Luxury Car Market in India Essay Example for Free

Luxury machine commercialize in India EssayThe Luxury goods effort is a very wide industry comprising of products from watches, jewellery, perfumes, expensive wines to yachts, expensive pens, and clothes. Goods for which demand increases more proportionally as compargond to income, argon known as Luxury goods, in contrast to a necessity goods, for which demand increases less proportionally to income. Some luxurious goods are bought referable to the tag implied of a status symbol, such goods tend to signify the purchasing power of those who buy them. These goods are not always better in quality 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 said to be highly cyclical and the control force behind the growth of this industry is wealth worldwide, while the economic growth and conditions of several(a) regions impact this industry. Jewellery has been part of the Indian civ ilization since ancient history. They were in fashion since ancient civilizations as Harappa and Mohanjodaro. make out of almost any material, jewelry is basically adorned to highlight nearly any trunk part.Be it the traditional jewelry or the latest ones which are increasingly in demand, i. e. the costume fictitious jewelery. There is no dearth when it comes to accentuating the beauty with varied imaginative stunningly designed jewelry relics. This field of study has focused on sumptuousness product categories jewellery. The report provides an overview on the size of the food market, immensity of high demeanor goods, propose market, problems faced and the various drive factors as well as the latest trends. The major global luxury market players have been profiled. STATEMENT OF RESEARCH QUESTION?The Indian gems and jewellery heavens is also more often than not unorganized at present. There are more than 15,000 players across the country in the gold treat industry, of which only about 80 players have a turnover of over $4. 15 million. I motive to evaluate the problems faced by the jewellery empyrean and come up with measures to help make the sector more organized. ?The rise of the middle class population in India is estimated to be around 120-150 million. Keeping this in mind I want to potray the market electric potential of luxury goods in India. ?India as a Manufacturing Hub for global Luxury Brands.I want to study and evaluate methods adopted by major countries and conclude the mishap of India being the manufacturing hub for global luxury brands. THEORETICAL RATIONAL The advent of foreign luxury brands is in a way an indicator of the promising India growth story. Looking to reap early mover advantages, these brands have strike out up shop in our country. The Indian luxury market, currently in its growth stage need to address key concerns bid the lack of adequate retail infrastructure and limited availability of educate workforce for the mountain if it wishes to promote luxury 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 perspicuous benefits that India has to offer such as low labour costs, superiority of fabrics and customization, gives it an advantage over other hole producing countries.To achieve the objective of promoting indigenous brands and positioning India as a future 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 occupancy model back up by financial and legal footings, and for the government to develop the requisite infrastructure. Indias luxury sector has gained signifi give the bouncet speed. It has the potential and re starts, to outshine other developing economies. Thus the route is chalked out and the objective is known.If the road can be cleared of challenges and impediments, luxury retailing in India forget have a smooth drive ahead. THE pass judgment IMPLICATIONS OF THE RESEARCH PROJECT FOR ORGANIZATIONS My re appear on luxury goods and jewellery is innovative because it brings together analysis of guinea pig 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 can be helpful to the nation, development agencies, and indigenous organizations.I am particularly committed to sharing the results of my analysis with the Jewellers Association in India and hope that my work will not equitable be an extraction of truths, but will give them information with which they can help make the sector more organized. PRELIMINARY LITERATURE REVIEW Attempting to break into m arkets overseas is generally more challenging than onerous to expand into new domestic markets. sphericalization is the process of social, policy-making, economic, cultural and technological integration among countries around the world. (Hodgetts / Luthans / Doh, 2006pg.7). usher of growth is seen by increased levels of trade, capital flows and migrations a lot of changes in the environment have taken fructify. India is the worlds second most populous country it has traditionally had more than its share of political and economic problems. The per capita GDP remains low, but the recent environmental trends have boosted thus helping to tramp 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 maturement steadily carving a 4% market share. As Indias jewellery market matures, it is pas s judgment to get more organize and the share of family jewellers is expected to decline. There are more than 6,000 players in domestic diamond processing industry. The reasonable gestation period for setting up a diamond cutting and polishing unit is 15 months. The low gestation period, coupled with low capital cost allows easy admission into the sector.This has led to the industry being largely characterised by a large number of small scale players. However, just as in the cutting of jewellery, the share of the organised sector has increased significantly in recent years imputable to an increase in demand for better and finer quality of finished goods. India Gems and Jewellery constancy elevatedlights Jewellery market size $13 billion Diamond jewellery $1. 2 billion specie jewellery market growth year on year 15% Diamond jewellery market growth 27% (By bharatbook. com Dated Jul 24, 2008).According to market reports, around 6- 7 million Indians can concede to buy luxu ry 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 annually at around 35% CAGR (The economical generation distinguished 10, 2008) If India keeps the last 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 largest consumer market, rising from 12th largest today. High disposable income and a largely young population will drive consumption patterns upwards.With a great youth populace below 25 years and having a 17% share of the world works population, India presents a huge market for brands across the spectrum. It is estimated that 52% of luxury customers are in the age support of 25-34years old. By 2033, the active age group 25-45 years is expected to be around one third base of the population. With the average age of potential luxury consumers decreasing, the country i s a goldmine waiting to be tapped. stipulation 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 there 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 propel 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 inevitable to gauge the financial potential as well as the brain of the Indian luxury consumer. This will help in bringing forth the right product offerings to the Indian consumer as well as targeting them better. Qualitative Insights 1. According to a st udy by American Ex compaction, 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 shoot for of promoting luxury in India. Their task will also be to build synergy between various luxury brands interested in India by way of sharing of consumer insights as well as trump out practices. 3. Even the Asian region is not uniform in its preference for luxury in term of need fulfilment. Therefore, it becomes important to delineate 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 Hong Kong, Tokya, China etc. Eg. It is evoke to note that Sin gapore 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 monthly supplement of luxury goods available in India, thereby creating awareness for the luxury brands. Quantitative Insights.1. As far as quantitative estimates are concerned, there will be 135,000 millionaires (in US dollar terms) in India by 2009. 2. The affluent 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 literary productions analyse in mind my hypotheses would contain Aim The aim of this research is to study the different entry strategies and analyse which strategy is the most appropriate f or luxury goods and jewellery in India.Objectives Develop a case study on Indias luxury goods and jewellery industry and its progress to date and to seek secondary information that relates to entry strategies in the luxury goods and jewellery business. Study the luxury goods and jewellery industry environment and Indias modifications. entropy SOURCES AND THE JUSTIFICATION FOR THE CHOICE Secondary Data Source The secondary info source would be docudrama data books, electronic media, and articles published in journals and newspapers which would help to answer the research question. Primary Data Source.To confirm the finding of the research, interviews will be taken from the raft who are in the jewelry and luxury goods industry. articulated lorry structured interviews will help in putting across our research question and also earreach on the topic area which interest the interviewee. Questionnaires data under this would help me to evaluate the general perceptions. take Size of uncomplicated Data Large qualitative methodology will be adopted for primary data collection. A survey conducted by e-mail questionnaire. A sample size of a fewer questions will be analyzed and interpreted with an approval from the supervisor.Method 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 number 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 embroil manufacturers, exporters, traders, agents, lecturers, and students through questionnaire. Surveys and questionnaires will be administered on paper, in different formats. All may take place in person, or by mail, over the phone or via Internet/ Email.Data Analysis both qualitative and quantitative techniques will be used in this research. The data obtained from the questi onnaire will be analysed victimisation quantitative technique. An interview and data which is collect from secondary source will be analysed qualitatively.. Interview data will be transcribed and then analysed qualitatively. Here, qualitative research would be used explore and sympathise peoples beliefs, experiences and attitudes. And quantitative research would be all the numerical data which would be from the surveys and questionnaires. RESEARCH DESIGN talk Time Plan.MonthActivity December 3rd/ fourth weekStart thinking about the research ideas and data collection January1st/ second weekLiterature searching and define objectives. January 3rd/4th weekLiterature searching/ writing. Submission of proposal Febuary1st/2nd weekDrafting of literature review/ working on Research Methodology/Conduction Interviews/ Meeting the tutor and taking a feedback February3rd/4th weekChecking literature review/ Analysis of the data collected and linking theories to the case study. July 1st/2nd wee kMeeting tutor and see to it for final revision. July 4th weekSubmission of final draft.METHODOLOGY TO BE EMPLOYED The research for this dissertation would be make 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 survey would be cross- sectional because this study is of particular trend, and not longitudinal analysis as they are make 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 setting of the organization. Details of any ethical considerations and steps taken to meet potential ethical concerns. Luxury goods should not be confused with the moral legitimation of their consumption. Es pecially if you are yourself a merchant who profits from the trade in luxury goods. Spending money on luxury goods, does good to the poor by incentive them to exert the industry, rather than keeping them idle. Hence creating employment for the poor.This kind of justification 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 future(a) steps can be taken to meet potential ethical concerns Raising awareness of the decree with subsidiarys. Evaluation of the ethical monitoring programme. Further monitoring of additional high risk suppliers from whom the company sources goods find the use of banned substances/chemicals and provide an alert service to the retailers. References Books Charles W. L. Hill (2003), international Business Financial Times Management (1999), Mastering Global Business. George S. Yip (1992), Total Global Strategy. Gill, J. and Johnson, P. (19 97) Research Methods for Managers (2nd edition), London, Paul Chapman. Harold chee, Rod Harris (1998), Global Market Strategy. Helen Deresky (2006), external Management, 5th edition Managing across borders and cultures. Hodgetts, Luthars, Doh (2006), International Mangement culture, strategy and behaviour(6th edition), America, Mc-Graw-Hill/Irwin. Isobel Doole, Robin Lowe (2004), International Marketing Strategy analysis development and implementation.GEMSTONES By Ronald F. Balazik Fortune Magazine, 2007 Mintel International gathering, 2006 Websites AmCham Shangai, http//www. amchamshanghai. org/AmchamPortal/MCMS/Presentation/Publication/Insig ht/InsightDetail. aspx? Guid=%7BFCCD3DCF-18BB-4705-9C8D-C677B764ACE1%7D The Economist, August 2007 http//www. economist. com/business/displaystory. cfm? story_id=9005244 Seeking Alpha http//seekingalpha. com/article/15478-growth-in-chinas-luxury-goods-market-to-be-fueled-by-2nd-tier-cities http//www. just-style. com/store/product. aspx?ID=5 3193 http//www. robbreport.com/News/Press-Releases/Robb-Report-Launches-Robb-Report-Global. asp The Economist, August 2007 http//www. economist. com/business/displaystory. cfm? story_id=9005244 International Herald Tribune, 2005 http//www. iht. com/articles/2005/12/04/opinion/rbuy. php Forbes, 2005 http//www. forbes. com/2005/06/22/luxury-wealth-trends-cx_sr_0622luxury. hypertext mark-up language Wikipedia http//en. wikipedia. org/wiki/Luxury_good Harvard Business School, http//hbswk. hbs. edu/item/4321. html Miami Herald 2007, http//www. miamiherald. com/business/story/271242. html Boston Consulting Group, http//retailindustry.about. com/od/seg_luxury/a/bl_bcg071304_2.htm International Herald Tribune, 2007 http//www. iht. com/articles/2007/01/15/bloomberg/sxlux. php Alf Nucifora, http//www. nucifora. com HNWIs Behaviors and Portfolios Globalize, 2006, Merrill Lynch-Capgemini Harvard Business School, http//hbswk. hbs. edu/item/4321. html The Economist, August 2007 http//www. econom ist. com/business/displaystory. cfm? story_id=9005244 .The Economist, August 2007 http//www. economist. com/business/displaystory. cfm? story_id=9005244 Cosmetics Design Europe, 2006 http//www. cosmeticsdesign-europe.com/news/ng. asp? id=65405-luxury-goods-experiences Boston Consulting Group http//retailindustry. about. com/od/seg_luxury/a/bl_bcg071304_2. htm WWD.The Magazine, The Luxury Institute http//www. luxuryinstitute. com/about/news. html Forbes, 2005 http//www. forbes. com/2005/06/22/luxury-wealth-trends-cx_sr_0622luxury. html Wikipedia, http//en. wikipedia. org/wiki/Concierge_medicine Forbes, 2005 http//www. forbes. com/2005/06/22/luxury-wealth-trends-cx_sr_0622luxury. html WWD The Magazine, The Luxury Institute http//www. luxuryinstitute. com/about/news. html The Economist, August 2007.http//www. economist. com/business/displaystory. cfm? story_id=9005244 US Chamber of Commerce, January 24, 2007 http//www. asiapacificms. com/articles/korea_counterfeits/ http//www. iltm. n et/en-gb/press/pressreleases680. cfm nation master. com Articles Luxury goods market in India keep its cool 10 Aug 2008, The Kirk Report Problems With Luxury Goods -TUESDAY, OCTOBER 23,2007 Market for luxury goods THE CASE OF THE COMIT? COLBERT By Giacalone, Joseph A Publication Southern Business Review Date befall 2006 2006 Why The Luxury Market Continues To Roar by Alf Nucifora.