Growth and Potential of International Luxury Fashion Brands Essay

This is to certify that the encounter entitled ? harvesting and Potential of sumptuousness foreign mortalal manner Brands in India? is submitted towards the partial fulfillment of the program ? Master of musical mode Management by Kanan Gupta. It is an original work d angiotensin-converting enzyme under my guidance and the results argon ground on the investigate done by her. Name of wise man Mr. Kislay Kashyap Asst. professor Department of MFM NIFT, Patna Date 01-03-2012 Place Patna 1 sc allywag DECLARATION I, Kanan Gupta hereby declargon that the bem function entitled ?Growth and Potential of prodigality Interlanded estateal Fashion Brands in India? submitted towards, partial fulfillment of the program Master of Fashion Management is my original work and no part of the acoustic projection has been copied from both another(prenominal)wise report or carried by someone else or has been submitted for each other degree/award. However, both material taken from any other published sources has been suitably referred and ack nowadaysledged at dissimilar places. Name Kanan Gupta betray no 17 Batch 2011-2013 Centre Patna Date Place 01-03-2012 Patna 2Page ACKNOWLEDGEMENTI owe my gratitude to many the great unwashed who helped and back up me during the research and compilation of my project report. I would like to thank my mentor Mr Kislay Kashyap for approving my project and express my indebted gratitude for his guidance and suggestions at both stage of this report. My sincere gratitude is in any case due to my seniors for their constant encouragement and support. I would like to express my thanks to all those stack who were directly and indirectly involved in shaping my project by providing valuable data and co-operation.3Page EXECUTIVE SUMMARY INTRODUCTION This is a project to study ab let on the ? Growth and Potential of postgraduatelife International Fashion Brands in India?. If we look into the grey-haired, no one could imagine tha t a opulence market place would exist in India. But over the years with the adjustment in the demographics of the Indian consumer and with senior high schooler disposable income available, the lavishness market in India has indeed emerged as one of the fastest growing markets in the sell fraction.PROBLEM DEFINITION The Indian highlife Market is still a niche market and batch fox got a really paltry personal disposable income, though it has increased a lot from earlier simply non so frequently to afford supranational prodigality manner stigmas and the people who charter got a high disposable income deficiency enough noesis some the international demeanor brands available in India as the lavishness international stores are exceptional to electron tubepolitans totally. 4Page OBJECTIVE The of import objectives of the projects are ? Analyze the high life Brand sensation among the Indian consumers.? Reasons bottom of the inning clients demoraliseing pr odigality invent Brands ? Analyze the major(ip) international fashion brands in India. ? To analyze the Current Scenario and the Growth of Indian extravagance fashion brands and the Market. RESEARCH METHODOLOGY ? The secondary research is through Magazines, journals, articles and internet. ? Primary research through focus group interview with assiduity personnel, customers. HYPOTHESIS ? Assuming that thither is a strong scope for the maturement of international highlife fashion brands in India.? Taking an assumption that lavishness fashion brands do non have 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 Introduction India at Glance Geography People intellectual Luxury Defining Luxury Socio Economic Signifi undersidece of Luxury Acquainting with Luxury Fashion Brand MajorDifferen ce amongst Regular Brands and Luxury Brands Persona of Indian Luxury Industry Famous Luxury Brands and their goal in India SWOT Analysis Major Problems Faced by Luxury Fashion Industry Growth and Potential of Luxury Brand Growth of Indian Luxury Market Luxury Fashion Branding Strategies final exam Summary Primary 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 of import objectives of the projects are ? Analyze the Luxury Brand Awareness among the Indian consumers.? Reasons behind customers get 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 LITER ATURE REVIEW 3. 1 INTRODUCTION If we look into the past, no one could imagine that a extravagance market would exist in India.But over the years with the kind 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 sell segment. Through this report I have tried to give an estimate of the sumptuosity retail market in India, how much it has penetrated and as considerably as how much it is likely to grow. Also I have tried to specify various factors that are crucial for the success of luxury brands in India. While doing out research on this project I have come crosswise many new developings.The role the Indian market plays in the orbiculate scenario and the position of India vis-a-vis other countries. Also I understood about the duties and legal requirements for this segment. I have tried my aim best to silver screen all the aspects in regard to m y research. India today is fast becoming a new world of modern luxury. The country now teems with marvellous international brands, spurring the ascent of an Indian luxury market. One does not exigency to travel oversea to shop for luxury. Luxury goods and services sit aplenty the right way at home.Indians, barely, have to realize such, be informed where to avail of them, and be convinced of the convenience and ease of access to these luxury goods and services. In the selfsame(prenominal) vein, foreigners can also visit India to shop for same luxury. India can very well be placed on the global luxury-shop map. There is, and then, a grand opportunity to pump prime the luxury market domain of a function in India. 9Page 3. 2 INDIA AT GLANCE contract Study about India and its habitats. India is one of the oldest civilizations in the world with a changeable transmutation and rich cultural heritage.It has achieved all-round socio- frugal progress during the last 60 years of it s Indep land upence. India has become self-sufficient in agricultural harvest-tideion and is now the tenth industrialized country in the world and the sixth nation to have gone into outer seat to conquer nature for the realise of the people. It covers an area of 32,87,2631 sq km, ex flowing from the snow-covered Himalayan heights to the equatorial rain forests of the south eastern United Statesern. As the 7th largest country in the world, India stands apart from the rest of Asia, pronounced out as it is by mountains and the sea, which give the country a distinct geographicalentity. Bounded by the Great Himalayas in the north, it str and so ones southwards and at the tropic of Cancer, tapers off into the Indian Ocean between the Bay of Bengal on the easterly and the Arabian Sea on the west. Lying entirely in the blue hemisphere, the mainland ex bunks between latitudes 84? and 376? north, longitudes 687? and 9725? east and measures about 3,214 km from north to south between the extreme latitudes and about 2,933 km from east to west between the extreme longitudes. It has a land frontier of about 15,200 km.The total space of the coast disembowel of the mainland, Lakshadweep Islands and Andaman& 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 state of matter 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 clippingGMT + 0530 Area 3. 3 Million sq km cry 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 argumentation of sea, formed by Palk Strait and the Gulf of Mannar. Coastline 7,516. 6 km encompassing the mainland, Lakshadweep Islands, and the Andaman & Nicobar Islands. 11 P a g e Climate The clime 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 quadruplesome 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, crusade 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, winkle out floods, earthquakes, droughts, and landslides. Environment Current Issues Air pollution control, energy conservation, square(a) boast management, oil and gas conservation, forest conservation, etc. Environment International Agreements Rio resolution on environment and development, Cartagena Protocol on biosafety, Kyoto Protocol to the United Nations exemplar Convention on climatic12 P a g e change, World Trade Agreement, Helsinki Protocol to LRTAP on the drop-off of sulphur emissions of nitrogen oxides or their transboundary fluxes (Nox Protocol), and Geneva Protocol to LRTAP concerning the control of emissions of volatilizable organic compounds or their transboundary fluxes (VOCs Protocol). Geography Note India occupies a major caboodle of the south Asian subcontinent. 3. 4 PEOPLE Population 1,21,01,93,422 Decadal Population manful 9,15, 01,158 Growth Female 8,99, 54, 828 Density of Population 382 per sq. km. Sex Ratio 9 40 per meter malesNationality Indian All the five major racial types Australoid, Mongoloid, Europoid, Caucasian, and Negroid find fightation among the people of India. Ethnic Groups 13 P a g e Religions Hindus constituted the absolute 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 acknowledge by the Constitution of India, of which Hindi is the Official Union Language. Besides these, there are 844 dissimilar dialects that are practiced in various part 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 cardinal as per 2010 census 3. 5 UNDERSTANDING opulence AND AQUAINTING WITH highlife spirt trade nameS FOCUS Getting introduced to the term ? luxuriousness? Luxury, derived from the Latin word luxus, sum indulgence of the senses, regardless of cost. Luxury is something that everyone wa nts 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 let in certain brands whose call are associated with luxury, high price, or high quality, though few, if any, of their goods are shortly considered luxury goods. The luxury sector targets its products and services at consumers on the top-end of the wealthinessiness spectrum. These self-selected selected is much or less price insensitive and accepts to go on their time and money on objects that are plainly opulence or else than necessities. For these reasons, luxury and prestigiousness brands have for centuries commanded an unwavering and often abrupt 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 tidy up d ifferences between social classes in earlier civilizations, the habit of luxury was expressage to the elite classes. It also meant the description of luxury was fairly clear. Whatever the brusque cannot have and the elite can was identified as luxury. With increasing ?democratization, several new product categories were created within the luxury markets that were aptly called affectionate luxury or mass luxury. This kind of luxury specifically targeted the sum class (or what is sometimes termed as aspiring class). As luxury penetrated into the masses, formation luxury has become difficult. In contemporary marketing usage, Prof. Bernard Dubois defines ? luxury as a specific (i. e. higher-priced) tier of offer 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 use the p rice-quality dimension stating higher priced products in any category is luxury. Similarly, researchers have employ the uniqueness aspects of luxury too. Prof. Jean-Noel Kapferer, takes an experiential approach and defines luxury as items which allow for extra pleasure by flattering all senses at once. several(prenominal) other researchers focus on exclusivity dimension and argue that luxury evokes a sense of belonging to a certain elite group.3. 7 SOCIO economic SIGNIFICANCE OF LUXURY Several manufactured products attain the status of luxury goods due to their design, quality, durability or performance that are remarkably sea captain to the comparable substitutes. Thus, virtually every category of goods available on the market today includes a subset of similar products whose luxury is marked by better-quality components and materials, solid construction, stylish get alongance, increased durability, better performance, advanced features, and so on.As such, these luxury goods m ay retain or improve the basic functionality for which all items of a given category are originally designed. There are also goods that are perceived as luxurious by the public simply because they play a role of status symbols as such goods tend to signify the purchasing power of those who acquire them. These items, time not inescapably being better (in quality, performance, or appearance) than their less expensive substitutes, are purchased with the main purpose 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 FASHION BRANDS Luxury fashion brands have often been associated with the core competencies of creativity, craftsmanship, precision, high quality, innovation, & reward pricing.These produc t attributes give the consumers the rapture of not only owning expensive items but the extra-added psycho tenacious benefits like the esteem, prestige and a sense of a high status that re opinions them and others that they belong to an easy lay group of only a select few, who can afford the high-priced 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 sooner 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 mystery concept is something passing desired by one & all alike. I look at delving deeper into this mystery and aura of luxury goods by way of comparing them against ? unshakable goods as well as highligh ting the characteristics of the luxury industry. But beforehand beginning with that, lets first attempt to understand some common scathe 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 wherever 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 engineer the masses. LVMH (Louis Vuitton Moet Hennessy) is the largest luxury good producer in the world with over lambert brands, including Louis Vuitton, the brand with the worlds first designer label, other renowned fashion brands are Chanel, Gucci etc. 19 P a g e Luxury is a Hub of avocation Luxury brands take the elements they face passionate about, add design then develop it and present it to the customers that lapse 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 style 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. memory it simple and realistic, luxury is anything and everything that you may truly desire it can be short lived or a life long desire it is ? your delirious connect and reward that allows it to appear as luxury. 20 P a g e 4. 1 MAJOR DIFFERENCES BETWEEN REGULAR BRANDS AND LUXURY BRANDS FACTOR REGULAR GOODS LUXURY GOODS usable 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 unravel from low to high. limited editions of products. ? Very high personnel service. PRICING care for for money Premium pricing ? Pre- ? All kinds of media (ATL, BTL) used. ? Product functional and aspirational publicity value 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 reciprocally proportional to price.also called as Veblens goods, the demand for the product is verbali se to increase with the increase in price. ECONOMIC DEFINITION BRAND acknowledgment DECISIONS Based on defending your turf. (R&D based decisions to an extent). Based on marketing the luxury brand. DRIVERS OF BRANDS in operation(p) attributes and innovation. Tradition and brand heritage. Source Luxury Marketing, Samit khanna- IIM-A 22 P a g e 4. 2 fibre OF Indian LUXURY INDUSTRY FOCUS Understanding the characteristics of luxury brands. CHARACTERISTICS OF INDIAN LUXURY INDUSTRY 1. THE MEANING OF LUXURY HAS CHANGED Luxury has moved from its ?old meaning of ownership (also known as conspicuous consumption manifest consumption is a term used to describe the lavish expending 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 representation of attaining or maintaining social status. Invidious consumption, a necessary corolla ry, is the term use to consumption of goods and services for the deliberate purpose of inspiring envy in others) of objects to the ?new meaning of the experience / fulfillment derived from possessing a certain object. 2. LUXURY MEANS DIFFERENT TO DIFFERENT PEOPLE Luxury has no show origins. But luxury branding is said to have taken stock 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 pass oning 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 polished 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 weenyest of the three 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 willing to pay a premium for goods that express their individuality and sham others take notice and are not overly concerned with product longevity or possible 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 motivated by their desire to be in(predicate) and demonstrate this to others. Luxury brands that have widespread recognition are popular, however they dont wish to appear lavish or sybaritic in their appearance. They want to purchase ? smart? luxury that demonstrates importance while not 24 P a g e expiration them open to criticism. Marketing messages that communicate 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 three, 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 artwork 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. CUSTOMER LOYALTY IS MORE IMPORTANT THAT BRAND AWARENESS Rather than focus on measuring the brand awareness of a luxury company, measuring customer loyalty is far more significant a metric regarding the success or failure of somatic 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 three factors that most strongly influence the luxury consumer to buy product brand dealer or stores brand or service tryrs 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 early forties) ? Entrepreneurs in new businesses ? Prodigal children ? Actors and models ? Franchisees, and small and medium Retailers 4. 3 FAMOUS LUXURY BRANDS AND THEIR DESTINATIONS IN INDIA FOCUS To prize about all the famous luxury brands available in India and the places where they are available. UB CITY- THE allurement, BANGALORE UB metropolis is the biggest commercial property project in Bangalore, India. Pioneered by the hot seat 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 space. UB urban center has four towers namely, UB Tower (19 Floors), Comet (11 Floors), capital of Australia (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 authoritys under one roof UB Tower. Concorde & Canberra will have retail space on the pull down 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 admirer hotel, 26 P a g e serviced apartments, restaurants, food courts, pubs, health clubs and cafes. Multi-level place areas will offer virtually unlimited parking spaces. Also on the bluepri nt is an amphitheatre with food courts and landscaped gardens. UB City will provide 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 elevated roof top helipad will provide a five-minute aerial commute 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 religious fling 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 ? Paul Smith ? Lladro ? Versace ? Corneliani ? Burberry ? Jimmy Choo ? Diesel 27 P a g e DLF EMPORIO, NEW DELHI- DLF Emporio has been designed as a name synonymous with luxury offering aunique shopping experience where the accent is on e xclusivity, space and aesthetics. There is simply no other place where such a wealth of designer and premium merchandise, lifestyle 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 draw off high value spenders. 28 P a g e DLF EMPORIO RETAIL 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 lifestyle 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 oldtimer 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. ? A CCESSORIES- Fendi, Jimmy Choo, Ferragamo Salvatore etc. ? AUTOMOBILES- Mercedes, Volvo, BMW, Volkswagen, Nissan, Audi etc. 29 P a g e 30 P a g e 5. 0 SWOT ANALYSISFOCUS To do the swot epitome and ascertain the major problems faced by the international fashion brands in India. STRENGTH WEAKNESS 1. Brand Name/Brand Ambassadors 2. Customer truth 3. Quality 4. Global Presence 1. Concentrated Market-only metro cities 2. Government Regulations 3. gritty Prices 4. Percentage of target audience is Less 5. Higher Operational cost-rents. hazard THREATS 1. Manufacturing the brands in India 1. Fake mark 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 little towns and cities where there is no outlet or awareness of the brands. 2. PREFERENCE OF purchase 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. DUPLICATION AND KNOCK-OFFS There are a lot of reprize 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 so people dont mind buying them. But people in India do not cogitate in authenticity, if they see the name and the knock-off looks exact, they buy that item as they recall in showing off. 32 P a g e 2. LACK OF RETAIL SPACEThe luxury retail stores are placed in 5 star hotels or malls in selected cities, as 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 potential customers are most likely to come for shopping, hence the feasible space available is very less. 3. LOW CUSTOMER swage The number of customers who visit a luxury store is comparatively lower than a regular store. Also the luxury store outlets are locate exclusively in certain areas and are sometimes not get-at-able by everyone, this factor also affects the customer turnover.4. HIGH OPERATIONAL greet The cost of operating a luxury outlet is high because the surface 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 shopp ing 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 opulent 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 stir, a gradual one, in the 1980s. Luxury began creeping into upper class homes through small things and symbols. The deform TV came in, the humble pen was elevated to a Parker, successful self-made people began to be featured in magazines. The concept of luxury as a reward for achievement gained acceptance, though royalty and the aristocracy continued to hold on 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 Darts 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 whole new breed of wealthy global Indians. At the other end, an increasingly open economy has created new b