In 2015, DS Rawat, secretary general, Assocham, said “The factors that have fueled the luxury industry’s growth (in India) are rising disposable incomes, brand awareness amongst the youth and purchasing power of the upper class in Tier II & III cities in India,” However, the the recent government measures , such as Demonetization and the PAN card requirement to purchase goods worth more than 2 lak has deterred the luxury consumer. As a result, there was a turn negative impact on the luxury sales in India in 2016.
Yet we see that, on 5th October 2017, the DLF group opened, The Chanakya what is touted to be the second Emporio in New Delhi with its flagship store, none other than Hermès. The Chanakya at Lutyens Delhi, is aimed at housing an amalgamation of luxury companies such as – Tom Ford Women and Valentino that will serve as a path to brands that spell luxury such as — Karen Millen, Reiss and Kate Spade.
This of course does not still change the fact that, in India, luxury goods are still in its nascent stage. It will be interesting to see what lies ahead in the Indian luxury market, considering the International Luxury brands cannot wait to tap into the potential of the purchasing power of the Elites in India.
After all, The Hurun Global Rich List 2017 recently ranked 2,257 billionaires from 68 countries. India was fourth on that list after China, the US, and Germany with 100 billionaires. There are 400,000 high net worth individuals in India with personal wealth of more than $10 million..!!
In fact, by 2025 the so-called ‘Millennials’, the tech-savy generation born after 1980 and those born after 1995, will represent 45 percent of overall luxury consumption, with Asian consumers accounting for more than half, according to a study by Bain & Co.
Sources : The Economic Times , The Wall Street Journal, BusinessToday, Reuters