Understanding the Indian Luxury consumer

To understand the Indian luxury consumer, one needs to understand their cultural moorings (which can be best understood by taking a historical perspective).

Historically, Indian society was structured on a very rigid ‘caste-based’ social system. The caste you were born into dictated your standing and position in society.

Over time, enhanced education, liberal (democratic) values and globalization have ensured that discrimination based on this caste system is not as prevalent in Indian society. However, the concept of a social ladder continues to be embedded in the Indian psyche. All of us Indians strive to climb the social ladder.

The trend in the last two decades has been that this social ladder can be bought (read acquired) by the fatter wallets of the rich Indian class. Hence, luxury goods and services are ways of depicting our social standing in an increasingly capitalist / materialistic society.

This depiction of social standing through ownership of luxury goods implies the presence of a strict pecking order. Owning the bigger car, private school education for your child, travelling abroad and staying in exclusive residences are all examples of this pecking order. Even within each category, there is an implicit hierarchy – Bombay Scottish (Mumbai) and Modern School (Delhi) are more “up market” compared to St.Xaviers or St.Columbus (respectively). The Rolls Royce Phantom is more premium compared to the Mercedes E Class, hence can only be owned by one who is higher in the social ladder.

Hence India is unlike more egalitarian societies where luxury goods are consumed for their aesthetic sensibilities to fulfill self actualization needs. In India, luxury goods are mostly consumed for their “social-marker” sensibilities to fulfill one-upmanship needs.

Seen within the above prism, one begins to appreciate why an international tag (brand name) works much better (we even use svelte and bronzed Mediterranean models to communicate luxury in India).

We begin to understand why it is important as a luxury brand to be exclusive in ownership but widespread in awareness. After all, everybody should know that somebody who wears a Rolex is truly “somebody”.

This need for one-upmanship also translates into the need for rich opulence rather than muted clean minimalist design.

We also comprehend why the plastic-bag packaging of the luxury brand is just as precious and preserved by us for a lifetime. (Parallely, we also see cheap imitations of the plastic packaging selling for a dime on the streets).

However, all the above is for the owner / consumer. As a buyer, the luxury consumer (like any other Indian) wishes to have more value in their purchase. Some sure shot ways of demonstrating added value - An extra guarantee, free service camps, membership to owner clubs, spare bags, home delivery, gift packaging …

Just another demonstration of how we Indians have an innate sensibility of resolving completely contradictory opposites with consummate ease!