A study of the luxury retail market in India

Abstract

We have conducted a study of the Indian Luxury Retail market, with an emphasis on the automobile segment. We have also briefly studied the apparel and accessory segment. Our primary research has provided significant insight into what the consumer expects from a luxury purchase and also allowed us to prepare a generic segmentation of consumers that would provide a more sound basis for the development of any strategy. Further, we have discussed the expansion of luxury brands into Tier 2 and 3 cities. However, this must be taken into consideration under a caveat. There is always a risk in making a luxury brand too accessible and within reach of the masses. There would result a loss in the exclusivity associated with the brands, if every corner in every city had a retail outlet. In this scenario, one alternative could be to significantly vamp up the online experience of the brand in terms of website28 and use brick and mortar stores sparsely29, to retain the exclusivity required to maintain the impression of being a luxury brand.