1. Assess the opportunities and threats for Luxury goods in India. Is there a product- market fit for luxury goods in India, in particular, given that India is still a low- income economy overall? A. Opportunities
1-The first mover advantage amongst the luxury goods segment. Also the historic business association with the LV brand create a strong brand recall in this segment. 2-The emergence of of high net worth consumers which is the 2nd fastest growing in the world. Also the Ascendance of the Indian middle class segment where the number will grow to 583 million by 2025.Cocooners that are a part of the burgeoning mid-segment of the Indian consumer market numbering to 97 million have the potential to develop a a taste for luxury and become its loyal consumers. The so if luxury market was estimated to be about 4$ and expected to grow to 30$ billion by 2015 3-The emergence of the Indian consumers in the affluent space who perceive luxury products as a reward. 4- A large portfolio of luxury brands across various categories and price points therefore their ability to meet the emerging Consumer demands
1- long gestation period. India is witnessing the rapid emergence of an upper middle class, but only a limited number of households can afford high-end aspirational products. 2- heavy custom duty on import of luxury products ranging between 30-70 percent. which means the products in India are more expensive than abroad. No price differentiation to the brands in India, where customers are still price conscious and are looking for better deals 3- lack of world-class luxury customer service experienced by the well travelled Indian consumer hence preferring to shop while traveling abroad. 4- lack of Lrc - luxury retail clusters or high streets in India and the increasing rentals. Rentals in hotels is very high and space availability 3000 sq ft which doesn't exude a sense of luxury 5- emergence of affordable luxury brands who are very close on trends but cheaper on the pocket. 6- availability of counterfeit products from China and Bangkok in local markets which damages the brand equity.
Yes, there is a product-market fit for luxury goods in India as there is an emerging trend of affluent and high net worth Individuals. There is an increased awareness of luxury brands, increased aspirations and the emerging need to reward ones performance or maintain a stature. However, Indians by culture are price conscious and seek better value even on luxury goods. The luxury brand retailers need to provide a world class shopping experience to the Indian consumer in terms of -the newness of the ranges, availability of the latest
-pricing has to be the same as international
-in-store shopping experience and world class customer service experiences
2. Assess Louis Vuitton’s strengths and weaknesses for pursuing the luxury goods market in India. Does Louis Vuitton have a product-company fit for the Indian luxury goods market?
1- Lv is one of the oldest luxury fashion houses in the world and is a leader in the luxury sector world-wide 2-LV is one of the first luxury companies to see the potential economic growth of the emerging markets such as China and India. In India Lv has first mover advantage amongst the luxury goods segment. 3-Lv is historically known to serve the rich and the wealthy. The historic business association with the Royal families of India create a strong brand recall in the luxury segment. 3- the strong brand heritage and association over the years with royalty,aristocrats ,celebrities and luxury 4- the creativity and the quality of the products
5- exclusivity and made to order
6- inventory controlled well no markdown
1- higher prices on account of high customs duty on imports of luxury goods 2- LV is the worlds most counterfeited brands. availability of counterfeit products from China and Bangkok in local markets damages the brand equity. 3- restricted retail...
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