A Study on Consumer Behaviour on High End (Luxury) Brand Product Market in India.
1. Introduction
Luxury can be defined as an indulgence rather than a necessity. It comes with a heavy price and only the up-market population can afford to enjoy it. This does not make the market any smaller or short of demand. The luxury goods market include- fashion, fragrances, watches, automobiles, drinks etc. The size of the market was US$ 175bn and grew at 7.9% in 2000 and faced its first recession in 6 yrs in 2009 where the growth went down to about 3% in 2008, due to the financial crisis worldwide. ( Bain and Company’s luxury goods worldwide market study).
Some of the most Luxurious Countries included :
>> U.S.A
>> Japan
>>Taiwan
>>Germany
>>Italy
>>France
>>U.K
>>Brazil
>>Spain
>>Switzerland
According to the study conducted, the above markets constitute about 80% of the global markets.
High End Product Brands
We know some consumers buy luxury brands because they are called ‘Luxury Brands’. Be it status, badge value, or a desire to feel part of the in-crowd, come people buy Versace for its plaid, Mercedes for its Hood, Chanel for the CC. But that is not the scenario for the typical luxury consumer.
As far as a handful of luxury categories automobiles, cosmetics and beauty, watches, consumer electronics go, a majority of a affluent consumers rate the brand as very important in their purchase decision. Let it be any category for any specific product, the brand image plays a very important role.
“Luxury, derived from the Latin word luxus, means indulgence of the senses, regardless of cost. Luxury brands are brands whose ratio of functional utility to price is low while that of intangible utility to price is high.” - A . V. Vedpuriswar. http://www.thehindubusinessline.com/catalyst/2005/03/03/stories/2005030300170200.htm Luxury Brands have often been associated with the core competences of creativity, exclusivity, craftsmanship, precision, high quality, innovation and premium pricing. The product attributes give the consumers the satisfaction of not
Luxury can be defined as an indulgence rather than a necessity. It comes with a heavy price and only the up-market population can afford to enjoy it. This does not make the market any smaller or short of demand. The luxury goods market include- fashion, fragrances, watches, automobiles, drinks etc. The size of the market was US$ 175bn and grew at 7.9% in 2000 and faced its first recession in 6 yrs in 2009 where the growth went down to about 3% in 2008, due to the financial crisis worldwide. ( Bain and Company’s luxury goods worldwide market study).
Some of the most Luxurious Countries included :
>> U.S.A
>> Japan
>>Taiwan
>>Germany
>>Italy
>>France
>>U.K
>>Brazil
>>Spain
>>Switzerland
According to the study conducted, the above markets constitute about 80% of the global markets.
High End Product Brands
We know some consumers buy luxury brands because they are called ‘Luxury Brands’. Be it status, badge value, or a desire to feel part of the in-crowd, come people buy Versace for its plaid, Mercedes for its Hood, Chanel for the CC. But that is not the scenario for the typical luxury consumer.
As far as a handful of luxury categories automobiles, cosmetics and beauty, watches, consumer electronics go, a majority of a affluent consumers rate the brand as very important in their purchase decision. Let it be any category for any specific product, the brand image plays a very important role.
“Luxury, derived from the Latin word luxus, means indulgence of the senses, regardless of cost. Luxury brands are brands whose ratio of functional utility to price is low while that of intangible utility to price is high.” - A . V. Vedpuriswar. http://www.thehindubusinessline.com/catalyst/2005/03/03/stories/2005030300170200.htm Luxury Brands have often been associated with the core competences of creativity, exclusivity, craftsmanship, precision, high quality, innovation and premium pricing. The product attributes give the consumers the satisfaction of not