Women in high paying jobs drive Indian luxury industry: Report
Fashion conscious working women in the country are driving up the growth of India`s $9 billion worth luxury market and account for overall market share of about 15%, according to a recent survey.
"Growing number of young working women (with high paying jobs) having increased awareness of global fashion and beauty trends are driving up the demand for high-end luxury products and accessories across various segments be it jewellery, watches, apparels, footwear, cosmetics and others," noted a report-cum-survey conducted by the Associated Chambers of Commerce and Industry of India (Assocham).
India is home to over 1,200 ultra-affluent women with a combined net worth of about $100 billion with majority of them being in Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Jaipur, Kolkata, Mumbai and Pune, the report said.
"As professional women are emerging as the new decision makers and make most of their household purchases, it is imperative for luxury brands to open dedicated women`s stores and expand their product offerings to build long-term relationships with this new breed of luxury spenders," D.S. Rawat, Secretary General of Assocham, said.
"Luxury industry is becoming more female dominated as women`s brands have experienced a steep rise," he added.
Considering the low levels of penetration currently even as an increasing number of affluent women are entering the consumption curve, there is a huge scope for leading global luxury retail brands to expand their India footprint, by focusing on "women special" product portfolio and carrying out innovative marketing campaigns, he said.
For the survey, Assocham interacted with about 500 working women in an annual salary bracket of Rs 5-10 lakh in Ahmedabad, Bengaluru, Chennai, Delhi-NCR and Mumbai to gauge their shopping habits during August-September this year.
About 20 % of the total respondents said they purchase only luxury products owing to their quality control and easy availability both online and offline.
A majority of the women said they buy at least one luxury product whenever they go shopping and have a plethora of luxury products lined up in their wishlist.
Jewellery, watches, apparel and accessories, personal care and electronic products are top five categories for women luxury buyers in aforesaid centres.
Rising purchasing power coupled with growing awareness of global brands and with the luxury products distribution penetrating well beyond large metros to other smaller cities will contribute to the growth of luxury industry in India, noted the survey-cum-analysis.