From Louis Vuitton bags to Lamborghinis, the Indian market is getting flooded with luxury goods. Despite the continued global economic slowdown, the luxury market in India is expected to grow at 25 per cent to touch $15 billion by FY 2015 from the current level of $8 billion.
Spending rising
A recent Assocham-YES Bank study reveals that while the luxury market is poised to expand three fold in the next three years, the number of millionaires is expected to multiply three times in another five years. Globally too, consumer spending is on the rise, expected to reach $40 trillion by 2020.
The number of ultra high net worth households, with a minimum net worth of Rs 25 crore is expected to triple to 2.86 lakh in the next five years. the HNIs will be double in number by 2015 to over 4 lakhs with a collective wealth of $2,645 billion.
“Increase in spending is anticipated across the country and beyond the walls of the metros, with increasing brand awareness amongst the youth and purchasing power of the upper class in Tier II & III cities in India where luxury cars, bikes and exotic holidays and destination weddings are no strangers,” said Assocham Secretary-General D.S. Rawat.
India, China resilient
These projections along with the increasing price parity in the luxury products with other international destinations like Singapore or Hong Kong, and customised products offerings would indicate that the luxury market in India would evolve quickly, the study added.
India and China have shown their resilience to the global turmoil by exhibiting sustained growth and thus laying a solid foundation for future global economic recovery.