The Luxury goods industry is a very wide industry comprising of products from watches, jewellery, perfumes, expensive wines to yachts, expensive pens, and clothes. Goods for which demand increases more proportionally as compared to income, are known as ‘Luxury goods’, in contrast to a "necessity goods", for which demand increases less proportionally to income. Some luxurious goods are bought due to the tag implied of a status symbol, such goods tend to signify the purchasing power of those who buy them. These goods are not always better in quality or appearance than their less expensive substitutes. The main purpose of purchasing these goods is to display the wealth of their owners. The industry is said to be highly cyclical and the driving force behind the growth of this industry is wealth worldwide, while the economic growth and conditions of various regions affect this industry. Jewellery has been part of the Indian civilization since ancient history. They were in fashion since ancient civilizations as Harappa and Mohanjodaro. Made out of almost any material, jewelry is basically adorned to highlight nearly any body part. Be it the traditional jewelry or the latest ones which are increasingly in demand, i.e. the costume & imitation jewelery. There is no dearth when it comes to accentuating the beauty with varied imaginative & stunningly designed jewelry items. This report has focused on luxury product categories & jewellery. The report provides an overview on the size of the market, importance of luxury goods, target market, problems faced and the various driving factors as well as the latest trends. The major global luxury market players have been profiled.
STATEMENT OF RESEARCH QUESTION
The Indian gems and jewellery sector is also largely unorganized at present. There are more than 15,000 players across the country in the gold processing industry, of which only about 80 players have a turnover of over $4.15 million. I want to evaluate the problems faced by the jewellery sector and come up with measures to help make the sector more organized. The rise of the middle class population in India is estimated to be around 120-150 million.
Keeping this in mind I want to potray the market potential of luxury goods in India.
India as a Manufacturing Hub for Global Luxury Brands
I want to study and evaluate methods adopted by major countries and conclude the possibility of India being the manufacturing hub for global luxury brands.
The advent of foreign luxury brands is in a way an indicator of the promising India growth story. Looking to reap early mover advantages, these brands have set up shop in our country. The Indian luxury market, currently in its growth stage needs to address key concerns like the lack of adequate retail infrastructure and limited availability of trained workforce for the trade if it wishes to promote luxury retail in the country. The world today is looking at India, and the products coming out of it. Our skills pool speaks of the highest level of craftsmanship and creativity as it has evolved and been refined by many generations that carry on the trade. India is also well poised to be an outsourcing destination for foreign luxury brands. The obvious benefits that India has to offer such as low labour costs, superiority of fabrics and customization, gives it an advantage over other mass producing countries. To achieve the objective of promoting indigenous brands and positioning India as a future manufacturing hub for luxury goods, consolidation in the industry is imperative. The need of the hour is for the industry players to create a sophisticated business model supported by financial and legal footings, and for the government to develop the requisite infrastructure. India's luxury sector has gained significant speed. It has the potential and resources,...