Data Collection & Interpretation

 Data collection (Both primary and secondary)

 Google forms- 74 responses

Interpretation
Responses was approximately equal for male and female.

Interpretation
Most of the responses was with family income greater than 6 lakh but less than 8 lakh which
indicates to middle segment. Total 70% responses were from less than 12 lakh annual family
income.
Interpretation
Most of the middle segment buy luxury brand.

Interpretation
Around 70% of the respondents buy luxury brand at least once in 6 months.
Interpretation
More than 70% respondents agree that high price means good quality.

Interpretation
60% respondents willing to pay high price for limited edition products.
Interpretation
Around than 60% respondents buy luxury brand to satisfy their need irrespective of making any
impression while around 40% do so to make an impression on others.

Interpretation
40% respondents purchased fashion products and 20% purchased body decoration as jewelry.
Interpretation
80% respondents voted to target middle segment.

Interpretation
60% visited outlet and 40% bought from ecommerce
Interpretation
Flipkart, Paytm, Snapdeal, Amazon and Myntra were the most favorable ecommerce medium
used by respondents.

Interpretation
And, Malls, Sephora and Vero moda are the most visited outlets
Interpretation
Mostly EMI option was not used by respondents.

Interpretation
42% people purchased because there was an offer or sale on product, however 57.5%
purchased because it was their desire.

Conclusion
According to google forms, it has been analyzed that people are in favor of buying luxury
brands but it is not necessary that they be targeted. They buy for desire or if there is an offer,
they also buy to showoff and to match with trend.
  Article by Abhay Gupta, founder/CEO of Luxury Connect and Luxury Connect Business
School

Despite the economic slowdown across the world, the size of the global luxury market is
estimated to be around $2 trillion. The BRICS markets, more specifically China and India
rather than Brazil and Russia, have been in the spotlight for the past few years.
However, luxury marketers in China last year faced many challenges relating to luxury
consumption, regulatory issues, tariff structures, currency reasons and a severe clamp-down
on the gifting culture. Stores opened in a hurry by brands across categories began to shut
shop.
As a consequence of the Chinese luxury pullback, the entire global luxury industry was
severely affected. All brands once again are back to devising a fresh strategy for future
growth.
A quick analysis across the BRICS nations finds that :
 In Brazil, the economy is in recession. There is no clear revival visible as of now.
 Russia is the worst-affected of the lot due the commodities slump and drop in
currency.
 China is battling a growth slowdown.
 In South Africa, the economic growth has decelerated steadily over the last few years.
Industry analysts see limited growth potential.
 India, alone, is expected to emerge as the world's fastest-growing major economy.
 So is there an India opportunity for luxury brands ?
 Growth projections
India’s economy is much stronger now. The indicators are all favorable. The fiscal
deficit, inflation index, current account deficit and the foreign exchange reserves are
all healthier and growth-driven.
 The percentage annual growth rates projections in India stand best in the BRICS region
at 7.5 percent in India as against 6.3 percent in China, 2.1 percent in South Africa and
almost negligible in Brazil and Russia.
Indian luxury retail trends: Tier 1 cities
The key spending on luxury products is pre-dominant in the metro cities.
In 2015, Delhi ranked first in spending most on luxury brands, followed by Mumbai (2nd),
Ahmedabad (3rd), Pune (4th) and Bangalore (5th).
However, spending on luxury goods has spread much beyond and across tier 1, 2 and 3 cities.
Ranking of India’s leading luxury retail cities
Delhi National Capital Region: Has the most enriching retail legacy among the Indian cities,
therefore the Northern Indian city tops all real estate drivers. Delhi, especially the National
Capital Region, remains one of the strongest markets in terms of sale volumes for the
manufacturers.
Mumbai: Mumbai, the nation’s financial capital on the West Coast, has the highest retail
demand potential. However, a lack of availability of land parcels leading to high rents in prime
areas acts as a deterrent that causes Mumbai to lag behind Delhi.
Pune: Pune in Western India provides the most affordable rents in prime areas among the
Tier 1, 2 and 3 tier cities.
Bangalore: Affordable rents in the city, compared to other Tier 1 and 2 cities, have helped
retail to flourish. However, the Southern Indian city has lesser household expenditure even
when compared to Kolkata (formerly Calcutta) and Chennai (previously Madras).
Ahmedabad: A cash-rich city, Ahmedabad in Western India saw increased spending on
premium high-end offerings from global automakers. For Italian super-luxury sports carmaker
Lamborghini, cities such as Ahmedabad have put up sales figures of six units in the last six
months. These figures are significant because the Volkswagen-owned brand sold 16 units in
2014 as against 22 in 2013.
Chennai: According to Ajay Agarwal, managing director of Bergamo, “Chennai-ites are mature
shoppers. They are well-travelled and not afraid to pay for quality.” Chennai in South India
embraced the concept of department stores much before the other metropolitan cities did.
Demand for office space continues to grow for the third straight year.
Hyderabad: Hyderabad in South India offers attractiveness in terms of affordable rents, which
is higher only to Pune among the Tier 2 cities. However, lesser household income and
household expenditure has ranked it lower.
Indian luxury retail trends: Emerging Tier 2 and 3 cities
Forty-four percent of wealthy Indians reside in Tier 2 and 3 cities.
In the tier 2 and 3 cities, the highest demand is for luxury automobiles, followed by apparel
for women and accessories for both sexes. According to Boston Consulting Group, 600 cities
from Tier 2, 3 and 4 categories would be 4.5 times the current size.
Indian luxury retail trends: Performance drivers
1. Value-conscious consumer: India essentially has a value-conscious consumer base. New
trends in this direction are:
2. Pre-owned luxury: Pre-owned luxury is a fast-catching trend. BMW, Mercedes and Audi
have showrooms for sale of pre-owned cars.

Luxury target only rich

That said, it doesn’t take a rocket scientist to understand that consumers making $150,000 or
even $300,000 before taxes, mortgages, tuitions, home repairs and the type of bills many of us
enjoy, simply are not the consumers who are the “heavy user” of luxury goods and services.
By contrast, there were over six million private jet flights last year, and the cost to fly privately
fully calculated ranges from $5,000 to $10,000 per hour, so I always feel comfortable saying
there are not many poor people on private jets! It is a targeted market where one reaches the
super-rich family together, talking about where they want to go next, what to get for the next
birthday, anniversary or even just next trip.
When one considers the Mayor Bloomberg example, the concept is clear. Luxury brands could
create a more stable future if they can do a better job of making sure their products are top of
mind and desired with the super-rich.

Luxury brand targeting middle segment (Interpretation)

Starbucks reduces cost of its premium coffee to match with India purchasing value. Brands like
Nissan manufacture cars according to country to fit with demand and purchasing value. There
have been many example where brands cut their cost but they do not give same quality or
services for less cost, cost reduction increases quality reduction too.
A middle segment can be influenced by word of mouth of advertisements but premium
segment will always be the target. It will not only cost company to target middle segment but
also diminish brand image.

For example value of Apple iPhone is a premium, however middle class buy these phones after
savings and planning or on EMI but they cannot adopt sudden change in technology where
premium customer will change according to technology.

Consumer perception
The BCG Report (Bellaiche, Mei-Pochtler, & Hanisch., 2010) points out that a new consumer
behaviour and competitive landscape are threats to the mystique of luxury. Consumers are
becoming more price conscious so that being exclusive and iconic is no longer enough to make
a brand grow. Some authors indicate that the luxury concept is moving towards experience and
authenticity (Visconti, 2010; Atwal & Williams, 2009). The paradox is that when new luxury
emerges as a business strategy, these firms are targeting the middle class with luxury brands
but not luxury products (Kapferer & Bastien, 2009). Luxury products are associated with brands
that will give prestige to their owners (Dubois & Czellar, 2002), but the paradox is that as
companies give access to new consumers the meaning of these goods changes and
consequently the prestige of the brand can be damaged. This leads to the question of how
these new or mass luxury strategies are influencing this change in consumer behaviour.