INTRODUCTION & SCENARIO: The Indian economy has evoked a lot of interest globally given its statistics of some of the highest disposable incomes and increase in the number of millionaires. We are not new to luxury. Indian princes had a penchant for luxury goods from the west. The last couple of years have seen a profusion of luxury brands into the Indian market. With one of the highest levels of disposable incomes, the well-traveled Indian luxury consumer is being wooed by all. Indian consumer is more sophisticated, discerning and in that manner more demanding. Being culturally richer, they need less education on luxury than the Chinese counterpart. Major reason that India has not established itself as a luxury- tourism and shopping destination as Dubai and Singapore have successfully done. If luxury shopping were added to the travelers’ itinerary in India, we’d see interesting results Profile of Luxury retail consumers:
•Product attributes- Luxury goods have always been associated with high quality, craftsmanship, uniqueness, creativity, exclusivity and innovation. •The consumers also get the additional psychological benefits like esteem, prestige and a sense of a high status that reminds them and others that they belong to an exclusive group who can afford these expensive goods. •According to a study by American Express, Inside the Affluent Space, Indian consumer has a desire to prove that I’ve made it. •For an Indian owning a luxury brand would mean accomplishment. •He is an aspirer and for him luxury is a reward, which is a mindset very different from a European consumer for whom luxury is an experience. Professor James Twitchell (2002) comments on the democratization of luxury and the changing consumer psychology and portrays the following trends in the Luxury market:
•These new customers for luxury are younger than clients of the old luxe used to be •They are far more numerous
•They make their money far...