Top 10 misconceptions about Indian Luxury Consumers
2016 comes to an eventful end with various upheavals across the globe. Ranging from terror attacks in Europe; the Brexit fiasco in Great Britain; the unexpected victory of Donald Trump in the USA and to the last but not the least, the demonetization drive by Prime Minister Modi in India.
All these factors have had adverse and or positive impacts on the luxury domain. Global luxury industry valued at a whopping 1 trillion Euro in 2015 (Bain & Co) registered a mere 5% growth over 2014.
The global luxury market has reached an era of single-digit growth.
However, as the rest of the world stabilizes, the Indian growth story is hard to discount. For most luxury brands, India has become the ‘hottest marketplace’. Growing at approximately 25% CAGR, it is estimated to have reached $18.3 billion from $14.75 billion in 2015.
The single biggest factor contributing to this growth is the steep rise of the affluent class due to the stellar performance of the economy and the ‘start-up’ culture. Estimates reveal that the number of HNI households have grown at a CAGR of 16% from 81,000 in 2011-12 to 146,600 in 2015-16. This is further expected to increase to 294,000 representing a total net with of Indian Rs 319 trillion!
While there is a tremendous buoyancy around the affluent Indian & his luxury consumption, there are clearly a few misconceptions in the minds of the marketers.