Post on 08-May-2015
transcript
AmitAnkit
AnjushaBushra
RatiVickey
Retail Management
LUXURY RETAIL
Luxury Related to -• Status, • Ego and • Psychogenic needs; (mental needs)it is not necessary for survival
LUXURY
Defining Luxury
The emotionalism of luxury
“Purchase of luxury items gives the buyer an immense amount of joy which surpasses the economic value of the product.”
Luxury brands live in people’s hearts & minds
Luxury brands have range Can be teamed with many products
Luxury brands have permanence Don’t go out of style/are classic
Characteristics
Luxury Goods
Associated with- high quality, craftsmanship, uniqueness, creativity, exclusivity and innovation
What Consumer Get
Psychological Benefits esteem, prestige sense of a high status
that reminds them and others that they belong to an exclusive group who can afford these expensive goods.
The overall sales of luxury goods in the year 2009 is expected to be more than US$150 billion and Asia contributes 10% to it.
The concept of luxury is now not confined to only to Europe and US, the Asian subcontinent contributes major to it, with India and China as the newly emerging markets.
A trip to the mall can mean stocking up on thousands of dollars worth of designer goodies before eating a three-course meal at one of its fine dining establishments
Fine Living Top 10: Luxury Malls
10• The Grand Canal
Shoppe's offer visitors world-class dining and elegant shopping in a unique, inspired surrounding.
• The Grand Canal Shoppe's are guaranteed a truly European shopping experience.
The Grand Canal Shoppe'sLas Vegas, USA
9
• With a focus on big-name fashion houses such as Alexander McQueen, Bulgari and Chanel -- complemented by weekly fashion shows
Galleries LafayetteParis, France
8• Blue water in the British
county of Kent combines high-end international designer outlets (such as A/X Exchange, Lacoste and Storm)
• There’s plenty else to keep shoppers entertained too, such as a multiplex cinema, a luxurious fitness center and an extensive food court
Blue waterKent, England
7• Ranked the No. 1
shopping center in the United States, Bal Harbour Shops in Miami.
• Stores with an outlet in the complex include-Tiffany & Co., Vilebrequin, Yves Saint Laurent, Jimmy Choo, Just Cavalli, Harry Winston, Fendi, Emilio Pucci, Escada, Bulgari, and Saks Fifth Avenue
Bal Harbour ShopsMiami, USA
6• Having all the usual
designer store suspects -- Harvey Nichols, D&G, Gianfranco Ferre, and Ermenegildo Zegna,
• The Landmark boasts the 113-room Landmark Mandarin Oriental Hotel as well as the chic Oriental Spa.
The LandmarkHong Kong, China
5• Armed with their Black
Amex, shoppers here are able to flit in and out of 100 designer stores such as Tommy Hilfiger, Yves Rocher and Diesel.
• The three-story wonder is built underground near Red Square and is, quite simply, one of the grandest malls in the world.
Okhotny Ryad Shopping CenterMoscow, Russia
4• The bustling buildings
here combine luxury shopping and fine dining with office and residential space
• With outlets including Cole Haan, Dean & Deluca and Sisley, the mall also features an Equinox Fitness Club.
The Shops At Columbus CircleNew York, USA
3• The Walk also houses
outlets by designers such as Louis Vuitton, Calvin Klein), Emporio Armani, Mulberry, and Links of London.
• The mall also provides residents and visitors to the capital with a complete shopping and leisure experience.
The WalkEdinburgh, Scotland
2• With the DFL Group
finishing construction at the end of 2007, The Emporio shopping mall in New Delhi
• Consist of 90 high-end Indian and international stores, such as Kimaya, Ensemble, Ashish N Soni, Rajesh Pratap Singh, and Abraham & Thakore
The EmporioNew Delhi, India
1• Packed with designer
boutiques, including Harvey Nichols, Debenhams, Bois & Chiffon, Reiss, Missoni, and Marc Jacobs
• The mall also encapsulates several world-class restaurants and bars, including Lebanese cuisine at Karam, brasserie-style food at St Maxim’s, seafood at Salmontini, international fare at Sezzam, and fondue at Après
Mall Of The EmiratesDubai
LUXURY
The Luxury retailing in india
Reasons for emergence of luxury retail in India.
• Hike in the salary .• High Standard of living .• Luxury becoming a status symbol.• stylish appearance• increased durability• better performance & advanced
featuresLuxury in India has become more accessible.
Bollywood is an influencer
LUXURY
Luxury Products & Services
Cars: Jaguar, Mercedes Benz, Lamborghini, Rolls Royce, Bentley, Ferrari, Bugatti
Couture: Versace Indian couture designers: Rohit Bal, Tarun Tahiliani May not include prêt designs
Hotels & resorts Amar Vilas (Oberoi), Four Seasons
LUXURY
Luxury Products & Services
Accessories
Footwear: Jimmy Choo
Handbags: Louis Vuitton, Aigner, Leiber, Hermes, Prada
Small leather goods: Dunhill
Watches: Piaget, Tag Heur
Eyewear: Armani, D&G, Chanel
LUXURY
Luxury Products & Services
Perfumes: Channel
Jewellery & Gems: Cartier, Tiffany
Writing instruments: Mont Blanc
Luggage: Louis Vuitton
Liquor: Henessy (vodka), Blue Label, rare wines Art
Not Luxury: Mango
LUXURY
The Sachdev Group – Priya Chatwal & Charu Sachdev
Brands: Lanvin, Alberta Ferretti, Jean-Paul Gaultier,
Moschino,
Stella McCartney
Promoters of Luxury in India
Genesis Colors Sanjay Kapoor of Satya Paul fame
Brands: Aigner, Canali, Kenzo, Paul Smith, Just Cavalli
Murjani Group Gucci, Jimmy Choo, Calvin Klein, Bottega Veneta
Brandhouse Retail (S.Kumar Group) Escada, Dunhill
JV’s in the pipeline DLF with Armani Hermes with Neelam Khanna (PRS Oberoi clan) Reliance Retail
TSG International Marketing Pvt Ltd
LUXURY
Emporio
The first Indian luxury destination:
Officially inaugurated: Sunday, 30th Aug
Developer: DLF
130 luxury brands
Apparel: Dolce & Gabana, Canali, Louis Vuitton, Chistian Dior
Jewellery: Cartier, Harry Winston,
Leather Goods: Tods
Men: Paul Smith, Armani
Watches: Piaget, Chopard, Jaegar
Indian designers: Rohit Bal, Tarun Tahiliani, JJ Valaya
LUXURY
The story in India
Luxury is not new to India but the modern form is yet to evolve
Branding
Lasting customers relations
Signature look
Virgin market
LUXURY
The story in India
Ermenegildo Zegna First store opened at Crossroads in 1999. Closed in 2005A 3000sqft store opened at Taj, Mumbai in 2007Third store to come up at Emporio
Jimmy Choo
Launched India store through Murjani Group in Sep08
Located at Nariman Point, Mumbai
Worn by Aishwarya Rai, Preity Zinta
Internationally launching sunglasses, fragrances & handbags
LV’s association goes back to the Maharaja’s for
luggage
First store opened in 2003 at Oberoi Hotel, New
Delhi
Second store opened in Mumbai in 2004
Now opened at Emporio
Louis Vuitton
Luxury Market Spend Allocation
LUXURY
Limitations of luxury in India
Lack of appropriate space
Adjacencies important – nightmare McDonald’s
Started with use of hotel space
Makeshift space in malls/markets
Emporio – perhaps the first luxury mall in India
Expensive real estate
Lack of trained manpower
Specialized programs in Institutes
Lack of Indian products & brands
FDI restrictions
LUXURY
Scope for Indian brands
Can you think of an Indian luxury brand?
Acquiring Western brands: Tata acquires Jaguar from Ford in the UK
Oberoi hotels: Rajvilas, Udaivislas, Amarvilas
India’s strengths: excellence in craftsmanship, heritage, business potentialSome suggested areas: hotels & hospitality, spas, jewellery, meditation (Mahesh Yogi), art, Indian fashion
Challenges to overcome
• Limited scope-Though Indian has become brand conscious and are ready to invest in luxury goods yet the scope of international luxury retail is limited, as there is still a percentage of people who do not see luxury retail as a necessity.
• Lack of retail space-Except for five star hotels Indian retail space has still failed to match international standards. For an international brand to find a large retail store space is still a dream, as apart from high rentals, shortage of retail space still exists.
• Lack of High Fashion Street-There is no street that is coming up as a high fashion street. Like New Yorks’s Fifth Avenue and London’s fashion streets, India has a long way to go before it can compete in both space and name, to call its retailing spaces as fashion streets.
• Providing services-When consumer is ready to spent huge amount of money in buying a luxury product he would not like to compromise on the quality and services provided by the brand. Being a foreign brand satisfying the consumer becomes little difficult.
LUXURY
Thank You