India's Growing Prosperity Opens Up A New Market For Luxury-Goods Firms

They strive for an escalated lifestyle. It is now becoming an achievable necessity. The number of Chinese, Indians and Middle Eastern consumers who can afford luxury goods is increasing, despite the economic downturn in emerging markets, luxury-goods prices are actually much higher than in Europe (Tavoulari 1). In 2010, consumers in Ch... ... middle of paper ... ... are a huge threat to our water system. PETA states that large amounts of energy and chemicals are required in order to produce leather goods.

Ralph Lauren (RL), the world’s premier luxury lifestyle brand, is considerably lagging its industry peers of late. In the last 12 months, the stock has declined approximated 4.2% whereas most of its peers have managed high double-digit returns. However, considering its growth strategies, recent earnings-beat, bullish future outlook and general industry trends, Ralph Lauren has all the qualities a good investment should possess. Solid Q3 earnings and improved guidance Driven by a strong top-line performance along with leveraged selling, general and administrative (SG&A), Ralph Lauren earnings per diluted share surged 11% to $2.57 in the fiscal-third quarter. The company’s net revenues increased 9.2% to $2 billion.

(2010) cite Internet World Statistics which assert that there are more than 1.5 billion internet users and this has affected globalization, trad... ... middle of paper ... ...instead it might gain momentum because many consumers seek luxurious quality products at discount prices and there is a need for consumers to be associated with luxury brands and value. In addition, it is a convenient method of shopping that saves time. The recession left a lasting impact on consumer’s choices and behaviour towards consumption. As a result, consumers are willing to go through any means to acquire luxury goods at discount prices even though in some cases, they don’t need the goods, but the mere fact it’s inexpensive is an incentive for them to purchase the products and this has promoted the trend. Venture capitalists and online retailers like Amazon are acquiring online private shopping club to avoid missing out on this trend (Palmer, 2010).

Such as Tokyo, Hong Kong, and New York. LV products are sold in wealthy cities worldwide to maintain and increase the perception of luxury relating to their products. Global luxury brands are acquiring or investing in small Indian brands and Indian manufacturing companies. Also, most of the consumers in India are women who have a strong awareness of authentic luxury products. Present Situation in Global Economy Louis Vuitton (LV) brand is also implementing its worldwide battle against counterfeiting.

Other factors like the introduction of related courses for business education indulged in developing designers and creating an association with the industry are responsible for such growth in the Indian fashion industry as well. According to the estimations made between mid 2008 to 2012, the fashion industry of India was expected to increase by 178% by the year of 2012 and meet $189 multi millions as per US (United States) currency. This growth in the industry is hinged on a substantial increase in huge fashion incident... ... middle of paper ... ...stry. This imminent change in the consumption pattern of Indian consumers is perhaps a direct consequence of the change in their attitudes in the first place. Increased exposure through media such as the television, foreign travelling for work or higher education, introduction and proliferation of the world wide web specially with regards to the havoc creating social networking sites, etc have cause the Indian population to embrace western culture more readily and as such the globalization of international brands has been welcomed by consumers in India with a new wave of approval and acceptance.

Two door speed elevator on the other hand consists of two horizontal sliding panels. Price and simple products are the key factors that are taken into consideration for most Indian buyers, but after sale services too is becoming a major concern in elevator buying decision. After liberalization there has been a growth in the tourism industry and an increase in foreign tourist and business visitors coming to India. This further leads to the growth of the hotel industry, which is the largest buyer of top line elevators. The key players in the elevator industry are Otis (50%), Kone (8.8%), Bharat Bijlee limited (8.6%) and ECE industries limited (8.4%).

Parisian houses are recognized for taking ample time in doing so, and they usually make the best choice. In the near future, Paris and the rest of the “Big Four” will be facing some new competition. The Top 5 Quickest Emerging Fashion Markets are the major South American countries, China, Turkey, the UAE and Kazakhstan (Top 5 Emerging Markets…). Many Asian and Middle Eastern cities are quickly edging their way up the Top 20 Fashion Capitals List. The rapidly expanding Middle Eastern city of Dubai provides very “western world” lifestyle.

However, Indian consumers place limited value on branding. Again their underdevelopment has placed these consumers into a market where their limited exposer to the international market forces allows them to shift loyalty based on price. Thus, India is a leading market to enter constructed ... ... middle of paper ... ...chases on price rather than branding. Thus, product introduction within India would be easier because companies only have to compete economically via a supply chain. Furthermore, product loyalty is unlikely in India than China.

One look at the common-size income statements for these companies can tell a story. While Jones Apparel Group was lagging at year ended 1998, even with a restructuring charge on Liz Claiborne’s income statement, 1999 was a different story. Huge growth at Jones lead to revenues double of that one year ago while Liz, while increasing, was quickly falling behind. The growth for both of these companies continued into the year ended 2000, but Jones Apparel Group’s results were brilliant compared to Liz Claiborne’s. One billion dollar growth in revenues as well as higher net income is making Jones Apparel Group the company of the future.

The trade in goods and services increased from 16 percent in 2001 to 47 percent in 2010 ( ). India exports about 1.44 percent and imports 2.12 percent for merchandise trade and services globally ( OECD). It major trade partners are U.S., China, European Union and United Arab Emirates. In 2010, it exports increased to $14 billion and imports increased to $20 billion and for the same year, it trade deficit dropped signific... ... middle of paper ... ...I inflows.