The Indian Luxury Market- A Snapshot (Part I) | India BIZNEWS
The Consumer profile
The prime consumer of the luxury segment remains the rich class. India has around 127,000 high net worth individuals and in 2010, their total wealth grew by more than 50 per cent from the previous year. There are 3 million other households earning above Rs 1 million annually which are ready to consume luxury. The riches come largely from the metropolitans like Delhi, Bangalore and Mumbai. Even though Mumbai stays as the cosmopolitan face of India, luxury brands have chose the capital city for their setting up their high mast. Delhi resides industrialists, entrepreneurs, politicians and wealthy farmers (trickling from Punjab and Haryana) whose capital are not largely dependent on share markets. Also, a huge amount of wealth creation is protected from taxes through cash collection (black money). “A large number of customers prefer to pay by cash”, says a Brand Consultant of a high end brand at Vasant Kunj, Delhi. This is why the ‘separate segment’ has catapulted sales in the luxury stores and kept it safe from credit crunch circumstances like the recession.
Typical consumer patterns in urban India: metros and tier 1 cities
[TABLE="width: 549"]
[TR]
[TD]
Household Income (Rs/Year)
[/TD]
[TD]
Number of Households
[/TD]
[TD]
Typical occupations
[/TD]
[TD]
Luxury Products
[/TD]
[TD]
Luxury services
[/TD]
[TD="colspan: 2"]
Luxury Assets
[/TD]
[/TR]
[TR]
[TD]10-50 lakh
[/TD]
[TD]280,000
[/TD]
[TD]Service industry professionals
[/TD]
[TD]Low-ticket items such as accessories, wines and personal care
[/TD]
[TD]Spas, infrequent fine dining
[/TD]
[TD]
-
[/TD]
[TD]
[/TD]
[/TR]
[TR]
[TD]50 lakh-1 crore
[/TD]
[TD]200,000
[/TD]
[TD]Corporate executives; self-employed professionals
[/TD]
[TD]Watches, apparel, accessories, wines and spirits, personal care
[/TD]
[TD]Travel, frequent fine dining, hotels, spas
[/TD]
[TD]
-
[/TD]
[TD]
[/TD]
[/TR]
[TR]
[TD]1-5 crore
[/TD]
[TD]120,000-150,000
[/TD]
[TD]Medium enterprise owners; traditionally wealthy company CEOs; top bankers; professionals
[/TD]
[TD]All
[/TD]
[TD]All
[/TD]
[TD]Cars, yachts, real estate, paintings
[/TD]
[TD]
[/TD]
[/TR]
[/TABLE]