Gucci, India

The Indian luxury market is expected to grow by a staggering 25 per cent in the next year and will touch the magic figure of $15 billion by the financial year 2015, almost double of the current level of $8 billion.

This is the prediction made by ASSOCHAM, the high profile business association which has just come up with a report on the luxury market in India in its recent paper. The paper is based on a recent ASSOCHAM-YES Bank study which reveals that the luxury market is poised to expand three fold in the next three years. It helps that the number of millionaires is expected to multiply three times in another five years. Globally too, consumer spending is on the rise, expected to reach $40 trillion by 2020.

The number of Ultra High Net Worth households with a minimum net worth of Rs 25 crore is expected to triple to 2.86 lakh in the next five years, while the High Net Worth Individuals will double in number by 2015 to over 4 lakhs with a collective wealth of $2,645 billion.

Christian Dior, India

Increase in spending is anticipated across the country and beyond the walls of the metros, with increasing brand awareness amongst the youth and purchasing power of the upper class in Tier II & III cities in India where luxury cars, bikes and exotic holidays and destination weddings are no strangers, states the report.

The market will take off due to a good economical context and the increase of consumers’ spending pattern and the craze increasing for branded products especially amongst the youth, according to the report.

Be it a family holiday to exotic locations, sporting branded jewellery, driving around in top-end SUVs, going out for a fine dining in five star hotels, India’s luxury life style market has remained largely affected by the economic slowdown in 2013 says the paper.

Canali, India

Among the players that have performed really well across various verticals include brands like GUCCI, Christian Dior, Louis Vuitton, Ocean Style Yachting, Canali India, L’Oreal Luxe India, LVMH India, Judith Leiber, The Phoenix Mills, The SPA Group, Geetanjali Group, The Bauers, Starwood Asia Pacific Hotels & Resorts, Da Milano Leathers, Reliance Brands and Hidesign. The categories that are performing well in India include luxury jewellery, electronics, SUV cars and fine dining, while apparel, accessories, wines and spirits have continued their strong growth in 2013.

Consumption of branded wine is likely to register over 30% increase in the metro cities.