Science of Sales & Marketing

When consumers travel international they experience the breadth of brand, which are available there, and hence more and more people traveling overseas and are getting more and more exposed to international brands.

Traveling in many ways is a predecessor for trading up; this might be the fastest growing segments, which combine mass and prestige. It might be happening across a wide range of products from bottled water to beer bottle and Cell phones to Car. I just want to quote a recent example; one of my friend recently bought BMW- the ultimate car on return from his US trip. I just asked him “why he has purchased BMW? while there so many other brand is available in lesser price ? He touched the car with tenderness and told, you don’t understand –“this is about the prestige and that I have longer attached with its functional, technical and emotional bond during my stay in US”, he added – most of the foreigners are driving this car, “I have paid a premium price for acquiring this car, it has the best engineering and ” if I can sell it after two years I can sell it 25% off from actual price”, on other hand “if I have bought another car I can get only 25% value of my car as resale value” after two years.

This reveals that consumers bring the ultimate “brand image” with them from their international trip and get attached with a particular brand. However the brand should have sound attribute from different aspect that usually a consumer perceive & in other point of view, although if the brand have attribute on high on emotional benefits but low on technical & functional side then the consumers won’t accept the imbalance.

According to Indian Luxury trends 2006 a study done by Technopak Advisors there about 1.6 million households earning over US $100,000 plus who spend about $ 9,000 on luxury and premium goods and services. The market is growing with these households by 14% where the market potential of about $ 14.4 billion.

There are growing classes of new generation affluent beyond the traditional rich; the new class includes top-level professional, CEO, Entrepreneur and small and medium retailers. This seems that the middle & upper middle class will keep moving to pure prestige hypermarket that include luxury and the value curve.

Another survey by AC Nielsen global online survey conducted across 42 countries which revealed that in India -41% respondents think sunglasses are the most sought after accessory, followed by belts (35%) and stationery (20%). That online report states 31% of Indians buy designer clothes and uplifting ones social status is the key reason behind the splurging. These middle & upper middle class seems moving toward hypermarket where there is ambience and prestige attached in buying even a daily usage product. I hope these growing segment that combine particular mass and prestige might be happening across a wide range of products & services in other developing countries as well.