Luxury brand management website analysis

Abstract

Luxury Brands:- Luxury has been defined as a philosophy, identity and having a culture with elements appealing emotionally rather than rationally. (1). There are certain cultural elements and values attached to luxuryoriginality, creativity, skill, precision, emotional appeal, a prominent image, exclusivity, high quality and premium price. These elements lead the consumer to generate a desire to own luxury brands for personal pleasure and social status. Even the luxury brands is a high-value market which stands on greater brand assets and with expanding scope and an increasing number of consumers. Luxury Industry:- McKinsey reports that the luxury market is growing in emerging nations like India is giving China fierce competition. India's HNI and UHNI population is increasing speedily - reports suggest that by 2020, the wealth of HNIs in India will see a 94% rise as compared to 74% of China. This indicates increasing opportunities for brands present in luxury segment in India(9). World's luxury market category is around $1.3 trillion, with a growth rate of 5%. The market can be divided into two major categories: a. Services (travel, hospitality, etc.) b. Products (personal or wearable luxury, etc) Indian Luxury market is around $30 Billion (10) and grew at a CAGR of over 18% (2012-17), and it is expected to have a double-digit growth till 2022. Luxury cars and Personal Luxury are among highest contributor to luxury sales in India (approximately INR 2.5 billion each). From the luxury product category, perfumes (brands like Dior, Gucci) and apparel (Manish Malhotra, Sabyasachi) are the top growing category within luxury product segments. Also, there are players like Forest essential, Ayurveda establishing themselves on the ethnocentric Indian luxury brand. Among all, experiential luxury is one of the fastest-growing categories in this segment. India’s engagement with luxury brands has evolved immensely over the last decade. With high disposable incomes, availability of adequate information and a leaning for everything luxury is on rise amongst affluent Indians. By 2030, 140 Mn household will be added to middle class segment, and 20 Mn will enter high income category. This segment will spend 2-2.5x more than essential goods like beverage, apparel, etc and 3-4x more on services. The consumer will be spending 25% of their money in premiumisation and category addition in personal care segment (eating healthy, looking good) (11). The trends show their inclination towards luxury cars, opulent jewellery, designer outfits, timelesstimepieces in addition to their ‘traditional’ choices like couture and clothing. This is also proven from the fact that the country is emerging as the next growing destination for global luxury brands such as Gucci, BMW and Dior. Millennial have a higher preference for luxury goods as compared to Generation X and baby boomers and India have world’s largest millennial population (12). From regulation point of view, India has allowed 100% foreign direct investment in single branded retail stores which will attract to many international brands. Also, India’s rank in ‘Ease of Doing Business’ improved which lead to boost in foreign investment. All these factors are showing positive trends in premium and luxury brand sale, for eg. GUCCI has sold all stocks of its $4000 tote bag(13) A new trend that is emerging is designer Indian wears especially wedding clothing. A few years back only a couple of designers were known to most people due to their linkage to Bollywood celebrities. However, now with internet booming and Indian consumers becoming more aware of trends and seeking information, a whole range of designer labels are known to masses and affluential people. These labels do not have their physical stores across India and hence they are making their presence, style and brand integrity prominent online.