Aspirational and younger middle class, rising internet penetration leading to greater exposure to available products and services, increase in choices and greater awareness of global luxury brands have contributed in the growth of the sector, according to the CII-Kantar IMRB 2016 report on luxury.
New Delhi: Rising middle class and greater awareness of global brands helped luxury market in India to grow by 25 per cent to $18.5 billion, says a report.
“Growth drivers have contributed to the remarkable 25 per cent growth in the Indian luxury market from 2015 to 2016 – from a $14.7 billion to a whopping $18.5 billion,” the CII-Kantar IMRB 2016 report on luxury said.
As per the report, aspirational and younger middle class, rising internet penetration leading to greater exposure to available products and services, increase in choices and greater awareness of global luxury brands have contributed in the growth of the sector. Key growth segments include fine dining, electronics, luxury travel, personal care, jewellery and luxury cars.
“Future forecasts foretell fragrances, watches and jewellery to be the major growth areas followed by skin care and apparel,” the report added.
About 40 per cent of the luxury products and services business comes from northern states of India, with Delhi NCR, followed by Punjab and Haryana. Southern and western regions account for 25 per cent shares each. Eastern India still lags the market with just 10 per cent share ...