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Hemanth Y
Adjunct Faculty-Army Institute of Fashion and
Design
Ex-faculty, NIFT
and Research scholar
Status of Luxury Branding in Indian
Context
Original Research Note / Case Study
Written By
Hemanth Y
IUP Journal of Brand Management ,December 2013
,10(4),ISSN-0972-9097,pg.66-70
Objectives of the Presentation
To understand the basic concepts and
strategies in luxury brands
To know the current status of Luxury
branding in India
Status of Luxury branding in Indian Context
“Luxury is a necessity that begins where
necessity ends.” Coco Chanel
Uu
U
It is
associated
with strong
involvement
of human
element and
value
recognition
from others.;
L
The word luxury
originates from the Latin
term “luxus” signifying
“soft or extravagant
living, indulgence,
opulence “2
X
It can also
refer to
lifestyle
U
Luxury is
consumer
and situation
specific..
R
It is about
Affluence
Y
It is an
aspect
which is
enjoyable
Luxury
• The word luxury originates from the Latin
term “luxus” signifying “soft or extravagant
living, indulgence, opulence “
• It is associated with strong involvement of
human element and value recognition from
others.
• It can also refer to lifestyle; the underlying
construct’s definition is consumer and
situation specific.
According to Collins English
Dictionary the term Luxury is
defined as
“Indulgence in rich and
sumptuous living and
indulgence rather than a
necessity”
The Oxford Advanced Learner's Dictionary
defines luxury as the enjoyment of special and
expensive things, particularly food and drink,
clothes and surroundings, as a pleasure or an
advantage that you do not often have and as a
thing that is expensive and enjoyable but not
essential.
luxury can be called as “It is more than
necessity”. It is associated with affluence and
superiority
Luxury and Fashion
• The term luxury came into being by the role
played by Fashion which has always had an
impact in the history of the great civilizations. In
Egyptian cultures, Greek and Roman Empires
fashion was a key social element that reflected
the society through apparel, accessories and
cosmetics. The value provided by luxury is
beyond the core function and it incorporates
culture and philosophy as it creates desires rather
than meeting customer’s need.
Fashion can also be called as high end
product called “haute couture” which is
derived from French word.
This product is non-wearable
and it is demonstrated in all
the fashion shows for
promoting the fashion labels
of designers
• Bearden and Etzel (1982, P.184) defines luxury
is more than necessity and have a degree of
exclusivity.
Research Point of View:
• The Study had discussed about various
distinctions between necessity and luxury
Figure depicting a Hierarchy of Luxury Goods Products (Alleres 1990)
Classification of Luxury Goods
• Alleres(1990) indicates that the luxury goods
can be interpreted in socio-economic class
and 3 levels of luxury goods exists based on
the degree of accessibility.
• According to this hierarchy it can be
understood as the inaccessible luxury level is
related to an elite socio-economic class, and is
identified with absolute product
distinctiveness
It is associated with products that are extremely
high-priced, which offer the owner
exceptional social prestige.
The middle level called as the intermediate
luxury level describes a category of luxury
products that is attainable by the
‘professional’ socio-economic class.
Bottom level is the accessible luxury level which
describes luxury products that are attainable
by the middle
Luxury brands and branding
• When we hear the term ‘luxury product’ the
first thing comes to mind is expensive. The
following literature gives brief idea about
luxury brands and the various dimensions of
luxury brands.
• Luxury products are often purchased simply
because they cost more, without providing
any additional direct utility over their cheaper
counterparts (Dubois & Duquesne, 1993)
• In the study it is also understood that
Americans are increasingly trading up to
luxury brands (Silverstein & Fiske, 2003) ,
regardless of their economic status, because
these products provide an opportunity for the
middle class to attain the perception of
prosperity (Schwartz, 2002)
• It is evident that the consumption of such
products displays individuals’ wealth,
differentiating them from others (Liebenstein,
1950).
• In American context, luxury brands are quite
common and even middle class don’t hesitate
to buy luxury brands
• In India the luxury brands are eyeing few
metro cities like Mumbai, Delhi and Bangalore
etc.,
Conclusion
•Elite class people are emotionally attached to the product though
it is highly priced
•Luxury brands are associated with the set of philosophy and
culture which is an intrinsic nature of luxury products
•No short term growth in luxury segment
•A T Kearney report says that there is 21% expected growth by
the end of year 2015
•Projected figure is 14.72$ Billion
•India is still an investment market
White Papers:
• Bearden, W. O., & Etzel, M. J. (1982). Reference Group Influence on Product and
Brand Purchase Decisions. Journal Of Consumer Research, 9(2), pg.183-194.
• Alleres, D. (1990), “Luxe - Strategies Marketing”, Economica, 1
• Liebenstein, H. (1950). Bandwagon, Snob and Veblen effects in the theory of
consumers’demand. Quarterly Journal of Economics, 64, pg.183–207.
• Mandel, N., Petrova, P. K., & Cialdini, R. B. (2006). Images of Success and the
Preference for Luxury Brands. Journal Of Consumer Psychology (Lawrence
Erlbaum Associates), 16(1), 57-69.
Websites:
• http://luxurysociety.com/articles/2010/05/defining-luxury-the-conundrum-of-
perspectives
• http://www.magicalmumbai.com/3071/luxury-brands-in-mumbai/
References:
THANK ME.

More Related Content

Status of Luxury branding in Indian Context

  • 1. Hemanth Y Adjunct Faculty-Army Institute of Fashion and Design Ex-faculty, NIFT and Research scholar
  • 2. Status of Luxury Branding in Indian Context Original Research Note / Case Study Written By Hemanth Y IUP Journal of Brand Management ,December 2013 ,10(4),ISSN-0972-9097,pg.66-70
  • 3. Objectives of the Presentation To understand the basic concepts and strategies in luxury brands To know the current status of Luxury branding in India
  • 5. “Luxury is a necessity that begins where necessity ends.” Coco Chanel
  • 6. Uu U It is associated with strong involvement of human element and value recognition from others.; L The word luxury originates from the Latin term “luxus” signifying “soft or extravagant living, indulgence, opulence “2 X It can also refer to lifestyle U Luxury is consumer and situation specific.. R It is about Affluence Y It is an aspect which is enjoyable
  • 7. Luxury • The word luxury originates from the Latin term “luxus” signifying “soft or extravagant living, indulgence, opulence “ • It is associated with strong involvement of human element and value recognition from others. • It can also refer to lifestyle; the underlying construct’s definition is consumer and situation specific.
  • 8. According to Collins English Dictionary the term Luxury is defined as “Indulgence in rich and sumptuous living and indulgence rather than a necessity” The Oxford Advanced Learner's Dictionary defines luxury as the enjoyment of special and expensive things, particularly food and drink, clothes and surroundings, as a pleasure or an advantage that you do not often have and as a thing that is expensive and enjoyable but not essential.
  • 9. luxury can be called as “It is more than necessity”. It is associated with affluence and superiority
  • 10. Luxury and Fashion • The term luxury came into being by the role played by Fashion which has always had an impact in the history of the great civilizations. In Egyptian cultures, Greek and Roman Empires fashion was a key social element that reflected the society through apparel, accessories and cosmetics. The value provided by luxury is beyond the core function and it incorporates culture and philosophy as it creates desires rather than meeting customer’s need.
  • 11. Fashion can also be called as high end product called “haute couture” which is derived from French word. This product is non-wearable and it is demonstrated in all the fashion shows for promoting the fashion labels of designers
  • 12. • Bearden and Etzel (1982, P.184) defines luxury is more than necessity and have a degree of exclusivity. Research Point of View: • The Study had discussed about various distinctions between necessity and luxury
  • 13. Figure depicting a Hierarchy of Luxury Goods Products (Alleres 1990)
  • 14. Classification of Luxury Goods • Alleres(1990) indicates that the luxury goods can be interpreted in socio-economic class and 3 levels of luxury goods exists based on the degree of accessibility. • According to this hierarchy it can be understood as the inaccessible luxury level is related to an elite socio-economic class, and is identified with absolute product distinctiveness
  • 15. It is associated with products that are extremely high-priced, which offer the owner exceptional social prestige. The middle level called as the intermediate luxury level describes a category of luxury products that is attainable by the ‘professional’ socio-economic class. Bottom level is the accessible luxury level which describes luxury products that are attainable by the middle
  • 16. Luxury brands and branding • When we hear the term ‘luxury product’ the first thing comes to mind is expensive. The following literature gives brief idea about luxury brands and the various dimensions of luxury brands.
  • 17. • Luxury products are often purchased simply because they cost more, without providing any additional direct utility over their cheaper counterparts (Dubois & Duquesne, 1993) • In the study it is also understood that Americans are increasingly trading up to luxury brands (Silverstein & Fiske, 2003) ,
  • 18. regardless of their economic status, because these products provide an opportunity for the middle class to attain the perception of prosperity (Schwartz, 2002)
  • 19. • It is evident that the consumption of such products displays individuals’ wealth, differentiating them from others (Liebenstein, 1950). • In American context, luxury brands are quite common and even middle class don’t hesitate to buy luxury brands • In India the luxury brands are eyeing few metro cities like Mumbai, Delhi and Bangalore etc.,
  • 20. Conclusion •Elite class people are emotionally attached to the product though it is highly priced •Luxury brands are associated with the set of philosophy and culture which is an intrinsic nature of luxury products •No short term growth in luxury segment •A T Kearney report says that there is 21% expected growth by the end of year 2015 •Projected figure is 14.72$ Billion •India is still an investment market
  • 21. White Papers: • Bearden, W. O., & Etzel, M. J. (1982). Reference Group Influence on Product and Brand Purchase Decisions. Journal Of Consumer Research, 9(2), pg.183-194. • Alleres, D. (1990), “Luxe - Strategies Marketing”, Economica, 1 • Liebenstein, H. (1950). Bandwagon, Snob and Veblen effects in the theory of consumers’demand. Quarterly Journal of Economics, 64, pg.183–207. • Mandel, N., Petrova, P. K., & Cialdini, R. B. (2006). Images of Success and the Preference for Luxury Brands. Journal Of Consumer Psychology (Lawrence Erlbaum Associates), 16(1), 57-69. Websites: • http://luxurysociety.com/articles/2010/05/defining-luxury-the-conundrum-of- perspectives • http://www.magicalmumbai.com/3071/luxury-brands-in-mumbai/ References: