Luxury Brands in India Essay

A luxury brand is a brand for which most of products offered are luxury goods. Luxury goods in general refer to products or services which are not fundamental and can be described as affluence. The three words which compliment luxury brands are high price, high quality and prestige. These brands create and set the seasonal trends and are also capable to pulling all of their consumers with them wherever they go. India being the second-fastest growing economy is believed to be one of the most sought after market by the luxury brands. Designers around the world have been taking inspiration from India’s rich fashion history with bright Bollywood colours, exotic saris, elegant embroidery and stunning jewellery. The growing number of Indians in the billionaire’s club coupled with a evident rise of the urban elite class has seen many international luxury giants queue up to woo the Indian customer who has a peculiar culture of â€Å"status†. A big brand like Chanel launched its 2012 Paris-Bombay Collection. in December of 2011 and Hermes put out a limited-edition line of saris, which instantly drew the world’s attention to the glamour and glitz of India. Luxury brands have thoroughly considered the significance of understanding India’s spending power and rituals as there are definite times when luxury spending isn’t welcome, but other times like weddings and festivals which are prime times for offering high-end, luxury items. As per Millward Brown Optimor consulting company the top 10 luxury brands are: 1. Louis Vuitton- $25. 9 billion, 2. Hermes- $19. 1 billion 3. Rolex- $7. 2 billion 4. Chanel- $6. 7 billion 5. Gucci- $6. 4 billion 6. Prada- $5. 7 billion 7. Cartier- $4. 8 billion. 8. Hennessy- $4. 6 billion. 9. Moet & Chandon- $4. 2 billion. 10. Burberry- $4. 09 billion. Features of Luxury market in India: ? India is the second fastest growing region in Asia Pacific for Luxury Products. ? The Indian market is expected to grow at the rate 25% over next 5 years. ? At $4. 8 billion, the luxury retail market has place for everyone. ? Apparel, jewelry & personal care are the biggest sells in the luxury market. ? Indian Luxury Market is worth $4. 9 Billion, it forms only 2% of global share thus there is a huge scope for expansion. ? There are 103,000 millionaires in India, 16,000 are added each year. ? Luxury and prestige brands such as Rolex, Louis Vuitton and Cartier represent the highest form of craftsmanship and command a staunch consumer loyalty that is not affected by trends. Now that India has emerged as a hot market for Luxury Brands it is important for these brands to market themselves well to the Indian consumer. Most of the Luxury Brands attract a new consumer by indicating high brand worth. With introduction of several Luxury brands in India, Luxury Brand marketing has emerged as a significant ancillary service. Luxury marketing strategies are developed in a unique way which ensures success; some of the strategies are listed below: ? Brand needs to be â€Å"expansive†- it needs to be full of modernization opportunities for the marketer for satisfying the divergent needs of the luxury consumer ? Brand must always tell a majestic story heritage & performance or other aspects that goes on to build the aura of a brand over time. The story always accentuates the identity of the brand. ? Brand needs to be relevant to the needs of consumers-Depending upon the mindset of the luxury class, it is imperative for a brand to satisfy those needs, whether they be catering to recognition or functional use etc. ? Brand must always align itself with consumers’ values-A brand that does not concur with the basic values of a consumer’s society has a small chance of succeeding because luxury items are forms of expression or identification for a luxury consumer. ? Brand needs to perform-Irrespective of which category the brand belongs to, a performance assurance is a must. For all the above mentioned strategies to work there is a strong need for specialized marketing & PR function. These two services have become backbone of the Luxury Brands in India. Through my research I shall try to find out the role played by these agencies and also the activities under taken by various Luxury brands to establish themselves in India. A RESEARCH ON Fashion shows [pic] Assignment on research problem INTRODUCTION Research can be defined as a formalized curiosity. It is â€Å"The systematic investigation into and study of materials, sources, etc., in order to establish facts and reach new conclusions† Oxford English dictionary. In other words it can also be defined as â€Å"A process of finding out information and investigating the unknown to solve a problem† according to Maylor and Blackmon (2005). The topic of my research problem is FASHION SHOWS. My research shall revolve around answering questions like: 1. What brings about the success of these shows? 2. How it affects the fashion trends in a society? 3. How it affects the sales of a country? A fashion show is an event put on by a fashion designer to showcase his or her upcoming line of clothing during a Fashion Week. Fashion shows are fun and creative way of highlighting some of the ethical issues surrounding the fashion industry. There is a lot to be considered so it is well worth planning ahead. This is where the latest fashion trends are introduced to the people at large. In a typical fashion show models walk down the ramp dressed in the clothing created by the designer. Fashions shows enjoy a good amount of media coverage which is essential for spreading trends across the globe. History In the 1800s â€Å"fashion parades† periodically took place in Paris couture salons. American retailers imported the concept of the fashion show in the early 1900s. The first American fashion show likely took place in 1903 in the New York City store Ehrlich Brothers. By 1910, large department stores such as Wanamaker’s in New York City and Philadelphia were also staging fashion shows. These events showed couture gowns from Paris or the store’s copies of them; they aimed to demonstrate the owners’ good taste and capture the attention of female shoppers. Magazines like Vogue and Harper’s bazaar, whose editors were obsessed with French fashion began to feature more work by American designers. American designs became the new modern trends and made their place in the industry. Many designers began to hold their own shows in private functions but some shows turned out to be mishaps. Some locations were hazardous like that of Michael Kors show where a part of the ceiling began falling on the models. Mishaps like these made the designers to send the collection to Bryant Park and Fashion Week as we know it today was born. Advantages:- †¢ Fashion shows gave many aspiring designers a platform to show their collection. †¢ It gave opportunity to see the best garments and meet the best international designers. †¢ It helps in introducing new trends and make people aware of them. †¢ It amalgamates different trends and presents an overview of seasonal trend. What brings out the success of these shows? †¢ Careful selection of the theme of fashion show. It should be in sync with the collection that the designer shows. Theme along with collection leaves an important impact on its audience. †¢ Venue that can accommodate many people and one which can efficiently handle a fashion show. It should have good lighting system, backstage area, adequate parking and also easy to find. †¢ Proper display of Collection. It should be appealing and attractive. †¢ Models that effectively and beautifully carry the designs. †¢ Proper advertisement by creating a media buzz. . World’s most talked about & influential Fashion Shows: †¢ Berlin Fashion Week – Berlin, Germany †¢ Haute Couture- Paris, France †¢ Sao Paulo Fashion Week- Sao Paulo, Brazil †¢ Copenhagen Fashion Week- Copenhagen, Denmark †¢ New York Fashion Week- New York, US †¢ London Fashion Week A/W- London, UK †¢ Tokyo Fashion Week A/W- Tokyo, Japan †¢ Milan Fashion Week S/S- Milan, Italy †¢ Paris Fashion Week S/S- Paris, France.