Growth and Potential of International Luxury Fashion Brands Essay

This is to certify that the forcing out entitled ? harvest-home and Potential of prodigality International Fashion fools in India? is submitted towards the partial fulfilment of the program ? Master of Fashion Management by Kanan Gupta. It is an accepted flex d adept under my guidance and the results ar based on the search done by her. Name of mentor Mr. Kislay Kashyap Asst. Professor Department of MFM NIFT, Patna battle 01-03-2012 Place Patna 1 foliate DECLARATION I, Kanan Gupta hereby decl be that the pop entitled ?Growth and Potential of extravagance International Fashion Brands in India? submitted towards, partial fulfillment of the program Master of Fashion Management is my original work and no part of the project has been copied from either other opus or carried by individual else or has been submitted for any other head/award. However, any material taken from any other published sources has been fittingly referred and ac noesisd at various maneuvers. Name Kan an Gupta Roll no 17 Batch 2011-2013 Centre Patna Date Place 01-03-2012 Patna 2 rogue citeI owe my gratitude to many masses who helped and supported me during the heart for and compilation of my project written report. I would want to thank my mentor Mr Kislay Kashyap for approving my project and bring my indebted gratitude for his guidance and suggestions at every stage of this report. My frank gratitude is besides due to my seniors for their constant encouragement and support. I would equivalent to express my thanks to all(a) those mountain who were directly and indirectly involved in shaping my project by providing valuable information and co-op sequencetion.3Page EXECUTIVE SUMMARY INTRODUCTION This is a project to study roughly the ? Growth and Potential of highlife International Fashion Brands in India?. If we purport into the foregone, no one could imagine that a spicy tone foodstuffplace would come through in India. still over the years with the ch ange in the demographics of the Indian consumer and with higher addressable income available, the highlife market in India has indeed emerged as one of the fastest growing markets in the retail segment.PROBLEM rendering The Indian highlife Market is still a niche market and people induce got a very low personal disposable income, though it has increased a lot from before scarcely not so much to spread out international luxuriousness carriage filths and the people who take a leak got a high disposable income lack enough take c ar most the international musical mode brands available in India as the high life international investment trusts ar particular to metropolitans only. 4Page OBJECTIVE The main objectives of the projects atomic number 18 ? psychoanalyse the Luxury Brand Awareness among the Indian consumers.? Reasons asshole clients buying Luxury fashion Brands ? Analyze the major(ip) international fashion brands in India. ? To set upvass the Current Sc enario and the Growth of Indian Luxury fashion brands and the Market. RESEARCH METHODOLOGY ? The secondary research is through Magazines, journals, articles and internet. ? kickoffhand research through strain group interview with industry personnel, customers. HYPOTHESIS ? assume that on that point is a strong scope for the growth of international highlife fashion brands in India.? Taking an assumption that Luxury fashion brands do not pull in much scope in the Indian market. 5Page CONTENTS Ch. No. 1. 0 2. 0 3. 0 3. 1 3. 2 3. 3 3. 4 3. 5 3. 6 3. 7 4. 0 4. 1 4. 2 4. 3 5. 0 5. 1 5. 2 5. 3 5. 4 6. 0 7. 0 8. 0 9. 0 9. 1 9. 2 Chapter Name Objective Research Methodology Literature Review cornerstone India at Glance geographics plenty Understanding Luxury defining Luxury Socio Economic Significance of Luxury Acquainting with Luxury Fashion Brand MajorDifference among Regular Brands and Luxury Brands Persona of Indian Luxury manufacture Famous Luxury Brands and their destinati on in India attire Analysis Major Problems Faced by Luxury Fashion Industry Growth and Potential of Luxury Brand Growth of Indian Luxury Market Luxury Fashion Branding Strategies Final Summary primary quill Research Findings Annexure Questionnaire Bibliography Page No. 7 8 9 9 9 11 13 14 15 16 17 21 23 26 31 32 33 35 39 41 43 54 56 56 58 6Page 1. 0 OBJECTIVE The main objectives of the projects are ? Analyze the Luxury Brand Awareness among the Indian consumers.? Reasons behind customers buying Luxury fashion Brands ? Analyze the major international fashion brands in India. ? To analyze the Current Scenario and the Growth of Indian Luxury fashion brands and the Market. 7Page 2. 0 RESEARCH METHODOLOGY ? Secondary research through Magazines, journals, articles and internet. ? Primary research through focus group interview with industry personnel, customers. 8Page 3. 0 LITERATURE REVIEW 3. 1 INTRODUCTION If we look into the past, no one could imagine that a luxuriousness market would exist in India.But over the years with the change in the demographics of the Indian consumer and with higher disposable income available, the sumptuousness market in India has indeed emerged as one of the fastest growing markets in the retail segment. Through this report I withdraw tried to shew an estimate of the sumptuosity retail market in India, how much it has spelletrated and in like manner how much it is likely to grow. as well I harbour tried to specify various operators that are important for the success of extravagance brands in India. While doing out research on this project I ingest come across many novel riskings.The role the Indian market plays in the global scenario and the position of India counterpart other countries. Also I understood about the duties and legal requirements for this segment. I have tried my level best to cover all the aspects in regard to my research. India today is fast becoming a new adult male of modern luxury. The countrified now teems with luxurious international brands, spurring the climb of an Indian luxury market. One does not need to trip up oversea to shop for luxury. Luxury goods and portions sit aplenty unspoiled at home.Indians, however, have to echtize such(prenominal), be in organize where to avail of them, and be convinced of the toilet facility and ease of access to these luxury goods and go. In the equal vein, foreigners can also yack away India to shop for same luxury. India can very well be placed on the global luxury-shopping map. There is, in that localisationfore, a adenylic acidle luck to pump prime the luxury market field in India. 9Page 3. 2 INDIA AT GLANCE focalization Study about India and its habitats. India is one of the oldest civilizations in the world with a kaleidoscopic variety and recondite cultural heritage.It has achieved all-round socio-economic progress during the last 60 years of its Independence. India has sire self-sufficient in agricultural harves t-feastion and is now the tenth industrialise country in the world and the sixth nation to have bypast into outer situation to conquer nature for the benefit of the people. It covers an area of 32,87,2631 sq km, ex scating from the covered Himalayan heights to the tropic rain forests of the south. As the 7th largest country in the world, India stands apart from the rest of Asia, mark off as it is by mountains and the sea, which give the country a distinct geographicalentity. Bounded by the Great Himalayas in the north, it stretches southwards and at the Tropic of Cancer, tapers off into the Indian marine between the Bay of Bengal on the atomic number 99 and the Arabian ocean on the west. Lying entirely in the northern hemisphere, the mainland extends between latitudes 84? and 376? north, longitudes 687? and 9725? east and measures about 3,214 km from north to south between the thoroughgoing latitudes and about 2,933 km from east to west between the extreme longitudes. It ha s a land frontier of about 15,200 km.The total length of the coastline of the mainland, Lakshadweep Islands and Andaman&type A Nicobar Islands is 7,516. 6 km. 10 P a g e 3. 3 Geography Location The Indian peninsula is separated from mainland Asia by the Himalayas. The republic is surrounded by the Bay of Bengal in the east, the Arabian Sea in the west, and the Indian Ocean to the south. Geographic Coordinates Lying entirely in the Northern Hemisphere, the Country extends between 8 4? and 37 6? latitudes north of the Equator, and 687? and 9725? longitudes east of it. Indian Standard Time universal date + 0530 Area 3. 3 Million sq km Telephone Country +91 Code Border Countries Afghanistan and Pakistan to the north-west China, Bhutan and Nepal to the north Myanmar to the east and Bangladesh to the east of West Bengal. Sri Lanka is separated from India by a narrow channel of sea, formed by Palk Strait and the Gulf of Mannar. Coastline 7,516. 6 km encompassing the mainland, Lakshadwee p Islands, and the Andaman & Nicobar Islands. 11 P a g e Climate The humor of India can broadly be classified as a tropical monsoon one.But, in spite of much of the northern part of India lying beyond the tropical zone, the entire country has a tropical climate marked by relatively high temperatures and dry winters. There are quaternary-spot seasons winter (December-February), (ii) summer (March-June), (iii) south-west monsoon season (June-September), and (iv) post monsoon season (October- November). Terrain The mainland comprises of four regions, namely the great mountain zone, plains of the Ganga and the Indus, the desert region, and the southern peninsula. Natural ResourcesCoal, push ore, manganese ore, mica, bauxite, petroleum, titanium ore, chromite, natural gas, magnesite, limestone, arable land, dolomite, barytes, kaolin, gypsum, apatite, phosphorite, steatite, fluorite, etc. Natural Hazards Monsoon floods, forte floods, earthquakes, droughts, and landslides. Enviro nment Current Issues Air pollution control, energy conservation, impregnable pine management, oil and gas conservation, forest conservation, etc. Environment International Agreements Rio declaration on environment and development, Cartagena Protocol on biosafety, Kyoto Protocol to the United Nations fabric Convention on climatic12 P a g e change, World Trade Agreement, Helsinki Protocol to LRTAP on the reduction of sulphur emissions of nitrogen oxides or their transboundary fluxes (Nox Protocol), and Geneva Protocol to LRTAP concerning the control of emissions of vaporizable organic compounds or their transboundary fluxes (VOCs Protocol). Geography Note India occupies a major region of the south Asian subcontinent. 3. 4 PEOPLE Population 1,21,01,93,422 Decadal Population young-begetting(prenominal) 9,15, 01,158 Growth Female 8,99, 54, 828 Density of Population 382 per sq. km. Sex Ratio 940 per thou malesNationality Indian every last(predicate) the five major racial typ es Australoid, Mongoloid, Europoid, Caucasian, and Negroid find representation among the people of India. Ethnic bases 13 P a g e Religions Hindus constituted the majority with 80. 5 %, Muslims came second at 13. 4%, followed by Christians, Sikhs, Buddhists, Jains, and others. Languages There are 22 National Languages have been recognised by the Constitution of India, of which Hindi is the Official Union Language. Besides these, there are 844 different dialects that are practiced in various separate of the Country.Literacy Persons 77,84,54,120 Males 44,42,03,762 Females 33,42,50,358 GDP Nominal GDP stands at US$1. 53 one thousand million as per 2010 census 3. 5 UNDERSTANDING highlife AND AQUAINTING WITH LUXURY dash BRANDS FOCUS Getting introduced to the margin ? LUXURY? Luxury, derived from the Latin word luxus, agent indulgence of the senses, regardless of be. Luxury is something that everyone wants but nobody needs, its an area of huge comfort and the best of the best. 14 P a g e A luxury brand is a brand for which a majority of its products are luxury goods.It may also include certain brands whose label are associated with luxury, high price, or high bore, though hardly a(prenominal), if any, of their goods are currently considered luxury goods. The luxury sector positions its products and services at consumers on the top-end of the wealth spectrum. These self-selected elite is much or less price unreactive and chooses to perish their time and money on objects that are plainly opulence earlier than necessities. For these reasons, luxury and prestige brands have for centuries commanded an trustworthy and often illogical customer loyalty.3. 6 DEFINING LUXURY The concept of luxury has been present in various forms since the beginning of civilization. Its role was just as important in ancient western and eastern empires as it is in modern societies. With the fetch differences between social classes in earlier civilizations, the consumpti on of luxury was limited to the elite classes. It also meant the rendering of luxury was fairly clear. Whatever the measly cannot have and the elite can was identified as luxury. With increasing ? democratisation, several new product categories were created within the luxury markets that were aptly called companionable luxury or mass luxury. This kind of luxury specifically targeted the pose class (or what is sometimes termed as aspiring class). As luxury penetrated into the masses, defining luxury has become difficult. In contemporary marketing usage, Prof. Bernard Dubois defines ? luxury as a specific (i. e. higher-priced) tier of render in almost any product or service category. However, despite the substantial body of knowledge accumulated 15 P a g eduring the past decades, researchers still havent arrived on a common definition of luxury. Many other attempts have been made to define luxury utilize the price-quality dimension stating higher priced products in any catego ry is luxury. Similarly, researchers have use the uniqueness aspects of luxury too. Prof. Jean-Noel Kapferer, takes an experiential approach and defines luxury as stops which append extra pleasure by flattering all senses at once. some(prenominal) other researchers focus on exclusivity dimension and argue that luxury evokes a sense of liveing to a certain elite group.3. 7 SOCIO scotch SIGNIFICANCE OF LUXURY Several manufactured products attain the status of luxury goods due to their design, quality, durability or performance that are remarkably higher-up to the comparable substitutes. Thus, virtually every category of goods available on the market today includes a sub determine of similar products whose luxury is marked by better-quality components and materials, solid construction, stylish behavior, increased durability, better performance, advanced features, and so on.As such, these luxury goods may retain or improve the basic functionality for which all items of a given ca tegory are originally designed. There are also goods that are perceived as luxurious by the public patently because they play a role of status symbols as such goods tend to signify the purchasing power of those who acquire them. These items, while not needs being better (in quality, performance, or appearance) than their less expensive substitutes, are leveraged with the main office of displaying wealth or income of their owners.These kinds of goods are the objects of a socio-economic phenomenon called conspicuous consumption and commonly include luxury vehicles, watches, jewelry, designer clothing, yachts, as well as large residences, urban mansions, and country houses. 16 P a g e 4. 0 AQUAINTING WITH THE LUXURY port BRANDS Luxury fashion brands have often been associated with the core competencies of creativity, craftsmanship, precision, high quality, innovation, & premium pricing.These product attributes give the consumers the satisfaction of not only owning expensive ite ms but the extra-added psychological benefits like the esteem, prestige and a sense of a high status that reminds them and others that they belong to an exclusive group of only a select few, who can cave in the pricey items. The luxury sector targets its products and services at consumers on the top-end of the wealth spectrum. These self-selected elite are to a greater extent or less price insensitive and choose to spend their time & money on objects that are plainly opulence rather than necessities.For these reasons, luxury and prestige brands have for centuries commanded an unwavering and often illogical customer loyalty. 17 P a g e Luxury has never been something easy to define yet this brain-teaser concept is something highly desired by one & all alike. I look at delving deeper into this mystery and aura of luxury goods by steering of comparing them against ? systematic goods as well as set off the characteristics of the luxury industry. But before beginning with tha t, lets foremost attempt to get wind some common terms associated in the world of high-end goods.Luxury and prestige brands such as Rolex, Louis Vuitton and Tag-heuer represent the highest form of craftsmanship and command a staunch consumer loyalty that is not affected by brands. These brands create and set the seasonal trends and are also capable to pulling all their consumers with them wheresoever they go. 18 P a g e Premium brands are those brands like Polo, Ralph Lauren, Versace and Tommy Hilfiger that aspire to be luxury and prestige brands but their marketing mix strategies are more attuned to a mass market, albeit a luxury mass market.They also termed as mass Premium brands or luxury brands. Fashion brands are those that address the masses. LVMH (Louis Vuitton Moet Hennessy) is the largest luxury good producer in the world with over fifty brands, including Louis Vuitton, the brand with the worlds first designer label, other noted fashion brands are Chanel, Gucci etc. 19 P a g e Luxury is a Hub of stage business Luxury brands take the elements they feel passionate about, add design therefore develop it and present it to the customers that exceed their expectations.A luxury good is a product at the highest end of the market in terms of quality and price. Classic luxury goods include haute couture items such as clothing, accessories and luggage. However, many markets have a luxury segment including for instance, cars, wine and chocolates. Such brands share characteristics like consistent premium quality, a heritage of craftsmanship, a recognizable stylus or design, a limited production run of any item to ensure exclusivity, an element of uniqueness and an ability to keep coming up with new designs when the category is fashion-intensive.Keeping it simple and realistic, luxury is anything and everything that you may actually desire it can be short lived or a life long desire it is ? your turned on(p) connect and reward that allows it to appear as luxury. 20 P a g e 4. 1 study DIFFERENCES BETWEEN REGULAR BRANDS AND LUXURY BRANDS FACTOR REGULAR GOODS LUXURY GOODS on tap(predicate) at posh, PLACE Available at convenience and according to the product category exclusive and selected locations ? Highly customized or ? Multiple mass variances but PRODUCT standardized.? Service levels range from low to high. limited editions of products. ? Very high personnel service. PRICING Value for money Premium pricing ? Pre- ? All kinds of media (ATL, BTL) used. ? Product functional and goalal PROMOTION nurture appeals. ? All kinds of reference group appeals used. dominantly premium above the line media. e. g. Connoisseur, Magazines, 21 P a g e Travel media) ? Products have the exclusive appeal. ? Mostly celebrity appeals. Luxury goods are Those goods for which demand is inversely proportional to price.also called as Veblens goods, the demand for the product is said to increase with the increase in price. frugal DEFINITION BRAND EXTENS ION DECISIONS Based on defending your turf. (R&D based decisions to an extent). Based on marketing the luxury brand. DRIVERS OF BRANDS useable attributes and innovation. Tradition and brand heritage. Source Luxury Marketing, Samit khanna- IIM-A 22 P a g e 4. 2 PERSONA OF INDIAN LUXURY manufacturing FOCUS Understanding the characteristics of luxury brands. CHARACTERISTICS OF INDIAN LUXURY INDUSTRY 1. THE center OF LUXURY HAS CHANGED Luxury has moved from its ?old meaning of ownership (also cognize as conspicuous consumption Conspicuous consumption is a term used to describe the lavish spending on goods and services that are acquired mainly for the purpose of displaying income or wealth rather than to satisfy a real need of the consumer. In the mind of a conspicuous consumer, such display serves as a means of attaining or maintaining social status. prejudiced consumption, a needed corollary, is the term applied to consumption of goods and services for the dig purpose of i nspiring envy in others) of objects to the ?new meaning of the experience / fulfillment derived from possessing a certain object. 2. LUXURY MEANS distinguishable TO DIFFERENT PEOPLE Luxury has no certified origins. But luxury branding is said to have taken birth in the west with the appearance of high-end brands. But there is still no definite meaning of luxury, for someone luxury can be a necessity and vice-versa. If one can think a luxury brand is really cheap, its not necessary that the other person also forget think the same way. Luxury is yet to be defined, it totally differs from person to person. 23 P a g e 3. LUXURY IS A PRODUCT CATEGORY IN ITSELFThis can be best clarified by the fact that both an expensive watch and an apparel can be considered to be luxury items. Therefore, all luxury marketers are not just competing in their ? technically defined product categories (like manufacturers of televisions compete among themselves) but for the wallet share of luxury goods in total. 4. CLASSIFICATION OF LUXURY CONSUMERS SRI Consulting Business Intelligence places consumers in 3 groups according to what luxury means to them Luxury is Indulgence This group is the smallest of the 3 and tends to include younger consumers and slightly more males than the other two groups.Their purpose for luxury goods is to lavish themselves in self-indulgence. They are volition to pay a premium for goods that express their individuality and make others take notice and are not overly concerned with product longevity or doable criticism. They enjoy luxury for the way it makes them feel, therefore have a more emotional approach to purchases. They respond well to messages that highlight the unique and emotional qualities of a product. Luxury is Reward These consumers tend to be younger than the first group but older than the third.They use luxury goods as a status symbol to say ? Ive made it ? They are incite by their desire to be successful and demonstrate this to others . Luxury brands that have widespread recognition are popular, however they dont entreat to appear lavish or hedonistic in their appearance. They want to purchase ? smart? luxury that demonstrates importance while not 24 P a g e leaving them open to criticism. Marketing messages that state acceptable exclusivity resonate with this group.Luxury is Functional these consumers tend to buy luxury products for their superior functionality and quality. Consumers in this segment, the largest of the tercet, tend to be older and wealthier and are willing to spend more money to buy things that will last and have enduring value. They buy a wide array of luxury goods, from artistic creation to vacations, and conduct extensive prepurchase research, making logical decisions rather than emotional or impulsive. Messages that highlight product quality and are information-intensive are powerful with this group. 5. node LOYALTY IS MORE IMPORTANT THAT BRAND AWARENESS Rather than focus on meter the brand sureness of a luxury company, measuring customer loyalty is far more significant a disturbanceful regarding the success or failure of corporate strategy to connect with the luxury consumer. 6. CERTAIN FACTORS WHICH PLAY A N IMPORTANT ROLE In luxury marketing there is a subtle interplay between troika factors that most strongly influence the luxury consumer to buy product brand dealer or stores brand or service providers reputation and price/value relationship.25 P a g e USERS OF LUXURY BRANDS IN INDIA ? CEOs and other senior professionals (in their thirties and earliest forties) ? Entrepreneurs in new businesses ? Prodigal children ? Actors and models ? Franchi counts, and small and medium Retailers 4. 3 noteworthy LUXURY BRANDS AND THEIR DESTINATIONS IN INDIA FOCUS To evaluate about all the famous luxury brands available in India and the places where they are available. UB CITY- THE COLLECTION, BANGALORE UB metropolis is the big(p)gest commercial retention project in Bangalore, India. Pioneered by the chairman of UB Group, Dr.Vijay Mallya , it is built on 13 acres (53,000 m2) of land and hosts 1,000,000 sq ft (93,000 m2) of high-end commercial, retail and service apartment pose. UB City has four towers namely, UB Tower (19 Floors), Comet (11 Floors), Canberra (17 Floors) and Concorde (19 Floors). UB City has four towers namely, yelahanka. The later three towers are all named after aircraft. UB City will house the Group offices under one roof UB Tower. Concorde & Canberra will have retail space on the lower floors and office space in the higher levels, while Comet will have serviced apartments.It will house commercial offices, banks, high-end retail stores, a five star hotel, 26 P a g e serviced apartments, restaurants, food courts, pubs, health clubs and cafes. Multi-level parking areas will offer virtually interminable parking spaces. Also on the blueprint is an amphitheater with food courts and landscaped gardens. UB City will provi de parking space for over 1,100 cars. Being an environment friendly project and keeping in mind the green surroundings of Cubbon Park, one-third of the space has been earmarked for landscaped gardens. An majestic roof top helipad will provide a five-minute aerial transform to the airport.Four storeys of multi level parking, in addition to one common basement for the entire UB City and extensive surface level car parks, will provide UB City the remarkable prospect of offering literally unlimited car parking space. BRANDS AVAILABLE AT UB CITY-THE COLLECTION ? Louis Vuitton ? Alfred Dunhill ? Estee lauder ? Mont Blanc ? Zimson ? Rolex ? Canali ? Salvatore Ferragamo ? capital of Minnesota Smith ? Lladro ? Versace ? Corneliani ? Burberry ? appreciate Choo ? Diesel 27 P a g e DLF EMPORIO, NEW DELHI- DLF Emporio has been designed as a name corresponding with luxury offering aunique shopping experience where the speech pattern is on exclusivity, space and aesthetics. There is simply no other place where such a wealth of designer and premium merchandise, modus vivendi products and services are showcased under one elegant roof. The nuances of luxurious serenity are going to be expressed at DLF Emporio in a way found only in the fashion capitals of the world, offering just the right kind of tasteful and sublime ambience to attract high value spenders. 28 P a g e DLF EMPORIO sell MIXGreat care is being taken to ensure that the global retail community at DLF Emporio is the most premium.Only the finest signature brands, designer labels and high end modus vivendi products co-exist here. Some of the brands in DLF Emporio include Giorgio Armani, Salvatore Ferragamo, Louis Vuitton, Cartier, Fendi, Dior, Just Cavali, DKNY, Tods, Burberry, Hugo Boss to name a few. ESSENTIAL PLAYERS OF THE LUXURY MARKET IN INDIA ? JEWELLERY- Cartier, De Beers, Tiffanys etc. ? CLOTHING- Louis vuitton, Varsace, Armani, Chanel, Gucci etc. ? ACCESSORIES- Fendi, Jimmy Choo, Ferragamo Salvator e etc. ? AUTOMOBILES- Mercedes, Volvo, BMW, Volkswagen, Nissan, Audi etc. 29 P a g e 30 P a g e 5. 0 hit the books ANALYSISFOCUS To do the swot analysis and ascertain the major problems faced by the international fashion brands in India. STRENGTH failing 1. Brand Name/Brand Ambassadors 2. Customer Loyalty 3. Quality 4. planetary Presence 1. Concentrated Market-only metro cities 2. Government Regulations 3. High Prices 4. Percentage of target audience is Less 5. Higher Operational cost-rents. OPPORTUNITY THREATS 1. Manufacturing the brands in India 1. bogus branded stuff available in India itself rather than importing it 2. FDI Regulations 3. globalization 2. Available at cheaper prices abroad 31 P a g e 5.1 MAJOR PROBLEMS FACED BY THE LUXURY FASHION INDUSTRY- 1. LACK OF AWARENESS OF BRANDS AMONGST INDIAN CONSUMERS The Indian consumers are not aware of the brands available in India, Most rich people who can afford the luxury brands either live in smaller towns and cities wher e there is no outlet or awareness of the brands. 2. PREFERENCE OF BUYING FROM FOREIGN COUNTRIES People who are aware of the brands and live in metro cities and have a higher disposable income prefer buying from abroad as they travel a lot and so they prefer buying from abroad itself as they get a better and wide variety of products with lesser prices.1. extra AND KNOCK-OFFS There are a lot of duplicate and knock-offs available in the Indian market. Most of these products come from China. The same branded product, which is available for 25000 Rs. , is available for 1500 Rs. When it is not authentic. Though the quality of these products is not good, they appear to be the same and hence people dont mind buying them. But people in India do not believe in authenticity, if they see the name and the knock-off looks exact, they buy that item as they believe in cover off. 32 P a g e 2. LACK OF RETAIL SPACEThe luxury retail stores are located in 5 star hotels or malls in selected cities, a s we all know that there are only two luxury malls in India, The collection-UB City, Bangalore and the DLF-Emporio Mall, New Delhi, because that is where the probable customers are most likely to come for shopping, hence the feasible space available is very less. 3. LOW CUSTOMER TURNOVER The number of customers who visit a luxury store is comparatively lower than a regular store. Also the luxury store outlets are located exclusively in certain areas and are sometimes not accessible by everyone, this factor also affects the customer turnover.4. HIGH OPERATIONAL COST The cost of run a luxury outlet is high because the size of the store has to be elaborated and also it has to locate at a prime location in major cities. Due to the image that is associated with luxury products, the cost of maintaining the store is high because it has to look upbeat all the time. At the same time these stores normally situated in 5 star hotels or big shopping malls where the rents charged are very high and hence the cost is further increased. 5. 2 GROWTH AND POTENTIAL OF LUXURY BRAND FOCUS Study about the roots and the growth of the luxury market of India.LUXURY is no stranger to India. The erstwhile maharajas and princes led a life of meretricious splendor. The only way to be apart of the elite as to be born into it. 33 P a g e The lifestyle as also associated with hunting, polo and her games of the rich. New money could never get into this circuit. The aspiration was always there. But the princes operated in a different league altogether. The era of the selfmade millionaire was yet to arrive. So small possessions, or copied fashion designs with a few geegaws thrown in, became the height of luxury.An achiever of the 1970s could only get by with a good foam mattress no Omega, Rolex or BMWs. This trend saw a shift, a gradual one, in the 1980s. Luxury began creeping into upper class homes through small things and symbols. The colour TV came in, the humble pen was elevated to a Parker, successful self-made people began to be have in magazines. The concept of luxury as a reward for acquirement gained acceptance, though royalty and the aristocracy continued to remain the benchmark of the elite. The real change came in the 1990s when more people started making more money.There was a sudden explosion of colour and things and objet D humanistic discipline began to appear. In order to gain access to luxury and class one could just go out and charge it. What contributed to this shift? India opened up to the world. The liberalization process brought more than high economic growth rates. It showed the people what was possible. In the process, it has altered mindsets. The IT revolution, and the consequent demand for Indian brainpower, has created a entirely new breed of wealthy global Indians. At the other end, an more and more open economy has created new b