According to a recent survey conducted by ASSOCHAM, India’s luxury market is all set to surpass $18.3 billion by 2016. Currently at $14.7 billion, the market is growing at a compounded annual growth rate (CAGR) of approximately 25%.
A mark improvement in purchasing power of non-metro cities, brand consciousness and high internet penetration has led to this growth.
Secretary General of ASSOCHAM, DS Rawat said, “The factors that have fuelled the luxury industry’s growth are rising disposable incomes, brand awareness amongst the youth and purchasing power of the upper class in Tier II & III cities in India.”
The report stated that these categories will continue to grow at the rate of 30-35% (except SUV at 18-20%) in the next 3 years.
While the Indian luxury market is growing at an impressive rate, important thing is to keep a check on the counterfeit market, both in offline & online retail platforms.
Besides the threat of knockoffs, deep discounts fixation was also one of the reasons why luxury brands stayed away from online retail for a long time. But things are changing for good. Amazon launched luxury beauty category three months back and leading jeweller Kalyan Jewellers too started selling online. Let’s see what percentage of India’s luxury market gets captured by etailers.