This article from CPP-LUXURY caught my attention while I was plotting data on the terminal. Luxury brands often maintain their appeal over time, even in challenging economic conditions. Beyond China, consumers in other Asian countries are becoming wealthier including India. Given India’s growing economy, large consumer base and improving business environment, luxury goods companies are now moving en masse to the country.
The Indian economy is now the world’s fifth largest, recently overtaking the United Kingdom. By the end of the decade, economists believe India will be the world’s third-largest economy, behind only the US and China.
The country’s demographic outlook is exceptionally positive with a population exceeding 1.4 billion people. The Indian middle class has now grown to 432 million people. More than 970 million of these individuals fall within the prime working ages of 15-64, indicating a robust potential workforce.
According to Euromonitor International, India’s luxury market is expected to be one of the fastest growing markets in the world, with a projected USD8.5 billion in 2023, up by an impressive USD2.5 billion from 2021. A Bain & Co report even suggests that by 2030, the luxury market in India could reach a staggering USD200 billion. We have a long-term exposure to the growing demand for luxury goods as part of a diversified portfolio.
Here is a section:
Global luxury brands such as Gucci, Cartier and Louis Vuitton, among others, have signed leases for retail spaces in a new Mumbai mall developed by Asia’s richest Mukesh Ambani, as the brands and Reliance Industries look to tap lucrative prospects presented by India’s robust economic growth and the swift increase in the number of millionaires.
Jio World Plaza is likely to open this year, Reuters said citing an unnamed source. The new mall is situated within Reliance Industries’ extensive $1 billion business and cultural complex in Mumbai’s bustling business district.
More than a dozen luxury consumer goods brands are entering the country ahead of the festive season, as they look to attract consumers in a market riding on the growing affluence of Indians with higher incomes, spurring greater discretionary spending even in small towns.
While a K-shaped economic recovery in India is also seen to be a strong trend, according to several economists, the Asian economy has beaten almost all countries in terms of rising wealth. Remember India is home for some of the world’s richest including Mukesh Ambani and Gautam Adani.
Despite the sheer size of the market, India’s local luxury market lags behind many other emerging markets. Fashion and jewellery are very much dominated by local brands.