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Louis Vuitton in India

Executive Summary
Louis Vuitton Moët Hennessy, the world’s leading luxury brand, made the decision to formally enter India in 1999. India was a familiar market for Louis Vuitton as the company had filled custom orders from maharajahs since the late 19th century. However, the Indian market was unlike any in which the company was currently operating. The changing socio-economic conditions of the developing nation opened up opportunities for the brand but also posed unique challenges such as changing customer profiles and concepts of luxury.

In the West, luxury goods are often sold through company-owned stores in a luxury retail cluster spread over several blocks, usually in a city’s downtown core. In cities that did not have luxury retail clusters, Louis Vuitton operated in luxury malls. Previous attempts to develop premium retail space in India had not been successful. Nevertheless, several real-estate entrepreneurs had plans to open an estimated 300 luxury malls in India by 2010. In India, Louis Vuitton’s first two stores were introduced in luxury malls in New Delhi and Mumbai targeting customers who had shopped abroad and were familiar with the brand. The company was now looking to increase its reach and teamed up with other global brands to develop luxury malls in five Indian metros.

Does a high-end brand have a market in a low income country?
According to the National Council of Applied Economic Research, in 2001-02 there were 20,000 families in India with annual incomes greater than INR100 million. This number is expected to grow to 140,000 by 2010. Although 87% of the Indian population lives on an income of less than $2.50 per day the high net worth consumers, which are the primary target of high-end brands, is growing. Although the maharajahs had lost much in 1956 and 1971, they were still significantly influential and formed

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