1) People buy luxury goods for several reasons. In early times LV thrived because of the luxury associated with aristocracies that formed the ruling elite. For example, In Europe it gave a feeling of exclusivity, while in the U.S. it was about feeling special. Worldwide the reasons for buying luxury goods could be separated into 3 categories. First, people bought luxury goods for its superior quality and functionality. These people were generally older and wealthier and willing to pay premium price for the products. They do logical research with no impulse buying. The second category were people who purchased luxury goods because they perceived luxury products as a reward, as a status symbol with the statement that they had “arrived”.
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They gather different luxury stores into one location. Luxury malls would essentially market to a large number of people, would have a larger impact to impact customers, create a unique store experience independent of non-luxury brands and can be more price beneficial to the brand that renting a location in a luxury hotel. The luxury mall is essentially a Luxury Retail Cluster that works by spreading over several blocks that offer’s a luxury product company to showcase its offerings in a manner that highlighted its brand personality. The appeal of a store was reinforced by an image spillover from other stores in the neighborhood. The luxury mall would generate both scale economies and scope economies. By being close together they would attract customer awareness. Luxury malls in terms of place are usually located in a city’s downtown core that therefore location was ideal since it was near customers who were willing to spend and didn’t need to attract customers. Price was also similar against competing stores therefore there was no need for additional research in order to compete as it would need out in another location or similar to what happened to Zegna in Mumbai. In terms of product luxury malls were known to by luxury products …show more content…
India’s first luxury mall was to open in New Delhi in a few months. Built by DLF Ltd. The countries leading real-estate developer, Emporio, as it was to be called would have a total retail space of 350,000 square feet. The luxury mall would accommodate 130 marquee brands of which 70% were global brands like Dior, Fendi, Armani, and so many more. DLF also planned to develop luxury malls of similar size and scale in five other Indian metros being Mumbai, Kolkata, Bangalore, Chennai and Hyderabad over the next five years and LV was involved in all of these. LV was involved in the UB City collection, a luxury retail project scheduled to roll out in mid-2008 in the city of Bangalore. UB city was to have 5 medium-rise and 5 high-rise towers, housing brands like Gucci, Apels, and Zegna but, LV questioned whether the luxury mall concept would work in India, and if would work as well as
They gather different luxury stores into one location. Luxury malls would essentially market to a large number of people, would have a larger impact to impact customers, create a unique store experience independent of non-luxury brands and can be more price beneficial to the brand that renting a location in a luxury hotel. The luxury mall is essentially a Luxury Retail Cluster that works by spreading over several blocks that offer’s a luxury product company to showcase its offerings in a manner that highlighted its brand personality. The appeal of a store was reinforced by an image spillover from other stores in the neighborhood. The luxury mall would generate both scale economies and scope economies. By being close together they would attract customer awareness. Luxury malls in terms of place are usually located in a city’s downtown core that therefore location was ideal since it was near customers who were willing to spend and didn’t need to attract customers. Price was also similar against competing stores therefore there was no need for additional research in order to compete as it would need out in another location or similar to what happened to Zegna in Mumbai. In terms of product luxury malls were known to by luxury products …show more content…
India’s first luxury mall was to open in New Delhi in a few months. Built by DLF Ltd. The countries leading real-estate developer, Emporio, as it was to be called would have a total retail space of 350,000 square feet. The luxury mall would accommodate 130 marquee brands of which 70% were global brands like Dior, Fendi, Armani, and so many more. DLF also planned to develop luxury malls of similar size and scale in five other Indian metros being Mumbai, Kolkata, Bangalore, Chennai and Hyderabad over the next five years and LV was involved in all of these. LV was involved in the UB City collection, a luxury retail project scheduled to roll out in mid-2008 in the city of Bangalore. UB city was to have 5 medium-rise and 5 high-rise towers, housing brands like Gucci, Apels, and Zegna but, LV questioned whether the luxury mall concept would work in India, and if would work as well as