Submit :
News                      Photos                     Just In                     Debate Topic                     Latest News                    Articles                    Local News                    Blog Posts                     Pictures                    Reviews                    Recipes                    
Despite slowdown, India's luxury market to grow at 25%
Ignoring the continued global economic slowdown, the luxury market in India is pegged to grow at 25% in 2013 till 2015, and is likely to touch US$ 15 billion from the current level of US$ 8 billion, reveals a joint study by industry body Assocham and Yes Bank.

While releasing the study, Assocham Secretary General D S Rawat said that the luxury market is poised to expand three fold in next three years and the number of millionaires expected to multiply three times in another five years.

Increase in spending is anticipated across the country and beyond the walls of the metros, with increasing brand awareness amongst the youth and purchasing power of the upper class in Tier II & III cities in India where luxury cars, bikes and exotic holidays and destination weddings are no strangers.

Globally too consumer spending is on a rise, expected to reach USD 40 trillion by 2020 with an unprecedented growth of USD 12 trillion in a decade. Predictable consumer spending patterns beyond geographies and cultures unwrap possibilities of future growth in emerging markets like India where consumer spending is expected to grow four times to USD 3.6 trillion within this period, driven by increasing income and aspirations, adds the paper as reported by ANI.

Indian luxury market is projected to reach USD 14.7 billion in 2015. The number of Ultra High Net worth Households, with a minimum net worth of INR 25 crore is expected to triple to 2.86 lakhs in next five years with a five-fold increase in their net worth to INR 235 trillion. And the HNIs will be double in number by 2015 to over 4 lakhs with a collective wealth of USD 2645 billion.

These projections along with the increasing price parity in the luxury products with other international destinations like Singapore or Hong Kong, and customized products offerings would indicate that the luxury market in India would evolve quickly, highlights the paper.

The Private Equity investments in the luxury sector for the last three years, i.e. Jan 2009 - Aug 2012 have been less than a billion USD, compared to the USD 35 billion total PE investments during this period. With the luxury market expected to grow at over 25% year on year, PE investments in the luxury segment are expected to increase and support the enhanced size of the Indian luxury market. There are a number of funds in India, which are focused on investing in consumer centric businesses, e.g. Everstone, L Capital and Avigo.

A number of others are also currently investing in the consumer space owing to lack of meaningful opportunities in other segments and some of these funds are expected to vet the luxury markets' appetite for capital. Would there be a fund dedicated to investing in the Indian luxury market by 2015 - maybe, maybe not, but the investing focus on the luxury market is unlikely to wane, said DS Rawat in the statement.

India and China have shown their resilience to the global turmoil by exhibiting sustained growth and thus laying a solid foundation for future global economic recovery. A reflection of this can be seen in the potent demand being witnessed by global luxury brands from these emerging economies. As elite members of the BRIC club which currently accounts for 11% of the total world luxury sales (representing a combined retail value of over US $33 Bn in 2011-12), India and China are poised to undertake dominant positions in the global luxury market.

Email Id
Verification Code
Email me on reply to my comment
Email me when other CJs comment on this article
Sign in to set your preference
merinews for RTI activists

Not finding what you are looking for? Search here.