I have begun some work on luxury retail in India and am still astounded at the opportunity....I mean even in these times.....with a phenomenal food inflation, apparel retailers under tax pressure et al. While there might be a different opinion if this was looked ta a micro level, there is no denying that largely the opportunity in luxury in India is still unexploited.a survey conducted by AT Kearney (‘Luxury In India -A CII-AT Kearney Report,2010) estimates that the Indian luxury market is worth $377 million and is likely to grow at an annual rate of 28% in the next three years And this opportunity extends beyond the top of the pyramid.
Take jewellery for instance...of paramount importance in Indian families - even in the lower middle class. Precious gems and jewellery are a part and parcel of Indian traditions and customs. `According to a report by NCAER (How India Earns,Spends and Saves, 2008)gold has traditionally been valued in India as a savings-and investment vehicle and even today, continues to be the second most popular instrument after bank deposits.It goes on to say that 16% of the total investment made by an Indian household is in jewellery.And when we say this we include the great Indian middle class.
In a very ironic manner, its the saving culture of India that boosts the spend on luxury (jewellery to be specific). While I research these cultural aspects, will keep you posted on the various cultural aspects of luxury buying behaviour in India.
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