India’s luxury market will be increased from 14.7 billion to 18.3 billion this year depends on increasing brand awareness among the youth and higher purchasing, according to the Assocham study.
Assocham secretary general DS Rawat said that the factors that will help for an upgrade in the luxury industry’s growth are the rise in disposable income, brand awareness among the youth and purchasing power of the upper class in Tier II & III cities in India.
The study reveals that the five star hotels and fine-dining restaurants, electronic gadgets, luxury personal care items, and the jewellery sector have performed well in the year 2015 and are expected to grow by 30-35 per cent over the next three years.
With an estimated growth of 18-20 percent over the next three years, to be noticed on items like luxury cars mainly in the SUV section and the study segregated the luxury sector into product categories like apparel and accessories, pens, home decor, watches, wines & spirits and jewellery, services like spas, concierge service, travel & tourism, fine dining and hotels and assets including yachts, fine art and automobiles.
In was clearly mentioned in the reports that the high Internet penetration across tier-II and tier-III cities along with more disposable income leads to approximately 100 million transactions through the Internet by 2020.
The study was conducted in the cities like Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun, by selecting 250 employees were selected from each city on an average.
In 2015, Delhi ranks first in spending most on luxury brands followed by Mumbai (2nd), Ahmedabad (3rd) Pune (4th) and Bangalore (5th).
Around 55 per cent of the survey respondents were in the age bracket of 20-29 years, followed by 30-39 years (26 pc), 40-49 years (16 pc), the rest over 50. Over 69 per cent of the respondents said they prefer to purchase well known luxury brands, while 65 per cent indicated they would pay a premium for well-known, popular luxury brands.