Now, luxury is not just the tenure of big cities. Its magical charm grows beyond the metros to appeal the smaller towns too...
Indian economy is one among the fastest growing countries in the world. Indian luxury market is predicted to reach USD 5.8 billion in the next 5 years. The country is the home for more than 83,000 millionaires, and is growing manifold with a 19.3% increase every year. Increasing amount of disposable income, dual income, and global exposure are a few growth drivers. Aspirations of the middle income population towards luxurious life style are increasing, which is the major influencing factor for the growth of the market.
India is the world's third largest consumer class having 122 million individuals with purchasing power. Personal consumption of Indian consumers is estimated to be 67% of GDP, which is higher next to US at 70%. Growth for luxury market in India is predicted by industry analysts to be drastic between 2015 and 2020 as more people are likely to enter the consumption curve. Market for luxury items have grown well by 29% over the projected 23%.
Luxury Brands in the Indian Market:
Luxury brands in India saw a continuous double digit growth during the first half of 2011 as against 2010. Luxury apparel retailers are selling out their 2011 inventory, and are placing orders for 2012 seasons. Luxury brands such as Louis Vuitton, Tag Heuer, Mont Blanc, Gucci, Harley Davidson, hold big potential in the Indian market. Burberry, the British fashion icon for coats, and bags has established their market in India. Currently, the brand is chalking plans to scale up it's with company owned stores, and new categories of products at high-end malls.
Growing beyond the metros:
Nine million Indian households will be the target for luxury and near luxury retailers. The growth of luxury market has now extended beyond metros to reach smaller towns as well. A Kearney report states that one out of every four luxury stores in India has come up outside metro cities of Mumbai, Delhi, Hyderabad, Pune, and Bangalore. Currently, the industry is expanding its presence in more than 30 small towns in apparels, fashion accessories, watches, and cosmetics.