Luxury Buying Behaviour & Role of Culture : Indian Context

By Group 11 :

Anshika Jain Anand Roy Anirban Mandal Risha Bagchi Saikat Roy

Introduction

India will likely to experience longest growth in total millionaire wealth

Growth of luxury car segment

Growth of jewellery market

India’s Love Affair with Gold

Indian Culture

Flashback IndiaEnd 1800 to early 1900

The Patiala Necklace(Cartier) of Maharaja Bhupinder Singh.

Weighing a total of 962 carats, it contained 2930 diamonds including the famous de beer which was the world’s 7th largest diamond at 234 carat.

Maharaja of Mysore Krishna Raja Wodeyar 4- Doing A Mysore.

Maharaja Jagatjit Singh, a loyal customer of Louis Vuitton.

Fast forward1940-1980

Pre Independence: The swadeshi movement infused a desire to be self ruled and self governed led to a major upswing of the anti British sentiment and everything foreign was taboo. Khadi became a norm of the day and textiles made in the mills of the British empire were being discarded and burnt in the streets

Click icon to add picturePost Independence: In the post independence era, the single most contributing factor to development of luxury has been fashion and the influence of the film industry on fashion. Bollywood was an early trendsetter where costume designers like Bhanu Athaiya started experimenting with film fashion in 1960. Over the years, popular bollywood trends were the differentiator between an ordinary or fashionably luxurious attire. Gradually, situations and themes of Indian cinema became westernized, paving way to a diverse global fashion exposure.

The New Luxury

Dramatic changes from old luxury to new luxury

Post independence period Educated urban middle

class

Reasons for the difference : Cultural Dimensions

Power Distance Individualism vs. Collectivism Masculinity vs. Feminity

Uncertainty Avoidance Short term vs. Long term orientation

India’s Cultural Orientation

Other 32 Indian values

High family orientation

Savings orientation

India is largest market for gold

Festivals sees phenomenal increase in sales

Apart from festival weddings are the aspirational occasion for buying

World gold council campaign

The New Luxury

Young professionals-

knowledge based & influenced by west

High achievement orientation .

This segment diametrically

different from same segment 20 years

ago

International exposure due to globalization

Aspirations for Bigger car, holidays, quality services

With the change of times, there is a change in trend

The New LuxuryBesides several kinds of services the young would engage in

something that would have a symbolic value of having ‘Arrived’

Portrayal of Materialism in modern movies in comparison to the movies in pre 1991 era

Despite high urbanization,

geographical spread of growth is expected to go

beyond the top tier cities

By 2025 Urban areas will account for 2/3rd of future growth in Indian

market

There is a trend of impulse gratification.New money helping the middle class up its quality of life

The History of Big Fat Indian Wedding

The Mughals The Mauryas’ The Cholas

• People in India are united by their culture and tradition, despite their diversity.

• Deep rooted Indian culture – makes it difficult for standardized strategy.• Localisation of more culture specific marketing strategies is needed.

Buying Behaviour : Indian vs. Global Market

29%

7%

39%

5%

20%

Indian Market

Apparel Personal care Jewellery Art Wines & Spirits

43%

28%

14%

8%7%

Global Market

Apparel Personal care Jewellery Art Wines & Spirits

Source : AT Kearney Research report, 2009

Adobe Acrobat Document

Conclusion“There is no understanding of luxury conceivable which is nationally or

regionally bound” on a world marketplace.

-Wiedmann et al. (2007, p.3[22])

Good understanding and right management of Indian culture would facilitate Luxury Brands to thrive as India is the next big opportunity for marketers.

Firms need to workout major issues involved with culture and values.

Thank you