[ Sunday, March 19, 2006 01:01:07 amTIMES NEWS NETWORK ]
NEW DELHI: India is creating more billionaires and this is having a direct impact on consumption patterns as well.
According to a recent report published by the Knowledge Company, there are around 1.6 million luxury households in India and this number is likely to cross 3 million by 2010.
Each household earns about 45 lakh per year and they spend about Rs 4 lakh per year on luxury and ‘very premium’ goods and services.
Says Saloni Nangia, associate director, The Knowledge Company: "The Indian luxury market is growing at a tremendous pace. There exists a great opportunity to create retail outlets to meet the exclusive needs of this set of customers."
The survey was carried out in 12 cities and over 4,000 customers were interviewed. Moreover, the number of luxury households is growing at 14% on a year on year basis.
The highest spends are in the segments of jewellery, clothing, digital accessories, timepieces, cosmetics and skin care products.
And the new generation affluent consumers are mostly CEOs and senior executives in their thirties and forties, returning NRIs, entrepreneurs in new sectors, franchisees and small and medium retailers.
The age group under consideration was between 25 and 55 years.
Says Kalyani Chawla of Christian Dior in India: "In the last few years, import duties of many luxury goods have come down. Also, a lot of Indians have become aspirational and brand conscious."
Adds Xavier Bertrand, general manager, Chanel (India), "The recent changes in the FDI regulation make it more conducive for luxury brands to enter the Indian market."
Construction of luxury malls is also underway in India and this is also expected to boost sales of this category of goods. Most luxury consumers are concentrated in north and west India.
"Though inheritors of wealth have an affinity towards luxury goods, increasingly, wealth creators are also becoming consumers of luxury products," points out Nangia.