THE INCREDIBLE INDIAN LUXURY CONSUMER !
Luxury in India is growing at a breathtaking pace of almost 20+ percent for past several years. The market size is expected to touch 15 billion S by 2015/2016. Luxury is spreading its wings beyond the key cities of Mumbai, Delhi etc to the likes of Hyderabad, Pune, Nagpur, Chandigarh etc.
So who is fuelling this growth ?? In a majorly ‘aam aadmi’ country, who is the typical Indian who is indulging in this extravaganza ?
In my long career in this space, I have come across several queer and not so queer, yet Incredible Indians who shop luxury.
- The Khandani Raees : Born with a silver spoon in their mouth, this small percentage of Indians perhaps contribute a maximum value to the luxury sales. For them, luxury goods, brands, products, services are a way of life. The elitist, original, sophisticated, upper class spill over from the erstwhile nawab’s , kings, rajahs and maharaja’s…despite the privy purse restrictions, have continued their traditional conspicuous consumption all through the post independence decades and have not been dependent on the new wave of luxury goods into India.
- The new Maharaha : Created post the industrialization phase of the sixties, the new industrialists, the new rich, the new factory owner by now is a staunch consumer of luxury goods. His next generations having studied abroad have acquired sophistication reserved earlier for the khandaani raees strictly !
- The partition affected SME entrepreneur : This enterprising community invaded the trading world with a vengeance, working long hours making money through fair means or foul. Always felt ‘enjoyment’ was not for them…until their new generation started to pull them out of the closet. They spend in cash – get put off by sophisticated sales people, are crude yet gentle and value the money they spend because they earned it so hard. This class perhaps considers ‘jewelry as the only safe investment in luxury goods !
- The returning NRI : The reverse brain drain brings back a whole lot technocrats and their ABCD off springs ! They seek the westernized lifestyle which they left behind – some still use artificial accents to show their superiority to local Indians and at times end up being made mockery of !
- The educated professional – HENRY : The management graduate with MNC income – the DINK (double income no kids) category – the ‘high income not rich yet’ (HENRY) category shops luxury like there is no tomorrow. Easy finance options – eat out – entertain – chill out – hang out groups in large numbers. They need to dress well, drink well, socialize well and live for today. Luxury automobiles to latest mobile phones to season wardrobes – they are the next big spenders.
- The YUUMY : ‘The young urban upwardly mobile’ – basic amenities being provided for by the parents, this generation spends only on himself. Hence luxury consumption is on top of his agenda. Starts with a big flashy car…
- The bargain hunters : This class is visible during EOSS (end of season sales). Comes out in large numbers – walks around show rooms wondering why the goods are so expensive even during sale periods, buys small but will graduate to higher level purchases as his career progression supports him.
Learn more such insights at LCBS !