Is India’s Luxury Surge Mirroring China’s?
For obvious reasons, marketers often compare the Indian luxury market to the Chinese one. Like China, India has both a fast-growing elite class and an aspirational class — and their insatiable appetite for luxury reminds global brands of China.
In 2019, India had 4,593 ultra-high-net-worth individuals, coming in fourth after the US, China, and Germany, according to a Credit Suisse Global Wealth Report. India had around 912,000 millionaires, who represent 2 percent of the 51.9 million millionaires globally. Of even greater importance, The Centre for Economic and Business Research (CEBR) forecasts that India will overtake the UK to become the fifth-largest economy in 2025 and the world’s third-largest economy by 2030.
With one of the largest populations of millionaires in the region and a strong middle-class, India is now providing exceptional opportunities for luxury brands, and these positive developments had impacted luxury consumption.
The size of the luxury market in India is estimated to surpass $200 billion by 2030, according to India Retailing. And as India becomes a global luxury hotpot, international brands are becoming increasingly bullish on expanding their footprint in the country and boosting their brand awareness. But in one of the world’s largest and most populous nations, brands simply must pay attention to consumer behavior.
Consumer trends and behaviors differ across regions, cities, and social groups, so employing a “one-size-fits-all” approach won’t work. While Delhi and Mumbai continue to have the highest number of millionaire households, high taxes and the COVID-19 pandemic might shift this trend. Moreover, even in these cities, consumer behavior is not linear, and the young, spendthrift millennial cohort doesn’t have the same consumption habits as older generations.
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