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 Report
on

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 by
definition, change.
 Success in fashion comes with the ability to grasp and recreate in clothes and
accessories 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 and
dreams

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 of
manufacturing, marketing and retail alternatives.
Over here, we will mainly make references to U.S and Europe where the
fashion capitals - New York, Milan, London and Paris.
One of the reasons for their leading role in the apparel sector is that they are
able to acquire information on future trends in color, theme and styles in
advance.
Nature of Fashion Market

Couture Wear :
Couture wears are exclusively tailored by in-house designers and are
produced in limited numbers of expensive, high quality garments.
Ready-to-Wear :
As such, to be commercially sustainable, the fashion industry provides less
wealthy consumers with cheaper garments.

Classification of Indian Retail Industry
Retailing industry can be classified into two classes:
- Organized retailing
- Unorganized retailing
Major Organized Retail Segments
o Fashion & Lifestyle
o Accessories
o Furniture
o Food
o Consumer durable
o Leisure and entertainment
o Health and Beauty Cosmetics
o 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. Defining
luxury has been always been very subjective. Scholars explain it dynamically with
changing times and scenarios.
Those who went to other countries and came back with branded and designer labelled
stuffs 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 and
services. In upcoming years the growth of this luxury market will be explosive.
luxury champagne player Moet Hennessy, who previously offered only imported
products, 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 while
catering to the market.

Most Powerful Luxury Fashion Brands In The World
10. Coach – Brand Value: $3,2 Billion
9. Fendi – Brand Value: $3,6 Billion
8. Burberry – Brand Value: $4,1 Billion
7. Cartier – Brand Value: $6,3 Billion
6. Chanel – Brand Value: $7 Billion
5. Rolex – Brand Value: $7,9 Billion
4. Prada – Brand Value: $9,4 Billion
3. Gucci – Brand Value: $12,7 Billion
2. Hermès – Brand Value: $19,2 Billion
1. Louis Vuitton – Brand Value: $28.4 Billion

Market Segmentation By Users Category
Men's wear:
Men’s wear market in India fastest growing apparel segment The entire
apparel industry ,including domestic and exports,is pegged at Rs 3,270 billion
and 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 unorganized
players. With more women expected to enter corporate world, both these
segments are good opportunities because of the market size.
Kid’s wear:
Kids wear is a major category with few established players – viz., Lilliput, Gini
and Jony, Catmoss, Benetton

Market Segmentation By Price
Low-end market:
Volume driven, products are mostly unbranded and dominated by large
number 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 and
major 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 and
were connoisseurs of luxury.
Describing luxury as "balance, harmony and beauty of human race, the luxury
market in India garners huge attention and is sometimes seen as a sign of
India 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 traditional
Indian luxury and the Indian Luxury retail market

Hypothesis
How 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, store
display?
To study the factors which influence consumers to buying luxury products?

Research Methodology
Project has information gathered from both from primary and secondary
sources.
Quantitative method, used questionnaire by using
Ranking scale
Open ended and close ended question
SAMPLE
Sample Size: 30
Sample Frame: Lucknow City
Sample Unit: working professionals of Lucknow
Sample age:-23 to 35
Sampling Method: Simple Random Sampling
Constraints: Time, No. of Respondents
Survey: Questionnaire

Data Collection
During the study, five important factors (quality, price, variety, design and visual
merchandising) 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 of
visual merchandising on buying behavior of customers.
I frequently asked question to consumer’s sample of questioaire attached in
last.

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 infrastructure
The 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 full
pace 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 in
the 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 the
Income level of an Individual. Income usually affects the lifestyle and attitude
of individuals which might shape choice of the products you buy.
In luxury brands most of the respondents prefer quality followed by price and
availability. This response shows that customers are ready to pay for quality.
In opinion of Respondents, majority of People buy luxury product because they want to
flaunt their superiority over others. Followed by those people who really have taste
of art and exclusiveness.
About 70% of the respondents are of the view that service quality in luxury brands is
more superior then other brands.

According to survey most of the people prefer to shop luxury brands followed
by local brands International brand has least share.
50% of our respondents prefer to shop from malls than local market followed
by branded outlet. This shows that real estate (commercial) mall concept have
such a high impact on the sale of luxury items.
Due to less sales luxury brands generally fall into trap of discounting and that
goes very true in case of a developing country like India. To understand this
question following information is gathered.
According to respondents celebrity endorsement is one of the best ways
to 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

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