cartier and rolex comparision
Content
Nift Hyderabad
Content
1. Case Introduction
2. Questions & Answers
3. Conclusion
4. References
Introduction
The case talks about the luxury segment which inspite of the economic crisis While Western
economies have made the transition from the crisis, the luxury sector continues to grow,
especially in the upper end. In emerging countries, the expansion of the luxury industry has
reached double digits. However, as luxury goods continue to go global, prestigious brands such
as Louis Vuitton has not decreased at all. This seems to contradict the concept of luxury is related
to the rarity and exclusivity. So how do we reconcile these facts with the theory? To access
applications not only big issue people, but also luxury brands common individuals adopt tactics
virtual rarity, build as art, and to adopt a business model of fashion, while deemphasize
exceptional quality and country of origin. The shortage of ingredients or ship was replaced by
qualitative rarity. Moreover, the cult of the designer is a powerful tool in building bond with a
large number of customers. Today, brands in the luxury sector sell really symbolic and magical
power to the masses. There is a cultural gap between Asia and the West, namely, Asian
consumers are more confident to buy prestigious brands of the West with the people around them
are familiar. The ideas presented here provide clues for entrepreneurs looking to launch the
luxury brands.
Questions & Answers
A. Write various meanings of luxury particularly as an economic activity?
Answer. Luxury evokes images of rich and powerful individuals. It has a rich heritage and
legacy in its DNA and is elitist in nature and sometimes might be related to rank in the society.
The luxury’s core latent sociological role and represents a lifestyle. In economics, a luxury good
is a good for which demand increases more than proportionally as income rises, and is a contrast
to a "necessity good", for which demand increase proportionally less than income. Luxury goods
are often synonymous with superior goods and Veblen goods. The growth of the luxury is
implied as the economics involved in the luxury because luxury in it essence is not price
sensitive and general market rules do not apply. Now the luxury brand base their profits on logotyped accessories or second lines produced on a larger scale and sold as fashion objects such that
the consumers feel the need to buy it new products each season for example Armani a luxury
brand started as a apparel brand has started designing villas apartments, hotels, spa’s and is now
even into high street wear in the name of sub brand Armani exchange but this has worked for
them their revenues have gone from 100 million $ to 5 billon $ from now and then when they
were just a apparel fashion house. The luxury is ruled by desire and scarcity where general norms
do not work. The region wise, culture wise it changes for example in Japan wearing same Louis
Vuitton product generates a sense of togetherness. Some companies have broken the rule of no
delocalization and shifted their production to china in a way reducing production costs and
spending more on communication and develop the association amongst the consumers.
B. Describe luxury as business model?
Answer. The luxury brands work completely opposite with respect to the other brands in terms
of marketing, production, products. This is portrayed in the type of business model which
completely bases itself on the uniqueness of the product, best in class quality, and the heritage.
The business model followed in the luxury brands says:
1. Do not delocalize production:
This is said because for example Hermes bags are made in France they carry a heritage with
them this is necessary. Luxury stands for the art, culture and refined art de vivre.
2. Do not advertise :
The luxury brands build dream and recreate it there is no fast movement the goods move with
elegance. The sales do not occur at luxury brands. The brands speak for themselves and
advertisements are not they integral part the story is.
3. Communicate non-targets :
This law is anti to normal thinking as the luxury wants to be known by the common people and
believed to be achievable by very few and recognized by the people. The brands generally never
communicate about price. They just show some celebrities using their products.
4. Maintain full control of distribution and value chain:
The supply chain right from the sourcing to the retail experience, quality and inception of the
product and the distribution is one on one service exclusively to cater to customer and is
personalized depending on the choices.
5. Never issue licenses:
This is a complete no in luxury industry as it reduces control and dilutes the image of the brand
as it makes glocal and luxury is meant to belong to place where the heritage has come from.
6. Always increase the average price:
The luxury should be limited to few in the world then it remains as a luxury as the income of the
middle class increases luxury might become accessible so to avoid that always increase the
average price of the goods.
7. Develop direct one to one relationship with clients
This calls for personalized treatments at the stores depicting the dream and carrying it for them to
their homes and ideally luxury means personalization.
C. Describe Asian luxury market with specific reference to India?
Answer. “India's luxury goods market has been growing by more than $255 million a year in
absolute terms, considerably stronger than Singapore and Australia," said Fflur Roberts, head of
luxury goods at Euromonitor.
India has always had a rich tradition of luxury. Addressed as the Golden Bird, India has
experienced Maharajas and Nawabs who had refined tastes and were connoisseurs of luxury.
Describing luxury as "balance, harmony and beauty of human race‖, the luxury market in India
garners huge attention and is sometimes seen as a sign of India having "arrived". The talk is
about the new-found spending power of the Indian consumer, Indian luxury brands and flashy
consumption culture. India is a huge potential market for luxury, yet players face serious growth
challenges and companies make money with great effort. The luxury market has grown at 23 per
cent since 2006. The luxury products market (apparel, watches, jewellery, spirits, and
electronics) has grown at 30 per cent, reaching a market size of $2 billion. The luxury assets
market-cars, homes and yachts-have grown at 25 per cent, and have a market size of $2.8 billion.
In the last year, 50 luxury outlets (product stores and car showrooms) have been added to the 200
that existed, a 25 per cent growth in footprint. The market, at 1 per cent of the global luxury
market, is still small; the luxury products market in China is $12-13 billion and Europe is 40 per
cent of the global market. Key growth drivers are the 150,000-plus HNIs (high net worth
individuals) with a net worth of $600 billion-3.1 million households earning more than Rs.10
lakh in the top 10 cities (Mumbai, Delhi/NCR, Bangalore, Kolkata, Pune, Chandigarh,
Hyderabad, Ludhiana, Chennai and Ahmedabad). All is not well though. Import duties are high
(20-150 per cent), foreign investment in luxury retail comes with strings attached-100 per cent
FDI in both single and multi-brand retail requires 30 per cent of local sourcing, a clause which
luxury players find difficult to comply with-and there just isn't enough quality retail real estate
available. These issues have been known since the outset. Industry growth of 23 per cent, while
good, is expected, given the small base. Many larger consumer industries do grow in mid-double
digits. In the face of all of these challenges, a few business groups have emerged as consolidators
of luxury brands (Hundakari, 2012). CII-IMRB report,2013 “The change face of luxury in India
gives an overview of the luxury market today – that has witnessed robust growth of ~15% over
the last 3 years and is estimated to have reached ~ USD 7.58 billion in 2012. Luxury products
have grown the fastest at ~22% as compared to luxury services at ~15% and luxury assets at a
much lower 9.4% - primarily contributed by slow growth in luxury real estate. It is the luxury
categories like apparel and accessories, perfumes, fine dining and automotive that has
contributed to this growth.
D. Describe art, craft and luxury relationship with examples?
Answer. The craft While luxury is often marketed and understood in the media through objects –
produced by designers and brands notable for their heritage, prestige and sophistication –
selecting objects that enabled us to interrogate the concept of luxury in an exhibition format
became one of our greatest challenges. On the one hand, there are so many extraordinary
examples of objects from within the museum’s own collections which have a deep resonance
with contemporary understandings of luxury – far too many to be contained within one
exhibition. Another challenge is that objects are not inherently luxurious, and are only ascribed
with luxury in relation to their use, interpretation and perceived value within a social context.
Furthermore, in any given context, the meaning and value of an object can be multivalent and
ultimately ambiguous. What is it about an object that makes it luxurious? In ascribing luxury to
an object, what definitions and values are being prioritised, and by whom?
Monkey Business by Studio Job is the type of object that raises exactly these sorts of questions.
Described as a ‘shimmering sculpture’ by the designers, it is a large gilded bronze trunk, LED-lit
from within, adorned with a monkey. The monkey is encrusted in Swarovski crystals and
wearing a small red hat with a golden tassel, in the style of a fez. He is straddling the top of the
trunk, his fingers clasped around its lid, with an expression of surprise painted across his face.
One wonders what the monkey is up to: is he shielding or is he stealing the treasures concealed
within? The position of his fingers prevents the trunk from closing, subverting its essential
function of protecting its contents. The name Monkey Business, with its references to illicit and
illegal behaviour, further arouses suspicion about the monkey engaging in a surreptitious act.
The monkey is a longstanding motif within European art and design since at least the 17th
century. ‘Singerie’ emerged as a genre of satirical painting, in which monkeys were depicted
‘aping’ human behaviour. The Flemish painter David Teniers the Younger was particularly active
in the genre, completing hundreds of paintings of monkeys at ale-houses, smoking parties,
concerts and barbershops. The monkeys are often dressed in fashionable attire, as the paintings
aimed to parody the most elegant and powerful in society. Singerie was marked by a distinctly
anti-establishment tone, with the monkey representing the persistence of mankind’s more
duplicitousness and base instincts – particularly at the higher end of the social order. Singerie
motifs became popular across the decorative arts, featuring extensively as part of the 18th
century French Rococo interior.
‘MONKEY BUSINESS,’ STUDIO JOB, 2013 (C) STUDIO JOB
The organ grinder’s monkey emerged in the early 1900s and again captured the popular
imagination. Organ grinders were novelty street performers who travelled throughout the
working class neighborhoods of New York and Europe, ‘grinding out’ popular tunes from the day
for spare change. They were often accompanied by a small monkey who was used to draw in
crowds and collect money from a tin cup. The organ grinders were almost universally regarded
with wariness and disdain, the horribly atonal noise they generated viewed as an annoyance and
their work as a thinly veiled pretext for extorting money from passersby. The monkeys often
appeared as an extension of their shadiness and cunning. Typically dressed in a coloured vest and
small hat resembling a fez, the monkey also embodied many occidental fears and suspicions
regarding the ‘oriental’ other.
Conclusion
The word ‘luxury’ has the power to conjure up a whole range of images specific to the
individual. The connotation could be about the spacious interior of a Gulfstream jet, relaxing on
your own Caribbean island, or knowing that each of your homes has a room of your favorite
clothes and shoes. It could be anything .Luxury evokes images of rich and powerful individuals.
It has a rich heritage and legacy in its DNA and is elitist in nature and sometimes might be
related to rank in the society. The luxury’s core latent sociological role and represents a lifestyle
Exquisite, finely crafted materials resonate with the indulgent pleasures of the senses at the root
of the original meaning of ‘luxury’. Luxury brands have seized on this relationship with the
handmade, drawing on qualities of provenance, authenticity and skill to promote global big
business – luxury is driving ‘a European industrial renaissance’, according to the European
Union – and there seems to be no end of spare-yet-lush craft-influenced publications reminding
us, as Le Corbusier put it, that ‘the luxury object is well-made, neat and clean, pure and healthy,
and its bareness reveals the quality of its manufacture’. In economics, a luxury good is a good for
which demand increases more than proportionally as income rises, and is a contrast to a
"necessity good", for which demand increase proportionally less than income. Luxury goods are
often synonymous with superior goods and Veblen goods. The growth of the luxury is implied as
the economics involved in the luxury because luxury in it essence is not price sensitive and
general market rules do not apply. Now the luxury brand base their profits on logo-typed
accessories or second lines produced on a larger scale and sold as fashion objects such that the
consumers feel the need to buy it new products each season example Armani.
India has always had a rich tradition of luxury. Addressed as the Golden Bird, India has
experienced Maharajas and Nawabs who had refined tastes and were connoisseurs of luxury.
Describing luxury as "balance, harmony and beauty of human race‖, the luxury market in India
garners huge attention and is sometimes seen as a sign of India having "arrived".
The craft While luxury is often marketed and understood in the media through objects –
produced by designers and brands notable for their heritage, prestige and sophistication –
selecting objects that enabled us to interrogate the concept of luxury in an exhibition format
became one of our greatest challenges. On the one hand, there are so many extraordinary
examples of objects from within the museum’s own collections which have a deep resonance
with contemporary understandings of luxury – far too many to be contained within one
exhibition.
Content
1. Case Introduction
2. Questions & Answers
3. Conclusion
4. References
Introduction
The case talks about the luxury segment which inspite of the economic crisis While Western
economies have made the transition from the crisis, the luxury sector continues to grow,
especially in the upper end. In emerging countries, the expansion of the luxury industry has
reached double digits. However, as luxury goods continue to go global, prestigious brands such
as Louis Vuitton has not decreased at all. This seems to contradict the concept of luxury is related
to the rarity and exclusivity. So how do we reconcile these facts with the theory? To access
applications not only big issue people, but also luxury brands common individuals adopt tactics
virtual rarity, build as art, and to adopt a business model of fashion, while deemphasize
exceptional quality and country of origin. The shortage of ingredients or ship was replaced by
qualitative rarity. Moreover, the cult of the designer is a powerful tool in building bond with a
large number of customers. Today, brands in the luxury sector sell really symbolic and magical
power to the masses. There is a cultural gap between Asia and the West, namely, Asian
consumers are more confident to buy prestigious brands of the West with the people around them
are familiar. The ideas presented here provide clues for entrepreneurs looking to launch the
luxury brands.
Questions & Answers
A. Write various meanings of luxury particularly as an economic activity?
Answer. Luxury evokes images of rich and powerful individuals. It has a rich heritage and
legacy in its DNA and is elitist in nature and sometimes might be related to rank in the society.
The luxury’s core latent sociological role and represents a lifestyle. In economics, a luxury good
is a good for which demand increases more than proportionally as income rises, and is a contrast
to a "necessity good", for which demand increase proportionally less than income. Luxury goods
are often synonymous with superior goods and Veblen goods. The growth of the luxury is
implied as the economics involved in the luxury because luxury in it essence is not price
sensitive and general market rules do not apply. Now the luxury brand base their profits on logotyped accessories or second lines produced on a larger scale and sold as fashion objects such that
the consumers feel the need to buy it new products each season for example Armani a luxury
brand started as a apparel brand has started designing villas apartments, hotels, spa’s and is now
even into high street wear in the name of sub brand Armani exchange but this has worked for
them their revenues have gone from 100 million $ to 5 billon $ from now and then when they
were just a apparel fashion house. The luxury is ruled by desire and scarcity where general norms
do not work. The region wise, culture wise it changes for example in Japan wearing same Louis
Vuitton product generates a sense of togetherness. Some companies have broken the rule of no
delocalization and shifted their production to china in a way reducing production costs and
spending more on communication and develop the association amongst the consumers.
B. Describe luxury as business model?
Answer. The luxury brands work completely opposite with respect to the other brands in terms
of marketing, production, products. This is portrayed in the type of business model which
completely bases itself on the uniqueness of the product, best in class quality, and the heritage.
The business model followed in the luxury brands says:
1. Do not delocalize production:
This is said because for example Hermes bags are made in France they carry a heritage with
them this is necessary. Luxury stands for the art, culture and refined art de vivre.
2. Do not advertise :
The luxury brands build dream and recreate it there is no fast movement the goods move with
elegance. The sales do not occur at luxury brands. The brands speak for themselves and
advertisements are not they integral part the story is.
3. Communicate non-targets :
This law is anti to normal thinking as the luxury wants to be known by the common people and
believed to be achievable by very few and recognized by the people. The brands generally never
communicate about price. They just show some celebrities using their products.
4. Maintain full control of distribution and value chain:
The supply chain right from the sourcing to the retail experience, quality and inception of the
product and the distribution is one on one service exclusively to cater to customer and is
personalized depending on the choices.
5. Never issue licenses:
This is a complete no in luxury industry as it reduces control and dilutes the image of the brand
as it makes glocal and luxury is meant to belong to place where the heritage has come from.
6. Always increase the average price:
The luxury should be limited to few in the world then it remains as a luxury as the income of the
middle class increases luxury might become accessible so to avoid that always increase the
average price of the goods.
7. Develop direct one to one relationship with clients
This calls for personalized treatments at the stores depicting the dream and carrying it for them to
their homes and ideally luxury means personalization.
C. Describe Asian luxury market with specific reference to India?
Answer. “India's luxury goods market has been growing by more than $255 million a year in
absolute terms, considerably stronger than Singapore and Australia," said Fflur Roberts, head of
luxury goods at Euromonitor.
India has always had a rich tradition of luxury. Addressed as the Golden Bird, India has
experienced Maharajas and Nawabs who had refined tastes and were connoisseurs of luxury.
Describing luxury as "balance, harmony and beauty of human race‖, the luxury market in India
garners huge attention and is sometimes seen as a sign of India having "arrived". The talk is
about the new-found spending power of the Indian consumer, Indian luxury brands and flashy
consumption culture. India is a huge potential market for luxury, yet players face serious growth
challenges and companies make money with great effort. The luxury market has grown at 23 per
cent since 2006. The luxury products market (apparel, watches, jewellery, spirits, and
electronics) has grown at 30 per cent, reaching a market size of $2 billion. The luxury assets
market-cars, homes and yachts-have grown at 25 per cent, and have a market size of $2.8 billion.
In the last year, 50 luxury outlets (product stores and car showrooms) have been added to the 200
that existed, a 25 per cent growth in footprint. The market, at 1 per cent of the global luxury
market, is still small; the luxury products market in China is $12-13 billion and Europe is 40 per
cent of the global market. Key growth drivers are the 150,000-plus HNIs (high net worth
individuals) with a net worth of $600 billion-3.1 million households earning more than Rs.10
lakh in the top 10 cities (Mumbai, Delhi/NCR, Bangalore, Kolkata, Pune, Chandigarh,
Hyderabad, Ludhiana, Chennai and Ahmedabad). All is not well though. Import duties are high
(20-150 per cent), foreign investment in luxury retail comes with strings attached-100 per cent
FDI in both single and multi-brand retail requires 30 per cent of local sourcing, a clause which
luxury players find difficult to comply with-and there just isn't enough quality retail real estate
available. These issues have been known since the outset. Industry growth of 23 per cent, while
good, is expected, given the small base. Many larger consumer industries do grow in mid-double
digits. In the face of all of these challenges, a few business groups have emerged as consolidators
of luxury brands (Hundakari, 2012). CII-IMRB report,2013 “The change face of luxury in India
gives an overview of the luxury market today – that has witnessed robust growth of ~15% over
the last 3 years and is estimated to have reached ~ USD 7.58 billion in 2012. Luxury products
have grown the fastest at ~22% as compared to luxury services at ~15% and luxury assets at a
much lower 9.4% - primarily contributed by slow growth in luxury real estate. It is the luxury
categories like apparel and accessories, perfumes, fine dining and automotive that has
contributed to this growth.
D. Describe art, craft and luxury relationship with examples?
Answer. The craft While luxury is often marketed and understood in the media through objects –
produced by designers and brands notable for their heritage, prestige and sophistication –
selecting objects that enabled us to interrogate the concept of luxury in an exhibition format
became one of our greatest challenges. On the one hand, there are so many extraordinary
examples of objects from within the museum’s own collections which have a deep resonance
with contemporary understandings of luxury – far too many to be contained within one
exhibition. Another challenge is that objects are not inherently luxurious, and are only ascribed
with luxury in relation to their use, interpretation and perceived value within a social context.
Furthermore, in any given context, the meaning and value of an object can be multivalent and
ultimately ambiguous. What is it about an object that makes it luxurious? In ascribing luxury to
an object, what definitions and values are being prioritised, and by whom?
Monkey Business by Studio Job is the type of object that raises exactly these sorts of questions.
Described as a ‘shimmering sculpture’ by the designers, it is a large gilded bronze trunk, LED-lit
from within, adorned with a monkey. The monkey is encrusted in Swarovski crystals and
wearing a small red hat with a golden tassel, in the style of a fez. He is straddling the top of the
trunk, his fingers clasped around its lid, with an expression of surprise painted across his face.
One wonders what the monkey is up to: is he shielding or is he stealing the treasures concealed
within? The position of his fingers prevents the trunk from closing, subverting its essential
function of protecting its contents. The name Monkey Business, with its references to illicit and
illegal behaviour, further arouses suspicion about the monkey engaging in a surreptitious act.
The monkey is a longstanding motif within European art and design since at least the 17th
century. ‘Singerie’ emerged as a genre of satirical painting, in which monkeys were depicted
‘aping’ human behaviour. The Flemish painter David Teniers the Younger was particularly active
in the genre, completing hundreds of paintings of monkeys at ale-houses, smoking parties,
concerts and barbershops. The monkeys are often dressed in fashionable attire, as the paintings
aimed to parody the most elegant and powerful in society. Singerie was marked by a distinctly
anti-establishment tone, with the monkey representing the persistence of mankind’s more
duplicitousness and base instincts – particularly at the higher end of the social order. Singerie
motifs became popular across the decorative arts, featuring extensively as part of the 18th
century French Rococo interior.
‘MONKEY BUSINESS,’ STUDIO JOB, 2013 (C) STUDIO JOB
The organ grinder’s monkey emerged in the early 1900s and again captured the popular
imagination. Organ grinders were novelty street performers who travelled throughout the
working class neighborhoods of New York and Europe, ‘grinding out’ popular tunes from the day
for spare change. They were often accompanied by a small monkey who was used to draw in
crowds and collect money from a tin cup. The organ grinders were almost universally regarded
with wariness and disdain, the horribly atonal noise they generated viewed as an annoyance and
their work as a thinly veiled pretext for extorting money from passersby. The monkeys often
appeared as an extension of their shadiness and cunning. Typically dressed in a coloured vest and
small hat resembling a fez, the monkey also embodied many occidental fears and suspicions
regarding the ‘oriental’ other.
Conclusion
The word ‘luxury’ has the power to conjure up a whole range of images specific to the
individual. The connotation could be about the spacious interior of a Gulfstream jet, relaxing on
your own Caribbean island, or knowing that each of your homes has a room of your favorite
clothes and shoes. It could be anything .Luxury evokes images of rich and powerful individuals.
It has a rich heritage and legacy in its DNA and is elitist in nature and sometimes might be
related to rank in the society. The luxury’s core latent sociological role and represents a lifestyle
Exquisite, finely crafted materials resonate with the indulgent pleasures of the senses at the root
of the original meaning of ‘luxury’. Luxury brands have seized on this relationship with the
handmade, drawing on qualities of provenance, authenticity and skill to promote global big
business – luxury is driving ‘a European industrial renaissance’, according to the European
Union – and there seems to be no end of spare-yet-lush craft-influenced publications reminding
us, as Le Corbusier put it, that ‘the luxury object is well-made, neat and clean, pure and healthy,
and its bareness reveals the quality of its manufacture’. In economics, a luxury good is a good for
which demand increases more than proportionally as income rises, and is a contrast to a
"necessity good", for which demand increase proportionally less than income. Luxury goods are
often synonymous with superior goods and Veblen goods. The growth of the luxury is implied as
the economics involved in the luxury because luxury in it essence is not price sensitive and
general market rules do not apply. Now the luxury brand base their profits on logo-typed
accessories or second lines produced on a larger scale and sold as fashion objects such that the
consumers feel the need to buy it new products each season example Armani.
India has always had a rich tradition of luxury. Addressed as the Golden Bird, India has
experienced Maharajas and Nawabs who had refined tastes and were connoisseurs of luxury.
Describing luxury as "balance, harmony and beauty of human race‖, the luxury market in India
garners huge attention and is sometimes seen as a sign of India having "arrived".
The craft While luxury is often marketed and understood in the media through objects –
produced by designers and brands notable for their heritage, prestige and sophistication –
selecting objects that enabled us to interrogate the concept of luxury in an exhibition format
became one of our greatest challenges. On the one hand, there are so many extraordinary
examples of objects from within the museum’s own collections which have a deep resonance
with contemporary understandings of luxury – far too many to be contained within one
exhibition.
