Luxury Market Spend Allocation

The potential for luxury retailing in India is large considering that Indians attach significant importance to brands. The market size is estimated to be at US$500 million and is growing at a rate of 35-40% p.a. The luxury watch market and branded jewelry each are growing at 40% p.a., and wine at 30%. The Pie chart below shows the breakup of Indian Luxury Retail Market.
Lifestyle and attitudinal changes, consumerism, and rising income levels will continue to provide growth momentum to the high-end brand retailing in the country. According to a recent industry report, there are about 1.6 million luxury households in India and this number is likely to cross 3 million by 2010. Each of these households earns about over US$100,000 per year and they spend about US$9,000 per year on luxury and high-premium goods.

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