Home / Knowledge / News / Fashion / Indian luxury market to cross $18 bn by 2016: Assocham
Indian luxury market to cross $18 bn by 2016: Assocham
Jan '16
With increasing brand awareness amongst the Indian youth and purchasing power of the upper class in tier II and III cities, Indian luxury market is expected to cross $18.3 billion by 2016 from the current level of $14.7 billion growing at a compound annual growth rate (CAGR) of about 25 per cent, according to a study by Assocham.

The sectors such as five star hotels and fine-dining, electronic gadgets, luxury personal care, and jewelry performed well in the year of 2015 and are expected to grow by 30-35 per cent over the next three years. Big ticket spendings such as on luxury cars, mainly SUVs are likely to continue, growing upwards of 18-20 per cent over the next three years, driven by consumption in smaller towns and cities.

With the luxury market expected to grow at over 25 per cent year on year, Private Equity investments (PE) in the luxury segment are expected to increase and support the enhanced size of the Indian luxury market.

The Assocham paper segregated the luxury sector into products: apparel and accessories, pens, home décor, watches, wines & spirits and jewelry, services: spas, concierge service, travel & tourism, fine dining and hotels and assets: yachts, fine art, automobiles.

The high internet penetration across tier-II and tier-III cities along with high disposable income shall lead to approx. 100 mn transactions on the Internet by 2020. As a result, the luxury consumption is going to increase manifold in the country, the study highlighted.

The size of the High Income group (HIG) consumers continue to enlarge and spend over 40 per cent of their monthly income on some of the world's largest luxury brands whereas the middle income group (MIG) consumers spend 8-10 per cent of income on luxury products. Globally too, consumer spending is on the rise and is expected to reach $40 trillion by 2020 with an unprecedented growth of $12 trillion in a decade.

D S Rawat, Secretary General of Assocham said that the slowdown in the economy has not affected the spending patterns of high income group (HIG), with many of them stating that maintaining their lifestyle is an extremely important facet of their social life.

According to the report, luxury jewellery, electronics, SUV cars and fine dining have grown beyond expectations, while apparel, accessories, wines and spirits have continued their strong growth in 2016. Consumption of branded wine is also likely to register over 30 per cent increase in the metro cities.

In 2015, Delhi ranked first in spending most on luxury brands followed by Mumbai, Ahmedabad, Pune and Bangalore.

The demand for luxury goods in metros are booming as incomes continue to rise. The survey also reveals the role of digital media and the extent to which it is being used as a tool to engage high-end consumers. The Indian luxury market is poised to expand five fold in next three years and the number of millionaires expected to multiply three times in another five years. (SH)

Fibre2Fashion News Desk - India

Must ReadView All

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Courtesy: Commonwealth Bank of Australia

Textiles | On 25th Oct 2016

World’s first cotton shipment using Skuchain’s Brackets

The world’s first trade transaction involving shipment of cotton...

Textiles | On 25th Oct 2016

Cotton yield to increase to 568.29 kg/ha in 2016-17: CAB

At its first meeting for the cotton season 2016-17, the Cotton...

Interviews View All

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search