Louis Vuitton in India
1. Assess the opportunities and threats for Luxury goods in India. Is there a product- market fit for luxury goods in India, in particular, given that India is still a low- income economy overall?
A. Opportunities
1-The first mover advantage amongst the luxury goods segment. Also the historic business association with the LV brand create a strong brand recall in this segment.
2-The emergence of of high net worth consumers which is the 2nd fastest growing in the world. Also the Ascendance of the Indian middle class segment where the number will grow to 583 million by 2025.Cocooners that are a part of the burgeoning mid-segment of the Indian consumer market numbering to 97 million have the potential to develop a a taste for luxury and become its loyal consumers. The so if luxury market was estimated to be about 4$ and expected to grow to 30$ billion by 2015
3-The emergence of the Indian consumers in the affluent space who perceive luxury products as a reward.
4- A large portfolio of luxury brands across various categories and price points therefore their ability to meet the emerging Consumer demands
Threats
1- long gestation period. India is witnessing the rapid emergence of an upper middle class, but only a limited number of households can afford high-end aspirational products.
2- heavy custom duty on import of luxury products ranging between 30-70 percent. which means the products in India are more expensive than abroad. No price differentiation to the brands in India, where customers are still price conscious and are looking for better deals
3- lack of world-class luxury customer service experienced by the well travelled Indian consumer hence preferring to shop while traveling abroad.
4- lack of Lrc - luxury retail clusters or high streets in India and the increasing rentals. Rentals in hotels is very high and space availability 3000 sq ft which doesn 't exude a sense of luxury
5- emergence of affordable luxury brands who are very close on trends
A. Opportunities
1-The first mover advantage amongst the luxury goods segment. Also the historic business association with the LV brand create a strong brand recall in this segment.
2-The emergence of of high net worth consumers which is the 2nd fastest growing in the world. Also the Ascendance of the Indian middle class segment where the number will grow to 583 million by 2025.Cocooners that are a part of the burgeoning mid-segment of the Indian consumer market numbering to 97 million have the potential to develop a a taste for luxury and become its loyal consumers. The so if luxury market was estimated to be about 4$ and expected to grow to 30$ billion by 2015
3-The emergence of the Indian consumers in the affluent space who perceive luxury products as a reward.
4- A large portfolio of luxury brands across various categories and price points therefore their ability to meet the emerging Consumer demands
Threats
1- long gestation period. India is witnessing the rapid emergence of an upper middle class, but only a limited number of households can afford high-end aspirational products.
2- heavy custom duty on import of luxury products ranging between 30-70 percent. which means the products in India are more expensive than abroad. No price differentiation to the brands in India, where customers are still price conscious and are looking for better deals
3- lack of world-class luxury customer service experienced by the well travelled Indian consumer hence preferring to shop while traveling abroad.
4- lack of Lrc - luxury retail clusters or high streets in India and the increasing rentals. Rentals in hotels is very high and space availability 3000 sq ft which doesn 't exude a sense of luxury
5- emergence of affordable luxury brands who are very close on trends