Luxury Car Market in India Essay

The opulence goods industriousness is a precise wide exertion comprising of proceedss from watches, jewelry, perfumes, pricey wines to yachts, expensive pens, and clothes. Goods for which demand increases more(prenominal) proportionally as compargond to income, are known as Luxury goods, in ph whizz line to a necessity goods, for which demand increases less proportionally to income. Some sonsie goods are bought due to the tag implied of a status symbol, such goods bunk to signify the purchasing power of those who buy them. These goods are not eer better in timberland or appearance than their less expensive substitutes.The main purpose of purchasing these goods is to display the wealth of their owners. The industry is verbalise to be highly cyclical and the driving force behind the offset of this industry is wealth worldwide, while the economic drawth and conditions of various regions locomote this industry. Je thoroughlyery has been part of the Indian civilization s ince ancient history. They were in mold since ancient civilizations as Harappa and Mohanjodaro. Made discover of almost any(prenominal) material, jewellery is basically adorned to highlight n earlier any body part.Be it the traditional jewelry or the latest ones which are increasingly in demand, i. e. the costume & imitation jewelery. There is no dearth when it comes to accentuating the beauty with change imaginative & stunningly designed jewelry items. This report has focused on sumptuosity product categories & jewellery. The report provides an overview on the size of the market place, immensity of highlife goods, target market, problems faced and the various driving detailors as well as the latest trends. The major global highlife market players stick come on been profilight-emitting diode. debate OF RESEARCH QUESTION?The Indian gems and jewellery sector is in any case more often than not unorganized at present. There are more than 15,000 players across the republi c in the gold processing industry, of which only approximately 80 players have a turnover of over $4. 15 million. I want to try the problems faced by the jewellery sector and come up with measures to booster make the sector more organized. ?The rise of the mall class universe of discourse in India is estimated to be around 120-150 million. Keeping this in mind I want to potray the market potential of luxuriousness goods in India. ?India as a Manufacturing Hub for ball-shaped Luxury Brands.I want to study and prise methods espouse by major countries and conclude the possibility of India being the manufacturing hub for global lavishness brands. THEORETICAL RATIONAL The advent of foreign prodigality brands is in a way an indicator of the promising India growth story. Looking to reap early mover advantages, these brands have set up shop in our country. The Indian luxuriousness market, currently in its growth stage needs to lot key concerns like the lack of adequate sell in frastructure and curb availability of trained workforce for the trade if it wishes to promote highlife retail in the country.The world today is looking at India, and the products coming out of it. Our skills pool speaks of the highest level of craftsmanship and creativity as it has evolved and been refined by many generations that carry on the trade. India is also well poised to be an outsourcing destination for foreign luxury brands. The obvious benefits that India has to offer such as low wear out costs, superiority of fabrics and customization, gives it an advantage over other mickle producing countries.To achieve the objective of promoting indigenous brands and positioning India as a prox manufacturing hub for luxury goods, consolidation in the industry is imperative. The need of the hour is for the industry players to create a sophisticated business model verifyed by financial and legal footings, and for the government to develop the requisite infrastructure. Indias luxu ry sector has gained signifi washbowlt speed. It has the potential and re outsets, to outshine other developing economies. on that pointfrom the route is chalked out and the objective is known.If the road finish be vindicated of challenges and impediments, luxury retailing in India will have a unflurried drive ahead. THE EXPECTED IMPLICATIONS OF THE RESEARCH PROJECT FOR ORGANIZATIONS My research on luxury goods and jewellery is innovative because it brings together abbreviation of national discourses about Indian market with a study of the practices and choices of the Indian government and the luxury goods and jewellery sector. I believe this research stern be helpful to the nation, festering agencies, and indigenous organizations.I am tokenly committed to sharing the results of my analysis with the Jewellers Association in India and hope that my work will not erect be an extraction of truths, but will give them information with which they can help make the sector more org anized. PRELIMINARY LITERATURE brush up Attempting to break into markets overseas is generally more challenging than trying to thunder into new domestic markets. Globalization is the process of social, political, economic, cultural and technological integration among countries around the world. (Hodgetts / Luthans / Doh, 2006pg.7). Evidence of growth is seen by increased levels of trade, capital flows and migrations a lot of changes in the environs have taken place. India is the worlds second most populous country it has traditionally had more than its appropriate of political and economic problems. The per capita GDP remains low, but the recent environmental trends have boosted thus helping to bolster a large middle and upper- class market for goods in the luxury and jwellery industry. The industry is dominated by family jewellers, who constitute nearly 96% of the market.Organised players such as Tata with its Tanishq brand, have, however, been evolution steadily carving a 4% market administer. As Indias jewellery market matures, it is evaluate to get more organised and the fate of family jewellers is expected to decline. There are more than 6,000 players in domestic baseball field processing industry. The average pregnancy period for setting up a diamond cutting and polishing unit is 15 months. The low gestation period, coupled with low capital cost allows easy entry into the sector.This has led to the industry being largely characterised by a large numeral of small scale players. However, just as in the case of jewellery, the manage of the organised sector has increased significantly in recent long time due to an increase in demand for better and finer quality of finished goods. India Gems and Jewellery Industry Highlights Jewellery market size $13 gazillion rhomb jewellery $1. 2 billion Gold jewellery market growth year on year 15% Diamond jewellery market growth 27% (By bharatbook. com Dated Jul 24, 2008).According to market reports, ar ound 6- 7 million Indians can afford to buy luxury goods but hesitate to do so since they are unfamiliar with brands and products. With a growing millionaire base in India, the luxury market is growing every year at around 35% CAGR (The Economic Times noble-minded 10, 2008) If India keeps the in the end three years average growth at 9%, the income levels of consumers is expected to almost triple by 2025. By 2025, it is estimated that India will become the fifth part largest consumer market, rising from 12th largest today. High disposable income and a largely preadolescent population will drive consumption patterns upwards.With a huge early days populace below 25 years and having a 17% share of the world working population, India presents a huge market for brands across the spectrum. It is estimated that 52% of luxury customers are in the age bracket of 25-34years old. By 2033, the alive(p) age group 25-45 years is expected to be around one third of the population. With the ave rage age of potential luxury consumers decreasing, the country is a goldmine waiting to be tapped. Given the core strengths of the manufacturing sector, India can well become a manufacturing hub for global luxury brands.Already brands like Louis Vuitton and Frette are looking at India as a manufacturing base for their products, but in that location are others who simply source their requirements from India. It is estimated that the manufacturing of luxury items in India can grow to US $500 million13. This manufacturing capability if harnessed properly can proceed India as one of the leading destinations for manufacture. The cost advantages, particularly in labour intensive sectors like leather and accessories add to the advantage of the country. Luxury in IndiaTo be successful in India, it is both necessary to gauge the financial potential as well as the mental capacity of the Indian luxury consumer. This will help in bringing forth the right product offerings to the Indian consu mer as well as targeting them better. Qualitative Insights 1. According to a study by American Ex conspire, Inside the Affluent Space, the mindset of the Indian consumer is a desire to prove that Ive Made It. This can be related to the luxury categorization which is based on the fact that luxury is seen as a reward, both for achievements in life as well as showcasing these achievements to others.2. The Luxury Marketing Council Worldwide has established a chapter in India, with the aim of promoting luxury in India. Their task will also be to build synergy between various luxury brands raise in India by way of sharing of consumer insights as well as best practices. 3. Even the Asian region is not uniform in its preference for luxury in terms of need fulfilment. Therefore, it becomes important to destine the needs of the Indian consumer from the other Asian regions to target them better.This agenda gains importance because many Indians look at acquiring luxury from places such as Hon g Kong, Tokya, China etc. Eg. It is interesting to note that Singapore consumers are more of connoisseurs compared to Hong Kong consumers who want Talk-Value from their luxury goods. 4. Hindustan Times has been at the forefront of driving the luxury revolution in India by organizing two Indian Luxury Conferences in the last 4 years. To add to it, it also brings out a periodical supplement of luxury goods available in India, thereby creating awareness for the luxury brands. Quantitative Insights.1. As far as numerical estimates are concerned, there will be 135,000 millionaires (in US dollar terms) in India by 2009. 2. The plenteous market is set to grow at a rate of 13% in India, and by 2009, there will be approximately 1. 1 million affluents here. 3. The wealth potential of Indias affluents was to the tune of US$ 203 billion as of 2005. HYPOTHESES Keeping my literature look into in mind my hypotheses would chair Aim The aim of this research is to study the different entry strat egies and probe which strategy is the most appropriate for luxury goods and jewellery in India.Objectives condition a case study on Indias luxury goods and jewellery industry and its progress to date and to seek thirdhand information that relates to entry strategies in the luxury goods and jewellery business. Study the luxury goods and jewellery industry environment and Indias modifications. DATA SOURCES AND THE JUSTIFICATION FOR THE CHOICE Secondary Data Source The secondary entropy source would be documentary data books, electronic media, and words create in journals and newspapers which would help to answer the research question. Primary Data Source.To pass the finding of the research, interviews will be taken from the people who are in the jewelry and luxury goods industry. Semi structured interviews will help in putting across our research question and also listening on the topic area which interest the interviewee. Questionnaires data under this would help me to evaluat e the general perceptions. Sample Size of primary Data Large qualitative methodology will be adopted for primary data collection. A survey conducted by e-mail questionnaire. A sample size of a few questions will be analyzed and interpreted with an approval from the supervisor. order of Data Collection The literature search will aim to be comprehensive, but restricted access to primary literature. The collection of primary data will be based on a survey the piece would be restricted due to the restrictions of time to complete the project and resources to support it. I intend to collect data from luxury goods and jewellry industrialists who include manufacturers, exporters, traders, agents, lecturers, and students through with(predicate) questionnaire. Surveys and questionnaires will be administered on paper, in different formats. All whitethorn take place in person, or by mail, over the speech sound or via Internet/ Email.Data Analysis Both qualitative and quantitative techniques will be used in this research. The data obtained from the questionnaire will be analysed using quantitative technique. An interview and data which is collect from secondary source will be analysed qualitatively.. Interview data will be canned and then analysed qualitatively. Here, qualitative research would be used explore and insure peoples beliefs, experiences and attitudes. And quantitative research would be all the numerical data which would be from the surveys and questionnaires. RESEARCH DESIGN Dissertation Time Plan.MonthActivity December 3rd/quaternary weekStart thinking about the research ideas and data collection January1st/ second weekLiterature clear-cut and define objectives. January 3rd/4th weekLiterature searching/ writing. Submission of proposal Febuary1st/2nd weekDrafting of literature review/ working on Research Methodology/conductivity Interviews/ Meeting the coach and taking a feedback February3rd/4th weekChecking literature review/ Analysis of the data collec ted and linking theories to the case study. July 1st/2nd weekMeeting tutor and check for final revision. July 4th weekSubmission of final draft.METHODOLOGY TO BE utilise The research for this dissertation would be done using multi-methods this is because different methods can be used for different purposes in this study. The research would have an inductive approach as I would collect data from companies and bring out responses to the research questions. The time horizon would be cross- sectional because this study is of particular trend, and not longitudinal analysis as they are made on observations over a period of time. The data collected would be by multi-methods i. e. qualitative and quantitative.These methods would be used to study the changes in environments. There would be secondary data to analyze the changes within the context of the organization. Details of any ethical considerations and step taken to meet potential ethical concerns. Luxury goods should not be confused with the moral legitimation of their consumption. Especially if you are yourself a merchant who profits from the trade in luxury goods. outgo money on luxury goods, does good to the poor by generate them to exert the industry, rather than keeping them idle. Hence creating employment for the poor.This kind of apology takes the issue of motivation for granted, that is, it assumes that people desire to consume luxury goods with a good conscience, thus keeping money in circulation. The following steps can be taken to meet potential ethical concerns face lifting awareness of the code with subsidiarys. Evaluation of the ethical observe programme. Further monitoring of additional high risk suppliers from whom the company sources goods Respect the use of tabu substances/chemicals and provide an alert service to the retailers. References Books Charles W. L. Hill (2003), supranational Business financial Times Management (1999), Mastering Global Business. George S. Yip (1992), Total Global Strategy. Gill, J. and Johnson, P. 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COLBERT By Giacalone, Joseph A Publication Southern Business Review Date Fall 2006 2006 wherefore The Luxury Market Continues To Roar by Alf Nucifora.