India now boasts of 1.6 million (16 lakh) very affluent homes, roughly comprising 8 million (80 lakh) consumers, which have annual earning of US$ 1,00,000 (Rs. 4.5 million) or more, according to a study recently conducted by internationally renowned retail consultancy firm Technopak. What is even more interesting is the whopping annual rate of 14% at which they are growing.
These homes annually spend at least Rs 400,000 on premium and luxury products and services, most of which goes in housing, travel and education. Although, apparel and accessories are the two luxury categories that are ready to takeoff, significant growth for them is likely to come within the next 2 to 3 years.
While, this information augurs well for retailers of super luxury brands, they will have to do a lot of hard work to educate the affluent consumers about their brands as knowledge for the same, among these really affluent consumers, barring a few, is either absent or sketchy at best.
According to Saloni Nagia, Associate Vice President, Technopak, “One of the biggest hurdles is lack of a retail environment and the required infrastructure. Secondly, only 10 per cent of the consumers who can afford luxury are oriented towards luxury goods,” reports Money Control.