IDEAS home Printed from https://ideas.repec.org/p/iim/iimawp/13341.html
   My bibliography  Save this paper

The Legal Structure and Framework of Luxury Goods Market in India: Competitive or Restrictive Growth?

Author

Listed:
  • Sinha, Piyush Kumar
  • Thomas, Sujo
  • Patel, Ritesh

Abstract

It has been evident from our long human history that luxury has been present in one or other form of consumption practices and that the luxury goods have existed for ages, dating back to Roman times, where luxuries such as silks were consumed for status, respect, and pleasure to the reformation in Europe (during the 1600s), where luxuries were consumed secretly, since their extravagant nature seriously compromised consumers’ modesty and equality, important values at the time. Since the early 1990s, the luxury goods sector has been growing at an unprecedented pace. The Indian market for luxury goods has proved to be a very lucrative market and the rate of growth has outpaced that of other consumer goods categories. According to the ASSOCHAM-KPMG study, the Indian luxury market growth is estimated at 30 per cent and projected to reach $14 billion by 2016. This rate of growth has been triggered by accelerating influence of the affluent class, high net worth individuals with an appetite for luxury good consumption, ever growing middle class population, sophisticated consumers with a desire for exclusive products and several other related factors. But, still it is in a nascent stage of development in India and presently estimated to have just one-two per cent share in the overall share of the global luxury market. While the Indian market for luxury goods depicts business opportunities, it is also accompanied with a lot challenges which necessitates formulation of a strong legal structure and framework of intellectual property protection. A key dilemma here in this scenario is that unless one understands the Indian Luxury market from various perspectives like key supply side/demand side trends, international product segmentation policies and overall market drifts; it is hard to evaluate the present legal structures and economic policies. Possible explanations for restrictive growth of Indian Luxury market would be (1) Constraints pertaining to Luxury Infrastructure, (2) Lack of policy support for Maximum Retail Price, (3) Not being viewed as policy/regulatory friendly by Luxury retailers, (4) High Import duties, (5) FDI policy of 30% sourcing tough for International luxury players (6) policies regarding Intellectual property rights, (7) Measures taken for the presence of counterfeit luxury goods and (8) Emergence of channels- Online and Grey.

Suggested Citation

  • Sinha, Piyush Kumar & Thomas, Sujo & Patel, Ritesh, 2015. "The Legal Structure and Framework of Luxury Goods Market in India: Competitive or Restrictive Growth?," IIMA Working Papers WP2015-03-31, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:13341
    as

    Download full text from publisher

    File URL: https://www.iima.ac.in/sites/default/files/rnpfiles/167369332015-03-31.pdf
    File Function: English Version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Coelho, Philip R P & McClure, James E, 1993. "Toward an Economic Theory of Fashion," Economic Inquiry, Western Economic Association International, vol. 31(4), pages 595-608, October.
    2. Solomon, Michael R, 1983. "The Role of Products as Social Stimuli: A Symbolic Interactionism Perspective," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 10(3), pages 319-329, December.
    3. Bearden, William O & Etzel, Michael J, 1982. "Reference Group Influence on Product and Brand Purchase Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(2), pages 183-194, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhuomin Shi & Zaoying Kuang & Ning Yang, 2017. "Why it is hard to explain Chinese face?—FACE measurement models and its influence on ecological product preference," Frontiers of Business Research in China, Springer, vol. 11(1), pages 1-22, December.
    2. Zixia Cao & Kehan Xu, 2022. "CEO narcissism, brand acquisition and disposal, and stock returns," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 777-799, July.
    3. Hogg, Margaret K. & Banister, Emma N. & Stephenson, Christopher A., 2009. "Mapping symbolic (anti-) consumption," Journal of Business Research, Elsevier, vol. 62(2), pages 148-159, February.
    4. Maroesjka Versantvoort & Lambert van der Laan, 1998. "Analysing Labour Supply in a Lifestyle Perspective," Tinbergen Institute Discussion Papers 98-010/3, Tinbergen Institute.
    5. Kastanakis, Minas N. & Balabanis, George, 2012. "Between the mass and the class: Antecedents of the “bandwagon” luxury consumption behavior," Journal of Business Research, Elsevier, vol. 65(10), pages 1399-1407.
    6. Shao, Wei & Grace, Debra & Ross, Mitchell, 2019. "Consumer motivation and luxury consumption: Testing moderating effects," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 33-44.
    7. Jiarong Shi & Zihao Jiang, 2023. "Willingness to pay a premium price for green products: does a reference group matter?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8699-8727, August.
    8. Jiong Sun & Jinhong Xie & Tao Chen & Fei Li & Gao Wang, 2022. "Managing Reference‐Group Effects in Sequential Product Upgrades," Production and Operations Management, Production and Operations Management Society, vol. 31(2), pages 442-456, February.
    9. DUBOIS, Bernard & LAURENT, Gilles & CZELLAR, Sandor, 2001. "Consumer rapport to luxury : Analyzing complex and ambivalent attitudes," HEC Research Papers Series 736, HEC Paris.
    10. Aurélie Hemonnet-Goujot & Pierre Valette-Florence, 2022. "“All you need is love”. From product design value perception to luxury brand love: An integrated framework," Post-Print hal-03562015, HAL.
    11. Krähmer, Daniel, 2005. "Advertising and Conspicuous Consumption," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 72, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    12. Gil, Luciana A. & Kwon, Kyoung-Nan & Good, Linda K. & Johnson, Lester W., 2012. "Impact of self on attitudes toward luxury brands among teens," Journal of Business Research, Elsevier, vol. 65(10), pages 1425-1433.
    13. Cagri Yalkin & Richard Rosenbaum-Elliott, 2014. "Talking Fashion in Female Friendship Groups: Negotiating the Necessary Marketplace Skills and Knowledge," Journal of Consumer Policy, Springer, vol. 37(2), pages 301-331, June.
    14. Laurent Bertrandias & Paul-Emmanuel Pichon, 2004. "Enrichissements De La Conceptualisation Du Risque Social En Marketing Et Construction D'Une Echelle De Mesure," Post-Print hal-04097759, HAL.
    15. Antonia Correia & Metin Kozak & Seongseop (Sam) Kim, 2018. "Luxury shopping orientations of mainland Chinese tourists in Hong Kong," Tourism Economics, , vol. 24(1), pages 92-108, February.
    16. Hemonnet-Goujot, Aurélie & Valette-Florence, Pierre, 2022. "“All you need is love” from product design value perception to luxury brand love: An integrated framework," Journal of Business Research, Elsevier, vol. 139(C), pages 1463-1475.
    17. Truong, Yann & McColl, Rod, 2011. "Intrinsic motivations, self-esteem, and luxury goods consumption," Journal of Retailing and Consumer Services, Elsevier, vol. 18(6), pages 555-561.
    18. Andreea-Ionela Puiu & Anca Monica Ardeleanu & Camelia Cojocaru & Anca Bratu, 2021. "Exploring the Effect of Status Quo, Innovativeness, and Involvement Tendencies on Luxury Fashion Innovations: The Mediation Role of Status Consumption," Mathematics, MDPI, vol. 9(9), pages 1-18, May.
    19. Maystre, Nicolas & Olivier, Jacques & Thoenig, Mathias & Verdier, Thierry, 2014. "Product-based cultural change: Is the village global?," Journal of International Economics, Elsevier, vol. 92(2), pages 212-230.
    20. Bian, Qin & Forsythe, Sandra, 2012. "Purchase intention for luxury brands: A cross cultural comparison," Journal of Business Research, Elsevier, vol. 65(10), pages 1443-1451.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:13341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/eciimin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.