Luxury Market In India May Touch US$15 Billion In Next Two Years

NEW DELHI, Feb 6 (Bernama) - The luxury market in India is expected to grow at 25 per cent to US$15 billion between 2013 and 2015 from the current level of US$8 billion amid increasing purchasing power and brand awareness among youths.

Source from (Bernama): http://www.bernama.com/bernama/v6/newsbusiness.php?id=926378
Published: February 07, 2013

"The luxury market is poised to expand three-fold in the next three years and the number of millionaires expected to multiply three times in another five years," the Associated Chambers of Commerce and Industry of India

Secretary-General D.S Rawat said when releasing a study jointly conducted by the industry body and Yes Bank.

The study said the increase in spending was anticipated across the country and beyond the walls of the metros, with increasing brand awareness among youths and the purchasing power of the upper class in Tier II and III cities in India where luxury cars, bikes and exotic holidays and destination weddings are no strangers.

Globally,consumer spending is also on the rise, expected to reach US$40 trillion by 2020, with an unprecedented growth of US$12 trillion in a decade.

Predictable consumer spending patterns beyond geographies and cultures unwrap possibilities of future growth in emerging markets like India where consumer spending is expected to grow four times to US$3.6 trillion within this period, driven by increasing income and aspirations, said the study.

"India and China have shown their resilience to the global turmoil by exhibiting sustained growth and thus laying a solid foundation for future global economic recovery.

"A reflection of this can be seen in the potent demand being witnessed by global luxury brands from these emerging economies," said Rawat.

As elite members of the BRIC grouping (Brazil, Russia, India and China), which currently accounts for 11 per cent of the total world luxury sales (representing a combined retail value of over US$33 billion in 2011-12), India and China are poised to undertake dominant positions in the global luxury market.

While China is on track to become the world's second largest luxury market within the next five years, India too is not far behind, it said.

Hence, with positive regulations and policies for the retail industry being put in place by the government, along with a burgeoning middle class, which aspires to own and experience luxury goods and services, India is a market that can no longer be ignored by international brands, it added.

-- BERNAMA