Over the
years, India has become one of the largest frontiers of luxury purchasing. The emerging luxury brands in India such as
Michael Kors, Versace, Calvin Klein, Roberto Cavalli, Missoni all have set up
their ventures in metropolitan cities like Delhi. The main reason behind this
is that these niche brands are providing luxury styles at affordable rates by
which India’s retail Industry is booming.
According
to recent estimates, “the size of the global luxury market across the world is
to be around $2 trillion.” However, the biggest competitor of India, China has
faced many challenges over the few years relating to luxury consumption,
regulatory issues, tariff structures and currency reasons by which the luxury
brands stores across all categories began to shut stop. As a consequence, the
entire global luxury industry including some countries such as Brazil, Russia,
South Africa was severely affected with limited growth potential.
Alone,
India is the only country which is expected to emerge as the world’s
fastest-growing major economy. So, the luxury brands are taking initiative to
expand their business in the Indian market. Now, the already existing brands in
India like Gucci, Armani, Versace, Hermes, Jimmy Choo, etc. are eyeing the
Indian market with expansion strategies and distinctive style.
If we
talk about Indian consumers, the people are giving more preference to luxury
goods as non-luxury goods are considered as inferior and low class. According
to studies, “there is a change in customers buying behaviors which have changed
over the years and there is a psychology behind why consumers are choosing
luxury goods. The following are the reasons which are explained below:
Self-Esteem and Luxury
Goods
According to a study published by the Journal of
Experimental Social Psychology, “The low self-esteem is considered as the big
factor whether the customer will buy luxury good which he can’t afford.” A
luxury brand such as Infinite Luxury comes into the limelight which goes a long
way in increasing the self-esteem and providing a sense of belonging. Another
good reason why some people buy luxury brands is a sense of accomplishment.
People love to buy $500 dress from Versacestore in Delhi by which they reward them for their hard work and want to
flaunt their attire, which they typically cannot afford.