Looking at the increasing importance of luxury goods in India, the Knowledge Company has come out with India Luxury Trends 2006, the country’s first study on the luxury sector, which aims to demystify India’s highly sophisticated, but complex luxury consumer. The report also carries up-to-date information based on extensive survey in 12 towns and cities throughout India.
According to the report, India has over one million consumers in the segment and this number is expected to treble by 2010. The most important categories for luxury goods consumers are housing, travel, education, higher end automobiles, electronics and other home lifestyle improvement products.
The report further says that in the next 2-3 years, the market for luxury goods will boom in the categories of men’s clothing, women’s jewellery and accessories, watches and gourmet food and wines.
Arvind Singhal, Chairman, The Knowledge Company, said, “This report will allow real-time decision making on luxury goods. We expect luxury marketers in other countries to find this report useful when looking to enter the Indian market.”
The report divides consumers for luxury goods into four categories – luxuriented: source of affluence is largely traditional and inherited; new rich: adequate spending power and are acquiring orientation to luxury; getting there: acquiring spending power and spend mainly on education, housing and large automobiles; mid-affluents: are also acquiring orientation to luxury but unlikely to indulge beyond a limit.
The most important reason for luxury retail not taking off in India is the lack of luxury retail environment.
Said Saloni Nangia, Associate Director, The Knowledge Company, “This is the first report that analyses the boom in India’s luxury space. It separates hype from reality and provides correct market estimations as opposed to guess estimates.”
The report also has interviews with over 4,000 luxury consumers from India and is the only resource that helps determine the potential for various luxury products, the hidden motivators for purchase and behavioral drivers of luxury goods consumers.
The Knowledge Company is an initiative of Technopak, one of India’s leading management consulting firms.