Priyamvada Thangala

The Economic Implications of the Growth of Foreign Luxury Brands in India

Started Jan. 29, 2024

Abstract or project description

This paper explores the impact of these foreign luxurious brands as per economic liberalization policy, the role of newly emerging upper-middle class and the present market scenario. This paper examines how the structural adjustment started in early 1990s aiming at liberalizing trade and FDI policies boosts market openness in India. This position underscores the role of government as an enabler which is facilitated through the provision of infrastructure and education. This paper also assesses the market penetration of these luxury brands, the new opportunities, and threats that they have encountered, and the cultural difference that affects the foreign luxury brands. Besides, it investigates shift in consumers’ behavior patterns caused by rise in purchasing power, changes in the lifestyle, and alteration in attitude of young people to luxury products. Therefore, the implications of the research findings also show that while innovation opportunities exist for brands, the market is near the saturation level; brands should, therefore, embrace sustainability and product quality. Besides, the foreign luxury brands can reposition their products for the Indian context to appeal to the aesthetic sensibilities, and they can also engage local artisans. Conclusively, the paper posits that the future sustainability of these brands depends on certain factors that include changing consumer behaviors, and regulations with emphasis on the domestic market.