The luxury goods market in India is growing rapidly at around 20% annually and is valued at $5.8 billion. There are over 1.5 lakh high net worth individuals in India with over $1 million in liquid assets and 8,200 ultra-high net worth individuals with a combined fortune of $945 billion. Jewelry, electronics, cars, fine dining, apparel and accessories have witnessed maximum growth. Emerging hubs for luxury goods include north Mumbai, Gurgaon, Chennai, Hyderabad and Pune. Rising incomes and increasing retail space at airports are driving the growth of the luxury market.

1. L UXURY G OODS IN I NDIA

2. T HE L UXURY T IMES
 Residents from upmarket south Mumbai households
drink milk from 'happy cows‘. Priced at Rs 75 a litre, the
milk is extracted from Jersey-Holstein cows which listen
to soothing music and consume specially grown fodder.
 In 2010, a consortium of industrialists in Aurangabad
placed an order for 150 Mercedes cars worth Rs.65 crore.
(Customer profile: Entrepreneurs in their 30s and 40s)
 Hero Cycles has forayed into the premium bicycle market
by launching cycles priced at Rs 43,000, under the brand
name ‘Urban Trail’.

3. P ERSPECTIVE
 Luxury market grew at ~20% in 2010-11 and is
valued at ~$5.8 billion, currently.
 World Wealth Report by Cap Gemini Merrill Lynch
estimates the number of Indian high net worth
individuals with liquid assets of over $1 million at
1,53,000.
 A study by Wealth-X, estimates that there are 8,200
ultra-high net worth individuals (UHNW) in India
with a combined fortune of $945 billion.

4. R ECENT T RENDS
 Jewellery, electronics, cars, fine dining, apparel,
accessories, wines and spirit witnessed maximum
growth.
 Luxury has gone beyond Delhi, Mumbai and
Bangalore to Chennai, Hyderabad and Pune.
 North Mumbai and Gurgaon have emerged distinct
hubs for luxury goods.

5. D RIVERS OF GROWTH
 Aspiring middleclass with rising disposable incomes-
the game changer
 Privatization of airports providing a retail space for
brands that fit in modern life, work, career, travel
and international lifestyle.
 Government showing interest in increase in FDI
limits to 100% in single brand retail and 51% in
multibrand retail

6. P ROGRESSION OF B RANDS
Luxury/Prestige brand
• Rolex, Louis Vuitton, Cartier
Premium brands
• Ralph Lauren, Calvin Klein, Tommy Hilfiger
Fashion brands
• Numero Uno, Titan, Fast track

7. ATTRIBUTES OF L UXURY
G OODS
Creativity
Premium
Exclusivity
pricing.
Attributes
of Luxury
Goods
Innovation Craftsmanship
High quality Precision

8. B OTTLENECKS
 Infrastructure challenges and regulatory constraints
 Import taxes on luxury goods, which at the federal
level are between 30%-40%
 51% cap on the foreign ownership of their Indian
units, which luxury brands fear risks diluting their
name and harming their business models.

9. E SSENTIALS FOR LUXURY
BRANDS IN I NDIA
 ‘Expansiveness’ (meeting divergent needs)
 Must tell a story (identity)
 Relevant to the consumers’ need
 Align with consumers’ values as luxury goods are
forms of expression or identification for a luxury
consumer
 Must perform

10. S TRATEGIES FOR M ARKETING
OF L UXURY G OODS
 Customer engagement, personalized experience
 Maintain exclusiveness
 Separate line of goods available at lower cost;
refurbished cars and line extensions
 P
™romoting luxuries as a wise investment; Villas
 ‘Targeted luxury’ memorabilia is given to the target
segment in an attempt to fuel their desire for
owning the product; Miniature models of Mercedes
cars, key chains of Rolex watches

11. F OCUS AREAS
Price-value relationship
Reputation of the
service provider
Product brand

12. N EW TERRITORIES OF LUXURY
BRANDING
 Services
 Real estate
 Hospitality

13. H IDESIGN : A HOMEGROWN
LUXURY BRAND
 Hippie brand born in the late 1970s.
 The Puducherry-based company caters to the
upmarket luxury end of the business.
 French multinational Louis Vuitton has bought a
stake in the company
 The company has introduced ‘Holii’ range of
accessories, in partnership with Kishore Biyani’s
Future Group.