According to The Associated Chambers of Commerce of India (ASSOCHAM), the Indian luxury market will grow at a CAGR (Compound Annual Growth Rate) of around 20 per cent to reach US $ 18.3 billion-mark by the end of 2016. Increase in disposable income, brand awareness and purchasing power of the upper class in Tier II & III cities in India will drive growth in the market.
The report also mentions that High-Income Group (HIG) consumers spend over 40 per cent of their monthly income on buying products from luxury brands whereas the Middle-Income Group (MIG) consumers spend 8-10 per cent of their income on luxury products.
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Some of the brands that performed well last year include – GUCCI, Christian Dior, Louis Vuitton, Ocean Style Yachting, Canali India, LVMH India, Judith Leiber, Da Milano Leathers, Reliance Brands, Hidesign and others. In the year 2015, Delhi grabbed the first spot in spending most on luxury brands followed by Mumbai (2nd), Ahmedabad (3rd) Pune (4th) and Bangalore (5th).
A few days back, Ernst and Young stated that personal luxury-goods market grew by 3 per cent in the year 2014… Increased use of social media increased omni-channels, globalization and development of second-hand or pre-owned luxury goods market backed growth in the market. The online sales now make 5 per cent of total luxury goods sales.
