vishwa varun dissertation

Amity School of Fashion Technology

A M I T Y U N I V E R S I T Y(Established by RitnandBalved Education Foundation)

U T T A R P R A D E S H

Presented To: Ms.Shikha Chantia

Presented By:Mr.VISHWA VARUNMaster of Fashion Retail Management 2013-15

“Research on Luxury is the New Face of Indian Lifestyle Market”

Dissertation Reporton


Presented By:Mr.VISHWA VARUN

What we mean when we use the term fashion

Fashion is, Fashion is a popular style in a particular time or practice bydefinition, change.

Success in fashion comes with the ability to grasp and recreate in clothes andaccessories the ethereal spirit of the time and voluble desires of customers.

Fashion adds an important design dimension to textiles or leather artefacts,which is capable of providing a continual and varied flow of new products.

The factories manufacture clothes, but consumers buy emotions, hope anddreams



Fashion retail is typically a consumer goods market.

It is characterized by very short product life, fickle consumer preferences,numerous competitors, relatively easy entry and exit, and a myriad ofmanufacturing, marketing and retail alternatives.

Over here, we will mainly make references to U.S and Europe where thefashion capitals - New York, Milan, London and Paris.

One of the reasons for their leading role in the apparel sector is that they areable to acquire information on future trends in color, theme and styles inadvance.

Nature of Fashion Market



Couture Wear :Couture wears are exclusively tailored by in-house designers and areproduced in limited numbers of expensive, high quality garments.

Ready-to-Wear :

As such, to be commercially sustainable, the fashion industry provides lesswealthy consumers with cheaper garments.

Amity School of Fashion TechnologyClassification of Indian Retail Industry

Retailing industry can be classified into two classes:

- Organized retailing- Unorganized retailing

Major Organized Retail Segmentso Fashion & Lifestyleo Accessories o Furnitureo Food o Consumer durable o Leisure and entertainmento Health and Beauty Cosmeticso Telecom

Indian retail market, 8% constitutes the organized retail segment which is estimated

to grow at a rate of almost 30% by 2015. Clothing & Apparel make up almost a third of the

organized retail segment, followed by Food & Grocery and Consumer Electronics




Luxury is anything that is desirable and more than necessary and ordinary. Definingluxury has been always been very subjective. Scholars explain it dynamically withchanging times and scenarios.

Those who went to other countries and came back with branded and designer labelledstuffs and the brands limited maximum up to brands like Gucci and Christian Dior.

Rich Indians are found to be more attracted towards these global luxury goods andservices. In upcoming years the growth of this luxury market will be explosive.

luxury champagne player Moet Hennessy, who previously offered only importedproducts, launched its first Indian-made wine.

The strategy is aimed at targeting a new breed of consumers -urbane youth. Similarly,brands such as Hidesign thrive on situating their manufacturing facilities in India whilecatering to the market.



Most Powerful Luxury Fashion Brands In The World

10. Coach – Brand Value: $3,2 Billion9. Fendi – Brand Value: $3,6 Billion8. Burberry – Brand Value: $4,1 Billion7. Cartier – Brand Value: $6,3 Billion6. Chanel – Brand Value: $7 Billion5. Rolex – Brand Value: $7,9 Billion4. Prada – Brand Value: $9,4 Billion3. Gucci – Brand Value: $12,7 Billion2. Hermès – Brand Value: $19,2 Billion1. Louis Vuitton – Brand Value: $28.4 Billion

Amity School of Fashion TechnologyMarket Segmentation By Users Category

Men's wear:Men’s wear market in India fastest growing apparel segment The entireapparel industry ,including domestic and exports,is pegged at Rs 3,270 billionand is expected to grow by 11% to Rs 10,320 billion by 2020.

Women’s wear:Women’s formal wear and ethnic wear markets are still ruled by unorganizedplayers. With more women expected to enter corporate world, both thesesegments are good opportunities because of the market size.

Kid’s wear:Kids wear is a major category with few established players – viz., Lilliput, Giniand Jony, Catmoss, Benetton


Amity School of Fashion TechnologyMarket Segmentation By Price

Low-end market:Volume driven, products are mostly unbranded and dominated by largenumber of manufacturers, mostly regional or even local players.

Mid-range market:Quality products. Manufacturers large and medium.

High-end market:Premium and super premium product categories. Dominated by MNC andmajor Indian manufacturers.




India has always had a rich tradition of luxury. Addressed as the Golden Bird,India has experienced Maharajas and Nawab’s who had refined tastes andwere connoisseurs of luxury.

Describing luxury as "balance, harmony and beauty of human race, the luxurymarket in India garners huge attention and is sometimes seen as a sign ofIndia having "arrived".



Objective

This research covers the following objectives:

To determine the concept of luxury for Indians.To determine the role of closet consumers in Indian luxury market.To study the factors liable for increase in luxury brand purchase in India.To explain how the Luxury Market is on the verge to achieve its boom.The key objective of this research is to connect the gap between traditionalIndian luxury and the Indian Luxury retail market



HypothesisHow the market is shifting towards luxury brands.

What are the factors which influencing consumer behaviour.

What is the role of luxury brand in consumer buying behaviour?

Is there any relation in consumer buying behaviour and store format, storedisplay?

To study the factors which influence consumers to buying luxury products?



Research MethodologyProject has information gathered from both from primary and secondarysources.Quantitative method, used questionnaire by usingRanking scaleOpen ended and close ended question

SAMPLESample Size: 30Sample Frame: Lucknow CitySample Unit: working professionals of LucknowSample age:-23 to 35

Sampling Method: Simple Random SamplingConstraints: Time, No. of RespondentsSurvey: Questionnaire



Data Collection

During the study, five important factors (quality, price, variety, design and visualmerchandising) affecting the purchase of apparels have been identified.

Data collection by following methods

Direct interaction and solving queries of consumers. To find out the affect ofvisual merchandising on buying behavior of customers.

I frequently asked question to consumer’s sample of questioaire attached inlast.



Finding Luxury is not just about selling an emotion but also delivering an experience Therefore,getting the right space is critical.Biggest issue is the lack of proper infrastructureThe government policies also don't support luxe retail.Bureaucracy and high market-regulation are another bother.India imposes 45-65 percent taxes on luxury goods unlike China's 20 percent.

There are many multinational luxury brands which are entering in India with their fullpace like Jimmy Choo, Gucci, Christian Dior, Louis-Vuitton, Cartier,, Prada,Fendi and others.

Now the majority of luxury players have at least a limited online offer.Above given statistics of growth of luxurious brands are proofs of success of brands inthe Indian market.So we can say that Indian luxurious brands are making more space in Indian market.



Recommendation

About 90% respondents agree that Purchase of Luxury Products is totally related to theIncome level of an Individual. Income usually affects the lifestyle and attitudeof individuals which might shape choice of the products you buy.

In luxury brands most of the respondents prefer quality followed by price andavailability. This response shows that customers are ready to pay for quality.

In opinion of Respondents, majority of People buy luxury product because they want toflaunt their superiority over others. Followed by those people who really have tasteof art and exclusiveness.

About 70% of the respondents are of the view that service quality in luxury brands ismore superior then other brands.



According to survey most of the people prefer to shop luxury brands followedby local brands International brand has least share.

50% of our respondents prefer to shop from malls than local market followedby branded outlet. This shows that real estate (commercial) mall concept havesuch a high impact on the sale of luxury items.

Due to less sales luxury brands generally fall into trap of discounting and thatgoes very true in case of a developing country like India. To understand thisquestion following information is gathered.

According to respondents celebrity endorsement is one of the best waysto promote luxury brands than word of mouth or public relation


Presented By:Mr.VISHWA VARUNMaster of Fashion Retail Management 2013-15

Thank You !

vishwa varun dissertation

Documents