India’s luxury products market: demand is $3-3.5 billion, up 120-150% from current levels.
Luxury retail looks beyond metros and malls
Posted: Mon, Nov 1 2010. 1:00 AM IST
“India’s overall luxury market will grow 21% to become almost three times its current size by 2015,” predicts the Luxury in India report, jointly released by the Confederation of Indian Industry and AT Kearney on 7 October.
India has around 127,000 millionaires. There was a 50.9% rise in the number of high-networth individuals (HNIs), or those with investable assets of $1 million or more, in 2009, according to the Asia Pacific Wealth Report by Merrill Lynch Global Wealth Management and Cap Gemini released in September. Their total wealth grew 53.8% from the previous year, it said.
Moreover, “nearly 70% of India’s wealth is concentrated in the five metros,” said Atul Singh, managing director and head of global wealth and investment management, India, DSP Merrill Lynch, explaining that a presence in the these cities was needed at a minimum to cover the Indian luxury customer.
It may pay to spread the net even wider.
“Wealth creation is no longer restricted to only Mumbai, Delhi and Bangalore. It is taking place in tier-I and tier-II cities such as Ahmedabad, Pune and Hyderabad,” said the AT Kearney report on luxury retail, which estimates India’s latent demand at $3-3.5 billion, up 120-150% from current levels.
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