By Sheetal Jain
Although India is home to the world’s largest millennial population, so far, hardly any studies exist that explain the key drivers leading to the luxury goods consumption among this generational cohort. Therefore, the purpose of this paper is twofold: first, to develop and empirically test the conceptual framework designed to measure the relationship between luxury value perceptions and purchase intentions among the young Indian luxury consumers, and, second, to examine the moderating effect of gender in the relationship between luxury value perceptions and purchase intentions.
By Sheetal Jain, Sita Mishra
India is witnessing a phenomenal growth in the luxury market segment. However, empirical studies in this domain are few and far between. The main objectives of this study are, firstly, to build and empirically test the theoretical framework designed to measure the effect of value perceptions on intention to purchase luxury fashion brands among Indian consumers. Secondly, to determine the role of gender in understanding the relationship between luxury value dimensions and purchase intention. This study employed researcher controlled sampling and questionnaires were administered through the personal interview from actual users of luxury fashion brands. Structural equation modeling (SEM) was applied to test proposed hypotheses using AMOS. The statistical analysis indicated that conspicuous value was the most significant predictor of purchase intention among Indian luxury consumers followed by hedonic value and social value. The results of the study also revealed that gender does not play moderating role in the relationship between luxury value dimensions and purchase intention among Indian consumers.
By Sheetal Jain
In recent years, there has been a paradigm shift in the luxury realm as consumers are increasingly inclined toward sustainable orientation. Yet, very few studies have been performed in this domain to gain an in-depth understanding about sustainable luxury consumer behavior. This study is based upon an extensive review of literature and aims to fill this gap by classifying various factors pertaining to sustainable luxury purchase intention into four broad categories, namely, culture, self-oriented (personal) values, others-oriented (social) values and economic value. Going further, an integrated conceptual framework based on dual theoretical framework of theory of planned behavior (TPB) and Schwartz’s value theory is proposed in the study to provide a holistic view about the key determinants of sustainable luxury fashion consumption.
By Sheetal Jain, Sita Mishra
The concepts of ‘luxury’ and ‘sustainability’ are antithetical to each other. However, a paradigm shift is presently witnessed in luxury domain. Lately, sustainability is swiftly becoming a critical issue for both luxury brands as well as society as a whole. This case study focuses on the company—‘Natweave Textile Studio.’ It is a textile company founded by Indian textile designer Subhabrata Sadhu in 2009, with a yearning to conserve the rich heritage of rarest and finest cashmere by using the traditional skills of native Kashmiri artisans. The company specializes in producing high-end and exclusive Pashmina scarves and shawls with focus on entirely pure, handmade, and natural production process. Sadhu sources finest Pashmina fibers from Pashmina goats reared in its natural habitat in Changthang plateau in the Kashmir region. He strongly believes in protecting and preserving the rare art form and providing a platform to the Kashmiri craftsmen—custodians of this ancient skill, to showcase their culture to the world. He collaborates with Kashmiri weavers to create contemporary products and remodel ethnic weaves into timeless luxury items and works hard to combine traditional techniques with modern designs to build sustainable luxury products.
By Sheetal Jain, Mohammed Naved Khan, Sita Mishra
Luxury fashion industry evolved in France in 19th century (Crane, 1997; and Djelic and Ainamo, 1999). The custom made creations of haute couture houses served small elite segment of the society (Gupta, 2009). Veblen (1899) introduced the term "conspicuous consumption" to represent the elite segment of the society who consumed luxury goods and inherited highest status in the society. However, in the 1990s, numerous new alliances and mergers and acquisitions among firms eventuated. Many privately held and familyowned firms transformed into public companies. Simultaneously, large increase in the demand for luxury goods transpired and therefore marked the onset of "democratization" of luxury industry (Dubois and Laurent, 1995; Vickers and Renand, 2003; Ernst and Young, 2005; and Okonkwo, 2007).
By Sheetal Jain
Luxury markets have seen monumental growth in the last decade. Emerging markets have turned to be the major source of this growth. Lot of economic instability, social unrest, global currency wars and threat of terrorist attacks was witnessed in 2015, yet global luxury goods industry remains highly optimistic. Indian luxury market remains firm and maintains its position as the fastest-growing luxury market (Aroche, 2015). It is estimated to reach US$ 14 billion by the end of 2016 from US $8.5 billion in 2013 growing at the rate of 25% p.a. (Assocham, 2014).
By Sheetal Jain, Mohd Naved Khan
Demand for luxury brands is increasing at a very fast pace in emerging markets like India. But very few quantitative studies have been conducted to explore the reasons behind this sudden surge in demand. Thus, the purpose of this paper is to understand the impact of beliefs on consumer buying behavior for luxury fashion brands in the Indian context employing theory of planned behavior and to develop a comprehensive understanding regarding motivating factors behind luxury goods consumption.
By Sheetal Jain, Mohammed Naved Khan, Sita Mishra,
India has emerged as one of the strongest economies in the world. Despite the recent global economic crisis, India has sustained its economic growth. India is optimistic about its future growth and development with a new reformist government in power. By 2024, India has been forecasted to become the third largest economy in the world (Worstall, 2014). The strong boom in the Indian economy has propelled the growth in the number of high-net-worth individuals (HNWIs) in India. A study by Wealth-X reported that, in the past year, India has seen a striking rise in the number of dollar millionaires from 196,000 to 250,000. It is predicted that by 2018, India will have 437,000 millionaires. With 14,800 multimillionaires residing there presently, India is amongst the top eight countries in the world where one may find the very wealthy (Wealth-X report, 2015). The sharp rise in its ultra-rich population has spurred the demand for luxury goods in India, thereby making the luxury goods’ market one of the most attractive and fastest growing segments in India. Globalization; increase in disposable income; the growing number of young, well-educated people; and the surging numbers of the upper middle classes are other major factors responsible for the increasing demand for luxury goods. The Indian luxury market is expected to grow at the rate of 25 per cent per annum and reach the mark of $14bn in 2016, up from $8.5bn in 2013 (Assocham report, 2014).
By Abhay Gupta, Sheetal Jain, Sita Mishra
India is one of the most attractive markets for luxury goods across the globe. It is well-known fact that Indian market provides huge growth possibilities for global luxury players but lack of understanding about Indian market may hamper their ability to establish themselves in India. So, far there have been hardly any studies conducted to understand the key factors leading to success of luxury brands in Indian market context. To fulfil this gap, this study aims to develop a conceptual framework that determines key success factors for luxury brands in India. A qualitative research comprising of 18 interviews with Indian luxury experts was conducted to identify key factors for creating value in Indian luxury sector. Based on insights of luxury experts, this paper provides a framework of 5 Cs that can create value, drive luxury consumption, and finally help luxury retailers to achieve success in India. The 5 C framework comprised of Categorization, Communication, Customization, Consistency, & Contentment. This framework captures the essence of how a luxury brand manager should work towards creating value for Indian consumers and thereby succeed in Indian luxury market.