Home / Knowledge / News / Fashion / Luxury market in India pegged to grow at 25% till 2015
Luxury market in India pegged to grow at 25% till 2015
13
Feb '13
Irrespective of the continued global economic slowdown, the luxury market in India is pegged to grow at 25% in 2013 till 2015 and likely to touch US$ 15 billion from the current level of US$ 8 billion, reveals the ASSOCHAM-Yes Bank study.

While releasing the study ASSOCHM Secretary General Mr. D S Rawat said,  “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.

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 3 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 focussed 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 Mr. Rawat.

“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.


Must ReadView All

Courtesy: ITMA 2015

Textiles | On 21st Jun 2018

Italy to host textile machinery fair ITMA in 2023

ITMA, the trendsetting textile and garment technology platform, will...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Interviews View All

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search