The Impact of Luxury Products on Consumers: A Study on Difference in Attitude of Urban Educated Indian Youth Dr. Samik Shome* Ms. Aindrila Roy** + Aarociate Professor Allionee School of Business Allionce University * Business Anclyst Wipro Technelogies {Advanced Anolylcs Practc Abstract Domestic and intemational lusury brands are abitious of expansion in dhe Inia luury marker, Now-a-dass, lusuty is defined asthe ness noel. The propensity ty inde in lusury ss besed on the eonrouning influence of upscale demagraphies, peneiration of imemet, growth of etailing and ccouponing, This has seeatod newer frontiers, opportunities and challenges for the marketers cater the eddanic needs oF the target segmen'sin the Indian Tuyury busing space, These changes ave also Fucled by the changing gender roles inthe modem society. Lusury stems are perceptual in nature It sa function of disposable income clubbed with psychographic and demographic influences whic drive Aliscretionary spending. lems with high income elasteity can be tagged ss luxury in the consumption basket ofan iabvidaal, The paper tries to unearth the Feld eFluxury consunption of products and serviges, Hatem 0 sudy tho gender difference in artitude towards consumption of lusury in wrban educated youth, Implications age also drawn to formulate strategies tor designing ihe marketing mix for leyuriots tents forthe lin mache Keywords: Lnvury Products, Marketing Mix, Gender, Disposable income, Consumption Introduction usury is the unusal snvellectual or emotional pleasure and coralnt derived From some specific prt. I isalse the use ane enjoymentof the bestand the ‘most expensive items that offer the substantial physical comfort and satistician, According to Dasgupta (200), the word "uktry"serived om the Latin term “luvus’ and is defined as the state oF wea comfort ancl ‘exivagant iv ng end an inessential but Gesirableitem While things like prestige. exclusivity and premium price ass ave the ig luxury items, however, there is much more 1 luvury ion oF luxury’ over the cats, New denitions center on the more easily atlainable aspects oF WUSury. Something shat modern living, mass consumption lifestyles have caused the masses to move away from. “LuNUry’ is also a ste of mind and a sensory experience. Financial forecasters and luvury industry experts thinks lusty nnot-irdays is hecoming thenew nora Global Outlook for Lusury Category Brand top 100 most valuable global brands report insiss on the fact that luxury brands became mote accessible, collaborative axl eapeciential, OnFacebook, Insiauram, Pinceres! and other sovial media platforms, brands across the luxury spectrum mediated the tension helices the exclusivity that proves brand desirability and the inclusivity need 19 aitract new customers, ‘They personalized brand experience in ways that went beyond segmentation 10 toes intimately on she individual customer. Someone buying an affordable accessory might receive a thank you on Twitter, foe example, whilean invitation pan exclusive fashion show might be sent iacouturceustomer Amhontir'y waskey’ Long-establishee brands emphasized heritage. Newer arrivals developed compelling and authentic brand stories, The category overall ‘experienced 1 news nonnality, however, avcustomers continued 10 spendin lusury, but caretily ‘where as brands ike Fendi and Coach have made it to the 9th ane Tih position respectively and boih a these are new caer the Histoftop 10 inluury eatezory for 2013 “The above illustrates thatthe marketer has to be on the toes at all, times in the hunt for oppostaniies te tap inka the enormens potential ofthe semen Luyury Industry ia India Although in the fast few years, India’s Iuxury industry witnessed a Significant transioranation, bur dhe notion of luxury is riot new to Ini, The country was fabled for its riches im pro Britivh simes. Fven the post-British er also saw its pockets of richness oF erstwhile royal families and the elite business class whe ‘werethcuscrs af wesierp lunury brands, lnadeition, India has bee a preduction outsourcing destination fora long tne, but at present die to steadily growing economy and globalised business fevironiment, India hs rapids transformed ine at ae rated Toe luxury goods. The market witnessed robust growth of 20 poreentin the year 2009 an isestimateg 10 have reached USD 5.75 hillioni 2010. 102012, usury products have grown at 29 percent to reach 3 Size of USD 3.05 billion, well shove expeetitions of 23 perectt Services have grown al 22 pereent reve USD 0.95 bili ate assels have yrown at 13 petwent to reach USD 2.78 bilhon “Accord Technopak, customized luxury products services account for 15 percent ofthe USD 2.5 billian luxury apparel ane accessories market in India, I is also estimated thatthe usury ‘market in Indias se to touch almost three times ils eurteat size at USS14.72 billion by 2015 (AT Kearney, 2011). As said by’ the industry experts, this growth is due to continuoss inerease in high ‘not worth inviials (more than 150,000) witha net worth oF S600 billion and more than three million houssholds caming above Ry 1Dlakiv nthe top IMeites in Indi Foonomistselieve that the demographic changes in the Indian population have contributed 10 the eause. Developments like zlobalization, higher education qualification, oe in disposable income, upscale young population, among others, has inereased the purchasing poser particularly among young adults i rba Inglis, Wisassumed thatthe youths have les Tiahilliesat the start (of their earser and thus are high on marcriaism whieh eves consumerism among them, This has clevated the consumption pattern foconyaicuous eve In economies, conspicuous consumption has its roots in Veblen coffee’ The demand fora produet ineveases with inerease in price as move extrinsic value add prestige is attached t0 it, Most lusury ads are consumed with this Iedonie bits in sind oF the ‘consumer, The exelusivity in lustry constmption has is roots i ‘Snoheffect The consumer wants todileremiate himself from the restof the massthushelooksto buy innovative, care products The significant inerease in consumption of luvany brands also provides an opporiunty tothe Indian brands tapping the domestic: luxury potential and going global as well. Creating an lndian manu faeturing base for luxury brands bath Indi and global - ean have a strong positive impact on the grow of the evonomy. In fact, wroweh af the opportunites across sectors in India has tempted luxury marketers to promote their brands throughout the last decade. Suecess, though, has been limited on the consumer front duc wo & range oF isses including poor retail infrastructure, reyulatory issues and a below-threshold appreciation af lacy across mostealegories Classi ition oF Luxury Shoppersin India According to Narayan (2012), the Indian luxury shopper ean be “categorized into the follawingsegmenss iehie Rustic: Ihisone isthe skdball who defies stereotyping and has the luxury brands utterly confused. They operate out of all known paradigms and sould pick up the most baffling purchases, For nw apparent rhyme or eason, this very dificult 6 pigeon hole thissezment, Vivacious Vivant: This is the class entieprencurs oF professional business executives — shat has the money to enjoy the wood! dings i Tie, and does so without gil The motto is work hard, and plays harder, and celebrates success with ireverenco.ané fim Political Prowler: Acguivitive w the core, ts a ehildlhhe mentality of costing whatever they sees new. Lusury brands talk in Fushedl tones aout this eonsuming class, the origins of whose \wealth are shrouded in mystery, but who 1s perhaps the biggest contabutorso the bottom lines dhe hieh end bans mostly self-made Ament Ascetic: Very rich, bur as comfortable ina Kolhapuri ‘shappal as ina pair of fimmy Choo pumps. value seeker wil not buy luxury unless it fulfills need. Years o"socialistiealista unl jtof conspicuous eonsutnpton has ingrained fragelisin. Finally thay have the trnptation af enjying he fails abou : net woth segment and consumes lustry for ther intrinsic satisfuetion, Laxury is no novelty but part and parcel of everyday living Discersing with aliserset style everythings tobe jastso for thiseonsumer. Flashy Flaunter: Is the new rich status secker who chases after visible luxury. So will he seen sporting, fancy watehes, diving higivend ears wearing designer clothes but will ot invest inthe invisibles — designer hinge o top aotch hitehen and ballroom Fina Research Motivation Luxury retail in nia has been a faseinsting journey froma socio= anomie perspective. Projected as the next China for lusury zoos consumption, the Indian economy hes evoked a lot of interest globally given its statistics of some of the highest dlisposable incomes und increase in the number of millionaires {Kapoor 2012) The luxury products: consumption oF elite class has & profound impact on others all over she world, as 2 result of