INDIA LUXURY MARKET POISED FOR GROWTH
India has been for many years touted as the next luxury market luxury brands should focus on. Although eclipsed by the might of the Chinese luxury sector, India has not disappointed brands that have spent time building loyalty in this hugely potential market.
With the robust pace of vaccinations and a better-than-expected manufacturing performance, India keeps growing at a steady 9.2% pace in 2021, despite a second wave of COVID-19 in April-May. While the Covid-19 has somehow slowed the economic growth, India affluent and HNW consumers have continued shopping for their favorite brands domestically or abroad, especially in Europe, the Maldives and Dubai, which have welcomed them with open arms.
With rising disposable incomes, the middle and the upper middle class has now become the darling of many luxury brands. More than 300 international brands are planning to enter the India market in the next few years, a clear indication of its potential.
WHO IS INDIA’S TYPICAL LUXURY SHOPPER?
While much have been written about affluent consumers in China, their peers in India are not as well-known. Today we will deep-dive on the India wealthy consumer, to discover what aspirations they have, what type of lifestyle they aspire to and what shopping habits they have when buying luxury.
These are 5 takeaways:
#1 – Despite the recent set-back of the Covid-19 situation, affluent Indian consumers remain very upbeat about the future. Over 70% believe that their economic well-being, disposable income and wealth will keep growing. This is one of the highest rate we registered among the top global markets we survey, and bode well for the establishment of a solid and consistent luxury sector in the country
#2 – E-Commerce on the rise. While starting from a lower base than China, luxury e-commerce is growing rapidly, with 75% of our respondents planning to buy more luxury goods online in the next 12 months. High in the shopping lists are jewelry, fashion clothing and electronics
#3 – Outbound leisure travel is ready to boom. While currently limited because of the Covid restrictions, wealthy Indian consumers are itching to travel again, with over 55% of our sample keep to spend more on travel experiences. With China actively promoting domestic instead than outbound travel, it is time for luxury brands to get ready to welcome a new class of luxury travelers in shopping capitals of the world, such as Singapore, Dubai, Milan and Paris
#4 – While in China the luxury sector is driven primarily by Gen Z and Millennials, in India Gen X and Boomers are the driving force behind the market growth (and the segment most likely to travel overseas). Brands will need to recalibrate their branding activities and communications to align with this older segment
#5 – Luxury is consumed because it is perceived to have a higher quality. But the consumer is becoming increasingly sophisticated: beside quality, luxury is perceived as something that improve the quality of life of the consumer, by making their life more enjoyable. It is also a way to express the personality of the consumer, who uses luxury to express its belief system and inner self