1. Does a brand like LV have a market in India?
* luxury tradition: India was a familiar market as in the late 19th the maharajahs used to shop in LV connection with new rich people (viral marketing) * The market is growing HNW is 19.3% in 2005
* Today, India is one of the fastest growing economies in the world, second to only China, and has seen an exponential increase in the number of middle and upper class families with high net worth (HNW) or liquid assets in excess of $100 million. * the size of the luxury market is growing $30 in 2015
* 87% of the population lived on an income of less than $2.50 a day * lack of infrastructure: location and limitation of space (contrary to the LV format) * high import duty taxes
* problem in the mall= no control
* new generation that do not know LV and that has not already a taste for luxury
2. Where can LV find an opportunity in the Indian market? * Although the maharajahs are no longer present in India, Louis Vuitton is targeting a similar demographic and customer, the super-rich people in India. These include professional CEOs, non-resident Indians, small and medium retailers, Bollywood actors. * coocuners “new riches” can develop a taste for luxury * viral marketing (maharajahs and new elite)
* desire to feel “I have arrived”
* woman micro-trend
3. How should LV approach the market?
* must create exclusivity (new rich want a gap between them and other consuming class) * educate customers
* These newly-rich had extra disposable income and were starting to sample the good life by purchasing luxury items for the first time. The idea was that these consumers would get a taste of the finer things and would hopefully become customers for life. These consumers are exactly who LV was targeting with their expansion plans. * If a luxury retail cluster wasn’t feasible, the luxury mall was the next best option *...