Gone are the days when Indian customers were considered penny-pinchers and turned away by global luxury brands.
Those tables have turned swiftly. Apple opened its stores in Mumbai and New Delhi. While others like Christian Dior Couture, McLaren, Louis Vuitton, and many others are wooing Indian customers, particularly the rich ones
Italian luxury fashion brand, Bulgari, is selling men's Kada (bracelet) for ₹12 lakh! That's about $15,000 at today's exchange rate.
This move by Bulgari, coming months after the launch of the 'mangalsutra', is hardly a shot in the dark.
By 2030, the luxury market in India could be worth a staggering $200 billion, according to report by Bain and Co, a consulting firm.
With an estimated sales of $8.5 billion in 2023, Euromonitor International estimates India's luxury market to be one of the fastest-growing in the world,
Currently, about 60 million Indians earn over $10,000 a year. Global investment bank Goldman Sachs expects this number "to compound in double digits" to about 100 million within three years.
At that level of prosperity, the consumption growth -- hotels, leisure, recreation, eating out or any other indulgence that isn't necessary -- is usually faster than the growth in income itself.
Aside from being part of the world's fastest-growing economy, there are three big reasons, according to Goldman Sachs, why Indians are feeling richer:
The stock market rally of over 80% in the last three years has left many people with a surplus. For the same reason, the number of investors has also increased substantially.
Retail investor accounts and systematic investment plans (SIP) have jumped four-fold in the last three years.
In the same period, the over 65% rally in gold prices has also benefitted Indians, traditionally known as big investors in the precious metal.
After a long time, property prices have also begun to pick up; they are up over 30% between March 2019 and March 2023.
The growing consumption is evident in the four-fold jump in India's credit card spending since March 2019, according to Goldman Sachs.
So, whether it's the British luxury car maker McLaren bringing its supercar that costs ₹6 crore to India or Louis Vuitton adding the 'Rani Pink' colour to its festive footwear collection, global luxury brands are vying for the Indian wallet.
They are here because India is expected to have over 19,000 ultra-high-net-worth individuals — those with a net worth over $30 million or more. That's a nearly 60% jump from about 12,069 in 2022. This is a projection by real estate consultants at Knight Frank.
(Edited by : Sriram Iyer)
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