Sales of luxury products in India are expected to rise almost 20 percent every year until 2015, according to a new report by the Confederation of Indian Industry and A.T. Kearney Ltd.
According to the report, the luxury sector in the country has witnessed a massive growth of 20 percent over the past year, and it is estimated to have reached $5.75 billion in 2010. Some of the major categories that have contributed to this performance are jewellery, electronics, cars, and fine dining.
A few years ago, the Indian luxury sector was in a nascent stage, and luxury retailers were struggling to attract buyers to invest in such products. However, the report mentions that optimism amongst luxury players seems increasing, driven by positive consumer sentiment.
A major change observed is that the sale of luxury goods is no longer restrained to cities like Delhi, Mumbai, and Bangalore. Currently, a major shift in consumer choice is seen in other cities like Chennai, Hyderabad, and Pune. There is also a steady stream of new players entering the market across different luxury segments.
Of particular importance is the luxury car market, which has witnessed significant traction during the past four years, as it saw the entry of globally revered brands such as Aston Martin and Ferrari. Apart from this, the luxury bike segment is also luring new consumers with the introduction of brands like Ducati and Harley Davidson.
Thus, with the fast pace at which consumers today are accepting and adopting international customs and trends, India is no longer considered a lagging market.
However, the report mentions that although the Indian market is growing fast, there is still a lack of exponential growth, which can be attained only by aggressive moves.