is at once a concept, a subjective impression and a potential term, often subjected to moral criticism

Luxury brands are always in much more dilemma when they enter in a developing country about there future as the target audience is very few and the consumer is slightly reluctant to shell out that much of money in one go.

On the basis of problem identified we derive at the project title as Future of Luxury Brands in India

Phase 2: Determination of information needs and sources

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Researchers conducted an intensive secondary research to understand the concept of market research, brand perception the sellers and buyers are carrying for the luxury brands.

PRIMARY DATA RESEARCH

New data gathered to facilitate the research. Primary data was collected through schedules filled up by questioning the respondents and also through shadowing some prospect readers to understand the real insight of the reader.

SECONDARY DATA RESEARCH

Secondary data is the information already exists somewhere, having been collected for another purpose. Sources include websites, old journals, and old research papers. Data that has already been collected and published for another research project (other than one in hand) has been referred for the project.

Phase 3: Collection of secondary data: Secondary data helps in understanding the nitty gritties of the project. Sources through which data was collected were websites (economictimes.com, managementparadise.com,

wikipedia.com, etc), old journals, and old research papers.

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Phase 4: Developing research frame: Research frame refers to a borderline into which researchers have to perform their work. In our project the nature of the research is descriptive in nature as we our describing the perception of the target audience for the luxury brands, the target audience is identified on the basis of demographics and psychographics. Demographic profile includes age, gender, status, education, occupation and income whereas psychographic segmentation depends upon the personality types and lifestyle pattern of the respondents. Data sources are both primary and secondary as discussed earlier. Contact method is through schedules, interviewing the respondents, shadowing.

Phase 5: Data collection, tabulation and analysis Based on the type of data collected and the target segment with the appropriate statistical methods, inferences should be made. The response set of one variable is compared with another set of variables to ensure a detailed analysis of data. Researchers kept a close watch on that what type of data is appropriate for each statistic and able to recognize the level of measurement for the scales that you are analyzing. Mean scores is important to know the degree to which respondents have shown an inclination towards a pattern. For judging who are the target audience on the basis of demographics and psychographics Frequency distribution tables and graphs also are helpful for data analysis. 22

Phase 6: Conclusions and interpretations: On the basis of different question asked in the schedules different hypothesis were formulated and verified through the help of various tests. Pie charts, graphs were also made on the basis of responses researchers get in through various respondents. Conclusion is extracted on the basis of all collection, tabulation and analysis done.

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Limitations of the research:

1. Sample size of 150 to represent the entire Luxury buyers strength is not a very significant sample of entire population.

2. Study was mainly conducted by means of convenient sampling so a representative sample of the respondents could not be obtained.

3. Respondents were hesitant and reluctant to reveal the entire information as though revealing truth may lower their self esteem.

4. Researchers own limited capabilities like personal biases, interpretation errors or limited knowledge to understand the respondents view points also one of the major limitations of the project

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Sample Status 1. Gender wise classification of the responding sample:

GENDER MALES FEMALES TOTAL

NO. OF RESPONDENTS 67 83 150

Sample size which was taken for the research is 150, out of which 55% are female & 45% are male respondents. 2. Age wise classification of the responding sample:

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AGE 18-24 25-34 35-44 45-54 55 or more Total

No. Of Respondents 24 44 36 29 17 150

Interpretation: Maximum number of respondents are from age group of 25-34 & 35-44, which covers 54% of the whole sample size. 3. Occupation wise classification of the responding sample:

Occupation Student Service

No. of Respondents 29 65 26

Self Employed

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4. Income wise classification of the responding sample:

Income Rs 10,000-19,999 Rs 19,999-29,999

No. of Respondents 14 37 27

Rs 30,000-39,999 Rs 40,000-49,999 Rs 50,000 or More

45 28 26

During the research process maximum respondents are covered from 19,999-29,999 & 30,00039,999 income group. This group is mainly considered as main target customers for luxury items.

FINDINGS FROM THE SURVEY: (Primary Research) To understand the dynamics of age on the readership of lifestyle magazines this information is obtained: Which Age group is most interested in buying Luxury products? 28

AGE 18-24 25-34 35-44 45-54 55 or more Total

No. Of Respondents 24 52 43 25 6 150

Analysis According to the respondents, Age group of 25-34 is most interested in buying Luxury goods that is around 34% followed by Age Group of 35-44. Income usually affects the lifestyle and attitude of individuals which might shape choice of the products you buy, to know more on this issue respondent gave the following reply:

Does purchase of Luxury is directly related to income level?

Answers

No. of Respondents 29

Yes No

138 12

Interpretation

The result was totally skewed to one side and respondents agree that Purchase of Luxury Products is totally related to the Income level of an Individual which is 92%.

Income usually affects the lifestyle and attitude of individuals which might shape choice of the products you buy, to know more on this issue respondent gave the following reply:

Who are the potential target customers of luxury goods who generally have income bracket of? Income Rs 10,000-19,999 No. of Respondents 12 30

Rs 19,999-29,999 Rs 30,000-39,999 Rs 40,000-49,999 Rs 50,000 or More

19 34 41 44

Interpretation

Through the Above Pie Chart it is totally clear that there is a clear linear relation between the income level and purchase of Luxury goods. As the income level of an individual increases so there is increase in Purchase of Luxury Goods. There are number of factors which affect the purchase preferences of the customers like price, quality, availability, etc. to know the actual impact of the following parameters on the purchase preferences of the customers this question was asked to the respondents. 31

Rank the following parameters on your purchase preference ? Answers Price Quality Availability Involvement Recommendation Total No. of respondents 39 50 31 19 11 150

Interpretation

Most of the respondents prefer quality followed by price and availability. This response shows that customers are ready to pay of quality. 32

People purchase products because they find some sort of value in it. If the benefit is more than the purchasing price the product is beneficial for them. To understand what sort of benefits usually a customer derives from a luxury product, following question is being asked:

Why does one person purchase a Luxury Brand?

Value Quality Flaunt Value Interested in art Exclusivity

No. of Respondents 16 61 28 45

Interpretation

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In opinion of Respondents, majority of People buy luxury product because they want to flaunt their superiority over others. Followed by those people who really have taste of art and exclusiveness of the luxury that is around 30%.

Always customers are looking for quality in products thats why they go for shopping of luxury products, to know more on this issue respondent gave the following reply:

Quality of Luxury brands are more superior then others? Answers Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of respondents 42 64 25 12 7 150

Interpretation 34

Our assumption is correct, about 73% of the respondents believe in the superior quality of luxury products. People purchase products because they find some sort of value in it. If the benefit is more than the purchasing price the product is beneficial for them. To understand what sort of benefits usually a customer derives from a luxury product, following question is being asked:

Value derive from luxury brands is more then others ? Answers Strongly agree Agree Neutral Disagree Strongly Disagree Total No. of respondents 31 70 32 12 5 150

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Interpretation

About 70% of the respondents agreed that luxury brands provides value of the money. Luxury products give more value to the customers, so then it becomes beneficial to them. To have a good relationship with the customers their should be good services for them, to know more about the services provided by the luxury brands following question was asked to the respondents.

Services provided by luxury brands is better then others ? Answers Strongly Agree Agree Neutral Disagree Strongly disagree Total No. of respondents 35 73 23 13 6 150

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Interpretation

About 72% of the respondents are of the view that service quality in luxury brands is more superior then other brands. Generaly people believe that luxury items are for high income group, to know more about following question was asked to the respondents. Luxury brands are prefer by high income groups ? Answers Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of respondents 33 70 25 19 3 150

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Interpretation

Here we can see that most of the responses are in faviour of our assumption that maine target customers for luxury brands are hing in come group. About 70% believe that luxury brand is for high income group people.

There are various factors which affect the luxury market in both ways either positive or negative. To understand which factor affect most, the following information was gathered.

Rank the following Socio Economic factors which affect the Luxury market?

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Socio economic factors Change in lifestyle (like household patterns) Retail boom Working women Rise in living standards

No. of Respondents 44 33 31 42

Interpretation

Change in lifestyle is the factor which affects the luxury sales most, followed by the Rise in living standards and Retail boom. These factors are very less skewed that shows all the factors affect the sale of luxury goods almost at the same level. I classified brands into three maine parts local, luxury & International brands, to know the buying behaviour of the people and on this issue respondent gave the following reply 39

Which brands you prefer to shop ? Answers local brands Luxury brands International Brands Total No. of respondents 54 66 30 150

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Interpretation

Here we can see that now a days most of the people prefer to shop luxury brands. A major part purchase luxury brand followed by local brands. International brand has least share. Following question is frame to find out the impact of real estate (commercial), retail i.e mall concept on the sale of luxury product, like from where actualy customers prefer to shop?

Where do you prefer to shop ? Answers Local market Malls Brand outlets Others Total No. of respondents 40 69 33 8 150

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Interpretation

Most of the people like to purchase from Malls followed by local market and brand outlets. This shows that real estate (commercial) mall concept have such a high impact on the sale of luxury items. India being a developing country is not an attractive hub for luxury brands till recent years but now the scenario seems to be changing.

Do you still go abroad to shop for Luxury products?

Answers Yes No

No. of Respondents 65 85

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Interpretation

From the above pie chart we can see that now India is growing as a luxury market for the people who are real luxury lovers and they dont have to go to foreign lands to purchase one. People are able to choose among the large variety of luxury brands which are now present in India also. To understand the Demographic composition and the Awareness about the luxury brands the following question has been asked: Do sale of lifestyle products only restricted to Metros? Answers Yes No No. of Respondents 79 71

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Interpretation

There is a mix of opinion about the sale of luxury brand is more in metros or not. From the above pie chart we can see that there is a very little skew between the respondents who said no and who said yes. Many respondents said that tier II cities are also emerging as a nice ground for luxury goods like Pune, Jaipur, Chandigarh, Noida etc. For some luxury is buying a premium product once in a life and for some buying in few months. To understand the future of luxury sales it is imperative to know how often one purchases a product. How often they indulge in luxury in their lifestyles as opposed to buying the ordinary brand? Time Duration Once in a month No. of Respondents 9 44

Once in a 6 month Once in a Year Once in 5 years Once in 10 years Once in a lifetime

25 41 38 25 12

Interpretation

The above diagram depicts that there are most number of people who buy luxury brands once in a year followed by those who buy once in five year and by those who buy once in a 6 month. The GDP is growing and the Number of HNIs are also growing at a very high rate, still there are some reasons because of which luxury sales are not able to take a flight in India. To understand those reasons lets see the following result:

What are the problems because of which luxury brands are not able to take a flight in India? 45

Reasons Conservative Thinking Lack of Organized Retailing High Rentals High Taxation

No. of Respondents 29 44 23 54

Interpretation

According to the respondents high import duty is main reason why sales of luxury brands in not taking flight. The import duty on premium cars, for example, stood at 205% while wines & spirits invite 185% customs levy, followed by the lack of serious organized retailing.

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Due to less sales luxury brands generally fall into trap of discounting and that goes very true in case of a developing country like India. To understand this question following information is gathered.

Luxury brands generally fall into the trap of Discounting due to fewer Sales?

Answers Yes No

No. of Respondents 57 93

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Interpretation

About 62% respondents said that luxury brands dont fall into trap of discounting due to fewer sales and around 38% people agreed that yes luxury brands fall into trap of discounting The infinite multiplication of Vuitton bags also hinders the distinctive features of luxury and same goes with channel t-shirts. Counterfeit products hamper the growth of luxury brands. So we gathered the following information to understand the real insight.

Do Chinese Counterfeit products hamper the Luxury Brands in India?

Answers Yes No

No. of Respondents 44 106

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Interpretation

The result was astounding and 71% respondents said that no, counterfeit products dont hamper the sale of the luxury sales. Whereas, 29% agree that counterfeit products do hamper the sale of luxury products. Awareness is utmost necessary for any brand. So, to understand the ways through which luxury brands can make the people aware most about their brand in order to enhance both awareness and recall following information was gathered.

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What should International Luxury Brands do to woo Indian consumers?

Techniques Sensory Gratification Celebrity Endorsement Word of Mouth Public Relations

No. of Respondents 33 53 28 36

Interpretation

Around 30% respondents said that the Celebrity endorsement is most affective technique to woo Indian consumers followed by the Public Relation technique like done by the Body Shop.

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Relational Analysis

1. Which brands you prefer to shop * Quality of Luxury brands are more superior then others.

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Analysis It is come to notice that about 50 respondent who prefer Luxury brand feels that quality of Luxury brand is superior to other brands. While there are 37 respondents who are users of local brands believe the superiority of luxury brands over others. This shows that those who use local brands are probably not satisfied with the brand and will shift if constraints like Income etc. are removed.

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2. Which brands you prefer to shop * Value derive from luxury brands is more then others.

Interpretation

We can extract from the above graph that, 39 respondents who are users of luxury brands are satisfied with the value derived from it. While users of local brands are not deriving the value of their money and feel that by using luxury brands, one can derive their value of money. In short, we can say that more than 50% of the respondents believe that, value of money is more in luxury brands.

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3. Which brands you prefer to shop * Services provided by luxury brands is better then others.

Interpretation

When we talk about the services provided in each brand, we can see that not only users of luxury brands but also users of local as well as international brands believe that services are good in luxury brands. So, there is a probability of shifting from local and international to luxury brands at least by those who prefer good services while selecting a brand.

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4. Which brands you prefer to shop * Luxury brands are prefer by high income groups.

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Interpretation

Clearly visible from the graph that about 70% of the respondents irrespective of users of brands have stereotyping belief that Luxury Brand Must be for High Income Group. This shows that the main target segment of luxury brand is high income group customers.

5. Which brands you prefer to shop * Age group is most interested in buying Luxury products.

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Interpretation

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The above graph shows the changes in brand preferences depend on the age of the customers. As we can see from the chart that, more luxury brands is used during 25-34 years of age while it shows a continuous decline in usage of luxury brand with increasing in age.

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6.

Which brands you prefer to shop * monthly salary of respondent.

Interpretation

We can see that about 69% of respondents who have their income between 40000 to 49999 prefer Luxury Brands, while only 45% respondents who have their income of 50000 to 59999 prefer to shop luxury brands.

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Analysis and Interpretation

ANALYSIS OF FINDINGS

Trend Analysis of Sale of Luxury Goods: Considering that more than 200 top global luxury brands are currently at various stages of setting up shop in India, which is considered to be among the markets offering biggest growth potential.

The current figure of sale of Luxury goods in $5.1 billion and The Indian luxury market is expected to double by 2012 and further double by 2016 that is around $20 billion in 2015.

Analysis on basis of Schedule:

The study finds that cities like Pune, Ahmedabad and Surat with high numbers of rupee millionaire households, are potential targets of low ticket size luxury brands, while Baroda, Hyderabad and Asansol are targets of large ticket size luxury items.

India has one of the highest duties/taxes on imported luxury goods, which drive the grey market and duty free purchases, while the stringent regulatory environment impedes investment by foreign brands. There are a number of challenges; too, for the luxury 60

business and this include paucity of trained manpower, regulatory issues and high taxation, the survey pointed out. The import duty on premium cars, for example, stood at 205% while wines & spirits invite 185% customs levy.

luxury retail prices have zoomed to around Rs1,000 ($25) a sq. ft from around Rs400 ($10) two years ago

One more interesting analysis which came out was that that more than 70% of the respondents believe that Chinese counterfeit products dont hamper the sale of luxury brands as the person who is interested in luxury brands will not purchase the counterfeit one. Whereas, some said yes it will hamper the luxury brand not only through sales but also to the exclusive nature of the brand will also be hampered.

According to respondents, brand awareness should be through the medium of celebrity endorsement that is around 30%. Many famous personalities are linked with luxury brands like shahrukh khan, sushmita sen, ashwariya rai etc. second most attractive technique is public relations which we can see is successfully done by Body Shop of Anita Roddick.

There are various resons why sale of luxury goods is taking flight in a developing country like India, the few main resons which can be counted are Change in lifestyle (like household patterns), Retail boom, Working women, Rise in living standards

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One of the surprising findings of the study aided by primary research with Indian Market Research Bureau (IMRB) was the demographic profile of the Indian luxury consumer. Based on their research and findings, 52 per cent of luxury expenditure is exercised by consumers belonging to the 25 to 34 year age bracket

About 36% of the luxury consumers said they preferred buying abroad as they believed the range was available ahead of India, while 34% said they shopped overseas because the show off value was higher

Due to less sales Luxury brands also fall into trap of discounting, this is a main threat of any luxury brand. The retailer may turn the exclusivity of the brand down if he didnt get the proper returns.

INTERPRETATIONS:

It was found that:

1) There are a number of challenges; too, for the luxury business and this include paucity of trained manpower, regulatory issues and high taxation, the survey pointed out. The import duty on premium cars, for example, stood at 205% while wines & spirits invite 185% customs levy.

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2) India has an exponential growth in market size of luxury goods it is due to various factors like Change in lifestyle (like household patterns), Retail boom, Working women, Rise in living standards.

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Conclusions

Conclusions: There are many multinational luxury brands which are entering in India with their full pace like Jimmy Choo, Gucci, Christian Dior, Louis Vuitton, Cartier, Piaget, Tiffany, Moschino, Prada, Fendi and others. More than 200 luxury brands are present or in line of opening their shop in India. All this rush is registered due to highest growth in HNIs which is around 25% per year and growing GDP. There are many other reasons because of which market size of luxury brands is also boosting which are Change in lifestyle (like household patterns), Retail boom, Working women, Rise in living standards. Luxury brands can also increase their brand awareness and sales through celebrity endorsements. The things which are hampering the growth of luxury market is high import duty, lack of organized retailing, Chinese counterfeit products.

By keeping the above points in mind we can conclude despite being few difficulties luxury Brands have a great future ahead in India.

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SUGGESTION

Respect: Luxury brand need to respect all interaction between the brand and the customer., Segment: Luxury br personal factors, Connect: Friends and family are an important influence on luxury consumption., Experience: relationships need to be developed in order to win the soul of the luxury consumer.

differentiate and priorities the most profitable subsets for targeted strategies., Insight: Motivation could be based

The starting point for identifying successful luxury brand strategies in India has been established by identifying focus is now towards how many more luxury brands will enter the market to gain a first mover advantage, luxury consumer is always looking for newer ways to satisfy his continuously changing needs.

of luxury brands that remain constant as well as identifying the stage of mindset of the Indian consumer tow

important in India. A word of caution that goes for luxury marketers, irrespective of their brands and geogr

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BIBLIOGRAPHY:

1. Kothari, C. R.; Research Methodology, Methods and techniques; New Age International Publishers; Second Edition.

2. Articles related to Luxury brands, brand awareness and brand perception through Brand Management by Kaphler

3. Gathered information regarding economic conditions of India through WWW. Wikipedia.com

4. WWW. Indianbrandequityfoundation.com

5. Gathered secondary data of HNIs from WWW.dspmerrilllynch.com and WWW. Capgemini.com

6. WWW. Economictimes.com

7. Gathered information regarding luxury consumption patterns by HNIs through WWW.hindubusinessline.com

8. Read articles related to Luxury Retailing in India through WWW. Creditsussie.com. 66

Questionnaire
Future of Luxury Brands in India 1. How often do you go for shopping? within a week__ within 6 months__ within a month__ within a year__

2. With whom generally you go for shopping? Spouse___ Friends___ Family members___ Colleagues____

3. Where do you prefer to shop? Local market___ Brand outlets___ Malls__ Others__

4. Which brands you prefer to shop? local brands__ Luxury brands___ International Brands___

5. On what parameters you select brands?

Price____

Quality___ 67

Availability___

Involvement___

Recommendation___

6. Rank the following parameters on your purchase preference? (1 Highest & 5 Lowest) Price Quality Availability Involvement Recommendation ___ ___ ___ ___ ___

7. Please tell on a scale of 1 to 5, where 1 means Strongly Disagree and 5 means Strongly Agree for the following statements on Luxury Brands

Strongly Statement agree Quality of Luxury brands are more superior then others Value derive from luxury brands is more then others Services provided by luxury brands is better then others Luxury brands are prefer by Agree Neutral Disagree

Strongly disagree

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high income groups

8. According to you which Age group is most interested in buying Luxury products? 18-24__ 35-44__ 25-34__ 45-54__ 55 or over__

9. Does purchase of Luxury is directly related to income level? Yes____ No____

10. Who are the potential target customers of luxury goods who generally have income bracket of? Monthly Salary:

Rs.20, 000-Rs.29, 999__ Rs.40, 000-Rs.49, 999__ Rs.60, 000 or more__

Rs.30, 000-Rs.39, 999__ Rs.50, 000-Rs.59, 999__

11. Why does one person purchase a Luxury Brand? Quality_____ Interested in art_____ Flaunt value_____ Exclusivity_____

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12. Rank the following Socio Economic factors which affect the Luxury market? Change in lifestyle (like household patterns) _____ Retail boom______ Working women______ Rise in living standards______

13. Do you still go abroad to shop for Luxury products? Yes____ No____

14. Do sale of lifestyle products only restricted to Metros? Yes____ No____

15. What are the problems because of which luxury brands are not able to take a flight in India? Conservative Thinking ______ Lack of Organized Retailing______ High Rentals______ High Taxation______

16. Luxury brands generally fall into the trap of Discounting due to fewer Sales? Yes____ 70

No ____

17. Do Chinese Counterfeit products hamper the Luxury Brands in India? Yes ____ No _____ If, Yes how ________________________________________________________

18. What should International Luxury Brands do to woo Indian consumers? Sensory Gratification_____ Celebrity Endorsement_____ Word of Mouth_____ Public Relations_____

Name: ____________________ Gender: Male___ Status: Married__ Female____ Single_____ 35-44__ 45-54__ 55 or over__

Age: 18-24__ 25-34__ Occupation: Student__ Monthly Salary:

Self Employed__ Service__

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Rs.20, 000-Rs.29, 999__ Rs.40, 000-Rs.49, 999__ Rs.60, 000 or more__

Rs.30, 000-Rs.39, 999__ Rs.50, 000-Rs.59, 999__

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