Luxury branding is a term associated with a business that is concerned with high-end products. In business sense, the term is related to luxury product(s). In general, global companies are aware of luxury products and services, whereas in India, the concept of luxury branding is appreciated by very few companies. This study addresses the reasons as to why the concept of luxury branding is in its nascent stage in India.

A review of the literature reveals that there is a clear difference between social classes and elite classes, and the consumption of luxury is limited to the elite classes. Luxury goods sector came into being in the 19th century with the introduction of many highly valuable luxury brands.

Alleres (1990) indicates that luxury goods can be interpreted from a socioeconomic perspective and puts in a hierarchical form to explain the three levels of luxury goods based on the degree of accessibility (Figure 1). Level 1 (inaccessible luxury) is associated with products which are extremely high priced and offer the owner an exceptional social prestige. The target market in level 1 is the set of people who come under elite group and it reflects product distinctiveness. The middle level (intermediate luxury) describes a category of luxury products that is attainable by the ‘professional’ socioeconomic class. The bottom level (accessible luxury) describes the products that are accessible easily as compared to the middle level. The degree of accessibility reflects the social class.

Brand Management Journal, Status of Luxury Branding in India, luxury product(s), intermediate luxury, accessible luxury, Non-necessity, Non-profitability, Awareness of luxury brands, No buying capacity, Aesthetic appeal.