Factors Affecting Luxury Consumption in the UK and India

Researchers define luxury consumption as the behavior of consumers seeking to purchase brands and services for the status they confer, regardless of consumers’ target income or social class. Luxury consumption generally involves high-priced luxury products. Most people do not consume these products regularly. Many consumers use such brands to satisfy material needs but also social needs.

To look at the similarities and divergences related to luxury consumption, I conducted a research study focused on luxury consumption patterns between Indian and British consumers. The nations were chosen for their historical association, brand affiliation with luxury consumption, and commonalities of available brands.

The research study focused on 3 fundamental antecedents of status consumption: (a) socio-psychological antecedents; (b) brand background and (c) situational background. The sociopsychological roots were further separated into three divergent categories, namely: (a1) social gains; (a2) indication of esteem and (a3) ​​ostentation. Brand roots were also divided into 2 categories, namely: (b1) management-controlled brand characteristics and (b2) market-controlled brand characteristics.

The results of the study suggest that British consumers used status consumption to achieve social gains, signal esteem behaviors and ostentation. However, in the Indian context, consumers engage in luxury consumption with general ostentation. This proves the deviations between western and eastern consumers and the influence of culture and markets. Individualistic British consumers focus on their actual self-concept (how one sees oneself) and Indian consumers focus on the self-concept of others (how others see themselves).

Regarding the brand background, it was observed that both management-controlled and market-controlled brand characteristics have a notable influence on status consumption. However, British consumers were significantly more affected by brand history than Indian consumers. This can be attributed to the nature of domestic competition. The UK is a highly developed and mature luxury market where people have been exposed to status brands for longer than India. Longer exposure and greater accessibility to global brands, as well as increased rivalry between manufacturers, make the UK consumer increasingly aware of brands and their symbolic ties.

The results also suggest that luxury consumption among Indian consumers is highly conditioned on social occasions. The result demonstrates the great differences between collectivist and individualist consumers and their status consumption practices. Previous explorations have highlighted that spending money on luxury consumption on celebrations and significant occasions brings many tangible and intangible benefits in the Indian market including magnified social status for consumers. Thus, in a collectivist market like India, the consumption of ostentatious products at particular social functions can enhance an individual’s overall social identity and presence within and between groups.

The findings will help managers market their luxury brands internationally.