HOW DO WORLD’S TOP 10 LUXURY BRANDS HANDLE THEIR PR & MARKETING IN INDIA
Assignment on research problem
MFM (I Semester)
STATEMENT OF RESEARCH PROBLEM
A luxury brand is a brand for which most of products offered are luxury goods. Luxury goods in general refer to products or services which are not fundamental and can be described as affluence. The three words which compliment luxury brands are high price, high quality and prestige. These brands create and set the seasonal trends and are also capable to pulling all of their consumers with them wherever they go.
India being the second-fastest growing economy is believed to be one of the most sought after market by the luxury brands. Designers around the world have been taking inspiration from India’s rich fashion history with bright Bollywood colours, exotic saris, elegant embroidery and stunning jewellery. The growing number of Indians in the billionaire’s club coupled with a evident rise of the urban elite class has seen many international luxury giants queue up to woo the Indian customer who has a peculiar culture of “status”. A big brand like Chanel launched its 2012 Paris-Bombay Collection in December of 2011 and Hermès put out a limited-edition line of saris, which instantly drew the world’s attention to the glamour and glitz of India.
Luxury brands have thoroughly considered the significance of understanding India’s spending power and rituals as there are definite times when luxury spending isn’t welcome, but other times like weddings and festivals which are prime times for offering high-end, luxury items.
As per Millward Brown Optimor consulting company the top 10 luxury brands are: 1. Louis Vuitton- $25.9 billion,
2. Hermes- $19.1 billion
3. Rolex- $7.2 billion
4. Chanel- $6.7 billion
5. Gucci- $6.4 billion
6. Prada- $5.7 billion
7. Cartier- $4.8 billion.
8. Hennessy- $4.6 billion.
9. Moet & Chandon- $4.2 billion.
10. Burberry- $4.09 billion.
Features of Luxury market in India:
❖ India is the second fastest growing region in Asia Pacific for Luxury Products. ❖ The Indian market is expected to grow at the rate 25% over next 5 years. ❖ At $4.8 billion, the luxury retail market has place for everyone. ❖ Apparel, jewelry & personal care are the biggest sells in the luxury market. ❖ Indian Luxury Market is worth $4.9 Billion, it forms only 2% of global share thus there is a huge scope for expansion. ❖ There are 103,000 millionaires in India, 16,000 are added each year. ❖ Luxury and prestige brands such as Rolex, Louis Vuitton and Cartier represent the highest form of craftsmanship and command a staunch consumer loyalty that is not affected by trends.
Now that India has emerged as a hot market for Luxury Brands it is important for these brands to market themselves well to the Indian consumer. Most of the Luxury Brands attract a new consumer by indicating high brand worth. With introduction of several Luxury brands in India, Luxury Brand marketing has emerged as a significant ancillary service. Luxury marketing strategies are developed in a unique way which ensures success; some of the strategies are listed below: ❖ Brand needs to be “expansive”- it needs to be full of modernization opportunities for the marketer for satisfying the divergent needs of the luxury consumer ❖ Brand must always tell a majestic story heritage & performance or other aspects that goes on to build the aura of a brand over time. The story always accentuates the identity of the brand. ❖ Brand needs to be relevant to the needs of consumers-Depending upon the mindset of the luxury class, it is...