“Submitted by Guneet gulati & Raunika Chauhan in partial fulfillment for the One Year professional Diploma in Luxury brands” (2012-13)
Dr. Tarun Panwar
23rd October 2012
Apart from our efforts, the success of any project depends largely on the encouragement and guidelines of many others. We take this opportunity to express our gratitude to the people who have been instrumental in the successful completion of this project. We would like to show our greatest appreciation to Prof. Jyotsna Tyagi & Molshri. We can't say thank you enough for their tremendous support and help. We feel motivated and encouraged every time we attend their lectures. Without their encouragement and guidance this project would not have materialized. The guidance and support received from all the members who contributed and who are contributing to this project, was vital for the success of the project. We are grateful for their constant support and help.
We hereby declare that the project work entitled “ Report on Cartier ”submitted to “The Pearl Academy of Fashion”, is a record of an original work done by us under the guidance of Ms. Jyotsna Tyagi & Molshri.
TABLE OF CONTENTS
EVOLUTION OF LUXURY6
LUXURY GOODS AND SERVICES8
WHY PAY HIGHER PRICE FOR LUXURY10
LUXURY MARKET TRENDS ALL OVER THE WORLD11
LUXURY MARKET TRENDS IN INDIA13
THE INDIAN LUXURY CUSTOMER: HISTORICAL TIES17
LUXURY JEWELERY IN INDIA18
CARTIER IN INDIA19
Traditionally Luxury goods are characterized by a premium brand image, excellent quality, higher perceived price, uniqueness, scarcity, unnecessary, history, heritage, aesthetics and experientialism. Luxury’s traditional views root from the historical structure social stratification and consumption habits of the “leisure class”. Luxury products, thus, since the history of time symbolize the individual and social identities of the consumer. Since luxury signifies status it constantly needs to be reinvented and managed as means of social distinction. Luxury comes from the Latin word “luxus” which relates to excess. It includes the notion of excess but also the notion of pleasure, comfort, indulgence and the connotation of something that is not necessary (Webster’s definition). There is no consensus about the definition of luxury products and brand. The existing definitions tend to be inconsistent because the understanding of the concept base seems to be unclear and a little blurry. Unless we don’t have a clear definition of luxury products and brands, we can’t recognize as to what constitutes the definition of a luxury consumer and how they can be distinguished. Luxury products and brands can be defined from the costumer’s point of view as well as from the point of view of luxury brand managers and their target groups. From the consumer’s point of view defining luxury involves analyzing all the different preferences and understandings of luxury for different consumer segments. Lets understand this better with an example, a VW polo car could be seen as a luxury car by a student while a Mercedes S class might just be an ordinary car for a wealthy heir. Thus, luxury is a relative term that could refer to almost anything or nothing depending on whom you ask. Defining luxury from the perspective of the luxury brand managers and their target groups involves concentration on a narrow segment of products and brands. A practical definition of luxury brands is the one, which doesn’t concentrate completely on creating class affiliations but also focuses on developing definitions that allow for the differentiation of products either into the luxury or non-luxury category as best as possible. The definition of the luxury product could be intentional or extensional. The distinction between intentional and extensional refers to the major difference in the...