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26 March 2008
Mumbai, India
An improving economy and the rapid opening up of the Indian market has given rise to a group of affluent consumers who are more than eager to adopt the latest fashion trends. According to the latest Nielsen Global Luxury Brands Study, 35 percent Indians who participated in the survey agreed to buying designer brands. This is the third highest percentage globally with Greece leading the countries with 46 percent, followed by Hong Kong with 38 percent. Despite the prevalence of imitation designer-branded goods in some markets, surprisingly more than three-fourth of Indians surveyed do not think that imitation products match up to the real deal.
The top brands that Indian consumers spend on are Calvin Klein (34%), Gucci (25%), Diesel (24%), Christian Dior (16%), and DKNY (10%). India has also made it to the top ten markets globally for some of the brands. India ranks third highest globally for people who buy Gucci products. It ranks sixth for Calvin Klein, ninth for Diesel, and tenth for Fendi for buying these brands globally.
“People are traveling overseas more frequently now and quite likely their interactions with foreign brands have increased considerably. Moreover, foreign brands are synonymous to status and our survey finds that 57 percent of Indians surveyed buys designer brands as a status symbol. The number of outlets that these brands have opened up in the country in recent times is a testimony in itself of the increasing fashion consciousness amongst Indians,” said Vatsala Pant, Associate Director, Client Solutions, The Nielsen Company.
The study reveals, if money were no object, Gucci (41%), Calvin Klein (31%), Christian Dior (26%), Versace (25%), Diesel and Giorgio Armani (both 22%) are the most coveted brands among consumers in India. The local designer brands are also quite popular amongst Indians with whopping 40 percent respondents buying these brands. This is the sixth highest percentage globally for a country that buys local brands.
India (41%), the Philippines (39%) and Indonesia (37%) top Asia Pacific with people most aspiring to the Italian brand Gucci. At 41 percent, India actually tops the world with most people wishing to buy a Gucci product if money were no object. It’s worth noting that the level of desire among Asian consumers to buy Chanel and Christian Dior increased by six and four percentage points respectively compared to two years ago when the Nielsen survey was last conducted.
“With the flourishing Indian economy and greater disposable incomes of consumers, India has become a potential hub for designer brands from across the world. The increasing experimental nature of consumers in India has also helped the fashion industry to spread its roots in the country,” continued Pant.
Though 73 percent Indians feel that designer brands are usually overpriced for what they are, 35 percent also believe that designer brands are of a significantly higher quality than standard brands. India stands eighth globally which thinks designer brands are quality products and invest in it inspite of the price. 45 percent Indians think that only fashion conscious people consider buying designer brands.
The Path Ahead for Designer Brands
Designer brand appeal has certainly spread across sectors. According to the Nielsen survey, consumers in India 'approved' the potential of a crossover product between a designer fashion brand and a new technology gadget – 56 percent Indians surveyed would buy a mobile phone that was co-branded with a luxury brand – an area already tapped into by fashion giant like Prada. 40 percent said they would buy a co-branded designer laptop computer, 32 percent a “designer” flat screen TV, 26 percent would go for a designer branded MP3 and 24 percent would buy a designer kitchen appliance.
“There seems to be a huge market potential for luxury brand line extensions into every corner of the home and office and cross-over between brands and products is certainly an opportunity to drive the demand for these products,” added Pant.
The Survey
The latest survey, conducted in November 2007, polled about 26,312 internet users in 48 markets from Europe, Asia Pacific, North America and the Middle East. 500 interviews were conducted in India.
The Nielsen Online Consumer Confidence and Opinion Survey is the largest half-yearly survey of its kind, aimed at gauging current confidence levels, spending habits/intentions and current major concerns of consumers across the globe.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
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