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Nov 23 - 5.6%

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In economic terms, inflation is the rate at which the general prices for goods and services rise in a given country. A volatile metric, inflation that can rise and fall rapidly depending upon economic conditions and the measures a government chooses to control or counteract them. Inflation is connected to the economic principles of supply and demand and can be viewed positively or negatively depending on the specific situation and the rate of change.

For example, a small amount of inflation is usually viewed as a signal that a country's economy is growing and its residents have adequate income, both good things. However, excess inflation happens when prices too rise faster than wages, causing currency to lose value. The worth of a single unit of currency (a dollar, a euro, etc.) becomes less than it was previously and the purchasing power of the country's currency is decreased. Conversely, too little inflation can also be a troubling indication that a country's economy is stagnant and not enough people have enough work.

The Three Types of Inflation Indexes

There are three inflation indexes: the consumer price index (CPI), the wholesale price index (WPI), and the Producer Price Index (PPI). The CPI is a measure that examines the weighted average prices of primary needs-such as transportation, food, and medical care-at the consumer/retail level. The WPI measures and tracks price changes at the producer or wholesale level before the goods reach the consumer. The PPI is a family of metrics that measure price changes from the perspectives of the seller/producer rather than the buyer/consumer.

Causes of Inflation

Inflation is classified into three types: demand-pull inflation, cost-push inflation, and built-in inflation. All three of these are related to the equilibrium between the supply of money and the supply of goods in a country's economy.

Demand-pull inflation - Occurs when the demand for goods and services-in other words, the overall amount of money and/or credit people have to spend-increases quicker than the economy's production capacity. Demand is high but supply can't keep up, so prices rise. The rising prices cause some buyers to drop out of the market, which decreases demand and reestablishes the balance between demand and supply.

Cost-push inflation - Occurs as a result of the increase in the cost of production. For example, if the raw materials used to create a product increase in price, the price for the final good rises as producers pass their costs on to the consumer.

Built-in inflation - Occurs due to expectations that inflation will continue, so wages must rise in order to maintain the status quo. As the prices of goods and services increase, labor expects to be paid more to maintain their standard of living (this is what is commonly known as a "cost of living" raise in the United States). As a result of the rise in labor costs, the consumer prices for the goods or services that labor produces or provides also increase.

Top 10 Countries with the Highest Inflation Rates (Trading Economics Jan 2022)

With an inflation rate that has soared above one million percent in recent years, Venezuela has the highest inflation rate in the world. At times, prices in Venezuela have changed so rapidly that stores stopped putting price tags on merchandise and instructed customers to simply ask employees what each item cost that day. This level of runaway inflation is known as hyperinflation, an economic crisis that is usually caused by a government overspending (often as a result of war, a regime change, or socioeconomic circumstances that decrease funding from tax revenue) and printing large amounts of additional money to cover its expenditures.

Venezuela's economy was once the envy of South America, blessed with large per-capita wealth due to having the largest oil reserves in the world. However, such heavy reliance upon petroleum incomes left the country particularly vulnerable to fluctuations in oil prices during the 1980s and 1990s. When oil prices plunged from US$100 per barrel in 2014 to less than US$30 by early 2016, the country's economy spiraled and has yet to fully recover.

Sudan had an inflation rate of 340.0% at the start of 2022, ranking as the second-highest in the world. Inflation in Sudan has increased drastically in recent years, driven by food, beverages, and a black market for U.S. dollars. The rising inflation became so bad that it sparked protests and ultimately the ousting of President Omar al-Bashir in April 2019. Sudan's transitional authorities are now tasked with turning around an economy plagued by years of mismanagement.

Countries with the Lowest Inflation Rates

The countries with the lowest inflation rates in the world often have negative inflation rates, which is called deflation. Sudden deflation increases the value of a country's money, enabling more goods and services to be purchased with the same amount of currency. Deflation generally arises from the opposite scenario as inflation-in other words, when the supply of goods and services outpaces the supply of available money in the economy, causing prices to decrease as a result. Deflation can also occur when buying power grows due to a reduction in the money supply and/or a decrease in the supply of credit (both of which enhance the value of existing currency).

Top 10 Countries with the Lowest Inflation Rates (Trading Economics Jan 2022)

What is the ideal rate of inflation?

If both too much and too little inflation can both lead to negative conditions, what is the ideal level of inflation? It depends. Individual countries will each have their own unique targets based upon their specific economic circumstances. That said, the United States Federal Reserve has a long-standing target of two percent (2%) inflation per year, which it has determined is the rate that best attains the policy's main goals of maintaining consumer price stability and maximizing employment.

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In economic terms, inflation is the rate at which the general prices for goods and services rise in a given country. A volatile metric, inflation that can rise and fall rapidly depending upon economic conditions and the measures a government chooses to control or counteract them.

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1 indian rupee is equivalent to $0.012

1 USD is equivalent to 83.54 indian rupees

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The US dollar (USD) is one of the most powerful currencies in the world and also the most widely traded currency globally. When the Indian rupee (INR) is expressed in terms of another currency to measure its strength or weakness, the most common benchmark is always the USD. Would you believe there was a time when the USD to INR exchange rate was less than 5? However, 1 dollar in rupees in 2024 is around ₹83. So, how did the USD to INR exchange rate become progressively higher? This article explores the intriguing USD to INR history, from pre-independence to the present, shedding light on significant economic events that have shaped India's currency landscape.Also Read: Currency Symbols: List of currency names and symbols around the world

1 USD to INR from 1947 to 2024

Here's the USD to INR history since India's independence, put concisely for you

Dollar vs. Rupee History

The USD to INR history reflects the ups and downs of India's economic journey. By examining the change today from the rate of 1 dollar in rupee in 1947, we can measure the strength of the rupee over the years. Let's dive into the key milestones in the dollar vs. rupee history.Also Read: The Top 10 cheapest currencies in the world in 2024

Pre-Independence Era - Before 1947

The pre-independence era was characterised by the British colonial rule in India, which impacted the country's economy, including its currency. Hence, the value of the rupee was directly influenced by the economic conditions in Britain. Like many other world currencies, the British Pound was convertible to USD within one percent of fixed rates, while the US dollar was pegged to gold. The Bretton Woods Agreement determined this global exchange rate. The Great Depression of the 1930s shattered the world economy. India's economy, a colony under British control, also faced double the impact.However, there are arguments that 1 dollar in rupee in 1947 had a better value. This could be because the value of the British Pound was more than the value of the US dollar. It's believed that £1 was equivalent to ₹13.37 Rupees, leading to the expectation that $1 must have been worth ₹4.16 then.Also Read: Foreign Direct Investment (FDI) in India: Inflows in 2023 and last 10 years

Post-Independence - 1947 to 1991

After gaining independence in 1947, India adopted a fixed exchange rate system wherein the government interventions managed any fluctuations in exchange rates. Under this system, the value of the Indian Rupee remained constant. This approach aimed to stabilise international trade, but it also limited the ability of the currency to adjust to changing economic conditions.The USD to INR exchange rate remained relatively stable primarily. However, the stability of the Indian Rupee was disrupted by wars with Pakistan and China, which strained India's foreign exchange reserves. Additionally, global events like the oil crisis in the 1970s led to inflationary pressures, increasing the dollar rate. India's efforts to balance economic growth, foreign policy, and currency stability throughout this period significantly determined the USD to INR exchange rate. The Reserve Bank of India and the Indian government further adopted several adjustments to the price of the Indian Rupee after the Nixon shock in 1971 and the Smithsonian Agreement-both with lasting implications for the USD. The INR slowly moved from a par value method to a pegged system and then to a basket peg by 1975.

During Economic Reforms and Liberalisation - 1991 to 2000

The period from 1991 to 2000 marked a crucial turning point in India's economic history and notably impacted the USD to INR exchange rate. In 1991, India initiated a series of economic reforms and liberalisation measures to open up its economy to foreign investments and reduce trade barriers. These reforms shifted from a fixed exchange rate system to a more flexible one. The Indian Rupee was partially converted to the current account, allowing for greater flexibility in exchange rate determination. The value of $1 to ₹1 now stood at 35. By 2000, the dollar rate had increased, and 1 USD to INR was about 45. The value of the US dollar saw an increase as the Indian government pursued the policy of Indian Rupee depreciation resulting from factors like the need to attract foreign capital and address trade imbalances. Global economic events such as the Asian financial crisis in the late 1990s and the nation's efforts to modernise its economy all played pivotal roles in shaping the USD to INR exchange rate during these transformative years.

21st century - 2001 to 2023

In the early years of the 21st century, from 2001 to 2023, the USD to INR exchange rate reflected India's dynamic economic landscape and global economic conditions. It started at approximately 1 USD to 1 INR at 47 in 2001, weakened to around ₹75 in 2020, and fell further to about ₹80 in 2023.Meanwhile, India experienced robust economic growth, attracting foreign investments; however, the 21st century also witnessed global events with negative implications for the INR value, such as the 2008 financial crisis.The COVID-19 pandemic introduced additional complexities, influencing exchange rates worldwide, including the INR. During this period, domestic economic factors, foreign investments, and global economic developments shaped the INR's exchange rate.In recent years, the exchange rate has hovered around 1 USD to 1 INR at 80.00 INR, reflecting a new dynamic between India's economic growth and global economic conditions.

Factors Influencing Exchange Rates

Several factors influence the USD to INR exchange rate, namely:

Trade Balances

A country's trade balance, the difference between exports and imports, can impact its currency's value. A trade surplus (more exports than imports) can strengthen the currency, while a deficit can weaken it.Also Read: India forex reserves 2023: Exploring current status and historical trends

Inflation

High inflation rates can chip away at the purchasing power of a currency, leading to depreciation. Central banks often use interest rates to control inflation, affecting exchange rates.

Interest Rates

Higher interest rates in a country make its economy more attractive to foreign investors. This, in turn, leads to increased demand for the country's currency as investors seek greater returns. The higher demand strengthens the currency's value compared to other currencies within the foreign exchange market, causing it to appreciate.

Geopolitical Events

Political stability and international relations can influence investor confidence and currency value.

Foreign Direct Investment (FDI)

A country's attractiveness for foreign investments can impact its currency. Higher rates of FDI can strengthen the currency, while the contrary can weaken it. From the pre-independence era, marked by British colonial rule, to post-independence challenges, economic reforms, and the dynamic 21st century, many domestic and international factors have influenced the rupee's value. The history of the USD to INR exchange rate is undoubtedly a fascinating journey through India's economic evolution.

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1 USD To INR: From 1947 To 2024 - Forbes India

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Explore the journey of the USD to INR exchange rate from 1947 to 2024. Discover the USD to INR history and the factors influencing exchange rate dynamics

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Exports are a critical source of revenue for many countries. They contribute to GDP growth by bringing in foreign exchange earnings. Additionally, exporting industries often provide employment opportunities, supporting job creation and economic stability.

KRAMER, Leslie. 2024. ‘How Importing and Exporting Impacts the Economy’. Investopedia [online]. Available at: https://www.investopedia.com/articles/investing/100813/interesting-facts-about-imports-and-exports.asp [accessed 23 Jul 2024].

(Kramer. 2024)

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How Import and Export Impacts the Economy: A Comprehensive Analysis

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Explore the profound economic impact of import and export activities with our comprehensive analysis. Learn how global trade influences economies worldwide.

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Exports: $468B

Refined Petroleum $86.2B

Diamonds $25.9B

Packaged Medicaments $19.5B

Jewellery $12.6B

Rice $11.1B

goes to: US, UAE, Netherlands, China and Bangladesh

diamonds and jewellery being the most important

Imports: $724B

crude petroleum $170B

Coal Briquettes $58.7B

Gold $35.8B

Petroleum Gas $32B

Diamonds $26.1B

comes from: China, UAE, US, Saudi Arabia and Russia

Gold and diamonds being the most important

OEC. 2024. ‘India (IND) Exports, Imports, and Trade Partners’. The Observatory of Economic Complexity [online]. available at: https://oec.world/en/profile/country/ind [accessed 17 Jul 2024].

(OEC. 2024)

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OEC - The Observatory of Economic Complexity

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India (IND) Exports, Imports, and Trade Partners | OEC

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Find the latest trade statistics and economic complexity data for India.

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worldwide - 3rd highest GDP

South Asia - highest GDP

As of 2022

CIA. 2024a. Central Intelligence Agency [online]. Available at: https://www.cia.gov/the-world-factbook/field/real-gdp-purchasing-power-parity/country-comparison/ [accessed 16 Jul 2024].

(CIA. 2024a)

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GDP (purchasing power parity) compares the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States.

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GDP (purchasing power parity) compares the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States.

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In January, thousands braved the freezing cold at Delhi's Red Fort to hear Prime Minister Narendra Modi speak.
His message was "Viksit Bharat 2047", a promise to make India a developed nation by 2047.

It's the latest catchphrase from a man known for his penchant for catchy taglines.

"Developed India" is an imprecise pledge, but in the 10 years since Mr Modi first stormed to power, he has been trying to lay the foundations for a period of economic boom.

The prime minister and his government inherited an economy that was teetering on the precipice. Growth was slowing and investor confidence was low. A dozen Indian billionaires had gone bankrupt, saddling the country's banks with enormous unpaid loans that had crippled their capacity to lend.

Now, 10 years on, India's growth is outpacing other major economies, its banks are strong, and the government's finances are stable despite a painful pandemic. India surpassed the UK as the fifth largest economy last year and according to analysts at Morgan Stanley, it's on track to overtake Japan and Germany and hit the third spot by 2027.

There is undoubtedly an air of optimism in the country. It successfully hosted the G20, became the first to send a rocket near the Moon's south pole, and has birthed a few dozen unicorns. The soaring stock markets have also had a trickle-down effect on the wealth of its middle class.

On the face of it "Modinomics" - the ruling Bharatiya Janata Party (BJP)'s economic vision for India - appears to be working. But dig deeper, and the picture is more complex. For a vast swathe of the country's 1.4 billion people who live on the margins of sustenance, it's not boomtime just as yet.

So who are the winners and losers of Modinomics?

Underpinning this digital revolution is a three-layer system of governance, which includes universal identity cards, a payments infrastructure that enables click-of-a-button money transfer, and a data pillar that gives people access to crucial personal documents like tax returns.

Linking hundreds of millions of bank accounts to this "digital stack" has cut red tape and corruption.

Estimates suggest that up to March 2021, an equivalent of about 1.1% of GDP was saved due to digital governance, allowing the government to dole out a volley of social subsidies, cash handouts and also spend on infrastructure building, without running high deficits.

Cranes, cranes everywhere!

Nearly 54,000 km (33,554 miles) of national highways were built between 2014 and 2024 - which is twice the length of the preceding 10 years.

The government has also considerably eased up the bureaucracy, which has been a major bugbear of India's economy for decades.

But Mr Modi's policies haven't delivered for all.

The brutal lockdowns imposed during the pandemic, the lingering after-effects of a cash ban in 2016, and faulty implementation of a new goods and services tax - a long pending reform meant to streamline the country's welter of indirect taxes - have had far-reaching structural consequences on India's economy.

In January, thousands gathered outside government recruitment centres in the northern city of Lucknow to go to Israel for jobs in the construction industry. My colleague Archana Shukla was on location.

The desperation of these workers showed India's jobs crisis is real. And it is crushing aspirations everywhere.

"I'm the first master's degree holder in my family," says Rukaiya Bepari, a 23-year-old graduate in the town of Miraj in western India.

"But there's no industry where I live. So I'm now taking tuitions. It doesn't pay much."

Neither Rukaiya nor her brother have had full-time work for the last two years. They're not alone.

The share of educated youths among all unemployed people increased from 54.2% in 2000 to 65.7% in 2022 according to latest figures by the International Labour Organization.

There's also been no significant growth of real wages in India since 2014, according to numbers computed by noted developmental economist Jean Dreze.

India "risks squandering its demographic dividend" - the economic growth potential from a big working-age population - the World Bank's regional economist said in an interview to the Financial Times recently.

Job creation is a problem Mr Modi has been unable to solve.

Right off the back of his victory in 2014, the prime minister launched an ambitious Make In India campaign to turn India into the world's factory. In 2020, his government doled out $25bn in incentives to companies across sectors from semi-conductors to mobile electronics in order to enhance India's manufacturing capabilities.

But success has been elusive.

Yes, the likes of Foxconn - which makes iPhones for Apple - are moving their supply chains to India as part of the global "China plus one" diversification strategy. Other major global giants like Micron and Samsung have also been enthused to invest. But the numbers are not significant yet.

Manufacturing's share as a percentage of GDP has remained stagnant in the last decade despite these efforts.

Growth in exports was also faster under Mr Modi's predecessors.

"Even if India's manufacturing grows 8% per year till 2050 and China's stagnates at the 2022 level, India's manufacturing size in 2050 will still not match that of China's in 2022," says Prof Vidya Mahambare of the Great Lakes Institute of Management.

Lack of a large scale industry means half of India's population still depends on agriculture for their livelihoods - which is increasingly becoming unprofitable.

A direct impact of this? Squeezed household budgets.

At 3%, the growth in overall private consumption expenditure - the money people spend on buying things - is the slowest in 20 years.

And household debt has touched an all-time high, even as financial savings plunged to their lowest levels, according to new research.

Many economists argue that the nature of India's economic growth post pandemic has been uneven, or "K-shaped" - where the rich have thrived, while the poor continue to struggle. India may be the fifth largest global economy at an aggregate level, but on a per person basis, it still languishes at the 140th rank.

And inequality has widened to a hundred-year high according to research from the World Inequality Database. No surprises then that election campaign discourse recently has been rife with chatter around wealth redistribution and inheritance taxes.

A three day pre-wedding ceremony of Indian billionaire Mukesh Ambani's son recently offered a glimpse into the country's new gilded age. Mark Zuckerberg, Bill Gates and Ivanka Trump were in attendance. Rihanna shook a leg with Bollywood's biggest celebrities, while the Ambani women flashed diamonds and jewellery once part of the Mughal empire's collection.

Luxury brands making cars, watches and liquor have been growing faster than India's more mass-market companies, according to Arnab Mitra, who researches Indian consumer brands at Goldman Sachs.

Viral Acharya, a professor at NYU Stern, says a handful of the biggest conglomerates have grown "at the expense of the smallest firms".

The super-rich, he says, have benefited from sharp tax cuts and a conscious policy of creating "national champions" in which prized public assets like ports and airports have been preferentially given to a few companies to build or run.

Latest court revelations show many of them have also been India's top political donors to the ruling BJP.

All combined, this presents an inconsistent picture of India's economy. But for all its problems, the country is on the runway for take-off, say experts.

"India's next decade could resemble China's path (of hyper growth) from 2007 through 2012," analysts from Morgan Stanley wrote in a widely discussed paper.

They add that the country has many advantages - a young demographic, the geopolitics of global de-risking from China and a clean-up of sectors like real estate. Other megatrends like digitalisation, a transition to clean energy and growth in global offshoring will propel future growth, say experts.

The infra push is also something that will have long-term payoffs. By making improvements in roads, power supply and turnaround time at ports - India is finally "creating an environment in which manufacturing can flourish", says DK Joshi, CRISIL's India economist.

But along with the focus on "physical capital", Mr Modi needs to pay heed to creating "human capital", says Dr Raghuram Rajan, the former governor of India's central bank.

Indian children aren't learning as well as they should to face up to the world of artificial intelligence. A quarter of those aged 14 to 18 can't read simple text fluently, according to a report published by the non-profit Pratham Foundation.

Covid-19 dealt a major blow to students, who couldn't attend school for nearly two years. But the government has continued to underfund education, and healthcare.

In its first decade, Modinomics appears to have delivered for a select few. But for many the jar, as it appears, is still half empty.

"We will grow old before we grow rich" if growth isn't faster and more equitable, says Dr Rajan.

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India's economy: The good, bad and ugly in six charts

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India has one of the world's fastest growing economies but the benefits are yet to fully reach the poorest.

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Economic growth & rising middle class:

Robust economic growth and an expanding middle class population factors behind the increase in disposable income which leads to a surge in luxury consumption.

Consumer preference shift:

there is growing preference for products that reflect ones individual identity and cultural roots.

opening opportunities for brands to tailor their offerings to local taste.

E-commerce surge & rise of digitalisation:

Expanding retail footprint:

more high end malls are being opened.

making the area more attractive to luxury brands and enabling them to establish a strong physical presence.

Favourable policy reforms:

Government policies promote foreign direct investment (FDI) that brings an ease of doing business.

MANKIRAN. 2023. ‘India’s Luxury Potential: Attracting Global Luxury Brands’. MBA ESG Business School, India [online]. Available at: https://mba-esg.in/unlocking-indias-luxury-potential-a-magnet-for-global-luxury-brands/#:~:text=Unlocking%20India%E2%80%99s%20luxury%20potential%3A%20A%20magnet%20for%20global,7%20Rise%20of%20luxury%20events%20and%20experiences%20 [accessed 24 Jun 2024].

(Mankiran,2023)

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India, a nation with a rich cultural heritage is one of the rapidly growing economies in the world today and has emerged as an attractive destination for luxury brands. The luxury market in India has witnessed exponential growth in recent years that has managed to draw in significant attention from global luxury players.
India's luxury potential is undoubtedly unlocking a plethora of opportunities for global luxury brands.

Today India has a strong economic growth going on with a shift in its overall consumer preferences and taste, a thriving digital commerce landscape and as the government is opening up doors for foreign direct investment, India has surely emerged as one of the largest magnets for luxury players who are seeking to expand their global footprint. What further entices them is India's rich cultural heritage and its abundance of quality craftsmanship that enhances its appeal as a sought-after luxury market.

Also read: Leading Indian brands offerings career opportunities in logistics supply chain and e-commerce

With this article we aim to explore the factors that are driving India's luxury potential and making it into a magnetic land for the world's luxury houses.

Economic growth and rising middle class

Over the past few years, India's robust economic growth and an expanding middle-class population have been two significant factor that are behind the increase in disposable incomes, leading to a surge in the luxury consumption. As per a latest in Business of Fashion article reporting, they have mentioned that the Indian consumers spending on Luxury is predicted to more than treble by 2030, luxury brands recognize the vast untapped market potential in the country and for Indian tourists and expats.

Consumer preference shift

Indian consumers are increasingly moving away from conspicuous consumption towards discreet luxury, valuing quality products, time and ageless pleasure in hand made products and products craftsmanship along with exclusivity. There is a growing preference for products that reflect one's individual identity and cultural roots, opening opportunities for luxury brans to tailor their offerings to local taste.

Also read: Pursuing a career in Fashion Management with MBA ESG

E-commerce surge and rise of digitalization

The rise of e-commerce and digital platforms in India has offered luxury brands an access to a border customer base, even in tier 2 and tier 3 cities. Luxury brands are leveraging social media and digital marketing strategies that are powered by AI and analytics to engage the Indian consumers in small cities and town with deep pockets, fostering brand loyalty and driving sales building new customers.

Expanding retail footprint

International luxury brands are strategically expanding their retail presence in India, tapping into potential of both metros and emerging urban centres. More place are seeing the opening of high-end malls, luxury retail spaces - leading to more luxury global brands being attracted to establish a strong physical presence.

Favourable policy reforms

Government policies and reforms have played a crucial role in encouraging foreign luxury brands to invest in India. Many policies by the government are set up to promote foreign direct investment (FDI) that brings in an ease of doing business which as a result has encouraged luxury brands to invest in India. With the relaxation of FDI norms in single-brand retail and duty-free imports for select product categories - it has further incentivized luxury players to enter the Indian market.

Also read: Top skills needed for a successful career in International Business

Unique cultural heritage

India is known globally for its unique cultural heritage and traditional craftmanship that is highly appealing to luxury brands who seek exclusive products and limited edition items. Brands work today to collaborate with Indian artisans and designers to offer a competitive advantage to their collection and bring out unique luxury products with an Indian touch to them.

Rise of luxury events and experiences

The luxury brands are not only focusing on retail sales but also on catering to the consumer need of luxury experiences. Many brands are curating one-of-its kind experiences and exclusive launches with limited editions products to add to the allure of luxury brands in India, attracting a loyal and engaged clientele. Dior's Gateway of Mumbai collection launch with invitation sent out of the leading celebrities and social influences was a fine example of how to build hype for your brand collection launch while being inclusive of Indian craftsmanship.

While the projections via Business of Fashion, Vogue.in help us to believe the sector shows promising growth, there are some challenges of infrastructural limitations, regional diversity and complex regulations that calls for brands to adopt a localized approach and tailor their strategies to cater to specific markets within India.

Also read: How AI is redefining the management landscape

As the market in India continues to expand and more global luxury brands continue to recognize and invest in India's immense potential, the country is poised to become a key player in the world of luxury consumption. By catering to the evolving taste and preference of Indian consumers working in collaboration with Indian craftsman while maintaining their exclusivity, luxury brands have the opportunity to establish a lasting presence in one of the world's most promising luxury markets. With the Indian luxury story still unfolding, there sure is a promising chapter awaiting for the global luxury landscape.

Learn and explore the MBA E-commerce, Logistics and Supply chain management by MBA ESG, Pune here.

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India's Luxury Potential: Attracting Global Luxury Brands

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Delve into India's burgeoning luxury market and its allure for global luxury brands. Learn how India's potential is reshaping the luxury industry landscape.

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4. GDP (2022)

$10.079 Trillion

7.24% growth

5. Inflation Rate (2022)

6.7%

7. Exports (2022)

$767.643 Billion

Partners - US, UAE, Netherlands, China, Bangladesh

commodities - Refined petroleum, diamonds, packaged medicine, garments, jewellery

8. Imports (2022)

$902.304 Billion

Partners - China, UAE, US, Saudi Arabia, Russia

Commodities - Crude petroleum, Coal, Gold, Natural gas, Diamonds

CIA. 2024. Central Intelligence Agency [online]. Available at: https://www.cia.gov/the-world-factbook/countries/india/#economy [accessed 19 Jun 2024].

(CIA,2024)

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Introduction

The Indus Valley civilization, one of the world's oldest, flourished during the 3rd and 2nd millennia B.C. and extended into northwestern India. Aryan tribes from the northwest infiltrated the Indian subcontinent about 1500 B.C.; their merger with the earlier Dravidian inhabitants created the classical Indian culture. The Maurya Empire of the 4th and 3rd centuries B.C. -- which reached its zenith under ASHOKA -- united much of South Asia. The Gupta dynasty (4th to 6th centuries A.D.) ushered in The Golden Age, which saw a flowering of Indian science, art, and culture. Islam spread across the subcontinent over a period of 700 years. In the 10th and 11th centuries, Turks and Afghans invaded India and established the Delhi Sultanate. In the early 16th century, the Emperor BABUR established the Mughal Dynasty, which ruled large sections of India for more than three centuries. European explorers began establishing footholds in India during the 16th century.

By the 19th century, Great Britain had become the dominant political power on the subcontinent, and India was seen as the "Jewel in the Crown" of the British Empire. The British Indian Army played a vital role in both World Wars. Years of nonviolent resistance to British rule, led by Mohandas GANDHI and Jawaharlal NEHRU, eventually resulted in Indian independence in 1947. Large-scale communal violence took place before and after the subcontinent partition into two separate states -- India and Pakistan. The neighboring countries have fought three wars since independence, the last of which was in 1971 and resulted in East Pakistan becoming the separate nation of Bangladesh. India's nuclear weapons tests in 1998 emboldened Pakistan to conduct its own tests that same year. In 2008, terrorists originating from Pakistan conducted a series of coordinated attacks in Mumbai, India's financial capital. India's economic growth after economic reforms in 1991, a massive youth population, and a strategic geographic location have contributed to the country's emergence as a regional and global power. However, India still faces pressing problems such as extensive poverty, widespread corruption, and environmental degradation, and its restrictive business climate challenges economic growth expectations.

Visit the Definitions and Notes page to view a description of each topic.

Geography

slightly more than one-third the size of the US

agricultural land: 60.5% (2018 est.)

arable land: 52.8% (2018 est.)

permanent crops: 4.2% (2018 est.)

permanent pasture: 3.5% (2018 est.)

forest: 23.1% (2018 est.)

other: 16.4% (2018 est.)

salt water lake(s): Chilika Lake - 1,170 sq km

Brahmaputra (shared with China [s] and Bangladesh [m]) - 3,969 km; Indus (shared with China [s] and Pakistan [m]) - 3,610 km; Ganges river source (shared with Bangladesh [m]) - 2,704 km; Godavari - 1,465 km; Sutlej (shared with China [s] and Pakistan [m]) - 1,372 km; Yamuna - 1,370 km; Narmada - 1,289 km; Chenab river source (shared with Pakistan [m]) - 1,086 km; Ghaghara river mouth (shared with China [s] and Nepal) - 1,080 km
note - [s] after country name indicates river source; [m] after country name indicates river mouth

droughts; flash floods, as well as widespread and destructive flooding from monsoonal rains; severe thunderstorms; earthquakes

volcanism: Barren Island (354 m) in the Andaman Sea has been active in recent years

People and Society

Hindi 43.6%, Bengali 8%, Marathi 6.9%, Telugu 6.7%, Tamil 5.7%, Gujarati 4.6%, Urdu 4.2%, Kannada 3.6%, Odia 3.1%, Malayalam 2.9%, Punjabi 2.7%, Assamese 1.3%, Maithili 1.1%, other 5.6%; note - English enjoys the status of subsidiary official language but is the most important language for national, political, and commercial communication; there are 22 other officially recognized languages: Assamese, Bengali, Bodo, Dogri, Gujarati, Hindi, Kannada, Kashmiri, Konkani, Maithili, Malayalam, Manipuri, Marathi, Nepali, Odia, Punjabi, Sanskrit, Santali, Sindhi, Tamil, Telugu, Urdu; Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language (2011 est.)

major-language sample(s):

विश्व फ़ैक्टबुक, आधारभूत जानकारी का एक अनिवार्य स्रोत (Hindi)

The World Factbook, the indispensable source for basic information.

improved: urban: 96.9% of population

rural: 94.7% of population

total: 95.5% of population

unimproved: urban: 3.1% of population

rural: 5.3% of population

total: 4.5% of population (2020 est.)

improved: urban: 98.6% of population

rural: 75.2% of population

total: 83.4% of population

unimproved: urban: 1.4% of population

rural: 24.8% of population

total: 16.6% of population (2020 est.)

Environment

agricultural land: 60.5% (2018 est.)

arable land: 52.8% (2018 est.)

permanent crops: 4.2% (2018 est.)

permanent pasture: 3.5% (2018 est.)

forest: 23.1% (2018 est.)

other: 16.4% (2018 est.)

salt water lake(s): Chilika Lake - 1,170 sq km

Brahmaputra (shared with China [s] and Bangladesh [m]) - 3,969 km; Indus (shared with China [s] and Pakistan [m]) - 3,610 km; Ganges river source (shared with Bangladesh [m]) - 2,704 km; Godavari - 1,465 km; Sutlej (shared with China [s] and Pakistan [m]) - 1,372 km; Yamuna - 1,370 km; Narmada - 1,289 km; Chenab river source (shared with Pakistan [m]) - 1,086 km; Ghaghara river mouth (shared with China [s] and Nepal) - 1,080 km
note - [s] after country name indicates river source; [m] after country name indicates river mouth

Government

description: bicameral Parliament or Sansad consists of:
Council of States or Rajya Sabha (245 seats; 233 members indirectly elected by state and territorial assemblies by proportional representation vote and 12 members appointed by the president; members serve 6-year terms with one-third of the membership renewed every 2 years at various dates)
House of the People or Lok Sabha (545 seats; 543 members directly elected in single-seat constituencies by simple majority vote and 2 appointed by the president; members serve 5-year terms)

elections: Council of States - held by state and territorial assemblies being held from 12 January to 30 June 2024 for expiry of 68 seats

House of the People - last held in 7 phases from 19 April to 1 June 2024 (next to be held in 2027)

election results: Council of States (2022) - percent of vote by party - NA; seats by party - BJP 97, INC 34, AITC 13, DMK 10, other 2, independent 2; composition as of March 2024 - men 206, women 32, percentage women 13.8%

House of the People - percent of vote by party - NA; seats by party - BJP 240, INC 99, SP 37, AITC 29, DMK 22, BJD 12, RJD 4, AAP 3, other 93

seats by party - BJP 303, INC 52, DMK 24, AITC 22, YSRCP 22, SS 18, JDU 16, BJD 12, BSP 10, TRS 9, LJP 6, NCP 5, SP 5, other 35, independent 4, vacant 2; composition as of March 2024 - men 446, women 77, percentage women 14.7%; total Parliament percentage women 14.3%

note: in late September 2023, both Rajya Sabha and Lok Sabha passed a bill that reserves one third of the House seats for women; implementation could begin for the House election in 2029

Aam Aadmi Party or AAP [Arvind KEJRIWAL]
All India Trinamool Congress or AITC [Mamata BANERJEE]
Bahujan Samaj Party or BSP [MAYAWATI]
Bharatiya Janata Party or BJP [Jagat Prakash NADDA]
Biju Janata Dal or BJD [Naveen PATNAIK]
Communist Party of India-Marxist or CPI(M) [Sitaram YECHURY]
Dravida Munnetra Khazhagam [Muthuvel Karunanidhi STALIN]
Indian National Congress or INC [Mallikarjun KHARGE]
Nationalist Congress Party or NCP [Sharad PAWAR]
Rashtriya Janata Dal or RJD [Lalu Prasad YADAV]
Samajwadi Party or SP [Akhilesh YADAV]
Shiromani Akali Dal or SAD [Sukhbir Singh BADAL]
Shiv Sena or SS [Uddhav THACKERAY]
Telegana Rashtra Samithi or TRS [K. Chandrashekar RAO]
Telugu Desam Party or TDP [N. Chandrababu NAIDU]
YSR Congress or YSRCP or YCP [Y.S. Jaganmohan REDDY]

chief of mission: Ambassador (vacant); Chargé d'Affaires Sripriya RANGANATHAN(since 1 February 2024)

chancery: 2107 Massachusetts Avenue NW, Washington, DC 20008

telephone: [1] (202) 939-7000

FAX: [1] (202) 265-4351

email address and website:
hoc.washington@mea.gov.in

https://www.indianembassyusa.gov.in/

consulate(s) general: Atlanta, Chicago, Houston, New York, San Francisco, Seattle

total World Heritage Sites: 42 (34 cultural, 7 natural, 1 mixed)

selected World Heritage Site locales: Taj Mahal (c); Red Fort Complex (c); Ellora Caves (c); Hill Forts of Rajasthan (c); Sundarbans National Park (n); Rock Shelters of Bhimbetka (c); Champaner-Pavagadh Archaeological Park (c); Dholavira: A Harappan City (c); Jaipur (c); Mahabodhi Temple Complex at Bodh Gaya (c); Manas Wildlife Sanctuary (n); Nanda Devi and Valley of Flowers National Parks (n); Khangchendzonga National Park (m)

Economy

lowest 10%: 3.5%

highest 10%: 27.8% (2021 est.)

note: % share of income accruing to lowest and highest 10% of population

$555.388 billion (2019 est.)
$518.34 billion (2018 est.)

comparison ranking: 23

Indian rupees (INR) per US dollar -

Exchange rates:
78.604 (2022 est.)
73.918 (2021 est.)
74.1 (2020 est.)
70.42 (2019 est.)
68.389 (2018 est.)

Energy

2,314,738,000 metric tonnes of CO2 (2019 est.)

from coal and metallurgical coke: 1,574,331,000 metric tonnes of CO2 (2019 est.)

from petroleum and other liquids: 615.903 million metric tonnes of CO2 (2019 est.)

from consumed natural gas: 124.505 million metric tonnes of CO2 (2019 est.)

comparison ranking: total emissions 3

Communications

Transportation

Military and Security

Indian Armed Forces: Army, Navy, Air Force, Coast Guard; Defense Security Corps

Ministry of Home Affairs: Central Armed Police Forces (includes Assam Rifles, Border Security Force, Central Industrial Security Force, Central Reserve Police Force, Indo-Tibetan Border Police, National Security Guards, Sashastra Seema Bal), Special Protection Group, National Disaster Response Force (NDRF)

Ministry of Railways: Railway Protection Force (2024)

note 1: the Defense Security Corps provides security for Ministry of Defense sites

note 2: the Border Security Force (BSF) is responsible for the Indo-Pakistan and Indo-Bangladesh borders; the Sashastra Seema Bal (SSB or Armed Border Force) guards the Indo-Nepal and Indo-Bhutan borders

note 3: the Central Reserve Police Force (CRPF) includes a Rapid Reaction Force (RAF) for riot control and the Commando Battalion for Resolute Action (COBRA) for counter-insurgency operations

note 4: the Assam Rifles are under the administrative control of the Ministry of Home Affairs, while operational control falls under the Ministry of Defense (specifically the Indian Army)

note 5: the Territorial Army (TA) is a military reserve force composed of part-time volunteers who provide support services to the Indian Army; it is a part of the Regular Army with the role of relieving Regular Army units from static duties and assisting civil authorities with natural calamities and maintaining essential services in emergencies, as well as providing units for the Regular Army as required

2% of GDP (2023 est.)
2.1% of GDP (2022 est.)
2.2% of GDP (2021 est.)
2.5% of GDP (2020 est.)
2.4% of GDP (2019 est.)

comparison ranking: 59

ages vary by service, but generally 16.5-27 years of age for voluntary military service for men and women; no conscription (2023)

note 1: in 2022, the Indian Government announced that it would begin recruiting 46,000 men aged 17.5-21 annually to serve on 4-year contracts under a process called the Agnipath scheme; at the end of their tenure, 25% would be retained for longer terms of service, while the remainder would be forced to leave the military, although some of those leaving would be eligible to serve in the Coast Guard, the Merchant Navy, civilian positions in the Ministry of Defense, and in the paramilitary forces of the Ministry of Home Affairs, such as the Central Armed Police Forces and Assam Rifles

note 2: as of 2023, women made up less than 1% of the Army, about 1% of the Air Force, and about 6% of the Navy

note 3: the Indian military accepts citizens of Nepal and Bhutan; descendants of refugees from Tibet who arrived before 1962 and have resided permanently in India; peoples of Indian origin from nations such as Burma, the Democratic Republic of the Congo, Ethiopia, Kenya, Malawi, Pakistan, Sri Lanka, Tanzania, Uganda, and Vietnam with the intention of permanently settling in India; eligible candidates from "friendly foreign nations" may apply to the Armed Forces Medical Services

note 4: the British began to recruit Nepalese citizens (Gurkhas) into the East India Company Army during the Anglo-Nepalese War (1814-1816), and the Gurkhas subsequently were brought into the British Indian Army; following the partition of India in 1947, an agreement between Nepal, India, and Great Britain allowed for the transfer of the 10 regiments from the British Indian Army to the separate British and Indian armies; six regiments of Gurkhas (aka Gorkhas in India) regiments went to the new Indian Army; a seventh regiment was later added

the Indian military performs a variety of missions; it is primarily focused on China and Pakistan and territorial defense, while secondary missions include regional power projection, UN peacekeeping deployments, humanitarian operations, and support to internal security forces; it has fought in several significant conflicts and counterinsurgency operations since 1947 and regularly conducts large-scale exercises; the military may act internally under the Armed Forces (Special Powers) Act (AFSPA) of 1958, an act of the Indian Parliament that granted special powers to put down separatist movements in "disturbed areas"; the AFSPA of 1958 and a virtually identical law, the Armed Forces (Jammu & Kashmir) Special Powers Act of 1990, have been in force since 1958 in parts of northeast India, and since 1990 in Jammu & Kashmir

the Army is organized into 14 operational corps; the basic field formations under the corps are approximately 40 armored, artillery, infantry, mechanized, or mountain infantry divisions; there are also a number of independent airborne, armored, and artillery brigades, as well as special operations forces; in 2023, the Army announced that it was reorganizing its operational corps and divisions into division-sized "integrated battle groups," which the Army assessed would be more agile and flexible

the Navy is a blue water force that operates in seas stretching from the western Mediterranean to the Strait of Malacca and the western Pacific; it routinely conducts months-long deployments, exercises with other navies, and conducts a variety of missions such as counter-piracy, humanitarian, and naval diplomacy; its principal ships include two aircraft carriers, more than 50 destroyers, frigates, corvettes, and large patrol vessels, and nearly 20 submarines, including two with ballistic missile capabilities; the Navy also has several combat aircraft and anti-submarine warfare helicopter squadrons, as well as a marine amphibious brigade and a marine commando force

the Air Force is one of the World's largest with more than 600 British-, French-, Russian/Soviet-, and domestically produced combat aircraft, plus nearly 500 combat helicopters; the tri-service Strategic Forces Command manages all of India's strategic missile forces

the short 1962 Sino-India War left in place one of the World's longest disputed international borders, resulting in occasional standoffs between Indian and Chinese security forces, including lethal clashes in 1975 and 2020; meanwhile, India and Pakistan have fought several conflicts since 1947, including the Indo-Pakistan War of 1965 and the Indo-Pakistan and Bangladesh War of Independence of 1971, as well clashes over the disputed region of Kashmir (the First Kashmir War of 1947 and the 1999 Kargil Conflict); a fragile cease-fire in Kashmir was reached in 2003, revised in 2018, and reaffirmed in 2021, although the Line of Control remains contested, and India has accused Pakistan of backing armed separatists and terrorist organizations in Jammu and Kashmir where Indian forces have conducted counterinsurgency operations since the 1980s; in addition, India and Pakistan have battled over the Siachen Glacier of Kashmir, which was seized by India in 1984 with Pakistan attempting to retake the area at least three times between 1985 and 1995; despite a cease-fire, both sides continue to maintain a permanent military presence there with outposts at altitudes above 20,000 feet (over 6,000 meters) where most casualties are due to extreme weather and the hazards of operating in the high mountain terrain of the world's highest conflict, including avalanches, exposure, and altitude sickness (2023)

Space

has one of the world's largest space programs; designs, builds, launches, operates, and tracks the full spectrum of satellites, including communications, navigation, remote sensing (RS), and scientific/technology; designs, builds, and launches rockets, space/satellite launch vehicles (SLVs), and lunar/interplanetary probes; launches satellites for foreign partners; developing human space flight capabilities (with assistance from Russia, US); researching and developing additional space-related technologies and capabilities; has space-related agreements with more than 50 countries, including China, France, Germany, Japan, Russia, and the US, as well as the European Space Agency; participates in international space projects such as the Square Kilometer Array (SKA) radio telescope; has a government-owned company under the administrative control of DOS; NewSpace India Limited (NSIL) is the commercial arm of the ISRO with the responsibility of researching and developing space-related technologies and promoting India's growing space industry (2024)

note: further details about the key activities, programs, and milestones of the country's space program, as well as government spending estimates on the space sector, appear in Appendix S

Terrorism

Terrorist group(s): Harakat ul-Mujahidin; Harakat ul-Jihad-i-Islami; Hizbul Mujahideen; Indian Mujahedeen; Islamic State of Iraq and ash-Sham - India; Jaish-e-Mohammed;Lashkar-e Tayyiba; al-Qa'ida; al-Qa'ida in the Indian Subcontinent; Islamic Revolutionary Guard Corps (IRGC)/Qods Force

note: details about the history, aims, leadership, organization, areas of operation, tactics, targets, weapons, size, and sources of support of the group(s) appear(s) in Appendix-T

Transnational Issues

India is a source, transit, and destination for illicit narcotics and precursor chemicals; drug abuse in India growing, facilitated by illicit narcotics and the availability of over-the-counter medicines; commonly abused substances in India include heroin, cannabis, and cocaine, with growing use of pharmaceutical drugs in recent years including tramadol, opioids, and MDMA (ecstasy) analogues; largest producer of generic drugs in the world which is also used to produce illicit synthetic drugs such as pharmaceutical opioids, methamphetamine, heroin, MDMA, and ketamine

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The Indus Valley civilization, one of the world's oldest, flourished during the 3rd and 2nd millennia B.C. and extended into northwestern India. Aryan tribes from the northwest infiltrated the Indian subcontinent about 1500 B.C.; their merger with the earlier Dravidian inhabitants created the classical Indian culture.

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accessories

footwear

watches

jewellery

woman's /men's ready-to-wear,

wearable technology

eyewear

fragrances

About Us. 2024. Michael Kors: designer handbags, clothing, watches, shoes, and more. Michael Kors [online]. available at: Michael Kors: Designer Handbags, Clothing, Watches, Shoes, And More. | Michael Kors [ Accessed 9th may 2024]

(About Us. 2024)

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Why is India attractive to luxury brands?

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Why is India attractive to luxury brands?

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increased disposable income

rising internet penetration - increased awareness and exposure.

introduction of new brands in the country

youth purchasing luxury products.

rise in number of wealthy Indians.

shift in thinking - spending rather than saving.

Demographics - India is one of the youngest countries

Gen Z don't believe in saving

Gen Z are more aware of luxury brands and use the internet to shop overseas.

Indians want to claim a better quality of life - the mindset pushes the demand for premium and higher quality products/experiences.

India changed their laws on doing business in the country which makes it more attractive to global luxury brands.

KMANECK, Roshneesh. 2023. ‘Upper Crust: Why India Is Becoming the New Darling of Luxury Brands across the Globe’. Firstpost [online]. Available at: https://www.firstpost.com/explainers/india-luxury-brands-alia-bhatt-deepika-padukone-economy-growing-spending-power-12587022.html [accessed 19 Jun 2024].

(Kmaneck,2023)

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India has arrived, making its presence felt everywhere. Be it the political arena or the economic front. It is truly the bright spot. The luxury market is no different. Indian stars are endorsing the biggest brands and Indian consumers are spending big bucks.

Just a day ago, Italian fashion house Gucci named Bollywood star Alia Bhatt, who is on a Met Gala high, as its first Indian global ambassador. And according to a report, Alia will make her first appearance as the brand's latest global ambassador at the Gucci Cruise 2024 show, to be staged in Seoul next week.

This piece of news comes after American make-up giant Estee Lauder announced former Miss India Manushi Chillar as its global brand ambassador. And who can forget Deepika Padukone being named Louis Vuitton's global brand ambassador last year in May.

But what is the big takeaway from this news? It's a sign that global luxury brands are increasingly eyeing India as the next big market.

We take a deep dive into the world of luxury brands and why an increasing number of them want a slice of the Indian pie
Luxury brands diving into India's waters
It was in 2002 that Louis Vuitton arrived in India, becoming the first international premium luxury brand to enter the market. Many other players like Gucci, Bottega Veneta, Hermes and Burberry followed. Last year, Valentino opened its first store in India's capital. This year, Paris-based Spanish luxury brand Balenciaga is all set to make waves.

The mother of all luxury fashion moments occurred in March when Christian Dior showcased its Fall 2023 collection at Mumbai's iconic Gateway of India, becoming the first fashion house to unveil its latest line in the country. The show, led by its first female creative director, Maria Grazia Chiuri, had it all. With beautiful vibrant colours, it paid homage to India's rich cultural landscape.

Dior said it was to celebrate its ties with Chanakya Ateliers and the Chanakya School of Craft, which trains women from low-income communities in hand embroidery and craftsmanship.

Italian jewellery giant Bvlgari, who appointed Priyanka Chopra-Jonas as their global brand ambassador, now sells mangalsutras for Indian brides.
Also read: The Luxury Life: Are big brands Louis Vuitton, Dior picking Japan, South Korea over China?
In November 2022, Aditya Birla Fashion and Retail Limited (ABFRL) inked a strategic partnership with Paris' iconic department store Galeries Lafayette, and announced plans to open luxury department stores and a dedicated e-commerce platform in India. The flagship stores in Mumbai and Delhi will bring more than 200 luxury and designer brands under one roof, it said.

Apart from this, there are e-commerce sites such as The Collective, which houses 80 luxury brands. Another option for the rich high-fashion lover is Reliance Brands Limited's (RBL), Ajio Luxe, which was launched in 2021. It offers more than 265 big names with Stella McCartney, Cult Gaia and Isabel Marant, with Veja Shoes, Marc Jacobs, and Alice + Olivia being added in.

As Vogue stated in February, this is luxury's "coming of age moment" in India.

India's luxury market has been growing steadily and the recent few years have seen a significant jump. According to Euromonitor International, the luxury market in India climbed to $8.5 billion in 2022 (Rs 70,000 crore), up by $2.5 billion (Rs 20,500 crore) in the preceding year.

Some reports add that this will only grow further, at least 10 per cent over the next five years.
The boom in luxury fashion sales
Until very recently, India, unlike China, was not a major market for Western luxury brands amid challenges of finding retail space and complex regulations making business even harder.

However, that is changing and an increasing number of luxury brands want to do business in the country. One major factor that contributes to this change in attitude is India's spending power.

Darshan Mehta, RBL president and CEO, told Vogue that Indian consumers are spending more. "Even five years back, Rs 50,000 ($650) for a dress or a handbag was considered a very high amount," he says in the report. "People would weigh options, discuss with friends or a spouse before making the decision to buy." But that's no longer the case.

Gitanjali Saxena, business head, Tata CLiQ Luxury, an online platform, a part of Tata Group selling goods from high-end brands, including clothes and accessories echoed similar sentiments. Speaking to _The Nationa_l, she said, "Factors such as increased disposable income, rising internet penetration leading to increased awareness and exposure, the introduction of new brands in the country and the youth purchasing luxury products in new categories... are all contributing to the expansion of this industry."

There's also a rise in the number of wealthy Indians. Property consultancy firm Knight Frank has reported that the number of Indians with net assets of $30 million (Rs 246 crore) or more has risen by 11 per cent between 2020 and 2021 and is expected to grow by as much as 39 per cent between 2021 and 2026.
Also read: Why luxury brand Manolo Blahnik waited 22 years to sell shoes in China
Even the Credit Suisse Global Wealth Report 2022 stated that the number of millionaires in India was estimated to double from 796,000 in 2021 to 1.6 million in 2026.

This rise in wealth has also led to a shift in thinking - more people are spending rather than saving.

Experts also believe that demographics have a role to play in this growth in the luxury market. Today, India is one of the youngest countries in the world and Generation Z doesn't believe in saving. Moreover, they are more aware of luxury brands across the world and use the internet to shop overseas.

As Amit Pande, brand head of The Collective, was quoted as telling Vogue, "Today, affluence comes about with a certain confidence about the future. Many Indians today want to claim a better quality of life, and rightly so. This mindset will fuel the demand for premium and higher quality products and experiences in the near future."

There's also the fact that while China and other European economies have slowed down post-COVID, India has been doing considerably well - it is ranked the fifth largest in the world today and according to an EY report published earlier it is likely to become a $26-trillion economy in 100th year of its Independence in 2047 with per capita GDP growing six times from current level to over $15,000 during the period.

India is also changing its laws on doing business in the country, making it attractive to global luxury brands. The World Bank ranked India 63rd in 2022, from 142 in 2014, for ease of doing business.

Combine all these factors and it's no surprise why Western luxury brands are looking to India.
With inputs from agencies

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Upper Crust: Why India is becoming the new darling of luxury brands across the globe

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Alia Bhatt has been named Gucci's global brand ambassador. Before her, it was Deepika Padukone for Louis Vuitton. India's luxury market is having a moment and we are all for it

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India is unique among large emerging economies. Image: REUTERS/Mukesh Gupta/File photo

Senior Economist, World Bank

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India has achieved much in the last decades. Yet an economic deceleration in the past few quarters has generated worried commentaries about India's growth potential. However, our analysis of nearly five decades of data finds that India's long-term growth process is steady, stable, diversified and resilient. Does this lay the groundwork for a more sustained 8% growth in the future? Yes, possibly, but more is needed. Let us elaborate.

First, India's long-term economic growth has steadily accelerated over a fifty-year period, without any prolonged reversals. Thus, while growth averaged 4.4 percent a year during the 1970s and 1980s, it accelerated to 5.5 percent during the 1990s-early 2000s, and further to 7.1 percent in the past one decade. The acceleration of growth is evident not just for aggregate GDP, but even more strongly for per capita GDP. The average pace of per capita growth was 5.5 percent a year in the last decade. Interestingly, when compared with some of the world's largest emerging economies, this steady acceleration of growth stands out as being unique to India.

India's growth rate has consistently accelerated over the long run Image: World Bank

Second, India's rate of growth has become more stable. This is partly due to the stabilization of growth within each sector - agriculture, industry and services - and partly to the transition of the economy toward the services sector, where growth is more stable. Particularly interesting is the sharp increase in the stability of GDP growth since 1991. Before this, growth accelerated episodically, was punctuated by large annual variations, and often failed to sustain. Thus, growth has not just accelerated post liberalisation, it has also become more stable.

Growth acceleration has been faster in Per Capita Income Image: World Bank

Finally, growth has been broadly resilient to shocks, both domestic and external. The resilience of India's growth can be attributed to the country's large and spatially diversified economy, as well as to its diversified production structure that is not dependent on a few products, commodities, or natural resources. It can also be attributed to India's diversified trade basket and broad range of trading partners, wherein a slowdown in any one part of the world will not result in a large impact on India.

The resilience of India's growth process was on display in recent years when the country recovered quickly from the impacts of two major policy events - demonetization and the implementation of the Goods and Services Tax (GST), an important indirect tax reform. We argue that the deceleration to growth rates below 7 percent between Q3 2016-17 and Q2 2017-18 was an aberration, attributed to temporary disruptions in economic activity as the economy adjusted to demonetization and businesses prepared for the implementation of GST. At present, there are indications that the economy has bottomed out and, in the coming quarters, economic activity should revert to the trend growth rate of about 7.5 percent. We project GDP growth to be 6.7 percent in 2017-18 and accelerate to 7.3 percent and 7.5 percent respectively in 2018-19 and 2019-20.

India's long-term growth rate has become increasingly more stable Image: World Bank

Yet, our analysis shows that despite the growth rate recovering, attaining a growth rate of 8 percent or higher on a sustained basis would depend on an effective structural reform agenda. Over the last five decades, there have been six episodes of high growth, about once in each decade, when growth rates exceeded 8 percent. Most such episodes lasted only one to two years, and corrected sharply in the years thereafter. In some of these cases, high growth was due to a low base impact of slow growth in previous years followed by unusually good agricultural output (1976, 1989); in others, it was due to an unsustainable fiscal deficit or another macroeconomic policy (such as in 2010-11). The only durable episode of growth sustaining at levels above 8 percent for 5 continuous years is the one that lasted from 2004 to 2008. This episode benefited from the combined effect of important reforms undertaken in the 1990s and early 2000s, and from an unusual buoyancy in the global economy and easy global liquidity, leading to high sustained growth across sectors and all components of GDP.

Going forward, sustaining a growth rate higher than the trend growth rate of 7 to 7.5 percent, and reaching a growth rate of 8 percent or higher, will require contributions from all domestic sectors as well as support from the global economy. Achieving this would require a concerted reform effort that maintains the reform momentum and widens its scope, and succeeds in reversing the slowdown in investment, credit supply and exports. Maintaining the hard-won macroeconomic stability, arriving at a definite and durable solution to banking sector issues, realizing the expected growth and fiscal dividend from the GST, and regaining the momentum on the unfinished structural reform agenda are other key components of attaining a growth rate of 8 percent or higher.

To raise the income of at least 50 percent of Indians to levels of the global middle class, the economy not only needs to return to 8 percent growth or higher but must also maintain such growth for the next three decades. Evidence from across the world highlights that this is no easy task; most countries that experienced high growth saw decelerations a few years later.

Nonetheless, India's remarkable growth experience lends credence to its long-term growth story. Further reform effort and removing bottlenecks to specific drivers of growth can help accelerate growth rates to 8 percent or higher.

Figure 1: India's growth rate has consistently accelerated over the long run Figure 2: Growth acceleration has been faster in Per Capita IncomeFigure 3: India's long-term growth rate has become increasingly more stable

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Steady acceleration stands out as unique among the world's large emerging economies.

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15,100 employees 2024

SMITH, P. 2024b. ‘Number of Employees of Capri Holdings Worldwide 2024’. Statista [online]. Available at: https://www.statista.com/statistics/657674/number-of-employees-of-michael-kors-worldwide/ [accessed 20 Jun 2024].

(Smith,2024b)

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Number of employees of Capri Holdings worldwide 2024 | Statista

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This graph depicts the number of employees of Capri Holdings, formerly Michael Kors Holdings, worldwide from 2014 to 2024.

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Artificial Intelligence In Luxury stores

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Michael Kors Collection

refer to Jamal Uddin questionnaire

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India's luxury market is expected to grow 3.5 times more then current to reach between $85-$90Billion by 2030.

inflation has impacted other product categories however it doesn't seem to have affected luxury products.

The number of millionaires in India was estimated to double from 796,000 in 2021 to 1.6million in 2026.

“The luxury market is inflation proof. Consumers in this segment don’t get impacted by inflationary trends,” said Santosh Desai, social commentator and columnist.

“Global brands are now tailoring their offers and marketing campaigns to India,” said Anurag Mathur, partner Bain & Co, adding, “Louis Vuitton launched a Rani Pink line, Dior held a fall show in Mumbai and Bvlgari introduced the mangalsutra. Additionally, the entry of new global brands like Valentino, Balenciaga and Galeries Lafayette… and several other Swiss and Italian brands are in conversation to enter India.”

STANDARD, Business. 2023. ‘How Is India’s Luxury Market Turning into a Magnet for Foreign Brands?’ Business Standard [online]. Available at: https://www.business-standard.com/industry/news/how-is-india-s-luxury-market-turning-into-a-magnet-for-foreign-brands-123083100376_1.html [accessed 19 Jun 2024].

(Standard,2023)

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More than a dozen luxury consumer goods brands are entering the country ahead of the festive season, hoping to attract consumers in a market fueled by the growing affluence of Indians with higher incomes, spurring greater discretionary spending even in small towns, reported The Economic Times (ET).

The trend is being driven by growing exposure to global trends, younger people buying luxury products, and a post- Covid-19 pandemic boom, all of which are fanning interest from western luxury brands, said executives.

Luxury brands 'very confident' of Indian market

Among the recent launches is Swiss luxury chocolate maker Laderach, which set up its first boutique at upscale mall DLF Emporio in New Delhi last week.

French luxury retailer Galeries Lafayette is also set to enter India in partnership with the Aditya Birla Group. Spanish luxury fashion house Balenciaga SA is planning stores with Reliance Brands. Swiss luxury multi-brand watch and jewellery boutique TimeVallee and Dutch haircare salon services brand Keune, among others, are also set to debut.

As China's economic engine falters, luxury manufacturers are hoping that India's steady growth will lead to increased demand for their products.

"There is absolutely no question about the potential of the Indian market with upscale and luxurious brand experiences. We are very confident of the Indian market, the big cities and consumers here," said Elias Laderach, executive board member and chief creative officer of Laderach, the largest chocolate retailer in Switzerland.

The family-owned luxury chocolate maker, which has entered India in partnership with DS Group, intends to open five seven outlets in India over the next two years in addition to selling through their own e-commerce platform.

The influx of global luxury brands

India's luxury market is expected to grow 3.5 times the current size to reach $85 billion-$90 billion by 2030, according to a report by global consulting firm Bain & Co. While the entry-level product categories have been impacted by inflation and other factors, luxury products appear to be thriving.

"The luxury market is inflation proof. Consumers in this segment don't get impacted by inflationary trends," said Santosh Desai, social commentator and columnist.

"Even regular basic needs categories are seeing packs which are priced four-five times higher. These packs have no relationship with the base segment. Such products obviously cater to a small market but this set of consumers is rising relentlessly and these consumers have a desire to spend across all categories. This is being referred to as a K-shaped recovery," he was quoted as saying by ET.

Luxury's coming-of-age moment in India

Aditya Birla Fashion Retail (ABFRL), which has partnered with French luxury retailer Galeries Lafayette to set up stores in India to sell over 200 luxury brands such as Armani, Christian Dior and Prada, dubbed the partnership "a coming-of-age moment for Indian luxury".

Reliance Brands, which has ambitious plans in the luxury segment, is rapidly scaling up its existing partnerships with global brands Valentino and Tiffany in the run-up to the festive season, executives aware of the matter said.

"Global brands are now tailoring their offers and marketing campaigns to India," said Anurag Mathur, partner Bain & Co, adding, "Louis Vuitton launched a Rani Pink line, Dior held a fall show in Mumbai and Bvlgari introduced the mangalsutra. Additionally, the entry of new global brands like Valentino, Balenciaga and Galeries Lafayette... and several other Swiss and Italian brands are in conversation to enter India."

Luxury spirits find more takers in India

A Credit Suisse Global Wealth Report said that the number of millionaires in India was estimated to double from 796,000 in 2021 to 1.6 million in 2026.

Dutch luxury hair cosmetics company Keune entered India last week in a distribution and marketing partnership with Indian beauty company Maison D' Auraine. "India is a vibrant market. We see tremendous growth. After the Covid-19 pandemic, more and more people want to spend money on grooming," said chief executive Eelco Keune.

The brand will be focused on 25,000 or more premium salons across India, he said.

Mathur of Bain cited the expansion of Michael Kors to seven stores, adding that AJIO Luxe, Tata CliQ and Collective have broadened their offerings with brands such as Self Portrait and Cult Gaia.

With the opening of retailers such as Elle Decor and Pottery Barn in India, Mathur claims that new categories, such as home decor, are sprouting.

Tata CLiQ Luxury, which partnered with Swiss luxury multi-brand watch and jewellery store TimeVallee in March this year to launch its digital boutique in India, is also scaling up to sell timepieces made by Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget and Roger Dubuis.

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How is India's luxury market turning into a magnet for foreign brands?

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As China's economic engine falters, luxury brands are hoping that India's steady growth will lead to increased demand for their products

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GDP measures the size of a country's economy

it is calculated by adding up...

the total value of goods and services produced

everyone's income

what everyone in the country has spent

‘What Is GDP?’ 2024. Bank of England [online]. Available at: https://www.bankofengland.co.uk/explainers/what-is-gdp#:~:text=%EE%80%80Gross%20domestic%20product%EE%80%81%20or%20GDP%20is%EE%80%80%20a%20measure [accessed 16 Jul 2024].

(What is GDP. 2024)

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What's not captured in GDP statistics?

GDP growth, however, is not the whole story when gauging how well economies are doing.

To begin with, some things have a lot of value but are not captured in GDP because no money changes hands. Caring for an elderly relative would be one example of this. As Einstein once said, "Not all that can be counted counts".

GDP also doesn't tell us anything about how evenly income is split across the population. Growth could mean everyone becoming better off or just the richest segment getting even richer. In practice it usually lies somewhere between the two.

Next, it helps to bear in mind changes in the size of the population. If UK GDP rose by 2% next year, but the population grew by 4%, then average income per person would actually have fallen.

Finally, there are things which raise GDP that don't make the country better off. War is one example (a lot of money is spent, so GDP goes up). Or if a large chunk of the Amazon rainforest was cut down in one week, then you'd get a sharp rise in GDP from the sales of timber but at huge environmental cost.

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Gross domestic product or GDP measures the size of a country's economy. This guide explains how GDP is measured, as well as which things GDP doesn't capture.

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India has 22 official languages

Hindi was fixed as the national language of India - 44% population spoke and understood it.

GEEKSFORGEEKS. 2023. ‘National Languages of India 2024: List of 22 Official Languages’. GeeksforGeeks [online]. Available at: https://www.geeksforgeeks.org/national-languages-of-india/#list-of-all-official-22-languages-specified-by-the-indian-constitution [accessed 23 Jul 2024].

(Geeksforgeeks. 2023)

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National Languages of India 2024: List of 22 Official Languages

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There is no official languages in India according to the Indian Constitution. It has stipulated the usage of Hindi and English to be the two official languages of communication for the national government.

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Gen Z consumers look forward to treating themselves

84% gen Z's said they intend to splurge and spend money

apparel is the product category that most interests gen Z's.

purchase criteria for apparel: quality, comfort and brand.

STATISTA. 2023. Understanding Gen Z consumers in emerging Asian markets. available at: https://www.statista.com/study/115921/understanding-gen-z-consumers-in-emerging-asian-markets/ [accessed 10 July 2024]

(Statista,2023)

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Understanding Gen Z consumers in emerging Asian markets | Statista

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Understanding Gen Z consumers in emerging Asian markets - Get the report with graphs and tables on statista.com!

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Problem:

Lack of revenue being generated in the Asia-pacific region.

Core Solution:

Looking at the performance of the current MK stores in India and recommend ways to change them in order to grow their presence in India.

range of solutions:

Celebrity endorsements

live shopping

fashion shows

TV Adverts

Social media advertising

AI in stores - enhance customer experience

Key Stakeholders:

Michael Kors

Indian Consumer

potential celebrity endorsements

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Email: ben@bendpk.com

Questions:

1. How would you describe Michael Kors current presence in Asia?

320 stores in Asia

2. Do you think Michael Kors focus heavily on America, in terms of marketing?

3. do you think readjusting their marketing strategy towards Asia would help grow their presence amongst the consumer?

4. What is Michael Kors most successful product category?

footwear womans - activewear.

5. Does Michael Kors AI in stores? such as virtual try on and visual product displays.

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Michael Kors AW24 New York [photograph]. 2024. Available at: Image Library & Design Resources (wgsn.com) [date accessed 8 May]

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Sustainability:

looking for ways to reduce their carbon footprint while also ensuring their customers are still getting the quality they expect.

changes in their manufacturing processes.

'Kors Loves' logo will be to represent products that are:

crafted from at least 50% environmentally preferred materials.

made with leather from certified tanneries.

works with the united nations world food programme to combat hunger.

JONES, Olivia. 2023. ‘Michael Kors Focuses on Sustainability. How Is the Brand Changing Its Standards?’ Watchard.com [online]. Available at: https://watchard.com/posts/michael-kors-focuses-on-sustainability [accessed 19 Jun 2024].

(Jones, 2023)

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News

Olivia Jones

Olivia's main passion is fitness. She believes comfort and fashion can go hand in hand. According to her, even sports shoes can be stylish. A fashion watch complements her every outfit.

16 Feb 2023

The term "sustainability" is becoming increasingly prevalent in the watch industry. Many manufacturers are altering their operations to reduce their carbon footprint. While this trend has been mainly observed within the watchmaking-specific sector, fashion brands like Michael Kors are also adopting a similar approach to changing standards.

Michael Kors' response to environmental concerns

Given the ongoing discourse regarding the detrimental effects of the fashion industry on the environment, Michael Kors has taken a different approach to address the issue. The brand is seeking ways to decrease their carbon footprint while also ensuring the quality their customers expect. They have successfully implemented changes to their manufacturing process, which will significantly impact the environment. As a company committed to designing with sustainability in mind, they have introduced the "Kors Loves" logo to represent products:

are crafted from at least 50% environmentally preferred materials, such as recycled fibers and organic fabrics, or

made with leather from certified tanneries that meet the highest standards of environmental performance, including tanneries recognized by the Leather Working Group.

The brand points out that its sustainability extends beyond the materials the brand uses in its products. The company is socially responsible and works in partnership with the United Nations World Food Programme to combat hunger.

Sustainability and Michael Kors fashion watches

We are pleased to see that manufacturers are taking a responsible approach towards the production of their devices. As an online retailer, we are delighted to expand our product range to include watches that adhere to the principles of sustainability. The question that arises is how Michael Kors will ensure sustainability in its watches. While it is only speculation at this point, it is likely that the "Kors Loves" logo will appear on watches with leather straps. Nonetheless, what is unequivocal is the brand's commitment to utilizing high-quality materials. The majority of Michael Kors watches are crafted from stainless steel, a material that can be almost entirely recycled.

Olivia Jones

Olivia's main passion is fitness. She believes comfort and fashion can go hand in hand. According to her, even sports shoes can be stylish. A fashion watch complements her every outfit.

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Michael Kors focuses on sustainability. How is the brand changing its standards?

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Michael Kors introduces eco-solutions into the manufacturing process to ensure that its products are sustainable. Find out more.

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Insufficient presence in Asia

Michael Kors are the least well known brand in Asia, in comparison to rival brands such as LVMH.

ADMIN. 2022. ‘Michael Kors Swot Analysis – SWOT Analysis of Michael Kors’. Business Marketing Strategy [online]. Available at: https://bsmarketingstrategy.com/michael-kors-swot-analysis/#Strengths_of_Michael_Kors_8211_Michael_Kors_SWOT_analysis [accessed 18 Jun 2024].

(Admin, 2022)

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Michael Kors SWOT analysis - SWOT analysis of Michael Kors: Michael Kors Holding Private Limited is a brand of designer accessories and sportswear that is owned by Michael Kors, the well-known creator of Michael Kors. The label sells clothes, accessories jewelry, perfumes, and other items for men and women. The fashion house first began operation in the year 1981. It was founded beginning with Michael Kors women's collection. Before that, Kors was the most sought-after creator at French Boutique Lothar from which he launched his first collection. Although Kors is enrolled in an advanced program at the fashion institute of Technology and decided it was time to experiment with his own style, and walked out of the program after one year.

The fashions of Kor that were high on elegantness were noticed by the likes of celebrities such as Barbara Walker who becomes his regular client. Since then, it was impossible to stop him. In the year 2014, Michael Kors Holdings Private Limited was founded. Michael Kors Holdings Private Limited with a number of high-profile clients including Michelle Obama, Heidi Klum, Jennifer Lopez, and Emma Roberts. The company's turnover surpassed 1 billion USD in the year 2014 and has seen a steady increase since then.

Michael Kors fun facts: Michael Kors is name checked by artists including Nicki Minaj, Drake, Big Sean and Pusha T in some of their biggest hits.

About Michael Kors - SWOT analysis of Michael Kors

[wp-svg-icons icon="office" wrap="I"] Company: Michael Kors

[wp-svg-icons icon="user" wrap="I"] CEO: John D. Idol

[wp-svg-icons icon="user" wrap="I"] Founder: Michael Kors

[wp-svg-icons icon="calendar" wrap="I"] Year founded: 1981

[wp-svg-icons icon="location-2″ wrap="I"] Headquarters: New York, US

[wp-svg-icons icon="stats" wrap="I"] Annual Revenue: USD$4.71 billion

[wp-svg-icons icon="bars" wrap="i"] Profit | Net income: USD$839.1 million

[wp-svg-icons icon="users" wrap="I"] Number of employees: 3306

[wp-svg-icons icon="pie" wrap="i"] Products & Services: Men's and women's ready-to-wear | Accessories | Watches | Jewellery | Footwear | Fragrance
[wp-svg-icons icon="globe" wrap="I"] Website: www.michaelkors.global
Michael Kors Competitors

[wp-svg-icons icon="pacman" wrap="I"] Competitors: Coach | | Kate Spade | Tommy Hilfiger | Louis Vuitton | Burberry | Tory Burch | J. Hilburn | Pepe Jeans

SWOT analysis of Michael Kors - Michael Kors SWOT analysis

SWOT Analysis Of Michael Kors is brand-based. SWOT Analysis of Michael Kors evaluates the brand's strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Michael Kors's SWOT Analysis. Below is the detailed SWOT Analysis of Michael Kors.

Let's talk about Michael Kors's SWOT assessment.

Strengths of Michael Kors - Michael Kors SWOT analysis

The presence in many domains of fashion: Michael Kors is a brand that can be found in the majority of categories of casual clothes. The range of products includes clothing watches, jewelry bags, shoes, and handbags for women and men. Michael Kors is also popular for their casual jackets and semi-casual party clothing.

A strong presence on social media: Michael Kors enjoys an active profile on the social media platforms such as Facebook as well as Twitter. The brand has a total of 18 million followers all over the world and has an increase of 18% per year. It is engaging the public about the brand via social media marketing campaigns. They are also creating social media impressions for their ramp shows as well as streaming life on their social media sites.

Multi-channel Distribution method: In addition to brick-and-mortar retailers, the brand can also be purchased on the internet. The shopping experience on the internet is enhanced to give customers the impression of buying from a physical store. From the moment a user enters the shopping platform, through the moment when he is browsing for items until the moment when he leaves, Kors has been careful about creating what's referred to as a multichannel experience.

The celebrity clients: Michael Kors has a lengthy list of celebrities and some of them are regularly featured on his runway shows, as well as on red carpet events. A few of his regular clients are Jennifer Lopez, Emma Roberts, Michelle Obama, and Natalie Portman. The celebrities regularly wear Kor outfits to many award ceremonies as well as red carpet occasions.

Positioning: Kor positions his outfits to be the perfect outfits for women of any age, any nation who is stylish. The clothes are created for the urban market and keep the fashions of market trends in mind. the fashion industry in the back of their minds. Through a clear positioning and fashion-conscious style, the business has been able to conquer the market with a massive size.

Weaknesses of Michael Kors - SWOT Analysis Of Michael Kors

Insufficient visibility and poor presence in Asia: In comparison to rival brands such as Louis Vuitton and Gucci, Michael Kors is the least well-known brand in Asia. Countries such as India and China provide the potential for a massive future for luxury products. The future growth potential of the region is estimated at 100 billion over the coming decade.

The market is niche: Luxury brands like Michael Kors are targeted at high net-income customers. This is why it is crucial that the clothing is personalized and the styles aren't duplicated. Furthermore, it's difficult for the business to concentrate on the right amount of merchandise and is unable to afford to cut costs.

Management of critics: Michael Kors has received lots of criticism over the repeating patterns as well as the repeated use of colors and fabrics. The criticisms that spread via social media resulted in much negative publicity for Michael Kors.

Opportunities of Michael Kors - Michael Kors SWOT analysis

Examining new market: Michael Kors is not well-known in Asia. Countries such as India or China provide a vast future opportunity for luxury goods. The potential of the area is about 100 billion dollars over the next 10 years. The company must look at emerging markets to expand its business and achieve higher quantities.

Kids' wear: Today especially in urban markets, there is an increasing market for kids ' clothing. Michael Kors has a strong presence in both men's and women's designer clothing and can utilize the same platform to market their designer kid's wear and accessories.

Threats of Michael Kors - SWOT analysis of Michael Kors

Competition: The major competitors for Michael Kors are Gucci, Dolce & Gabbana, Tommy Hilfiger, and many more.

This is the SWOT analysis of Michael Kors. Please let us know if you have additional suggestions to add.

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Michael Kors SWOT analysis - SWOT analysis of Michael Kors

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Michael Kors SWOT analysis - SWOT analysis of Michael Kors: Michael Kors Holding Private Limited is a brand of designer accessories and sportswear that is owned by Michael Kors, the well-known creator of Michael Kors. The label sells clothes, accessories jewelry, perfumes, and other items for men and women.

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Artificial Intelligence:

first retailer to use 'shopping muse' on their US website.

shopping muse recreates the in-store experience by translating consumers colloquial language into tailored product recommendations, allowing consumers to quickly find the perfect look.

a personalised approach, like this, can increase both shopper satisfaction and revenue

44% of consumers are somewhat interested in adding AI technologies to their shopping experiences.

69% generation Z consumers interested

54% bridge millennials/millennials interested.

more than 3/4 consumers have gotten AI powered product recommendations online.

44% consumers would be happy shopping in stores without digital assistance.

PYMNTS. 2024. Michael Kors offers customers MasterCard’s AI-powered ‘muse’ [online]. Available at: https://www.pymnts.com/news/retail/2024/michael-kors-offers-customers-mastercard-ai-powered-shopping-assistant-muse/ [accessed 19 Jun 2024].

(Pymnts. 2024)

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Fashion retailer Michael Kors adopted Mastercard 's artificial intelligence-powered shopping assistant.

The retailer is the first to make Shopping Muse available to its customers via an integration with its U.S. website, the companies said in a news release Monday (June 10).

"With summer adventures and wedding season on the horizon, Michael Kors' Shopping Muse integration comes at just the right time," the release said. "Shopping Muse recreates the in-store experience by translating consumers' colloquial language into tailored product recommendations, meaning fashionable consumers can quickly find the perfect look that matches their inquiry as well as their demonstrated behavior and preferences."

This sort of personalized approach can increase both shopper satisfaction and revenue, with Mastercard's initial tests finding that Shopping Muse generated around a 15% to 20% higher conversion rate than traditional search queries, per the release.

Mastercard's Dynamic Yield introduced the AI-powered Shopping Muse in November. Its suggestions are based on a consumer's "profile, intent and affinity." It uses its personalization capabilities to make recommendations via the retailer's keywords, visual cues and "the consumer's own affinity," Mastercard said at the time of the launch.

The PYMNTS Intelligence report " AI-Enabled Payments Enhance Customer Options " revealed that 44% of consumers are at least somewhat interested in adding AI technologies to their shopping experiences. However, that share climbs to include more than half for younger generations, with 69% of Generation Z consumers and 54% of millennials and bridge millennials reporting interest.

In addition, the PYMNTS Intelligence study " Consumer Inflation Sentiment Report: Consumer Interest in Artificial Intelligence " found that more than three-quarters of consumers have gotten AI-powered product recommendations online.

A third PYMNTS Intelligence study, " 2024 Global Digital Shopping Index: U.S. Edition ," created in collaboration with Visa Acceptance Solutions , found that 44% of consumers would be happy shopping in stores without digital assistance.

Another AI effort in the apparel space includes last week introducing , which uses AI to streamline the often-cumbersome process of determining size when shopping online.
For all PYMNTS retail and AI coverage, subscribe to the daily Retail and AI Newsletters.

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Michael Kors Offers Customers Mastercard's AI-Powered 'Muse'

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Fashion retailer Michael Kors adopted Mastercard's artificial intelligence (AI)-powered shopping assistant.

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Supply chains

geopolitical instability has impacted supply chains.

This poses challenges for the luxury fashion industry.

Imposition of:

tariffs

border closures

logistical disruptions

Brands need to rethink supply chain strategies.

Consumer Behaviour:

shifting economic landscapes and uncertainties have encourages consumers to become more value-conscious.

Shifting

OPULENT. 2024. ‘Luxury Fashion & Geopolitical Shifts: A 2024 Outlook’. The Opulent [online]. Available at: https://the-opulent.co/2024/02/21/luxury-fashion-geopolitical-shifts-a-2024-outlook/ [accessed 20 Jun 2024].

(Opulent,2024)

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As these geopolitical upheavals unfold, they cast a long shadow over the luxury fashion industry, affecting everything from supply chain logistics to international consumer markets. Sanctions, trade disputes, and fluctuating international relations are not just abstract geopolitical issues; they have tangible impacts on the availability, pricing, and demand for luxury goods. This scenario demands a strategic recalibration from luxury brands, urging them to reassess their global operations and market approaches. The industry's response to these challenges will not only test its resilience but also its ability to innovate and sustain growth in a rapidly changing world.

The Luxury Fashion Industry's Response

The luxury fashion industry's response to geopolitical instability has been multifaceted, showcasing adaptability and strategic foresight. Leading brands have recalibrated their approaches, shifting focus towards markets showing resilience and growth potential amidst global uncertainties. For instance, despite challenges in Western markets, luxury brands have intensified their focus on Asia, particularly China and India, where consumer confidence and spending power remain robust. Louis Vuitton and Chanel, among others, have expanded their retail presence in these regions, capitalizing on local consumer enthusiasm for luxury goods. This strategic pivot is backed by data from Bain & Company, which reports a continued growth trajectory in Asia's luxury market, despite global headwinds.

Moreover, brands are leveraging digital innovation to mitigate the impact of geopolitical tensions on traditional retail and supply chains. The adoption of blockchain technology for supply chain transparency and the enhancement of e-commerce platforms have enabled brands like Gucci and Prada to maintain consumer trust and streamline operations. These brands have also diversified their manufacturing bases, reducing dependency on any single region. This approach not only addresses logistical challenges posed by international disputes but also aligns with the growing consumer demand for sustainability and ethical production practices.

Impact on Supply Chains

Geopolitical instability has significantly impacted global supply chains, posing unique challenges for the luxury fashion industry. The imposition of tariffs, border closures, and logistical disruptions have compelled brands to rethink their supply chain strategies. Notably, Hermes and Burberry have been at the forefront of developing regional manufacturing hubs to circumvent trade barriers and reduce lead times. By investing in artisanal workshops in strategic locations, these brands ensure a consistent supply of high-quality products while fostering local craftsmanship.

The shift towards local production is part of a broader trend towards supply chain resilience. Luxury brands are increasingly adopting nearshoring and reshoring strategies, moving production closer to key markets to enhance flexibility and response times. This approach has been particularly beneficial in mitigating the risks associated with reliance on distant suppliers, as highlighted by the recent disruptions in the global shipping industry.

Additionally, the luxury fashion sector is harnessing advanced technologies to enhance supply chain visibility and efficiency. RFID (Radio Frequency Identification) technology and AI-driven forecasting tools are being employed to better predict demand patterns and manage inventory levels. For example, Moncler has implemented an RFID-based system to track products throughout the supply chain, significantly improving inventory accuracy and reducing waste. These innovations not only address the immediate challenges posed by geopolitical instability but also pave the way for a more sustainable and efficient supply chain model in the luxury fashion industry.

Consumer Behavior Shifts

The ripple effects of geopolitical instability have significantly influenced consumer behavior within the luxury fashion sector. Shifting economic landscapes and uncertainties have prompted consumers to become more discerning and value-conscious, even within the luxury market. Brands like Bottega Veneta and Loewe have observed a surge in demand for timeless, high-quality pieces over trendy, fast-fashion items. This shift signifies a long-term investment mindset among luxury shoppers, prioritizing sustainability and durability.

Digital engagement has also seen a remarkable uptick. With travel restrictions and retail disruptions, consumers have increasingly turned to online platforms for their luxury purchases. For example, Farfetch reported a 60% increase in online sales in the first quarter of 2024, highlighting the growing comfort and preference for digital luxury shopping experiences. This digital shift has prompted luxury brands to enhance their online presence, offering virtual try-on services, personalized online shopping experiences, and exclusive online releases to engage their audience.

Moreover, the luxury resale market has gained momentum, reflecting a heightened consumer awareness around sustainability and value. Platforms like Vestiaire Collective and The RealReal have reported record growth, as consumers seek both to extend the lifecycle of luxury items and find value in pre-owned goods. This trend underscores a broader shift towards conscious consumption within the luxury sector, with consumers weighing the environmental and ethical implications of their purchases more heavily than before.

Strategic Moves for Luxury Brands

In response to these evolving challenges and consumer expectations, luxury brands are adopting a series of strategic initiatives to safeguard their growth and relevance. Diversification has emerged as a key strategy, with companies expanding into new product lines, categories, and services to capture a wider audience. For instance, Fendi's foray into high-end home decor and collaboration with interior design brands has opened new revenue streams while enhancing brand prestige.

Innovation in customer experience is another critical area of focus. Augmented reality (AR) and virtual reality (VR) technologies are being leveraged to offer immersive shopping experiences. Gucci's AR try-on app and Burberry's social retail store in Shenzhen, which integrates interactive digital content with physical retail, exemplify how luxury brands are using technology to create novel customer experiences that bridge the physical and digital worlds.

Luxury brands are also intensifying their efforts in sustainability and ethical fashion, recognizing these as imperative to consumer loyalty and brand integrity. Stella McCartney has long been a leader in this arena, with its commitment to using eco-friendly materials and promoting circular fashion. Similarly, Prada's Re-Nylon initiative, which converts plastic waste from oceans into high-quality yarn for its products, demonstrates how luxury brands are innovating to meet consumer demand for sustainability.

Finally, strategic partnerships and collaborations have become vital for luxury brands aiming to stay relevant and resonate with younger audiences. Louis Vuitton's collaboration with streetwear brand Supreme is a prime example, blending luxury with street culture to create highly coveted collections that appeal to a diverse consumer base. These collaborations not only generate buzz and excitement but also allow luxury brands to tap into new markets and demographics.

Looking Ahead

As the luxury fashion industry continues to navigate through the complexities of geopolitical instability, the future holds a blend of challenges and opportunities. Innovation, sustainability, and digital transformation are set to define the next era of luxury fashion. Brands that can adapt to the evolving landscape while staying true to their heritage and values are poised for success.

One emerging trend is the integration of technology not just in operations and customer engagement, but also in product development. Smart luxury, where fashion meets functionality through tech-integrated products, is gaining traction. For example, Ralph Lauren introduced a smart jacket equipped with heating technology for the Winter Olympics, demonstrating how luxury brands can lead in innovation while enhancing customer experience.

Sustainability will continue to be a major focus, with an emphasis on circular fashion. More brands are expected to follow in the footsteps of pioneers like Stella McCartney, exploring new materials and processes that minimize environmental impact. The Global Fashion Agenda and The Boston Consulting Group predict that circularity in fashion will accelerate, with initiatives like recycling programs, sustainable sourcing, and resale platforms becoming industry standards.

Moreover, the digital landscape will keep evolving, offering new avenues for engagement and sales. Virtual reality (VR) fashion shows and augmented reality (AR) fitting rooms could become more commonplace, providing immersive experiences that transcend geographical boundaries. Digital fashion and NFTs are also opening up innovative revenue streams and ways for brands to engage with a tech-savvy audience.

In conclusion, the luxury fashion industry's resilience and innovative spirit are likely to drive its adaptation and growth in the face of ongoing geopolitical instability. Brands that are agile, forward-thinking, and committed to sustainability and digital excellence will lead the way, shaping a future where luxury fashion not only survives but thrives.

Tips & Resources

Stay Informed on Geopolitical Changes: Follow reliable news sources and industry reports like the McKinsey State of Fashion and Bain & Company's Luxury Goods Worldwide Market Study for the latest insights on geopolitical impacts on luxury fashion.

Supply Chain Diversification: Consider diversifying your manufacturing and supply chain strategies. Tools like Sourcemap can help brands trace their supply chains and identify potential risks.

Digital Transformation Resources: Platforms such as Shopify Plus and Magento offer robust e-commerce solutions that can help luxury brands enhance their online presence and sales capabilities.

Sustainability Practices: Look into the Sustainable Apparel Coalition for guidelines on improving sustainability in fashion. The Higg Index is a useful tool for assessing your environmental and social labor impacts.

Innovative Customer Engagement: Explore AR and VR solutions from companies like Augment and Virtualist to offer immersive shopping experiences. These technologies can help bridge the gap between online and physical retail in innovative ways.

Networking and Collaborations: Engage with industry forums and fashion councils such as the Council of Fashion Designers of America (CFDA) for networking opportunities and potential collaborations that can elevate brand visibility and relevance.

Join the Discussion: Your Insights on Luxury Fashion's New Era

We hope you found our insights into the future of luxury fashion amidst geopolitical instability enlightening and thought-provoking. Our goal is to not only inform but also create a platform for dialogue and exchange. If this article resonated with you, we encourage you to like it and share your thoughts in the comments section below. Whether it's your perspective on the strategies discussed, experiences with shifting consumer behaviors, or additional resources and tips for navigating these challenging times, your input is invaluable to us. Let's foster a community where ideas flourish and insights lead to action. Join the conversation and let us know how you see the luxury fashion landscape evolving.

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Luxury Fashion & Geopolitical Shifts: A 2024 Outlook

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As these geopolitical upheavals unfold, they cast a long shadow over the luxury fashion industry, affecting everything from supply chain logistics to international consumer markets. Sanctions, trade disputes, and fluctuating international relations are not just abstract geopolitical issues; they have tangible impacts on the availability, pricing, and demand for luxury goods.

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Political

Trade Policies

Government Regulations

Geopolitical Factors

Economic

Consumer income

Globalisation

Social

Lifestyle Trends

Cultural Values

Consumer Behaviour

Technology

E-Commerce

Social Media

Artificial Intelligence

Data Analytics

Legal

Advertising & marketing laws

counterfeit products

Trade regulations

Environmental

Natural Resource scarcity

consumer demand for sustainable products

BUSCH, Thomas. 2023. ‘Pestle Analysis of Luxury Goods Industry’. AcademiaAnalysis [online]. Available at: https://academiaanalysis.com/pestle-analysis-of-luxury-goods-industry/ [accessed 19 Jun 2024].

(Busch, 2023)

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AcademiaAnalysis - Pestle, SWOT, Value Chain & Stalkholder Analyzer

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The luxury goods industry refers to the market of high-end, expensive and exclusive products that are often associated with prestige, quality, and status. This industry includes a range of products such as fashion accessories, clothing, jewelry, cosmetics, perfumes, watches, and cars.

Luxury goods are typically marketed towards affluent consumers who are willing to pay a premium for products that are deemed luxurious, rare, and exclusive. The industry is highly competitive and constantly evolving, with new trends emerging and existing brands adapting to changing consumer demands. The global luxury goods market has seen significant growth over the past decade, driven by the increasing wealth of emerging markets, the rise of e-commerce, and the growing interest in sustainable and ethical luxury.

Political Factors

The luxury goods industry is influenced by various political factors that can affect its operations and growth. Here are some of the key political factors that can impact the luxury goods industry:

Trade Policies: International trade policies and regulations, including tariffs and trade agreements, can significantly impact the luxury goods industry's exports and imports, which can affect the industry's profitability and growth.

Government Regulations: Government regulations such as taxes, environmental laws, and labor laws can impact the production, distribution, and sale of luxury goods.

Political Stability: Political stability is critical for the luxury goods industry as it helps maintain a favorable business environment for the industry's growth.

Economic Policies: Economic policies such as interest rates, inflation, and government spending can impact consumer demand for luxury goods.

Intellectual Property Protection: Strong intellectual property laws and enforcement are essential for protecting the luxury goods industry's trademarks, designs, and patents from imitation and counterfeiting.

Geopolitical Factors: Geopolitical factors such as international conflicts, political tensions, and civil unrest can disrupt supply chains, affect consumer behavior, and impact the luxury goods industry's growth.

Government Spending: Government spending on luxury goods can impact the industry's profitability, especially in countries where the government is a significant consumer of luxury goods.

Luxury goods industry is highly sensitive to political factors, and companies in this industry need to monitor and adapt to changes in political environments to remain competitive and profitable.

Economic Factors

The luxury goods industry is a multi-billion dollar global market that encompasses a range of products and services, from high-end fashion and jewelry to luxury cars and yachts. The industry is influenced by a variety of economic factors, including:

Consumer Income: Luxury goods are typically purchased by consumers with high disposable incomes. As such, the state of the economy and overall income levels can have a significant impact on the demand for luxury goods. In times of economic uncertainty or recession, consumers may cut back on their spending on luxury items.

Exchange Rates: The prices of luxury goods are often influenced by exchange rates. A weak currency can make luxury goods more expensive for foreign buyers, while a strong currency can make them more affordable. As such, fluctuations in exchange rates can impact the demand and profitability of luxury goods.

Globalization: The rise of globalization has expanded the market for luxury goods. Emerging markets in countries such as China, India, and Brazil have created new opportunities for luxury brands. However, the impact of globalization is not uniform across all regions, as cultural and economic differences can affect the demand for luxury goods in different markets.

Supply Chain Costs: The cost of producing luxury goods can be high, due to the use of high-quality materials and skilled labor. Fluctuations in the cost of raw materials, such as precious metals and gemstones, can impact the profitability of luxury goods manufacturers and retailers.

Brand Perception: The success of luxury goods brands often depends on their reputation for quality, exclusivity, and prestige. The economic climate can impact how consumers perceive these brands, with concerns about sustainability and ethical practices becoming increasingly important to some consumers. As such, luxury goods brands must adapt to changing consumer attitudes and preferences to maintain their market position.

Luxury goods industry is impacted by a range of economic factors, and understanding these factors is essential for luxury goods manufacturers and retailers to succeed in a highly competitive global market.

Social Factors

The luxury goods industry is influenced by a variety of social factors. Here are some of the key ones:

Cultural values and perceptions: In many cultures, owning luxury goods is seen as a status symbol and a sign of wealth. The perception of luxury goods varies across cultures, and it is important for luxury brands to understand these differences.

Lifestyle trends: Changes in consumer lifestyles can impact the demand for luxury goods. For example, the rise of athleisure wear and casual fashion has led to a decline in demand for formal luxury clothing.

Demographic changes: Changes in demographics, such as the aging population, can impact the demand for luxury goods. As people age and become more financially stable, they may be more likely to purchase luxury items.

Social media influence: Social media has become a powerful tool for promoting luxury goods and creating demand. Influencers and celebrities can play a significant role in promoting luxury brands to their followers.

Environmental and social responsibility: Consumers are increasingly concerned about the environmental and social impact of the products they purchase. Luxury brands need to address these concerns to maintain their reputation and appeal to socially conscious consumers.

Consumer behavior and purchasing habits: Consumer behavior and purchasing habits can influence the demand for luxury goods. For example, the rise of e-commerce has made it easier for consumers to purchase luxury items online, while the trend towards experiential shopping has led to an increase in luxury stores offering unique experiences and events.

Technology Factors

The luxury goods industry is heavily influenced by technology, both in terms of production and distribution. Here are some of the key technology factors that are currently impacting the industry:

E-commerce: The rise of e-commerce has changed the way consumers purchase luxury goods. Online marketplaces like Net-a-Porter, Farfetch, and MyTheresa have made luxury goods more accessible to a wider audience. Consumers can now purchase luxury goods from the comfort of their own homes, making the buying process much more convenient.

Social media: Social media has become a crucial marketing tool for luxury brands. Platforms like Instagram, Facebook, and Twitter provide brands with a way to connect with consumers and promote their products. Influencers and celebrities can also help to drive sales by endorsing luxury goods on social media.

Manufacturing technology: Technology has revolutionized the manufacturing process for luxury goods. New materials and production techniques have made it possible to create high-quality products more efficiently. For example, 3D printing can be used to create intricate designs and reduce waste in the production process.

Data analytics: Luxury brands are using data analytics to gain insights into consumer behavior and preferences. This allows them to tailor their marketing and product offerings to better meet the needs of their customers.

Artificial intelligence: AI is being used in various ways in the luxury goods industry. Chatbots and virtual assistants can help to improve the customer experience, while machine learning algorithms can be used to analyze customer data and improve sales forecasting.

Technology is playing a critical role in shaping the future of the luxury goods industry. Brands that are able to effectively leverage technology will have a significant advantage in the market.

Legal Factors

The luxury goods industry is subject to a range of legal factors that can impact its operations and profitability. Some of the key legal factors that affect the luxury goods industry include:

Intellectual property protection: Luxury brands rely heavily on their brand identity and product designs to differentiate themselves from competitors. Intellectual property laws play a crucial role in protecting the brand's trademarks, copyrights, patents, and other proprietary information.

Counterfeit products: Counterfeit goods pose a significant threat to the luxury goods industry. Counterfeiters often copy the designs of luxury brands and sell fake products at lower prices. To protect their intellectual property rights, luxury brands must work with law enforcement agencies to identify and shut down counterfeit operations.

Environmental regulations: Many countries have strict environmental regulations that apply to the production, packaging, and distribution of luxury goods. Brands must ensure that they comply with these regulations to avoid fines or legal penalties.

Labor laws: Luxury brands often manufacture their products in countries with lower labor costs. However, they must comply with local labor laws and regulations, including minimum wage, overtime, and workplace safety standards.

Trade regulations: The luxury goods industry is subject to various trade regulations, including import and export restrictions, tariffs, and trade agreements. Brands must stay up to date with changes in trade regulations to ensure that they can continue to import and export their products.

Advertising and marketing laws: Luxury brands often invest heavily in advertising and marketing campaigns to promote their products. They must comply with laws and regulations related to advertising, including truth-in-advertising laws, product labeling, and endorsements.

Legal factors that impact the luxury goods industry are complex and multifaceted. Brands must work closely with legal experts and government agencies to ensure that they comply with all relevant laws and regulations.

Environmental Factors

The luxury goods industry can be affected by various environmental factors:

Climate change: Climate change can impact the availability of raw materials and the production processes of luxury goods. Extreme weather conditions can also disrupt supply chains and distribution networks.

Natural resource scarcity: The luxury goods industry relies heavily on natural resources such as leather, fur, and precious metals. The depletion of these resources due to overuse or environmental degradation can affect production and increase costs.

Environmental regulations: Governments worldwide are increasingly implementing regulations to protect the environment. These regulations can impact the production processes, packaging, and transportation of luxury goods, and also affect the disposal of waste products.

Consumer demand for sustainable and eco-friendly products: Consumers are becoming more conscious about the environmental impact of the products they buy, and are increasingly demanding sustainable and eco-friendly products. This trend is leading luxury brands to adopt more sustainable practices and materials, which can increase costs.

Environmental activism: Environmental activism can put pressure on luxury brands to adopt more sustainable and ethical practices, which can impact the reputation and financial performance of companies that do not comply.

Luxury goods industry is facing increasing pressure to adopt sustainable practices and reduce their environmental impact, while still maintaining high standards of quality and exclusivity.

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PESTLE Analysis of Luxury Goods Industry

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The luxury goods industry refers to the market of high-end, expensive and exclusive products that are often associated with prestige, quality, and status.

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‘Country Comparison Tool’. 2024. Hofstede Insights [online]. Available at: https://www.hofstede-insights.com/country-comparison-tool?countries=india [accessed 23 Jul 2024].

(Country comparison tool. 2024)

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Please select a country in the dropdown menu below to see the values for the 6 dimensions. After a first country has been selected, a second and even a third country can be chosen to be able to see a comparison of their scores.

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Majority of fashion trends tend to repeat themselves every 20 years.

However trends today tend to be much shorter and less predictable than in the past.

KERR, Ben. 2023. ‘Understanding Fashion Trend Life Cycles: The 5 Stages That Will Help Your Understand Why There Are Ups and Downs’. The Fashion Starter [online]. Available at: https://thefashionstarter.com/fashion-trend-life-cycles/#:~:text=There%20is%20no%20definitive%20answer%20to%20how%20often,shorter%20and%20less%20predictable%20than%20in%20the%20past. [accessed 26 Jun 2024].

(Kerr,2023)

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The fashion industry, an ever-evolving spectacle of style and innovation, operates on a cyclical rhythm, with trends rising and falling like waves. These waves are the lifeblood of the industry, guiding designers, retailers, and consumers alike.

At the core of this dynamic are the five stages of a fashion trend's life cycle: introduction, rise, peak, decline, and obsolescence.

1. The Birth and Introduction

The introduction stage is where the magic begins. It's the genesis of a new style, often born in the creative studios of major fashion houses or the sketchbooks of visionary designers.

These trendsetters, including icons like Diane von Furstenberg, play a pivotal role in shaping the future of fashion. In this nascent phase, new styles are usually exclusive, presented in limited quantities, and often command high prices.

This exclusivity creates a sense of allure and desirability, setting the stage for the trend's growth. Fashion weeks around the globe, from Paris to Milan, serve as platforms where these new styles are showcased. The influence of these events is profound, as they often set the tone for the narrative in the upcoming season.

2. Gaining Momentum

As it enters the rise stage, it evolves from being a novel idea to a growing movement. This is when the trend starts to gain visibility and acceptance among a broader audience. Influencers, celebrities, and fashion-forward individuals play a crucial role in this phase, acting as amplifiers of the trend.

When a style is adopted by a popular figure or seen on a red carpet, it gains credibility and desirability among the masses. During the rise stage, the trend starts becoming more accessible.

Retailers and brands, observing the growing interest, begin to incorporate the trend into their collections. This is particularly evident in fast-fashion brands, which are adept at quickly translating high-fashion concepts into affordable products.

The Impact of Fast Fashion

It has significantly impacted how quickly trends rise. Brands like Zara and H&M can take a trend from the runway to retail in a matter of weeks, fueling its momentum.

This rapid turnaround feeds into the consumer's desire for the latest styles, but it also leads to questions about sustainability and the ethical implications of such quick production cycles.

3. Peak Popularity

The peak stage is the zenith of its life cycle. This is when the the specific piece is at its most popular, seen everywhere from high-street stores to office spaces.

The style is no longer exclusive; it's now widely available across various price points, making it accessible to a broad spectrum of consumers. During this stage, the market experiences a saturation of the trend.

It becomes a common sight in advertisements, editorials, and social media feeds. The peak stage represents the point where the trend has the most significant impact on the market, influencing consumer buying patterns and dictating the direction of various collections.

Market Demand and Analytics

Understanding market demand is crucial during the peak stage. Brands and retailers employ sophisticated analytics tools, like AI and Heuritech fashion analysis, to gauge consumer interest and manage inventory. This data-driven approach helps in maximizing profits while ensuring that the market is not oversaturated too quickly.

4. Decline

As with all things, what goes up must come down. The decline stage follows the peak, characterized by a gradual loss of popularity. This shift can be attributed to various factors, including market oversaturation, consumer fatigue, or the emergence of new trends.

During the decline phase, consumers begin to move away from the trend, seeking fresher styles. Retailers may reduce prices to clear out inventory, and the trend slowly starts disappearing from high-profile platforms.

This stage marks the beginning of the end for the trend, as it loses its relevance and appeal. Fast fashion plays a significant role in the acceleration of the decline stage. The rapid production and turnover of styles mean that consumers are constantly presented with new options, shortening the lifespan of any given trend.

5. Obsolescence

Obsolescence is the final stage of a trend's life cycle. In this phase, the trend is considered outdated, no longer fashionable or desirable. The style that once dominated wardrobes and store displays becomes a remnant of the past, often replaced by newer, more contemporary trends.

This stage reflects the transient nature of fashion, where today's must-haves become tomorrow's forgotten fads. However, the world is replete with examples of trends that have made remarkable comebacks.

Styles deemed obsolete can be revitalized, often with a modern twist, illustrating the cyclical pattern of the fashion world. This resurgence is sometimes driven by nostalgia, a longing for the aesthetics of a bygone era, or the reinterpretation of classic styles by new generations of designers and influencers.

Vintage and Retro Style

The concept of vintage and retro fashion plays a significant role in the resurrection of obsolete trends. As consumers become more conscious of sustainability and the environmental impact of fast fashion, there's a growing appreciation for timeless pieces and classic styles.

This shift has led to the revival of trends from previous decades, sometimes even blending elements from different eras to create a unique, eclectic look.

External Factors

Popular options is not only internal manifestations of designers' creativity but also the result of various external influences. These factors play a pivotal role in determining how it evolves through its life cycle, impacting everything from its introduction to its eventual obsolescence.

Social Media and Digital Influence

The digital era has revolutionized the fashion industry, particularly through the influence of social media. Platforms like Instagram, Pinterest, and TikTok have become key players in trendsetting.

Influencers and celebrities use these platforms to showcase new styles, instantly reaching millions of followers. This global exposure accelerates the adoption of trends, pushing them rapidly from introduction to peak stages.

Forecasting

Advancements in technology, especially in the realm of AI and data analytics, have transformed how trends are predicted and analyzed. Fashion brands now use sophisticated algorithms to analyze consumer behavior, social media trends, and even global socio-economic factors.

This data-driven approach aids in anticipating market demands, enabling brands to tailor their designs and strategies accordingly.

Celebrities and Influencers

Celebrities and influencers wield significant power in the fashion industry. Their public appearances, red carpet choices, and personal style can propel a trend into the spotlight. A single outfit worn by a high-profile celebrity can trigger a surge in demand, rapidly escalating a trend through the rise stage.

Global Events

Economic conditions and global events also influence the trends. In times of economic downturn, there's often a shift towards more practical and long-lasting choices.

Conversely, periods of prosperity may encourage more experimental and luxurious trends. Additionally, global events like the pandemic have led to shifts in fashion, such as the rise of comfortable home wear and a renewed focus on sustainability.

Cultural Shifts

Cultural movements and changing consumer values significantly impact fashion trends. As society becomes more aware of environmental issues, there's a growing demand for sustainable and ethically produced fashion.

This shift is leading to a rise in eco-friendly materials and practices in the fashion industry. Similarly, cultural trends like the body positivity movement influence the types of styles that become popular, promoting inclusivity and diversity in fashion.

FAQs

What is the rule of 5 in fashion?

The rule of 5 is a guideline for creating versatile and minimal wardrobes. It means that every new piece of clothing you buy should be able to create at least 5 different outfits with the items you already own.

What are the 3 R's of fashion?

The 3 R's of fashion are reduce, reuse, and recycle. They are principles for practicing sustainable and ethical fashion, by minimizing the amount of clothing you buy, extending the lifespan of your garments, and finding ways to repurpose or dispose of them responsibly.

What is trend vs cycles in fashion?

A trend is a general direction or movement of fashion that is popular for a certain period of time. A cycle is the process of how a trend emerges, grows, peaks, declines, and becomes obsolete over time.

Why is fashion cyclical?

Fashion is cyclical because it is influenced by various factors, such as culture, history, technology, media, and consumer behavior. These factors change over time and create new demands and preferences for fashion. Fashion also repeats itself because of nostalgia, inspiration, and innovation.

How often do trends cycle in fashion?

There is no definitive answer to how often trends cycle in fashion, as different trends have different lifespans and frequencies. However, some researchers have suggested that fashion trends tend to repeat themselves every 20 years, while others have observed that trends today are much shorter and less predictable than in the past.

Summary

The life cycle of a fashion trend mirrors our dynamic society, shaped by a wide range of external influences, encompassing social media dynamics to global cultural shifts. These factors consistently shape the fashion narrative, determining the ascent, dominance, and eventual decline of trends in the realm of style.

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Understanding Fashion Trend Life Cycles: The 5 Stages That Will Help Your Understand Why There Are Ups and Downs - The Fashion Starter

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Learn how fashion trends cycle through five stages: introduction, rise, peak, decline, and rejection. Discover what influences each stage.

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Competitive rivals

New Entrants

Majority of brands are looking to move into India as it is becoming more of a hotspot for luxury fashion.

Supplier Power

the more competition there is, the more likely it is for suppliers to increase costs.

relationships with suppliers

Customer Power

understand what the consumer wants and needs.

Substitutes

A never ending risk, trends are always changing and it is important brands keep up with this to prevent customers looking else where.

other brands may also decide to release a jewellery collection inspired by Indian jewellery.

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Porter’s 5 Forces Explained and How to Use the Model

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Porter’s 5 Forces is a model that identifies and analyzes the competitive forces that shape every industry and helps determine an industry’s weaknesses and strengths.

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Mumbai, Maharashtra

Michael Kors Palladium - Mumbai

Lower Parel Mumbai

Mumbai 400013

Maharashtra

Michael Kors Mumbai CSI airport T2

New terminal -2, international departure SHA, Sahar, Andheri East

Mumbai 400099

Maharashtra

Michael Kors Mumbai

Maker maxity, bandra kurla complex

Mumbai 400051

Maharashtra

Delhi

IGI airport T3 new Delhi

International SHA Terminal 3, IGI Airport.

New Dehli 110037

Delhi

DLF emporio mall

4 Nelson Mandela Road

Vasant Kunj

New Delhi 110070

Delhi

West Bengal

Quest mall -33

Syed Amir Ali Avenue

Kolkata 700017

West Benga

Karnataka

UB city

Vittal Mallya Road

Bangalore 560001

Karnataka

Tamil Nadu

Chennai

Palladium

Velachery Road

Chennai 600042

Tamil Nadu

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Research Onion
JANSEN, Derek. 2023. ‘Saunders’ Research Onion Explained (+ Examples)’. Grad Coach [online]. Available at: https://gradcoach.com/saunders-research-onion/ [accessed 3 Jul 2024].

Data Collection Methods
GAILLE, Louise. 2020. ‘20 Advantages and Disadvantages of Survey Research’. Vittana.org [online]. Available at: https://vittana.org/20-advantages-and-disadvantages-of-survey-research [accessed 9 Jul 2024].

TEAM, Redaction. 2023. ‘14 Advantages and Disadvantages of Interviews’. Carlos Barraza [online]. Available at: https://barrazacarlos.com/advantages-and-disadvantages-of-interviews/ [accessed 16 Jul 2024].

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Buyer Power:

can be determined by factors such as

individual purchase quantity

cohesive behaviour of customers

number of customers

if customers are price sensitive

buyer power of Michael Kors is low.

Supplier Power:

a large chunk MK's sales is for footwear and apparel.

there are more suppliers in the industry then the number of buyers.

Meaning Michael Kors can obtain input materials at lower prices.

supplier power is quite powerful.

TEAM, MBA Skool. 2022. ‘Michael Kors Porter Five Forces Analysis’. MBA Skool [online]. Available at: https://www.mbaskool.com/five-forces-analysis/companies/18325-michael-kors.html#:~:text=Porter%E2%80%99s%20Five%20Forces%20Analysis%20of%20Michael%20Kors%20covers,buyers%2C%20bargaining%20power%20of%20suppliers%20and%20competitive%20rivalry. [accessed 25 Jun 2024].

(Team,2022)

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Michael Kors Porter Five Forces Analysis | MBA Skool

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Porter's Five Forces Analysis of Michael Kors covers the company's competitive landscape as well as the factors affecting its sector. The analysis focuses on measuring the company's position based on forces like threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers and competitive rivalry.

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Cash cows:

they sustain themselves from a cash flow perspective

brands should cash cows to their advantage for as long as possible.

typically leading products in mature markets

star:

generat3e high income but also consume large amounts of company cash.

should be invested in

Question marks:

questionable opportunities

typically grow faster but consumer large amounts of company resources

Should be analysed frequently and see if they are worth maintaining

HAYES, Adam. 2024. ‘Understanding the BCG Growth Share Matrix and How to Use It’. Investopedia [online]. Available at: https://www.investopedia.com/terms/b/bcg.asp [accessed 12 Aug 2024].

(Hayes.2024)

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What Is the BCG Growth Share Matrix?

The Boston Consulting Group (BCG) growth share matrix is a planning tool that uses graphical representations of a company's products and services to help the company decide what it should keep, invest more money in, or sell.

The company's offerings are plotted in a four-square matrix. The y axis represents the rate of market growth, and the x axis represents market share.

The BCG growth share matrix was introduced by the Boston Consulting Group in 1970.

Key Takeaways

Understanding the BCG Growth Share Matrix

The BCG growth share matrix breaks down products into four categories known as dogs, cash cows, stars, and question marks. Each category quadrant has its own set of unique characteristics.

Dogs (or Pets)

A company is considered a dog and should be sold, liquidated, or repositioned if its product has a low market share and is at a low growth rate. Dogs are found in the lower right quadrant of the grid.

Dogs don't generate much cash for the company because they have a low market share and little to no growth. They can turn out to be cash traps, tying up company funds for long periods, so they're prime candidates for divestiture.

Products that are in low-growth areas but for which the company has a relatively large market share are considered cash cows. The company should milk the cash cow for as long as it can.

Cash cows are seen in the lower left quadrant. They're typically leading products in mature markets.

These products often generate returns that are higher than the market's growth rate. They sustain themselves from a cash flow perspective. These products should be taken advantage of for as long as possible.

The value of cash cows can be easily calculated because their cash flow patterns are highly predictable. Low-growth, high-share cash cows should be milked for cash to reinvest in high-growth, high-share stars with high future potential.

Products that are in high-growth markets and that make up a sizable portion of that market are considered stars and should be invested in. Stars appear in the upper left quadrant.

Stars generate high income but also consume large amounts of company cash. A star eventually becomes a cash cow when the market's overall growth rate declines if it can remain a market leader.

Question Marks

Questionable opportunities are those in high growth rate markets but in which the company doesn't maintain a large market share. Question marks or problem children appear in the upper right portion of the grid.

Question marks typically grow fast but consume large amounts of company resources. Products in this quadrant should be analyzed frequently and closely to see if they're worth maintaining.

Limitations of the Matrix

The matrix is a decision-making tool. It doesn't necessarily take into account all the factors that a business must ultimately face. Increasing market share may be more expensive than the additional revenue gained from new sales. Product development can take years, so businesses must plan carefully for contingencies.

The matrix only classifies businesses as low and high, so it leaves midsize businesses out of the mix. Midsize companies often make up a big part of the market, so leaving them out means that the business environment isn't truly reflected.

The BCG matrix assumes that all businesses operate independently of each other, but that isn't always necessarily true. Certain players in the market, such as dogs, can end up giving others a boost-sometimes unintentionally.

Example of a BCG Growth Share Matrix

We can apply the growth matrix to many companies in the real world. Apple ( AAPL) is a great candidate. Let's take a look at the products Apple has on the market according to the matrix categories:

The company earned $383.28 billion in net sales in 2023, out of which almost $298.1 billion was attributed to its products section. The remaining $85.2 billion came from its services division.

The majority of Apple's sales come from its most popular product. The iPhone brought in $200.58 billion in sales for the year. It's considered the company's star.

The cash cow for the company is its Mac products, notably the Macbook laptop, which is one of the most popular in this group. Sales for Mac products came in at $29.36 billion for the fiscal year (FY).

One of the question marks for Apple was its Apple TV streaming service. This falls under the Services category. The competition in the streaming world is intense, with traditional services like Netflix, Hulu, and Disney+ dominating the market. But others like YouTube and Vimeo are also eating away at market share. Apple's Services division earned $85.2 billion in sales in 2023.

Once a darling of the company, the iPad has become a dog. Apple's tablet continues to show low growth as sales continue to decline. Sales for the year came in at $28.3 billion in 2023, compared with $29.29 billion in 2022.

What Are the 4 Quadrants of the BCG Matrix?

The BCG growth share matrix uses a 2×2 grid with growth on one axis and market share on the other. Each of the four quadrants represents a specific combination of relative market share and growth:

1. Low growth, high share: Companies should milk these cash cows for cash to reinvest elsewhere.

2. High growth, high share: Companies should significantly invest in these stars because they have high future potential.

3. High growth, low share: Companies should invest in or discard these question marks, depending on their chances of becoming stars.

4. Low share, low growth: Companies should liquidate, divest, or reposition these pets.

How Does the BCG Matrix Work?

The BCG growth share matrix considers a company's growth prospects and available market share by assigning each business to one of these four categories. Executives can then decide where to focus their resources and capital to generate the most value, as well as where to cut their losses.

Is the BCG Matrix Used in the Real World?

The growth share matrix was used by about half of all Fortune 500 companies at the height of its success, according to BCG. It's still central in business school teachings on business strategy.

The Bottom Line

The BCG growth share matrix is a business management tool that allows companies to identify which aspects of their business should be prioritized and which might be jettisoned. A company's businesses can be categorized into one of four classifications-stars, pets, cash cows, and question marks-by constructing a 2×2 table along the dimensions of growth and market share.

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Understanding the BCG Growth Share Matrix and How to Use It

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The BCG growth share matrix is a heuristic approach or mental shortcut developed by the Boston Consulting Group. It's used to classify a firm's project outlooks.

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The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by firms to analyze and plan their strategies for growth. The matrix shows

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AI is the ability of a digital computer or computer controlled robot to perform tasks commonly associated with intelligent beings.

COPELAND, BJ. 2024. ‘Artificial Intelligence’. Encyclopædia Britannica [online]. Available at: https://www.britannica.com/technology/artificial-intelligence [accessed 10 Jul 2024].

(Copeland,2024)

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What is artificial intelligence?

Are artificial intelligence and machine learning the same?

artificial intelligence (AI), the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. The term is frequently applied to the project of developing systems endowed with the intellectual processes characteristic of humans, such as the ability to reason, discover meaning, generalize, or learn from past experience. Since the development of the digital computer in the 1940s, it has been demonstrated that computers can be programmed to carry out very complex tasks-such as discovering proofs for mathematical theorems or playing chess-with great proficiency. Still, despite continuing advances in computer processing speed and memory capacity, there are as yet no programs that can match full human flexibility over wider domains or in tasks requiring much everyday knowledge. On the other hand, some programs have attained the performance levels of human experts and professionals in performing certain specific tasks, so that artificial intelligence in this limited sense is found in applications as diverse as medical diagnosis, computer search engines, voice or handwriting recognition, and chatbots.
(Read Ray Kurzweil's Britannica essay on the future of "Nonbiological Man.")

What is intelligence?

All but the simplest human behaviour is ascribed to intelligence, while even the most complicated insect behaviour is usually not taken as an indication of intelligence. What is the difference? Consider the behaviour of the digger wasp, Sphex ichneumoneus. When the female wasp returns to her burrow with food, she first deposits it on the threshold, checks for intruders inside her burrow, and only then, if the coast is clear, carries her food inside. The real nature of the wasp's instinctual behaviour is revealed if the food is moved a few inches away from the entrance to her burrow while she is inside: on emerging, she will repeat the whole procedure as often as the food is displaced. Intelligence-conspicuously absent in the case of Sphex -must include the ability to adapt to new circumstances.
(Read Yuval Noah Harari's Britannica essay on the future of "Nonconscious Man.")

Computers and Technology Quiz

Psychologists generally characterize human intelligence not by just one trait but by the combination of many diverse abilities. Research in AI has focused chiefly on the following components of intelligence: learning, reasoning, problem solving, perception, and using language.

There are a number of different forms of learning as applied to artificial intelligence. The simplest is learning by trial and error. For example, a simple computer program for solving mate-in-one chess problems might try moves at random until mate is found. The program might then store the solution with the position so that the next time the computer encountered the same position it would recall the solution. This simple memorizing of individual items and procedures-known as rote learning-is relatively easy to implement on a computer. More challenging is the problem of implementing what is called generalization. Generalization involves applying past experience to analogous new situations. For example, a program that learns the past tense of regular English verbs by rote will not be able to produce the past tense of a word such as jump unless it previously had been presented with jumped, whereas a program that is able to generalize can learn the "add ed" rule and so form the past tense of jump based on experience with similar verbs.

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Artificial intelligence (AI) | Definition, Examples, Types, Applications, Companies, & Facts

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Artificial intelligence, the ability of a computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. The term is frequently applied to the project of developing systems with the ability to reason, discover meaning, generalize, or learn from past experiences.

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Figure 1 -

Faith MILLER. 2024. The research onion. [table by author]

Miller. 2024. The research onion. [table]

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Figure 2 -

Acelly HERRERA. 2017. The research onion model. [online image]. available at: The Research Onion Model. (Based on Saunders et al., 2012, p. 128).  | Download Scientific Diagram (researchgate.net)

Herrera. 2017. The research onion model. [online image]

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Insufficient presence in Asia
CHANDEL, Pratibha. 2023. ‘The Mk Story: How Michael Kors Became One of the Richest Fashion Houses in the World’. TheRichest [online]. Available at: https://www.therichest.com/rich-powerful/the-mk-story-how-michael-kors-became-one-of-the-richest-fashion-houses-in-the-world/ [accessed 11 Jul 2024].

LOCKWOOD, Lisa. 2024. ‘Catering to the Luxury Customer, Michael Kors Has Created a Juggernaut Brand since 1981: A Company History and Timeline’. WWD [online]. Available at: https://wwd.com/feature/michael-kors-history-timeline-1236229312/ [accessed 11 Jul 2024].

SABANOGLU, Tugba. 2023. ‘Global Revenue of Michael Kors 2023’. Statista [online]. Available at: https://www.statista.com/statistics/655807/revenue-of-michael-kors-worldwide/ [accessed 20 Jun 2024].

SMITH, P. 2024a. ‘Michael Kors Retail Stores Worldwide, by Region 2024’. Statista [online]. Available at: https://www.statista.com/statistics/657708/number-of-stores-of-michael-kors-worldwide-by-region/ [accessed 20 Jun 2024].

SMITH, P. 2024c. ‘Global Revenue of Michael Kors, by Region 2024’. Statista [online]. Available at: https://www.statista.com/statistics/875010/global-revenue-of-michael-kors-by-region/ [accessed 19 Jun 2024].

Overview of india
CIA. 2024. Central Intelligence Agency [online]. Available at: https://www.cia.gov/the-world-factbook/countries/india/#economy [accessed 19 Jun 2024].

KMANECK, Roshneesh. 2023. ‘Upper Crust: Why India Is Becoming the New Darling of Luxury Brands across the Globe’. Firstpost [online]. Available at: https://www.firstpost.com/explainers/india-luxury-brands-alia-bhatt-deepika-padukone-economy-growing-spending-power-12587022.html [accessed 19 Jun 2024].

STATISTA. 2024. Demographics Of India. available at:Demographics of India | Statista [accessed 16 July 2024]

India Economy
‘What Is GDP?’ 2024. Bank of England [online]. Available at: https://www.bankofengland.co.uk/explainers/what-is-gdp#:~:text=%EE%80%80Gross%20domestic%20product%EE%80%81%20or%20GDP%20is%EE%80%80%20a%20measure [accessed 16 Jul 2024].

CIA. 2024a. Central Intelligence Agency [online]. Available at: https://www.cia.gov/the-world-factbook/field/real-gdp-purchasing-power-parity/country-comparison/ [accessed 16 Jul 2024].

OEC. 2024. ‘India (IND) Exports, Imports, and Trade Partners’. The Observatory of Economic Complexity [online]. available at: https://oec.world/en/profile/country/ind [accessed 17 Jul 2024].

REUTERS. 2023. ‘Indian Economy Grew Faster than Expected on Manufacturing, Govt Spending | Reuters’. Reuters [online]. Available at: https://www.reuters.com/world/india/indian-economy-expected-sustain-strong-growth-amid-global-gloom-2023-11-30/ [accessed 23 Jul 2024].

KRAMER, Leslie. 2024. ‘How Importing and Exporting Impacts the Economy’. Investopedia [online]. Available at: https://www.investopedia.com/articles/investing/100813/interesting-facts-about-imports-and-exports.asp [accessed 23 Jul 2024].

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SWOT:
SMITH, P. 2024c. ‘Global Revenue of Michael Kors, by Region 2024’. Statista [online]. Available at: https://www.statista.com/statistics/875010/global-revenue-of-michael-kors-by-region/ [accessed 19 Jun 2024].

ADMIN. 2022. ‘Michael Kors Swot Analysis – SWOT Analysis of Michael Kors’. Business Marketing Strategy [online]. Available at: https://bsmarketingstrategy.com/michael-kors-swot-analysis/#Strengths_of_Michael_Kors_8211_Michael_Kors_SWOT_analysis [accessed 18 Jun 2024].

PYMNTS. 2024. Michael Kors offers customers MasterCard’s AI-powered ‘muse’ [online]. Available at: https://www.pymnts.com/news/retail/2024/michael-kors-offers-customers-mastercard-ai-powered-shopping-assistant-muse/ [accessed 19 Jun 2024].

JONES, Olivia. 2023. ‘Michael Kors Focuses on Sustainability. How Is the Brand Changing Its Standards?’ Watchard.com [online]. Available at: https://watchard.com/posts/michael-kors-focuses-on-sustainability [accessed 19 Jun 2024].

OPULENT. 2024. ‘Luxury Fashion & Geopolitical Shifts: A 2024 Outlook’. The Opulent [online]. Available at: https://the-opulent.co/2024/02/21/luxury-fashion-geopolitical-shifts-a-2024-outlook/ [accessed 20 Jun 2024].

PESTEL:
BUSCH, Thomas. 2023. ‘Pestle Analysis of Luxury Goods Industry’. AcademiaAnalysis [online]. Available at: https://academiaanalysis.com/pestle-analysis-of-luxury-goods-industry/ [accessed 19 Jun 2024].

PORTERS 5 FORCES:
MANKIRAN. 2023. ‘India’s Luxury Potential: Attracting Global Luxury Brands’. MBA ESG Business School, India [online]. Available at: https://mba-esg.in/unlocking-indias-luxury-potential-a-magnet-for-global-luxury-brands/#:~:text=Unlocking%20India%E2%80%99s%20luxury%20potential%3A%20A%20magnet%20for%20global,7%20Rise%20of%20luxury%20events%20and%20experiences%20 [accessed 24 Jun 2024]

BENISSAN, Ezreen. 2024. ‘Luxury Will See India as a Prime Market in 2024’. Vogue India [online]. Available at: https://www.vogue.in/content/the-regions-luxury-will-be-heading-to-in-2024 [accessed 29 May 2024].

KERR, Ben. 2023. ‘Understanding Fashion Trend Life Cycles: The 5 Stages That Will Help Your Understand Why There Are Ups and Downs’. The Fashion Starter [online]. Available at: https://thefashionstarter.com/fashion-trend-life-cycles/#:~:text=There%20is%20no%20definitive%20answer%20to%20how%20often,shorter%20and%20less%20predictable%20than%20in%20the%20past. [accessed 26 Jun 2024].

TEAM, MBA Skool. 2022. ‘Michael Kors Porter Five Forces Analysis’. MBA Skool [online]. Available at: https://www.mbaskool.com/five-forces-analysis/companies/18325-michael-kors.html#:~:text=Porter%E2%80%99s%20Five%20Forces%20Analysis%20of%20Michael%20Kors%20covers,buyers%2C%20bargaining%20power%20of%20suppliers%20and%20competitive%20rivalry. [accessed 25 Jun 2024].

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Is Artificial Intelligence Worth The Craze For Luxury Brands?

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Luxury brands executives must learn to navigate the dilemmas that come with GenAI. Here is how they can tap into GenAI’s opportunities while avoiding its many dangers.

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smart mirrors

Coach have experimented with smart mirror technology.

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7 Ways Retailers Are Using Generative AI To Provide A Better Shopping Experience
Adobe Stock

Generative AI is a transformative tool that will impact almost all industries. And retail is no exception. From smoothing out the online shopping journey to providing personalized products and a whole lot in between, generative AI can help retailers delight customers - and that goes for shopping in physical stores as well as online stores.

Here are seven generative AI use cases that all retailers should be exploring.

1. AI Shopping Assistants Enable Buying-By-Chatting

You've no doubt interacted with customer service chatbots. Well, thanks to generative AI, we're now seeing a rise in virtual shopping assistants - conversational AI tools that help customers find what they're looking for simply by typing or speaking what they want. (In some cases, even by sharing a photo to indicate a specific product they want to find.) Particularly on large e-commerce sites, this makes navigating a lot easier. No more trying to figure out which category your desired product falls under or grappling with multiple search filters. Just ask for what you want.

eBay's ShopBot feature is a great example of an AI personal shopping assistant. It's designed to help customers cut through eBay's enormous number of listings to find the right deal for them. And it works with text prompts, voice prompts, and even photos.

Complex purchases can also be aided with an AI shopping assistant. At Expedia, for instance, customers can now plan their travel arrangements by having an open-ended "chat" with the app, from discussing accommodation to pinpointing the best sights to see. It's as close as you can get to the old-school travel agent experience in app form.

2. More Realistic Virtual Try-On Features

Until now, virtual try-on features have been fairly rudimentary - for example, picking from a small list of body shapes to see what a particular garment might look like on the customer. However, generative AI brings a new level of realism to such features. For example, Google has introduced virtual try-on technology that uses generative AI to show clothes " on a wide selection of real models." Google says the generative AI model can take just one picture of an item of clothing and accurately show how it would cling, drape, etc., on a diverse range of real models from sizes XXS to 4XL and representing different skin tones and ethnicities. The feature is available for brands such as Anthropologie and H&M.

In the future, customers will be able to generate a realistic avatar of themselves based on a photo and their exact measurements and then be able to generate an image of themselves wearing a particular outfit (even combining different items to see how well they go together). Generative AI also makes it possible to generate an image of the customer wearing those items in a range of different settings (such as the beach or a formal event), all to help them fully visualize whether the product is right for them.

3. Handy Summaries Of Customer Reviews

Imagine you want to check out a simple product only to find hundreds of reviews offering a multitude of (sometimes conflicting) opinions. That's the position customers find themselves in every day. Well, thanks to generative AI's ability to understand and summarize lengthy pieces of text, this frustrating experience could be a thing of the past. Amazon is just one retailer beginning to experiment with AI-generated summaries of reviews - in Amazon's case, condensing customer reviews into one digestible paragraph.

4. Metaverse Stores

With augmented reality and virtual reality becoming more mainstream, generative AI can help to create immersive virtual shopping experiences. This ties in with the concept of the metaverse - immersive virtual worlds where we can shop, game, work and more. Forward-thinking retailers are already building a presence in the metaverse, creating immersive, interactive, and personalized virtual stores. Nike is a real leader in the metaverse space with its part-game, part-showroom Nikeland on the Roblox metaverse platform. Nikeland features buildings, arenas, and games, as well as a virtual showroom complete with digital products.

So, where does generative AI fit into this? Well, technology can help make such virtual stores and experiences more responsive. For example, as a user navigates a virtual store, AI can generate personalized product placements and even virtual sales assistants tailored to the user's shopping history and preferences.

5. Personalized Customer Journeys

One of the most tantalizing benefits of generative AI is that it allows retailers to offer a more personalized customer journey. AI shopping assistants are one way to do that. But generative AI can do so much more. For example, the technology can be used to create custom promotions and offers for each shopper - by analyzing their individual buying habits and preferences. Say a customer often purchases sustainable products; the AI might generate special discounts or bundle offers related to eco-friendly items during their next visit. This can be done automatically and at scale.

Generative AI can also be used to develop highly personalized loyalty programs that evolve based on each member's interactions with the brand. So, instead of a generic point system, members might be offered personalized challenges, rewards tailored to their preferences, or unique experiences curated just for them.

Crafts retailer Michaels Stores is using generative AI to better understand how different customer segments engage with different messages. As such, it has gone from personalizing 20 percent of email campaigns to personalizing an impressive 95 percent of email campaigns - a move that has boosted the click-through rate for emails by 25 percent (41 percent for SMS campaigns).

6. Personalized Products

Not only can generative AI suggest products that customers are likely to be interested in, but it can also be used to help customers design their own unique, personalized products. Fashion tech specialists Space Runners have created a generative AI tool that allows people to design their own unique clothing just by using simple text prompts. Called Ablo, the AI design tool allows individuals to effectively become their own fashion brand - and for brands, Ablo allows amazing co-creation opportunities with their customers.

7. What About The Physical In-Store Experience?

So far, we've focused on the online shopping experience. But shopping in a physical store could also be improved by generative AI. The technology can be used to create responsive store displays that change based on real-time data. Say, for example, a cold front is moving into an area; a clothing store's digital window display might adapt to showcase winter gear and generate a live snowfall backdrop to attract people in. Combine this with personalized customer data, and, in the future, store displays could even adapt to each customer, showing them products they might be interested in finding in the store.

We may also see smart mirrors integrated with generative AI technology to give customers an accurate representation of what a product would look like on them - like the virtual try-on features we're beginning to see on websites and apps, but in a physical store. But why would customers want to try on clothes virtually when they've traveled to a physical store? For one thing, the store in question may not have all the styles, colors, and sizes available to try on.

Coach, a handbag and accessory brand, has experimented with smart mirror technology. To celebrate the launch of its Tabby Bag campaign, the brand installed a smart mirror in its Soho New York store. Customers using the mirror could see themselves with different digital variations of the bag (and other digital effects, like butterfly wings). They could also download their image to share online. So, as an added bonus, Coach benefitted from free social marketing thanks to users sharing their images on social media.

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7 Ways Retailers Are Using Generative AI To Provide A Better Shopping Experience

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Generative AI is revolutionizing the retail experience, offering enhanced shopping assistants, realistic virtual try-ons and concise customer review summaries.

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‘Statistics:

the market size of AI in retail is expected to grow from USD 7.3 billion in 2023 to USD 29.45 billion in 2028 at a compound annual growth rate of 32.17%.

over 60% of retailers affirmed that adopting AI in their stores enables them to meet customer service expectations.

Pros:

AI enables more efficient operations for retailers.

AI in retail enhances inventory management.

It leads to improved customer service and support with virtual assistants.

AI enables improved personalization to enhance customer experiences.

AI allows automation and optimization, leading to operational cost reduction.

AI provides unique insights and better data analysis that will lead to faster and better decision-making.

Cons:

Some have expressed data privacy and security concerns.

Automation may lead to potential job displacement.

The learning curve required for AI technologies may be challenging, especially for smaller retailers.

The cost of setting up and implementation may be unaffordable for smaller businesses.

Certain AI algorithms may be biased due to their training data, which may affect data, recommendations, and decision-making.

Ai in Retail: Transforming the Shopping Experience (2024)’. 2024. Webretailer.com [online]. Available at: https://www.webretailer.com/ai-retail/ [accessed 10 Jul 2024].

₍Ai in retail: Transforming the shopping experience (2024)₎

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Artificial intelligence in the retail industry has refined our experience in many ways. From personalized recommendations and virtual try-ons to AI-powered chatbot support, the transformation has been significant.

According to a study from Mordor Intelligence, the market size of AI in retail is expected to grow from USD 7.3 billion in 2023 to USD 29.45 billion in 2028 at a compound annual growth rate of 32.17%.

So, what exactly is AI in retail, how is AI used in retail, what are the pros and cons, who are the main players, and what's in stock for the future?

What is AI in Retail?

AI in retail is the use of artificial intelligence algorithms and technologies, like computer vision, natural language processing, and machine learning, in various aspects of the retail industry.

Using artificial intelligence helps to improve the operations' efficiency, enhance decision-making processes, drive business growth, and improve overall customer experience. Data from Statista found over 60% of retailers affirmed that adopting AI in their stores enables them to meet customer service expectations.

Since artificial intelligence can process huge amounts of data and identify patterns, the usage of AI can help businesses and eCommerce platforms make more accurate predictions and gain valuable insights about their customers.

How is AI Changing Retail?

AI is changing the retail industry in many ways. It is now easy to identify customer preferences based on their browsing and purchasing history, which will help them get personalized recommendations.

Through machine learning algorithms, AI can analyze vast amounts of data to understand individual shopping patterns. Thus, retailers need not do guesswork. Instead, they can increase sales and customer satisfaction with real-time information.

Another way AI is changing retail is through inventory management and instant support. Retailers can employ AI-powered systems to optimize inventory levels, forecast demand, and automatically reorder stock when needed. They can also improve the shopping experience through AI-powered tools at any time of the day.

MORE: Generative AI in retail

6 Examples of AI in the Retail Industry

Artificial intelligence has a wide range of use cases in the retail industry, and below are some of the most notable examples:

1. Customer service

2. Market personalization

3. Visual search

4. Inventory management

5. Price optimization

6. Fraud prevention and detection

1. Customer Service

AI has enabled the use of AI-powered chatbots that make it possible to provide customer support, attend to customer queries, and recommend products throughout the day.

2. Marketing Personalization

Personalization helps to deliver a much better customer experience, and with AI, retailers can analyze customer data easily to improve how they target them with campaigns and promotions. LK Bennett in collaboration with TrueFit is taking this to the next level by enabling customers to get accurate sizing information and fit preferences.

3. Visual Search

Finding products is much easier now, thanks to visual search. Powered by computer vision, this technology makes it possible for consumers to find exact and similar products through images.

4. Inventory Management

Managing stock is another area of retail where AI can be useful. AI can keep track of stock levels to minimize overstocking and prevent product unavailability. Cameras powered by AI can also be deployed to monitor shelves in real-time.

5. Price Optimization

By analyzing past and current market trends, like competitor pricing, customer behavior, inventory data, demand and supply, etc., AI can assist in setting optimal prices to maximize profits.

6. Fraud Prevention and Detection

Retailers can also deploy AI to detect and prevent unusual activities to safeguard businesses and their customers.

High-Profile Brands in Retail AI

Several brands are already adopting and integrating artificial intelligence into their retail operations. Below are the brands at the forefront of AI in retail:

1. Amazon: Amazon is a leading brand in retail AI. It uses AI for personalized recommendations, supply chain optimization, and cashierless checkout through its Amazon Go stores. Amazon announced recently that it has integrated AI technology to detect damaged products so they don't get to consumers.

2. Alibaba: Alibaba is a Chinese eCommerce giant that employs AI for product recommendations, customer support, and even AI-powered fashion design. It has recently incorporated a new AI tool, Tongyi Wanxiang. This is set to enable users to generate images with ease.

3. Walmart: Walmart is another retail giant that utilizes AI for multiple activities, including inventory management, demand forecasting, and delivery network optimization.

4. Lowe's: This home improvement retail brand implements AI to assist customers in finding products in-store, providing expert advice, and enhancing their shopping experience.

5. eBay: eBay used generative AI to help users generate more detailed product descriptions. This, in turn, helps customers have a more personalized shopping experience.

6. Sephora: You can get virtual try-ons, personalized product recommendations, and in-store augmented reality experiences from Sephora, thanks to its use of artificial intelligence.

7. Zara: Zara has added AI technology to its system to optimize inventory levels and adapt its fashion offerings based on real-time data analysis.

Key Benefits of AI in Retail

Below are the major advantages of AI in retail.

AI enables more efficient operations for retailers.

AI in retail enhances inventory management.

It leads to improved customer service and support with virtual assistants.

AI enables improved personalization to enhance customer experiences.

AI allows automation and optimization, leading to operational cost reduction.

AI provides unique insights and better data analysis that will lead to faster and better decision-making.

Disadvantages of AI in Retail

While several benefits accompany artificially intelligent retailing, it also has a couple of downsides you should know.

Some have expressed data privacy and security concerns.

Automation may lead to potential job displacement.

The learning curve required for AI technologies may be challenging, especially for smaller retailers.

The cost of setting up and implementation may be unaffordable for smaller businesses.

Certain AI algorithms may be biased due to their training data, which may affect data, recommendations, and decision-making.

The Future of AI in Retail

As modern technologies continue to advance, we can expect better AI algorithms, improved accessibility, and ultimately, better opportunities. Therefore, the future of AI in retail looks promising.

Management tools like Sellware, which makes it possible to manage multiple eCommerce stores, and Ecomdash, which syncs your data across stores, have been made possible by AI.

We can also expect better decision-making as retailers rely more on improving data-backed insights. There's also no denying the fact that AI may eliminate certain opportunities for humans, but it's not entirely bad news since it will create more.

Tips for Implementing AI in Retail

When planned properly and implemented effectively, AI in retail can be highly beneficial. Here are some tips any business can leverage to successfully apply AI to their retail operations:

Define Objectives Clearly: Setting clear objectives from the beginning helps to clarify the processes and tools you'd need, as well as makes it easy to measure performance. It involves determining how AI will benefit the business through any of the examples above.

Select an AI Solution: Depending on the goals you've outlined, it's time to select the right AI tools or platform to accomplish them. For example, you may need an inventory management tool for managing stocks or chatbots if the goal is customer service.

Train Employees: When you've selected the AI solutions to implement, you should start training your staff on how to work with the AI systems to make implementation possible.

Launch Gradually: It's time to launch the campaign if you've chosen an AI platform. Starting small is a good idea before doing it on a larger scale. This will allow your business to improve confidence and detect issues easily.

Scale with Time: Put plans in place for scalability and expand the AI systems as your retail operations grow. This will help you handle increasing data and traffic.

Evaluate and Receive Feedback: Monitor AI performance regularly and receive feedback from customers and employees. Then, make necessary adjustments to improve the efficiency.

Key Takeaways

AI in the retail industry is transforming how businesses operate, and customers are served. The current advancement is a testament to a brighter future filled with better automation, hyper-personalized experiences, and more sophisticated technologies.

As previously discussed, the AI use cases in retail are diverse and the benefits are undeniable. With brands like Amazon, Walmart, Alibaba, Starbucks, and Nike leading the way, we can expect even faster development and adoption across the retail industry.

However, it is also critical to consider the potential disadvantages, such as data security, job displacement, biased algorithms, etc., and find ways to limit their impacts.

For now, businesses and individuals can key into the opportunities afforded by AI in the retail industry. Not only will this give them a competitive advantage, but it will position them better for the advancements that are still to come.

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AI in Retail: Transforming the Shopping Experience (2024)

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AI in retail is revolutionizing the retail industry with its advanced data and information. Explore what it is, the benefits for businesses and customers, use cases, and so much more.

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Figure _ -

Faith MILLER. 2024. Data collection methods.[table by author]

Miller. 2024. Data collection methods [table]

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Figure 7 - Miller. 2024. Global revenue of Michael Kors in 2024 [bar chart]

Faith MILLER. 2024. Global revenue of Michael Kors in 2024, by region [Bar chart]. Incorporating data from statista. available at: Global revenue of Michael Kors, by region 2024 | Statista

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Figure 8 - Miller. 2024. Number of retail stores of Michael Kors worldwide as of 2024, by region [bar chart]

Faith MILLER. 2024. Number of retail stores of Michael Kors worldwide as of 2024, by region [Bar chart]. Incorporating data from statista. available at: Michael Kors retail stores worldwide, by region 2024 | Statista

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Miller. 2024. India: age distribution from 2018-2022 [stack chart]

Faith MILLER. 2024. India: age distribution from 2018-2022 [stack chart]. Incorporating data from Statista. available at: Demographics of India | Statista

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Miller. 2024. India: imports and exports [table created by author]

Faith MILLER. 2024. India: imports and exports [table created by author]. incorporating data from: India (IND) Exports, Imports, and Trade Partners | The Observatory of Economic Complexity (oec.world) [accessed 17 July 2024]

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Miller. 2024. GDP country comparisons [screenshot by author]

Faith MILLER. 2024. GDP country comparisons [screenshot by author]. available at: cia.gov/the-world-factbook/field/real-gdp-purchasing-power-parity/country-comparison [accessed 16 July 2024]

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BAUMGUARD. n.d. map of India [stock photograph]. Available at: Map of India - Photos by Canva

Baumguard. n.d. map of India. [stock photograph]

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Faith, MILLER. 2024. Porters 5 forces. [InfoGraphics]

Miller. 2024. porters 5 forces. [infographics]

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Faith MILLER. 2024. Q8 what are your overall thought on AI? (1). [screen capture]

Faith MILLER. 2024. Q8 what are your overall thought on AI? (2). [screen capture]

Faith MILLER. 2024. Q8 what are your overall thought on AI? (3). [screen capture]

Faith MILLER. 2024. Q8 what are your overall thought on AI? (4). [screen capture]

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This report was written with data collected from a range of primary and secondary research. The report investigates the subjects of India, Gen Z consumers, artificial intelligence and other factors that can contribute to growing a brands presence in a country. The research was driven by a growing interest in the brand and the current economic position of India. The secondary resources used throughout the report, range from databases, online articles, books and academic reports. The participants in the primary research were found online via social media or they were contacted directly via email or a phone call. All participants provided their consent through signing ethic forms. Participants that were interviewed for this report either worked for Michael Kors or were apart of the Indian community, but also being a Gen Z.

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Philosophies

Interpretivism

My report is more focused on the social and cultural factors of India and how they can align with Michael Kors. So Michael Kors can use this to their advantage when growing their presence in India. It also takes into consideration the thoughts and ideas of individuals who work at Michael Kors or within the fashion industry.

Approaches

Inductive Research

Researching India and the Indian community therefore leading to the use of relevant theories.

Strategies

Ethnography

Choices

Mixed-Methods

Quantitative - gathering statistics for a market analysis

Qualitative - Gathering opinions from the brand and the consumer to judge whether my Idea is good or not.

Time Horizons

Longitudinal

Brand - looking at revenue over time

India - Looking at population, tourism, disposable income etc. over the last couple of years.

Techniques & Procedures

Primary Research

Interview with Khousheh falla-Moghari - concessions manager for MK @ Harvey Nichols -

Interview with Harveen Gill

Interview someone at MK Head offices

Survey - aimed at the Indian Community

Secondary Research Databases (Statista, WGSN, Edited) Magazine Articles (Vogue India, BOF)

GradCoach.com

JANSEN, Derek. 2023. ‘Saunders’ Research Onion Explained (+ Examples)’. Grad Coach [online]. Available at: https://gradcoach.com/saunders-research-onion/ [accessed 3 Jul 2024].

(Jansen,2023)

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GAILLE, Louise. 2020. ‘20 Advantages and Disadvantages of Survey Research’. Vittana.org [online]. Available at: https://vittana.org/20-advantages-and-disadvantages-of-survey-research [accessed 9 Jul 2024].

(Gaille, 2020)

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Survey research is a critical component of measurement and applied social research. It is a broad area that encompasses many procedures that involve asking questions to specific respondents.

A survey can be anything from a short feedback form to intensive, in-depth interviews that attempt to gather specific data about situations, events, or circumstances. Although there are several methods of application that researchers can apply using this tool, you can divide surveys into two generic categories: interviews and questionnaires.

Innovations in this area in recent years allow for advanced software solutions to provide more data to researchers because of the availability of online and mobile surveys. That means the people who are in the most challenging places to reach can still provide feedback on critical ideas, services, or solutions.

Several survey research advantages and disadvantages exist, so reviewing each critical point is necessary to determine if there is value in using this approach for your next project.

List of the Advantages of Survey Research

1. It is an inexpensive method of conducting research.
Surveys are one of the most inexpensive methods of gathering quantitative data that is currently available. Some questionnaires can be self-administered, making it a possibility to avoid in-person interviews. That means you have access to a massive level of information from a large demographic in a relatively short time. You can place this option on your website, email it to individuals, or post it on social media profile.

Some of these methods have no financial cost at all, relying on personal efforts to post and collect the information. Robust targeting is necessary to ensure that the highest possible response rate becomes available to create a more accurate result.

2. Surveys are a practical solution for data gathering.
Surveys or a practical way to gather information about something specific. You can target them to a demographic of your choice or manage them in several different ways. It is up to you to determine what questions get asked and in what format. You can use polls, questionnaires, quizzes, open-ended questions, and multiple-choice to collect info in real-time situations so that the feedback is immediately useful.

3. It is a fast way to get the results that you need.
Surveys provide fast and comfortable results because of today's mobile and online tools. It is not unusual for this method of data collection to generate results in as little as one day, and sometimes it can be even less than that depending on the scale and reach of your questions. You no longer need to wait for another company to deliver the solutions that you need because these questionnaires give you insights immediately. That means you can start making decisions in the shortest amount of time possible.

4. Surveys provide opportunities for scalability.
A well-constructed survey allows you to gather data from an audience of any size. You can distribute your questions to anyone in the world today because of the reach of the Internet. All you need to do is send them a link to the page where you solicit information from them. This process can be done automatically, allowing companies to increase the efficiency of their customer onboarding processes.

Marketers can also use surveys as a way to create lead nurturing campaigns. Scientific research gains a benefit through this process as well because it can generate social insights at a personal level that other methods are unable to achieve.

5. It allows for data to come from multiple sources at once.
When you construct a survey to meet the needs of a demographic, then you have the ability to use multiple data points collected from various geographic locations. There are fewer barriers in place today with this method than ever before because of the online access we have around the world.

Some challenges do exist because of this benefit, namely because of the cultural differences that exist between different countries. If you conduct a global survey, then you will want to review all of the questions to ensure that an offense is not unintentionally given.

6. Surveys give you the opportunity to compare results.
After researchers quantify the information collected from surveys, the data can be used to compare and contrast the results from other research efforts. This benefit makes it possible to use the info to measure change. That means a questionnaire that goes out every month or each year becomes more valuable over time.

When you can gather a significant amount of data, then the picture you are trying to interpret will become much clearer. Surveys provide the capability of generating new strategies or identifying new trends to create more opportunities.

7. It offers a straightforward analysis and visualization of the data.
Most surveys are quantitative by design. This process allows for the advantage of a straightforward analysis process so that the results can be quickly visualized. That means a data scientist doesn't need to be available to start the work of interpreting the results. You can take advantage of third-party software tools that can turn this info into usable reports, charts, and tables to facilitate the presentation efforts.

8. Survey respondents can stay anonymous with this research approach.
If you choose to use online or email surveys, then there is a fantastic opportunity to allow respondents to remain anonymous. Complete invisibility is also possible with postal questionnaires, allowing researchers to maximize the levels of comfort available to the individuals who offer answers. Even a phone conversation doesn't require a face-to-face meeting, creating this unique benefit.

When people have confidence in the idea that their responses will not be directly associated with their reputation, then researchers have an opportunity to collect information with greater accuracy.

9. It is a research tool with fewer time constraints.
Surveys have fewer time limits associated with them when compared to other research methods. There is no one on the other end of an email or postal questionnaire that wants an immediate answer. That means a respondent can take additional time to complete each answer in the most comfortable way possible. This benefit is another way to encourage more honesty within the results since having a researcher presence can often lead to socially desirable answers.

10. Surveys can cover every component of any topic.
Another critical advantage that surveys provide is the ability to ask as many questions as you want. There is a benefit in keeping an individual questionnaire short because a respondent may find a lengthy process to be frustrating. The best results typically come when you can create an experience that involves 10 or fewer questions.

Since this is a low-cost solution for gathering data, there is no harm in creating multiple surveys that have an easy mode of delivery. This benefit gives you the option to cover as many sub-topics as possible so that you can build a complete profile of almost any subject matter.

List of the Disadvantages of Survey Research

1. There is always a risk that people will provide dishonest answers.
The risk of receiving a dishonest answer is lower when you use anonymous surveys, but it does not disappear entirely. Some people want to help researchers come to whatever specific conclusion they think the process is pursuing. There is also a level of social desirability bias that creeps into the data based on the interactions that respondents have with questionnaires. You can avoid some of this disadvantage by assuring individuals that their privacy is a top priority and that the process you use prevents personal information leaks, but you can't stop this problem 100% of the time.

2. You might discover that some questions don't get answers.
If you decide to use a survey to gather information, then there is a risk that some questions will be left unanswered or ignored. If some questions are not required, then respondents might choose not to answer them. An easy way to get around this disadvantage is to use an online solution that makes answering questions a required component of each step. Then make sure that your survey stays short and to the point to avoid having people abandon the process altogether.

3. There can be differences in how people understand the survey questions.
There can be a lot of information that gets lost in translation when researchers opt to use a survey instead of other research methods. When there is not someone available to explain a questionnaire entirely, then the results can be somewhat subjective. You must give everyone an opportunity to have some understanding of the process so that you can encourage accurate answers.

It is not unusual to have respondents struggle to grasp the meaning of some questions, even though the text might seem clear to the people who created it. Whenever miscommunication is part of the survey process, the results will skew in unintended directions. The only way to avoid this problem is to make the questions as simple as possible.

4. Surveys struggle to convey emotions with the achievable results.
A survey does not do a good job of capturing a person's emotional response to the questions then counter. The only way to gather this information is to have an in-person interview with every respondent. Facial expressions and other forms of body language can add subtlety to a conversation that isn't possible when someone is filling out an online questionnaire.

Some researchers get stuck trying to interpret feelings in the data they receive. A sliding-scale response that includes various levels of agreement or disagreement can try to replicate the concept of emotion, but it isn't quite the same as being in the same room as someone. Assertion and strength will always be better information-gathering tools than multiple-choice questions.

5. Some answers can be challenging to classify.
Surveys produce a lot of data because of their nature. You can tabulate multiple-choice questions, graph agreement or disagreement in specific areas, or create open-ended questions that can be challenging to analyze. Individualized answers can create a lot of useful information, but they can also provide you with data that cannot be quantified. If you incorporate several questions of this nature into a questionnaire, then it will take a long time to analyze what you received.

Only 10% of the questions on the survey should have an open-ended structure. If the questions are confusing or bothersome, then you might find that the information you must manually review is mostly meaningless.

6. You must remove someone with a hidden agenda as soon as possible.
Respondent bias can be a problem in any research type. Participants in your survey could have an interest in your idea, service, or product. Others might find themselves being influenced to participate because of the subject material found in your questionnaire. These issues can lead to inaccurate data gathering because it generates an imbalance of respondents who either see the process as overly positive or negative.

This disadvantage of survey research can be avoided by using effective pre-screening tools that use indirect questions that identify this bias.

7. Surveys don't provide the same level of personalization.
Any marketing effort will feel impersonal unless you take the time to customize the process. Because the information you want to collect on a questionnaire is generic by nature, it can be challenging to generate any interest in this activity because there is no value promised to the respondent. Some people can be put off by the idea of filling out a generic form, leading them to abandon the process.

This issue is especially difficult when your survey is taken voluntarily online, regardless of an email subscription or recent purchase.

8. Some respondents will choose answers before reading the questions.
Every researcher hopes that respondents will provide conscientious responses to the questions offered in a survey. The problem here is that there is no way to know if the person filling out the questionnaire really understood the content provided to them. You don't even have a guarantee that the individual read the question thoroughly before offering a response.

There are times when answers are chosen before someone fully reads the question and all of the answers. Some respondents skip through questions or make instant choices without reading the content at all. Because you have no way to know when this issue occurs, there will always be a measure of error in the collected data.

9. Accessibility issues can impact some surveys.
A lack of accessibility is always a threat that researchers face when using surveys. This option might be unsuitable for individuals who have a visual or hearing impairment. Literacy is often necessary to complete this process. These issues should come under consideration during the planning stages of the research project to avoid this potential disadvantage. Then make the effort to choose a platform that has the accessibility options you need already built into it.

10. Survey fatigue can be a real issue that some respondents face.
There are two issues that manifest themselves because of this disadvantage. The first problem occurs before someone even encounters your questionnaire. Because they feel overwhelmed by the growing number of requests for information, a respondent is automatically less inclined to participate in a research project. That results in a lower overall response rate.

Then there is the problem of fatigue that happens while taking a survey. This issue occurs when someone feels like the questionnaire is too long or contains questions that seem irrelevant. You can tell when this problem happens because a low completion rate is the result. Try to make the process as easy as possible to avoid the issues with this disadvantage.
Conclusion
Surveys sometimes have a poor reputation. Researchers have seen response rates decline because this method of data gathering has become unpopular since the 1990s. Part of the reason for this perception is due to the fact that everyone tries to use it online since it is a low-cost way to collect information for decision-making purposes.

That's why researchers are moving toward a rewards-based system to encourage higher participation and completion rates. The most obvious way to facilitate this behavior is to offer something tangible, such as a gift card or a contest entry. You can generate more responses by creating an anonymous process that encourages direct and honest answers.

These survey research advantages and disadvantages prove that this process isn't as easy as it might see from the outside. Until you sit down to start writing the questions, you may not entirely know where you want to take this data collection effort. By incorporating the critical points above, you can begin to craft questions in a way that encourages the completion of the activity.

Blog Post Author Credentials
Louise Gaille is the author of this post. She received her B.A. in Economics from the University of Washington. In addition to being a seasoned writer, Louise has almost a decade of experience in Banking and Finance. If you have any suggestions on how to make this post better, then go here to contact our team.

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20 Advantages and Disadvantages of Survey Research

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Survey research is a critical component of measurement and applied social research. It is a

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Questionnaire with Jamal Uddin (Supervisor at MK)

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Questionnaire with Jamal Uddin (Supervisor at MK)

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Questions:

1. How would you describe Michael Kors presence in Asia?

2. Do you think it would be beneficial for Michael Kors to focus on India?

3. Does Michael Kors use AI tools in their stores? If not, do you think it would be a good thing for them to do?

4. What is their best selling product category and why?

5. Which Asian celebrities do you think would be best to do endorsements for Michael Kors?

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Pros:

Rich data collection - detailed insights and information

Cons:

Time consuming - preparation and the interview process

TEAM, Redaction. 2023. ‘14 Advantages and Disadvantages of Interviews’. Carlos Barraza [online]. Available at: https://barrazacarlos.com/advantages-and-disadvantages-of-interviews/ [accessed 16 Jul 2024].

(Team. 2023)

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14 Advantages and Disadvantages of Interviews

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Explore the Pros and Cons of Interviews: Learn how interviews offer rich insights while dealing with bias and subjectivity…

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Pros - Can ask questions to gather the specific data required.

Cons - The respondent may not get back quickly, or not understand the question being answered.

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Pros

Cons

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Michael Kors AW24 New York [photograph]. 2024. Available at: Image Library & Design Resources (wgsn.com) [date accessed 8 May]

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Artificial Intelligence:

first retailer to use 'shopping muse' on their US website.

shopping muse recreates the in-store experience by translating consumers colloquial language into tailored product recommendations, allowing consumers to quickly find the perfect look.

a personalised approach, like this, can increase both shopper satisfaction and revenue

44% of consumers are somewhat interested in adding AI technologies to their shopping experiences.

69% generation Z consumers interested

54% bridge millennials/millennials interested.

more than 3/4 consumers have gotten AI powered product recommendations online.

44% consumers would be happy shopping in stores without digital assistance.

PYMNTS. 2024. Michael Kors offers customers MasterCard’s AI-powered ‘muse’ [online]. Available at: https://www.pymnts.com/news/retail/2024/michael-kors-offers-customers-mastercard-ai-powered-shopping-assistant-muse/ [accessed 19 Jun 2024].

(Pymnts. 2024)

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Fashion retailer Michael Kors adopted Mastercard 's artificial intelligence-powered shopping assistant.

The retailer is the first to make Shopping Muse available to its customers via an integration with its U.S. website, the companies said in a news release Monday (June 10).

"With summer adventures and wedding season on the horizon, Michael Kors' Shopping Muse integration comes at just the right time," the release said. "Shopping Muse recreates the in-store experience by translating consumers' colloquial language into tailored product recommendations, meaning fashionable consumers can quickly find the perfect look that matches their inquiry as well as their demonstrated behavior and preferences."

This sort of personalized approach can increase both shopper satisfaction and revenue, with Mastercard's initial tests finding that Shopping Muse generated around a 15% to 20% higher conversion rate than traditional search queries, per the release.

Mastercard's Dynamic Yield introduced the AI-powered Shopping Muse in November. Its suggestions are based on a consumer's "profile, intent and affinity." It uses its personalization capabilities to make recommendations via the retailer's keywords, visual cues and "the consumer's own affinity," Mastercard said at the time of the launch.

The PYMNTS Intelligence report " AI-Enabled Payments Enhance Customer Options " revealed that 44% of consumers are at least somewhat interested in adding AI technologies to their shopping experiences. However, that share climbs to include more than half for younger generations, with 69% of Generation Z consumers and 54% of millennials and bridge millennials reporting interest.

In addition, the PYMNTS Intelligence study " Consumer Inflation Sentiment Report: Consumer Interest in Artificial Intelligence " found that more than three-quarters of consumers have gotten AI-powered product recommendations online.

A third PYMNTS Intelligence study, " 2024 Global Digital Shopping Index: U.S. Edition ," created in collaboration with Visa Acceptance Solutions , found that 44% of consumers would be happy shopping in stores without digital assistance.

Another AI effort in the apparel space includes last week introducing , which uses AI to streamline the often-cumbersome process of determining size when shopping online.
For all PYMNTS retail and AI coverage, subscribe to the daily Retail and AI Newsletters.

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Michael Kors Offers Customers Mastercard's AI-Powered 'Muse'

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Fashion retailer Michael Kors adopted Mastercard's artificial intelligence (AI)-powered shopping assistant.

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Sketchify Education. n.d. Organic hand drawn Asia Map [graphic]. available at Organic Handdrawn Asia Map - Icons by Canva [accessed at 16 July 2024]

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Miller. 2024. Global revenue of Michael Kors in 2024 [bar chart]

Faith MILLER. 2024. Global revenue of Michael Kors in 2024, by region [Bar chart]. Incorporating data from statista. available at: Global revenue of Michael Kors, by region 2024 | Statista

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Miller. 2024. Number of retail stores of Michael Kors worldwide as of 2024, by region [bar chart]

Faith MILLER. 2024. Number of retail stores of Michael Kors worldwide as of 2024, by region [Bar chart]. Incorporating data from statista. available at: Michael Kors retail stores worldwide, by region 2024 | Statista

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ADMIN. 2022. ‘Michael Kors Swot Analysis – SWOT Analysis of Michael Kors’. Business Marketing Strategy [online]. Available at: https://bsmarketingstrategy.com/michael-kors-swot-analysis/#Strengths_of_Michael_Kors_8211_Michael_Kors_SWOT_analysis [accessed 18 Jun 2024].

PYMNTS. 2024. Michael Kors offers customers MasterCard’s AI-powered ‘muse’ [online]. Available at: https://www.pymnts.com/news/retail/2024/michael-kors-offers-customers-mastercard-ai-powered-shopping-assistant-muse/ [accessed 19 Jun 2024].

OPULENT. 2024. ‘Luxury Fashion & Geopolitical Shifts: A 2024 Outlook’. The Opulent [online]. Available at: https://the-opulent.co/2024/02/21/luxury-fashion-geopolitical-shifts-a-2024-outlook/ [accessed 20 Jun 2024].

JONES, Olivia. 2023. ‘Michael Kors Focuses on Sustainability. How Is the Brand Changing Its Standards?’ Watchard.com [online]. Available at: https://watchard.com/posts/michael-kors-focuses-on-sustainability [accessed 19 Jun 2024].

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FMP Participant Consent Form - Jamal Uddin

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Miller. 2024. Ethical consent form: Jamal Uddin [screenshot]

Faith MILLER. 2024. Ethical consent form: Jamal Uddin [screenshot]

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FMP Participant Consent Form - Jamal Uddin

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Digital and social media campaigns:

successfully utilised digital campaigns to strengthen its presence in the competitive luxury market.

implemented social media marketing aimed at potential and existing customers.

Influencer collaborations.

cornerstone of marketing strategy

'the walk' using influencers to amplify campaigns reach

enhance brand visibility

SHERIDAN, Nina. 2024. ‘What Is Michael Kors’ Marketing Strategy for 2024?’ Latterly.org [online]. Available at: https://www.latterly.org/michael-kors-marketing-strategy/ [accessed 2 Aug 2024].

(Sheridan. 2024)

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Michael Kors, established in 1981 in New York, has become a prominent name in the luxury fashion industry, offering a wide range of products including handbags, apparel, and fragrances. With over 1,200 stores across 90 countries and a diverse workforce of approximately 17,700 employees, the brand has faced several challenges, notably in maintaining its luxury allure amid fluctuating sales figures. In the fourth quarter of fiscal 2017, the company reported a 7.6% decline in sales from stores that had been open for at least a year, highlighting the pressures in the competitive landscape.

The company has recently turned its focus toward the burgeoning Asian market, notably allocating 20% of its marketing efforts to China as of 2019, an increase from 10% in previous years. This strategic move comes as Michael Kors targets a demographic of both men and women aged 25-54, aiming to establish a stronger foothold against local competitors such as Coach and Tory Burch, which offer similar products at competitive prices. This case study will delve into the various aspects of Michael Kors' marketing strategy, analyzing how the brand positions itself within the luxury market and engages with its consumers through innovative campaigns and omnichannel retail experiences.

Key Takeaways

Michael Kors has over 1,200 stores and a significant global presence.

The brand has shifted its marketing focus towards the Chinese luxury market.

A 7.6% decline in sales was reported in fiscal 2017, indicating market challenges.

Luxury brand positioning is crucial for competing against local players.

Data-driven marketing strategies enhance customer engagement and conversion rates.

Michael Kors collaborates with notable suppliers to streamline production.

An emphasis on brand storytelling enhances consumer connection and loyalty.

Introduction to Michael Kors

Michael Kors has established itself as a significant player in the luxury fashion brand sector by promoting stylish and accessible luxury products. The brand's core identity is rooted in modern American style, appealing to a demographic that seeks high-quality yet affordable luxury items. In the competitive landscape of the fashion industry, Michael Kors has made a name for itself by offering a wide array of products, including ready-to-wear clothing, accessories, footwear, and fragrance.

The brand history of Michael Kors reveals a journey of transformation and growth. Engaging high-profile celebrities and models in advertising campaigns has significantly boosted brand awareness. Furthermore, the strategic incorporation of social media and influencer marketing plays a crucial role in expanding the brand's reach to younger consumers.

Despite its many achievements, the luxury fashion brand faces challenges regarding market perception. The aggressive pricing strategy has raised questions about its status as a luxury label. Michael Kors endeavors to maintain a balance between luxury and affordability to attract and retain its customer base.

In order to uphold its market presence, Michael Kors emphasizes customer loyalty programs and prioritizes customer service initiatives. These strategies help create a positive shopping experience, essential for developing a loyal client base in the ever-evolving luxury fashion landscape.

Overview of the Luxury Market Landscape

The luxury market continues to undergo significant transformations, driven by evolving consumer trends and preferences. Authenticity, sustainability, and personalized experiences have emerged as critical factors influencing buyers. As emerging markets like China see an increase in disposable income, spending habits in luxury segments are also changing. This shift signals a potential growth trajectory for brands like Michael Kors.

In terms of competitive analysis, Michael Kors faces formidable rivals such as Coach, Tory Burch, Burberry, and Kate Spade. Each of these brands is responding to shifting consumer preferences through innovative strategies and unique product offerings. Notably, Michael Kors highlights high-quality craftsmanship and effective marketing tactics, including celebrity endorsements and targeted advertising campaigns.

Furthermore, digital commerce expansion offers an avenue for growth, catering to a tech-savvy audience that increasingly shops online. The focus on international market expansion presents new opportunities for Michael Kors as it navigates a landscape defined by both fierce competition and evolving fashion trends. Key competitors are reshaping their strategies to capture market share, making it vital for Michael Kors to conduct thorough competitive analyses. Understanding competitor strengths and weaknesses will enable Michael Kors to refine its positioning within this dynamic luxury market.

Michael Kors Marketing Strategy

Understanding the target audience analysis is imperative for Michael Kors' marketing strategy. The brand primarily focuses on stylish, affluent consumers aged 18-45 who are in pursuit of accessible luxury. This demographic demonstrates a clear preference for fashionable and modern designs, positioning Michael Kors as a lifestyle brand that emphasizes sophistication combined with aspirational living.

Target Audience Analysis

The customer base primarily consists of millennials, who represent roughly a third of total spending on the Michael Kors brand. Most customers fall between the ages of 16 and 39, with a notable skew towards women. The company acknowledges the evolving marketplace and is aware of its challenges, including declining traffic in malls and a shift in consumer shopping habits. Evaluating these demographic insights is crucial for adjusting marketing strategies effectively.

Luxury Brand Positioning

Michael Kors successfully enhances its luxury brand positioning by integrating a comprehensive multi-channel marketing strategy. The brand stands out with an expansive distribution network across over 100 countries, including retail stores, e-commerce platforms, and department stores. However, challenges persist due to heavy discounting practices and the proliferation of outlet stores, which potentially erode brand equity and consumer loyalty. The strategic response involves reinforcing the luxury image while targeting key growth markets such as China and India for future expansion.

Below is a structured summary of key market insights and targets:

Marketing Element

Insights

Handbag Sales

70% of overall sales, projected to drop to 62% by 2020

Men's Footwear Growth

Sales expected to increase from 3% to 8% in 2018

Watches Category

Accounts for 5% of total sales

Asia Pacific Luxury Market

9% of total sales in FY2017

Millennial Spending

Accounts for one-third of total brand spending

Situational Analysis of Michael Kors

A thorough situational analysis of Michael Kors provides valuable insights into the factors driving the brand's performance and its ability to adapt to market challenges. Conducting a comprehensive SWOT analysis will reveal strengths, weaknesses, opportunities, and threats that shape Michael Kors' strategic direction.

SWOT Analysis

The SWOT analysis highlights several key aspects of Michael Kors' brand assessment. Among its strengths are strong brand recognition and an extensive distribution network, which facilitate customer reach and loyalty. The brand's rapid global growth, particularly in Finland and China, showcases its ability to resonate with diverse consumer bases. Factors influencing brand meaning among young lady consumers, such as appreciating beauty and pursuing hedonistic pleasure, further contribute to its appeal.

On the downside, weaknesses include high employee turnover and poor inventory management, potentially undermining its luxury status. These challenges reflect critical market challenges that could hinder operational efficiency and customer satisfaction. The focus on brand significance, rooted in cultural perspectives, indicates a nuanced understanding of how different demographics perceive luxury.

Opportunities for growth stem from digital transformation, especially through e-commerce platforms. Investment in public media acts as a strong catalyst for attracting consumers, particularly in emerging markets. Nonetheless, threats such as increased competition, pricing pressures, and a shift towards secondhand sellers among younger shoppers underscore the need for agility in strategy.

In summary, the situational analysis illustrates that while Michael Kors has built a powerful brand, it must navigate a complex landscape marked by evolving consumer preferences and rapid shifts in the fashion industry.

External Marketing Environment Factors

The PESTEL analysis provides a framework for assessing the external factors influencing Michael Kors. This analysis encompasses political, economic, social, technological, environmental, and legal aspects that shape the marketing environment. Understanding these factors allows the brand to adapt its strategies effectively to maintain a competitive advantage in a dynamic luxury market.

PESTEL Analysis

Several critical external factors directly impact Michael Kors' operations and overall strategy. These factors are crucial for navigating the complex landscape of the luxury goods sector:

In summary, the PESTEL analysis illuminates how external factors shape Michael Kors' marketing environment. By remaining vigilant to these influences, the brand can better navigate challenges while leveraging emerging opportunities in the global market.

Digital and Social Media Campaigns

Michael Kors has successfully utilized digital campaigns to strengthen its presence in the competitive luxury market. The brand has implemented innovative social media marketing strategies aimed at engaging both potential and existing customers. By leveraging influencer collaborations, Michael Kors has been able to create impactful campaigns that resonate with audiences across various platforms.

Influencer Collaborations

Influencer collaborations serve as a cornerstone of Michael Kors' marketing strategy. The brand's notable collaboration in the "The Walk" campaign featured influencers such as Solange Knowles, who amplified the campaign's reach. Through these partnerships, Michael Kors has been able to enhance brand visibility, cultivating a more engaging and relatable image. The Spring 2017 iteration of "The Walk" generated 137 million impressions, with Instagram accounting for 40% of this traffic. Influencers participating in the campaign contributed to an impressive 21 million additional potential impressions, showcasing the effectiveness of these collaborations in driving audience engagement.

Engagement Metrics

Engagement metrics play a critical role in assessing the performance of Michael Kors' digital strategies. For example, the Fall 2017 campaign recorded 105 million total impressions across social platforms, highlighting the brand's robust online presence. The #SidewalkSpotted hashtag featured in over 1,000 Instagram posts, demonstrating active participation from users. Furthermore, the international event "Michael Kors The Walk: Shanghai" achieved 64 million impressions from social accounts, proving the power of live events combined with influencer reach. These metrics not only reflect the brand's ability to engage its audience but also indicate effective use of social media marketing channels in driving brand loyalty.

Campaign

Total Impressions

Platform Contribution

Influencer Impact

The Walk (Spring 2017)

137 million

40% from Instagram

21 million potential impressions

The Walk (Fall 2017)

105 million

Email, Instagram, and Facebook

2.2 million views across YouTube and Facebook

The Walk: Shanghai

64 million

Social accounts

23 million through event influencers

Incorporating digital campaigns alongside influencer collaborations allows Michael Kors to maintain a strong foothold in the ever-evolving luxury market, ultimately leading to high engagement rates and business growth.

Omnichannel Retail Experience

Michael Kors has firmly established itself in the competitive retail landscape by emphasizing a seamless omnichannel retail experience. Through effective online and offline integration, the brand elevates the customer experience, ensuring convenience and accessibility across all platforms. The integration strategy plays a crucial role in merging digital and physical shopping channels, appealing to consumer preferences for personalized interactions.

Integration of Online and Offline Channels

The approach taken by Michael Kors includes utilizing an endless aisle app, which enhances distance selling capabilities and provides a premium home shopping experience. This innovative solution reflects the growing trend where nearly three-quarters of shoppers prioritize customer experience over factors such as price or product quality. To further foster customer loyalty, retailers have adopted new technologies that empower sales associates with integrated communication tools, allowing for outreach via his preferred channels like SMS or social messaging platforms.

Adding to this, secure payment methods are now implemented through direct channels, delivering peace of mind to customers during online transactions. The accessibility of digital sales channels ensures that customers can shop 24/7, which significantly contributes to the enhancement of their overall shopping experience.

Recent statistics underscore the importance of this omnichannel strategy; approximately 25% of this year's revenue stemmed from digital sales channels. Brands like Louis Vuitton have set the standard as omnichannel leaders, showcasing their virtual and in-store services that redefine shopping convenience.

The table below illustrates the positive impact of an omnichannel retail experience across several brands:

Brand

Omnichannel Strategy

Result

Lowe's

Augmented reality for in-store navigation

Improved in-store shopping experience

Brand Storytelling in Marketing

At the core of Michael Kors' marketing approach lies effective brand storytelling, which plays a crucial role in defining the brand's identity. By crafting compelling marketing narratives, the brand emphasizes themes of luxury, empowerment, and personal style. This deliberate focus on storytelling allows Michael Kors to connect with its audience on an emotional level, enhancing consumer engagement and driving brand loyalty. Through thoughtfully designed campaigns, the brand presents authentic experiences that resonate with customers' aspirations.

Michael Kors effectively utilizes brand storytelling to highlight its distinguished position in the luxury market. By showcasing the craftsmanship and elegance of products like the Michael Kors Collection, which includes offerings priced between $500 and $6,000, the brand communicates an image of exclusivity and sophistication. This approach not only reinforces the brand's luxury status but also invites consumers to imagine themselves embodying the aspirational lifestyles portrayed in marketing materials.

Moreover, the strategic emphasis on storytelling enables Michael Kors to navigate the challenges posed by shifts in consumer behavior and competitive landscapes. As trends evolve, particularly among younger demographics showing reduced spending on handbags, the brand's ability to weave engaging stories becomes even more essential. By focusing on the experiential and aspirational aspects of its collections, Michael Kors continues to adapt its marketing narrative, fostering a deeper connection with consumers and ensuring its relevance in a highly dynamic marketplace.

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Michael Kors Marketing Strategy 2024: A Case Study – Latterly.org

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Michael Kors, established in 1981 in New York, has become a prominent name in the luxury fashion industry, offering a wide range of products including handbags, apparel, and fragrances. With over 1,200 stores across 90 countries and a diverse workforce of approximately 17,700 employees, the brand has faced several challenges, notably in maintaining its luxury allure amid fluctuating sales figures. In the fourth quarter of fiscal 2017, the company reported a 7.6% decline in sales from stores that had been open for at least a year, highlighting the pressures in the competitive landscape.

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Who are Michael Kors competitors?

Michael Kors competitors include Coach, Cole Haan, LVMH, Chico's FAS and Burberry.

(Video) Michael Kors: Popular or Overexposed?

Why is Michael Kors so popular?

Popularity across the world

Kors can be accredited with bringing luxury fashion to American high streets and homes (there are currently 311 stores in the US) with a simple focus on quality, uncluttered and uncomplicated styling and exclusivity without an alienating price tag.

(Video) Before You Buy Michael Kors, WATCH THIS | RANT&H

What is the number 1 luxury brand?

Luxury & Premium 50 2021 Ranking

(Video) Michael Kors Culture - October 2017

Do celebrities wear Coach?

Jordan, Megan Thee Stallion, and more stars are rocking Coach's new collection - and you can shop it now. The fashion house debuted its new Coach Forever season two fashion show Tuesday and the bag everyone is talking about is now available to buy.

(Video) Samsung Galaxy Active 2 Vs Michael Kors Lexington 2 Smartwatches

(Smartwatch Reviews And Tips)

Is Coach out of style?

Coach is back and ready to dominate the handbag industry. The famous leather handbag brand fell out of style as the trends of the early 2000s began to die, but now that there is a revival of Y2K fashion, Coach has completely rebranded itself to fit into the wants and needs of 2021 fashion.

Where does MK advertise?

Instagram Marquee Ads

In 2015, Michael Kors became the first brand to use Instagram's new Marquee video ads.

How old is Michael Kors?

What is Michael Kors best known for?

He is the honorary chairman and chief creative officer of his brand, Michael Kors, which sells men's and women's ready-to-wear, accessories, watches, jewelry, footwear, and fragrance. Kors was the first women's ready-to-wear designer for the French house Celine, from 1997 to 2003.

How do you pronounce Kors?

How to Pronounce Michael Kors (Real Life Examples!) - YouTube

Does Michael Kors use real leather?

The majority of Michael Kors handbags are made of saffiano leather. It has become almost a trademark of Michael Kors bags. This type of leather is extremely durable. It is both water-resistant and scratch-resistant.

What is the value of a Michael Kors?

Michael Kors net worth: Michael Kors is an American fashion designer who has a net worth of $600 million dollars.
...
Michael Kors Net Worth.

Net Worth:

$600 Million

Date of Birth:

Aug 9, 1959 (62 years old)

Gender:

Male

Profession:

Fashion designer, Designer, Costume designer

Nationality:

United States of America

Who is the hottest designer right now?

Led by the world's best fashion designers, these top designer brands create exquisite fashion styles that represent one's social status, value, and unique personality.
...
Best Designer Clothing Brands for Women & Men Right Now.

What is the coolest luxury brand?

For this ranking, we focus exclusively on brands in luxury fashion, beauty, and "hard luxury" (jewelry and watches). We have a separate report for the best luxury car brands.
...
The top 15 most popular luxury brands online in 2022.

Which is the most expensive brand in the world?

LVMH (Louis Vuitton Moet Hennessy) was the most valuable luxury brand in the world, with a brand value of about 75.7 billion U.S. dollars in 2021. The LVMH Group's total revenue for the 2020 fiscal year was about 44.65 billion euros.
...

Characteristic

Brand value in million U.S. dollars

-

-

9 more rows

What is the richest designer brand?

Most valuable fashion brands

Whats the most expensive clothing brand?

Top 10 most expensive clothing brands in the world in 2022:

Which brand is best for handbags?

Top 10 Handbag Brands in India 2020

Da Milano. ...

Hidesign. ...

Baggit. ...

Caprese. ...

Lavie (Bagzone Lifestyles) ...

Ladida. ...

The House of Tara. ...

Lino Perros (Sumitsu Apparel)

What bags are trending now?

7 Bag Trends That'll Be Everywhere in 2022

Knitted Shopper Bag. Courtesy. ...

Rabane Bucket Bag. Courtesy. ...

Wooden C woven leather shoulder bag. Courtesy. ...

Mini Corda Crossbody Bag. Courtesy. ...

Helene Bag. Courtesy. ...

Jodie Mini Intrecciato Knot Hobo Bag. Courtesy. ...

Vegetarian Leather Frayme Bag. Courtesy. ...

Loubila Pouch Chain Clutch Bag.

Is Michael Kors sustainable?

Overall rating: Not good enough

Michael Kors is owned by Capri Holdings. Its environment rating is 'not good enough'. It uses few eco-friendly materials. There is no evidence it reduces its carbon and other greenhouse gas emissions in its supply chain.

Does Gucci own Coach?

The change to the parent company's name is part of a strategy by Coach Inc. Chief Executive Victor Luis, who has set out to create an American luxury conglomerate modeled after LVMH Moët Hennessy Louis Vuitton SE and Kering SA, home to Gucci, Balenciaga and other European designer brands."

What is Michael Kors most famous for?

Michael Kors is an American designer best known for his fashion company and as a judge for the popular television show 'Project Runway. '

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Who are Michael Kors competitors? (2024)

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Michael Kors competitors include Coach, Cole Haan, LVMH, Chico's FAS and Burberry.

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Miller. 2024. Brand positioning map [infographics created by author]

Faith MILLER. 2024. Brand positioning map [infographics created by author]

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Miller. 2024. Brand positioning map [infographics created by author]

Faith MILLER. 2024. Brand positioning map [infographics created by author]

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Miller. 2024. India: hofsted cultural dimensions [bar chart created by author].

Faith MILLER. 2024. India: hofsted cultural dimensions [bar chart created by author]. incorporating data from: Country comparison tool (hofstede-insights.com)

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India

BENISSAN, Ezreen. 2024. ‘Luxury Will See India as a Prime Market in 2024’. Vogue India [online]. Available at: https://www.vogue.in/content/the-regions-luxury-will-be-heading-to-in-2024 [accessed 29 May 2024].

What is it about? - The article breaks down the markets that were spotlighted in 2023, while also highlighting that India will be seen as a prime market for luxury in 2024.

How it relates to FMP? - The report is centred around Michael Kors and they're presence in Asia. India is an ideal market to focus on, because of the rapid economic growth they have been experiencing over the years.

CIA. 2024. Central Intelligence Agency [online]. Available at: https://www.cia.gov/the-world-factbook/countries/india/#economy [accessed 19 Jun 2024].

What is it about? - The CIA database allows access to key information about different countries. The information is divided into categories such as people & society, economics and government.

How it relates to FMP? - The database has significantly helped the research for this report as it has provided a lot of key data, that gives more of an insight into India's economical situation, such as birth rates, population, employment rates etc...

MANKIRAN. 2023. ‘India’s Luxury Potential: Attracting Global Luxury Brands’. MBA ESG Business School, India [online]. Available at: https://mba-esg.in/unlocking-indias-luxury-potential-a-magnet-for-global-luxury-brands/#:~:text=Unlocking%20India%E2%80%99s%20luxury%20potential%3A%20A%20magnet%20for%20global,7%20Rise%20of%20luxury%20events%20and%20experiences%20 [accessed 24 Jun 2024].

What is it about? - The website discusses the key factors that have caused India's rapid economic growth over the years as well as highlighting why the country has become a magnet for luxury brands.

How it relates to FMP? - In relation to the report, the website has aided the research as it has lead to potential solutions that would suit India's fast changing economy as well as potentially benefiting Michael Kors.

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Artificial Intelligence

PYMNTS. 2024. Michael Kors offers customers MasterCard’s AI-powered ‘muse’ [online]. Available at: https://www.pymnts.com/news/retail/2024/michael-kors-offers-customers-mastercard-ai-powered-shopping-assistant-muse/ [accessed 19 Jun 2024].

what is it about? - The pymnts article informs the reader of the new AI-powered shopping assistant that is being introduced on Michael Kors's U.S website. It also makes the reader aware of key statistics regarding AI, such as the percentage of consumers that would be likely to use AI tools when shopping.

How it relates to FMP? - In relation to the report, this article provided a good starting points as to what Michael Kors are currently doing with AI. Therefore it directs the research towards in-store AI-powered tools, that would be a good fit for Michael Kors.

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Gen Z

KMANECK, Roshneesh. 2023. ‘Upper Crust: Why India Is Becoming the New Darling of Luxury Brands across the Globe’. Firstpost [online]. Available at: https://www.firstpost.com/explainers/india-luxury-brands-alia-bhatt-deepika-padukone-economy-growing-spending-power-12587022.html [accessed 19 Jun 2024].

What is it about? - As a whole, the article looks at what is attracting luxury brands to India. However, more specifically, it also discusses how Generation Z's have a huge part to play in the growth.

How does it relate to FMP? - The article has inspired the direction to focus on Gen Z's as it is stated that they have a heavy influence on the luxury market.

STATISTA. 2023. Understanding Gen Z consumers in emerging Asian markets. available at: https://www.statista.com/study/115921/understanding-gen-z-consumers-in-emerging-asian-markets/ [accessed 10 July 2024]

The report highlights the key drivers that are shaping the consumer behaviour of gen Z’s in Asia. It involves data and information on the following areas: Who are they, values & interests, internet usage and shopping behaviour. The report has helped identify what gen Z consumers, in Asia, are more interested in when it comes to shopping preferences.

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Key Theories - Hofsted Cultural Dimensions

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Key Theories - Hofsted Cultural Dimensions

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world renowned designer of luxury accessories and ready-to-wear

established in 1981

they operate either directly or through licensing partners in some of the most prestigious cities in the world: New York, London, Paris, Milan, Tokyo, Hong Kong etc.

The company prides itself on providing an inclusive work environment while celebrating global events and cultures that reflect the diverse world we live in.

About Us. 2024. Michael Kors: designer handbags, clothing, watches, shoes, and more. Michael Kors [online]. available at: Michael Kors: Designer Handbags, Clothing, Watches, Shoes, And More. | Michael Kors [ Accessed 9th may 2024]

(About Us. 2024)

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Michael Kors: Designer Handbags, Clothing, Watches, Shoes, And More. | Michael Kors

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Discover the latest women's and men's collections of designer handbags, shoes, clothes & more from Michael Kors for jet set luxury. Free shipping & returns.

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First store in Asia was opened in 2014 - located in Shanghai

LOCKWOOD, Lisa. 2024. ‘Catering to the Luxury Customer, Michael Kors Has Created a Juggernaut Brand since 1981: A Company History and Timeline’. WWD [online]. Available at: https://wwd.com/feature/michael-kors-history-timeline-1236229312/ [accessed 11 Jul 2024].

(Lockwood,2024)

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Catering to the Luxury Customer, Michael Kors Has Created a Juggernaut Brand Since 1981: A Company History and Timeline

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Michael Kors caters to the jet set lifestyle through his luxury brand Michael Kors and secondary line, Michael Michael Kors. Here, the brand history.