CII-IMRB Report: Tier II, III cities drive India’s luxury market

A CII-IMRB report says as the aspirational class in non-metros acquires higher spending capacity, growth in the country's luxury market will be driven by those living in Tier II and III cities. CII stated that it was clear that Indian men in non-metros continue to seek power and status to validate their position in life, just like their urban counterparts. It further mentioned that while non-metro women were happily indulging themselves, encouraged by the exposure to international fashion and fascinated by the easy availability of inaccessible luxury products, they seek high fashion and style and are ready to pay for it. Indian market’s share of the luxury segment is yet to capture the top 50 for most categories, though globally India is the fifth largest consumer.

High net worth individuals in non-metropolitan cities, men and women in the age group of 20-55 years, with an annual household income of over Rs 1 crore is the basis of the report. They were surveyed about luxury product categories owned by them and how do they currently access and engage with luxury products/brands in India. Chandigarh, Ludhiana, Kanpur, Coimbatore, Bhopal, Patna, Kochi, and Rajkot were the tier II and III cities where the research was conducted.

Indian women though. According to the research were cautious with just a couple of designer handbags to ensure just the right impression in society. The report pointed that the small town woman still carries her cultural baggage along with her new found modern and semi-westernised identity and the top three aspects Indian consumers value in luxury products currently are quality, luxuriousness and the fashion quotient.