The moment we talk about luxury brands, everything European (French & Italian, mostly) comes to our minds – Louis Vuitton, Versace, Dolce & Gabbana, Givenchy, Lamborghini, Gucci, Cartier, Swarovski, Hugo Boss… the list can go on and on. Do they even need to advertise their brands? Well, definitely not like how we do for other brands. The marketing jargon for such kind is ‘Niche’, but in simple terms, we can simply call it “Luxury Marketing”. This article is dedicated to the “Luxury Marketing” aspect of our business and how we entice customers who need no introduction to such renowned brands or their USPs.
The evolution of affluent buyers
Roughly 15 years back, there were no takers for luxury brands in India. They thought that the brand is not for the common public. They cannot afford to buy them. Today, the barometer of Indian consumer behaviour has gone quite far and shows how we have progressed as Indian buyers and how have we developed an acquired taste for luxurious brands.
According to a recent survey by Reliance Brands, the annual Atlas of Affluence Report 2022 showcases that the men’s luxury brand portfolio has witnessed a prominent growth of 46% in 2021, while for women, the number stood at merely 14%. The report also stated that 65% of non-metro residents bought luxury brands on a regular basis while metro residents were at 53%.
As mentioned earlier, the problem of inequality is not a stranger to the Indian market. The World Inequality Index 2022 states that India’s top 1% account for 22% of the national income. On the flip side, the bottom 50% only account for 13% of the income. This level of disparity is only bound to grow in the future.
Pandemic as a catalyst
Luxury Marketing is not a new concept. It existed even when the term wasn’t coined in the first place. Bringing in the pandemic, those who visited showrooms to buy these luxury brands faced quite a challenge, like the rest of the world. Surprisingly, the sale of women’s handbags shot up to 200% during the pandemic and Michael Kors topped the chart.
A common assumption is that most luxury brands are planned. The report suggested this mindset is slowly evolving from a need-driven buying behaviour to impulsive buying behaviour as the Indian consumers are becoming more self-indulgent. They love to live in the moment rather than invest in the uncertain future. This message is quite evident in the numbers. Two out of three affluent buyers in India chose to buy a luxury product online for the first time during the pandemic, and 85% of them spent on tech products to curate a futuristic lifestyle experience. Well, the facts speak for themselves.
Luxury Marketing steps up
Just like the consumers are upgrading their taste, the luxury marketing strategies too are evolving. The evolved luxury market today includes aspiration along with affordability and distinction. It includes aesthetic finesse along with awareness. The trends are defining the choices of the consumers with a combination of affirmative affluence, wealth and highly disposable incomes.
Looking at what luxury brands might expect in the future, is definitely expanding their consumer base with people who wish to experience luxury for the first time and even become curators of new experiences by taking it all to social media. So, the game is on!
At 3 Dots Design Pvt. Ltd., being one of the best advertising agencies in Pune, we believe that branding and marketing is one of our strongest suits along with creative and digital advertising. With a team of expert brand strategists, creative artists and content writers, we have the potential to transform brands into ‘luxury’ brands and take the advertising game to the next level. If you wish to know more about who we are or how we do it, visit www.3dotsdesign.in or get in touch with us at contact@3dotsdesign.in for 360-degree marketing & branding solutions.
Source:
https://brandequity.economictimes.indiatimes.com/news/research/mens-luxury-brand-portfolio-grows-46-pc-in-2021-from-pre-covid-level-says-report/91701600 https://brandequity.economictimes.indiatimes.com/news/marketing/luxury-marketing-and-indian-buyers-saturday-solologues/91850916