Reasons Why Most Luxury Brands Fail In India (2024)

FAQs

Why are luxury brands not popular in India? ›

India's luxury market differs from others in a few critical ways. First, the overall per capita spend for Indian consumers is lower by a factor compared to the West, China, and some markets in Asia. This applies across all product categories, not just luxury.

The industry has faced challenges from technological advancements, high import duties and counterfeits products. The purpose of this research paper is to highlight the main areas of concern for the future of luxurybrand industry in Indian market with its challenges, trends and opportunities.

He lists several behavioural reasons for the failure of new products - (i) hurriedly launched products, the eye being on the competition rather than the customer (ii) launching products simply because it is company policy to launch a certain number every year (iii) inability of brand managers to speak up against ...

10 (Xinhua) -- A long list of multinational companies has failed in India. Notable cases include General Motors from the United States, Vodafone Group from Britain, Holcim Group from Switzerland, and BYD from China.

The target audience for luxury brands includes individuals who have a passion for high-end brands. They appreciate quality and craftsmanship and are prepared to invest in luxury goods and experiences. These consumers are drawn to exclusivity, sophistication, and prestige in the products and services they indulge in.

TATA Nano: The Tiny Car That Couldn't

Despite being a product of the massive TATA conglomerate, Nano struggled to maintain its market presence, serving as a cautionary tale about the perils of misjudging consumer preferences and contributing to the list of failed products in India.

Luxury brands face various challenges in today's market. One challenge is the need to maintain economic growth while also focusing on brand image building and customer loyalty.

What's Next? India is one of the fastest-growing luxury markets in the world. According to a report by Bain & Company, India's luxury market could reach $200 billion by 2030, which is approximately 3.5 times its current size! That's it for today.

The fashion brand Rheson was launched by Neerja actress Sonam Kapoor and her sister Rhea Kapoor in 2017. The brand aimed to offer affordable, trendy fashion wear. However, despite initial popularity, the brand faced challenges in establishing a strong market presence and failed to generate profits.

What is India's most valuable brand? ›

Tata Consultancy Services (TCS) retained its top position as India's most valuable brand for the second consecutive year with a brand value of $43 billion, capitalising on the global demand for digital transformation, despite a tough year for the business technology segment in general.

Kingfisher Airlines: The premium and world-class airline was based in Bangalore and founded by the infamous Vijay Mallya. The airline carried out around 400 flights every day. However, the brand couldn't keep up with customer satisfaction. Lack of deputation, misbehaviour and lack of attention to the customer.

There are handful of high-end malls in the country which are also limited to tier 1 cities. Unlike developed markets, there is lack of quality retail space. There are no luxury high-streets or factory outlets in India.

Louis Vuitton Stores in India – Taj Mahal Palace, Mumbai | DLF Emporio Mall, Delhi | UB City, Bangalore. Christian Louboutin is a French fashion designer whose high-end stiletto footwear incorporating a shiny red sole became a dream for every girl.

For a certain group of people in 'India's Silicon Valley', status is everything. The city at the heart of this dynamic tech hub, Bengaluru, has become a centre of wealth and an engine of ambition for the country. “Louis Vuitton bags are more common [here] than grocery bags.

The potential of India as a luxury market is breathtaking. This year, it's likely to be one of the fastest-growing markets in global luxury, forecast to be worth $8.5 billion, up by an impressive $2.5 billion on 2021, according to estimates by Euromonitor International.