Luxury Related to -Status, Ego and Psychogenic needs; (mental needs)it is not necessary for survival
LUXURYDefining LuxuryThe emotionalism of luxuryPurchase of luxury items gives the buyer an immense amount of joy which surpasses the economic value of the product.
Luxury brands live in peoples hearts & minds Luxury brands have range Can be teamed with many products
Luxury brands have permanence Dont go out of style/are classic
Luxury GoodsAssociated with- high quality, craftsmanship, uniqueness, creativity, exclusivity and innovation
What Consumer GetPsychological Benefits esteem, prestigesense of a high status that reminds them and others that they belong to an exclusive group who can afford these expensive goods.
The overall sales of luxury goods in the year 2009 is expected to be more than US$150 billion and Asia contributes 10% to it.
The concept of luxury is now not confined to only to Europe and US, the Asian subcontinent contributes major to it, with India and China as the newly emerging markets.
A trip to the mall can mean stocking up on thousands of dollars worth of designer goodies before eating a three-course meal at one of its fine dining establishments
Fine Living Top 10: Luxury Malls
10The Grand Canal Shoppe's offer visitors world-class dining and elegant shopping in a unique, inspired surrounding. The Grand Canal Shoppe's are guaranteed a truly European shopping experience. The Grand Canal Shoppe'sLas Vegas, USA
9With a focus on big-name fashion houses such as Alexander McQueen, Bulgari and Chanel -- complemented by weekly fashion showsGalleries LafayetteParis, France
8Blue water in the British county of Kent combines high-end international designer outlets (such as A/X Exchange, Lacoste and Storm) Theres plenty else to keep shoppers entertained too, such as a multiplex cinema, a luxurious fitness center and an extensive food court Blue waterKent, England
7Ranked the No. 1 shopping center in the United States, Bal Harbour Shops in Miami. Stores with an outlet in the complex include-Tiffany & Co., Vilebrequin, Yves Saint Laurent, Jimmy Choo, Just Cavalli, Harry Winston, Fendi, Emilio Pucci, Escada, Bulgari, and Saks Fifth AvenueBal Harbour ShopsMiami, USA
6Having all the usual designer store suspects -- Harvey Nichols, D&G, Gianfranco Ferre, and Ermenegildo Zegna, The Landmark boasts the 113-room Landmark Mandarin Oriental Hotel as well as the chic Oriental Spa. The LandmarkHong Kong, China
5Armed with their Black Amex, shoppers here are able to flit in and out of 100 designer stores such as Tommy Hilfiger, Yves Rocher and Diesel. The three-story wonder is built underground near Red Square and is, quite simply, one of the grandest malls in the world.Okhotny Ryad Shopping CenterMoscow, Russia
4The bustling buildings here combine luxury shopping and fine dining with office and residential space With outlets including Cole Haan, Dean & Deluca and Sisley, the mall also features an Equinox Fitness Club. The Shops At Columbus CircleNew York, USA
3The Walk also houses outlets by designers such as Louis Vuitton, Calvin Klein), Emporio Armani, Mulberry, and Links of London. The mall also provides residents and visitors to the capital with a complete shopping and leisure experience. The WalkEdinburgh, Scotland
2With the DFL Group finishing construction at the end of 2007, The Emporio shopping mall in New DelhiConsist of 90 high-end Indian and international stores, such as Kimaya, Ensemble, Ashish N Soni, Rajesh Pratap Singh, and Abraham & Thakore The EmporioNew Delhi, India
1Packed with designer boutiques, including Harvey Nichols, Debenhams, Bois & Chiffon, Reiss, Missoni, and Marc Jacobs The mall also encapsulates several world-class restaurants and bars, including Lebanese cuisine at Karam, brasserie-style food at St Maxims, seafood at Salmontini, international fare at Sezzam, and fondue at Aprs Mall Of The EmiratesDubai
LUXURYThe Luxury retailing in india
Reasons for emergence of luxury retail in India.Hike in the salary .High Standard of living .Luxury becoming a status symbol.stylish appearanceincreased durabilitybetter performance & advanced featuresLuxury in India has become more accessible. Bollywood is an influencer
LUXURYLuxury Products & Services Cars: Jaguar, Mercedes Benz, Lamborghini, Rolls Royce, Bentley, Ferrari, Bugatti Couture: Versace Indian couture designers: Rohit Bal, Tarun Tahiliani May not include prt designs Hotels & resorts Amar Vilas (Oberoi), Four Seasons
LUXURYLuxury Products & Services Accessories
Footwear: Jimmy Choo
Handbags: Louis Vuitton, Aigner, Leiber, Hermes, Prada
Small leather goods: Dunhill
Watches: Piaget, Tag Heur
Eyewear: Armani, D&G, Chanel
LUXURYLuxury Products & Services Perfumes: ChannelJewellery & Gems: Cartier, Tiffany Writing instruments: Mont Blanc Luggage: Louis Vuitton Liquor: Henessy (vodka), Blue Label, rare wines Art Not Luxury: Mango
LUXURYThe Sachdev Group Priya Chatwal & Charu SachdevBrands: Lanvin, Alberta Ferretti, Jean-Paul Gaultier, Moschino,Stella McCartney Promoters of Luxury in India Genesis Colors Sanjay Kapoor of Satya Paul fame Brands: Aigner, Canali, Kenzo, Paul Smith, Just CavalliMurjani Group Gucci, Jimmy Choo, Calvin Klein, Bottega Veneta Brandhouse Retail (S.Kumar Group) Escada, DunhillJVs in the pipeline DLF with Armani Hermes with Neelam Khanna (PRS Oberoi clan) Reliance RetailTSG International Marketing Pvt Ltd
LUXURYEmporioThe first Indian luxury destination: Officially inaugurated: Sunday, 30th AugDeveloper: DLF130 luxury brandsApparel: Dolce & Gabana, Canali, Louis Vuitton, Chistian DiorJewellery: Cartier, Harry Winston, Leather Goods: TodsMen: Paul Smith, ArmaniWatches: Piaget, Chopard, JaegarIndian designers: Rohit Bal, Tarun Tahiliani, JJ Valaya
LUXURYThe story in IndiaLuxury is not new to India but the modern form is yet to evolveBrandingLasting customers relationsSignature lookVirgin market
LUXURYThe story in IndiaErmenegildo Zegna First store opened at Crossroads in 1999. Closed in 2005A 3000sqft store opened at Taj, Mumbai in 2007Third store to come up at EmporioJimmy Choo Launched India store through Murjani Group in Sep08Located at Nariman Point, MumbaiWorn by Aishwarya Rai, Preity Zinta Internationally launching sunglasses, fragrances & handbags LVs association goes back to the Maharajas for luggageFirst store opened in 2003 at Oberoi Hotel, New DelhiSecond store opened in Mumbai in 2004Now opened at Emporio
Luxury Market Spend Allocation
LUXURYLimitations of luxury in India Lack of appropriate spaceAdjacencies important nightmare McDonalds Started with use of hotel spaceMakeshift space in malls/marketsEmporio perhaps the first luxury mall in India Expensive real estateLack of trained manpower Specialized programs in Institutes Lack of Indian products & brands FDI restrictions
LUXURYScope for Indian brandsCan you think of an Indian luxury brand?Acquiring Western brands: Tata acquires Jaguar from Ford in the UK Oberoi hotels: Rajvilas, Udaivislas, AmarvilasIndias strengths: excellence in craftsmanship, heritage, business potentialSome suggested areas: hotels & hospitality, spas, jewellery, meditation (Mahesh Yogi), art, Indian fashion
Challenges to overcome
Limited scope-Though Indian has become brand conscious and are ready to invest in luxury goods yet the scope of international luxury retail is limited, as there is still a percentage of people who do not see luxury retail as a necessity.
Lack of retail space-Except for five star hotels Indian retail space has still failed to match international standards. For an international brand to find a large retail store space is still a dream, as apart from high rentals, shortage of retail space still exists.
Lack of High Fashion Street-There is no street that is coming up as a high fashion street. Like New Yorkss Fifth Avenue and Londons fashion streets, India has a long way to go before it can compete in both space and name, to call its retailing spaces as fashion streets.
Providing services-When consumer is ready to spent huge amount of money in buying a luxury product he would not like to compromise on the quality and services provided by the brand. Being a foreign brand satisfying the consumer becomes little difficult.