AmitAnkit

AnjushaBushra

RatiVickey

Retail Management

LUXURY RETAIL

Luxury Related to -• Status, • Ego and • Psychogenic needs; (mental needs)it is not necessary for survival

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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Thank You