Home / Knowledge / News / Fashion / Indian luxury market to cross $18 bn by 2016: Assocham
Indian luxury market to cross $18 bn by 2016: Assocham
08
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

Indonesian textile industry targets exports of $14 bn

Apparel/Garments | On 25th Sep 2018

Indonesian textile industry targets exports of $14 bn

With a January-July 2018 exports figure of $7.74 billion, the...

Several challenges for Vietnam's garment sector in 2019

Apparel/Garments | On 25th Sep 2018

Several challenges for Vietnam's garment sector in 2019

Vietnam’s textile and garment industry will be facing a gamut of...

PRGMEA urges govt to set up Pakistan trade houses abroad

Apparel/Garments | On 25th Sep 2018

PRGMEA urges govt to set up Pakistan trade houses abroad

The Pakistan Readymade Garments Manufacturers and Exporters...

Interviews View All

Headhonchos, Indian textile value chain

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Anshul Sood, Oceedee

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Karen Lou,

Karen Lou

Australia-based Sunseeker has been creating swimwear since 1970. Sunseeker ...

Rajat Jaipuria,

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

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


October 2018

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

news category


Related Categories:

Advanced Search