India is an emerging country with a fast growth. The standard of living and the number of very rich people are increasing whereas the poverty line is decreasing. Indeed, the High Net Worth Individuals represented 19% of the Indian population in 2005. Moreover, an ambitious youth interested in brands is currently appearing thanks to the rise of individualism. Then, the system of cast is also getting less and less power. Hence, India is expected to be the fifth country in luxury consumption in 2025.
However, two main threats are present in the Indian market. There are still a lot of political regulations. High custom duties remain and a limitation of 51% ownership for a foreign company prevents firms from settling in India. Then, there are many languages and dialects. India is a very diverse country.
[...] For example, HNWI and Cocooners, who have been significantly increasing for the past few years, consider Luxury goods as a reward and only purchase goods for social recognition. One of the main opportunities for the Indian luxury market is that women are currently getting more and more power. Nevertheless, these categories of consumers buy goods only if they are totally different from other goods and exclusive. For example, they won't buy state-of-the-art mobile phones since everybody can afford them thanks to contract subscriptions. 3-The competitors: The traditional domestic leather trade fears the implantation of foreign brands which provide leather. [...]
[...] It's the only way to make them feel special and loyal. [...]
[...] A luxury brand has to prove its authenticity to customers as they are afraid of counterfeit, especially in India. Besides, the new rich Indians are not necessarily aware of the brand ‘s heritage, its know-how, its craftsmanship etc As they are not aware of these specificities which characterize a luxury product, they may not purchase it. Moreover, they will not purchase the product if the brand is infamous. VI- Recommendations: We identified 3 main categories of recommendations, relative to: - the specific Indian consumption - the geographical place of Louis Vuitton in the country - the importance of the awareness and the authenticity of the brand • It's essential to integrate the cultural diversities of India: - The country is composed of 28 states in India and counts 1952 languages and dialects (Hindi, maïthili, Meitei, penjabi That's why Louis Vuitton should take in consideration the differences and specificities of each main regions and states. [...]
[...] Another strength for Louis Vuitton is the way it promotes about itself in India. Instead of doing a lot of ads like in European and American market it uses word of mouth to become knew. It targets a specifically target that initiates other consumer if it likes the brand. This strategy was efficient because nowadays Louis Vuitton has four alone stands India compare to zero in 2008. Weaknesses Nevertheless Louis Vuitton still has weakness on this market like this product which are doing with cow leather and in India the cow is a sacred animal. [...]
[...] - Thanks to viral marketing, which is while the main way of communication in India. - By opening flagship which become real symbols and showcase of the brand - Louis Vuitton should communicate a lot before implementing new stores in new cities. It was the strategy of Jimmy Choo before going to India: the brand made a huge communication to arouse its target, and to have customers immediately responsive to the brand and its offer. - The most effective communication media are Bollywood stars, famous businessmen - Sponsoring main Indian events such as the “Airtel Indian Grand Prix”: the target of Louis Vuitton has an easy access to those events. [...]
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