The Role of Experiential Marketing in the Indian Luxury Industry
A Trariti Consulting Group Study by Kirti Sachdeva, Swapnil Roy and Arup Majumdar
With 1.3 billion people, India is the world's second-most populous country and a potential luxury powerhouse. Indians are increasingly attracted to finer things in life, such as jewelry, automobiles, spirits, and personal care. The luxury goods market in India is forecasted to grow to $8.4 billion by 2024 according to a report by Euromonitor International.
Owing to the COVID-19 epidemic and associated
economic issues, the luxury market witnessed a
major decrease in 2020.
It has since rebounded and started a period of expansion
and renaissance. This rebirth can be explained by an
assortment of factors, including consumers making up
for the lost time through "revenge spending," a new
generation of millennial buyers entering the market,
and increased demand due to pent-up desires for luxury
goods, leading to a reconfiguration of consumer
spending towards luxury items.
There is a great deal of discussion about how
branding strategy and conventional marketing
approaches are losing their effectiveness. Customers
now bypass commercials, use ad blockers on their
computers, and they're additionally more certain
now than ever to opt for commercial-free streaming
services over live television.
After a decline in 2019, Luxury Goods Industry In India saw an Increase of 8% in 2020
After a decline in 2019, Luxury Goods Industry In India saw an Increase of 8% in 2020
As the Indian luxury market expands, manufacturers are seeking new and imaginative methods to engage with their customers. Here’s where the experiential market comes into play.
Experiential marketing is a arketing strategy that incorporates consumers and creates memorable moments at each stage of the customer journey. This creates a whole new level of engagement with the client by allowing them to enter a brand's vision and identity. Companies that develop an emotional connection with their clients are on the road to gaining loyal customers.
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But how do brands create an everlasting impression on their customers using experiential marketing? Let's dive deep into the ocean of the deployment of experiential marketing.
Methods of Experiential Marketing:
For me to show in India means also to celebrate the heritage of India in embroidery and how important [it is] in the fashion world.
Product Showcases
The implementation of events is one of the most efficient strategies. To give customers a sense of the lifestyle associated with their brand, luxury firms sponsor exclusive events like fashion shows, art exhibits, and gourmet experiences. These gatherings are intended to foster a feeling of exclusivity and elegance while fostering a higher degree of client engagement with the business.
The implementation of events is one of the most efficient strategies. To give customers a sense of the lifestyle associated with their brand, luxury firms sponsor exclusive events like fashion shows, art exhibits, and gourmet experiences. These gatherings are intended to foster a feeling of exclusivity and elegance while fostering a higher degree of client engagement with the business.
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Dior’s Fashion Show in Mumbai
​The iconic Gateway of India served as the background for the leading luxury brand Dior unveiled its pre-fall collection, ushering in a new age of experiential marketing in India. Dior's creative director Maria Grazia Chiuri was quoted by Business of Fashion on her show in India.
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Festival of Dreams: Porsche
​This year, Porsche celebrated its 75th anniversary, and to mark the occasion, Porsche India hosted the Festival of Dreams event to showcase India’s first 718 Cayman GT4 RS at the JIO Global Convention Centre in Mumbai. Since its premiere in May 2022, this is the first 718 GT4 RS that has been sold in India. While the sports vehicle starts at Rs 2.53 crore ex-showroom, the specific specification that has been displayed costs close to Rs 3.2 crore.
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Fine Indulgence at Taj Mahal Palace
Going out to eat is only one aspect of dining at The Taj Mahal Palace in Mumbai. It's all about the experience—getting dressed up in the latest clothes, selecting from a variety of global cuisines, and taking pictures of exquisite food to share with friends and family.
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2. Social media and Digital Marketing:
Using social media and digital marketing is a critical element of experiential marketing in the Indian luxury market. Luxury businesses are making use of social media's power to connect with a larger audience and interact with consumers in fresh and creative ways. Companies are showcasing their products on social media sites like Instagram and Facebook, sharing behind- the-scenes looks at their creative process, and developing interactive experiences that let customers take part in the brand story.
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LV: GOAT vs GOAT
Lionel Messi and Cristiano Ronaldo featured in a new commercial campaign for French luxury brand Louis Vuitton. Before the first day of the FIFA World Cup 2022 in Qatar, the campaign, dubbed "Victory Is a State of Mind" and shot by Annie Leibovitz, made its official premiere. The post is the fourth- most liked picture on Instagram.
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3. Immersive Experiences:
Experiential retail and pop-up stores are other areas in which luxury companies in India are spending. Customers may experience the brand in an up-close and personal way thanks to the immersive retail locations they are developing.
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Sabyasachi’s Luxurious & Stunning Retail Destination In New York City
There is a brand-new retail location in New York City, and it is unheard of anywhere else. It is a magnificent, winding place that takes them to what may be a Maharaja's palace. There are high ceilings, intricate woodwork, walls covered in opulent wallpaper, numerous chandeliers made of rose- tinted glass that are estimated to have cost close to a million dollars, a thick layer of kilim rugs, mirror display vitrines, enormous Delft vases and jars, bowls brimming with fruit, and a battalion of staff. The West Village in New York has become a new hotspot for Kolkata-based designer Sabyasachi's worldwide customers to discover Indian workmanship and tradition.
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As luxury businesses in India look for methods to connect with consumers on a deeper level, experiential marketing has grown in importance. Luxury businesses may set themselves apart from their rivals and develop solid, enduring relationships with their consumers by developing immersive experiences that engage people emotionally.
Experiential marketing, which employs cutting-edge technologies and imaginative storytelling, has the potential to completely change how luxury companies interact with their target audiences and spur economic growth.
Experiential marketing will probably become more important as the Indian luxury market develops and matures, helping to determine the direction of the sector.