Ultra-affluent working women driving luxe market in India: Assocham

Home to over 1,200 ultra-affluent women having combined net worth of about $100 billion (Rs 6,50,000 crores), India has become a strategic market for luxury brands. As per a recent Assocham survey, fashion-forward, beauty-conscious and ultra-affluent working women in India are driving up growth of India’s $9 billion (around Rs 55,900 crores) worth luxury market and account for overall market share of about 15 per cent.

“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,” highlighted the report. And as DS Rawat, Secretary General, Assocham says “Working women or women with an active life have better spending propensity and are thus conscious of their appearance and are open to investing in luxury products.” As professional women are emerging as 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, Rawat opines.

Luxury industry is becoming more female dominated as women’s brands have experienced a steep rise. He believes 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.

Women pushing the luxe curve

Before drawing any inference, the Assocham spoke to about 500 working women having annual salary bracket of Rs 5-10 lakh in Ahmedabad, Bengaluru, Chennai, Delhi-NCR and Mumbai to understand their shopping habits during August-September this year. About 20 per cent of the total respondents said they purchase only luxury products owing to their quality control and easy availability both online and offline. While, many of these said that luxury products have top-notch quality and that is the sole reason they prefer them over regular products and affordability is not an issue as they earn enough to splurge. Of the remaining, majority said they buy at least one luxury product whenever they go shopping and have a plethora of luxury products lined up in their wish list which has been growing by the day. While some have different views according to the other strata, luxury products are only overrated and pricey, besides there is hardly any different in quality compared to regular products.

Apparel, watches top buys

Jewellery, watches, apparel and accessories, personal care and electronic products are top five categories for women luxury buyers in aforesaid centers. 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 as we go ahead.

Growth of luxury industry in the country has also compelled global brands that had once failed to set up their Indian venture and are as such returning with better strategy, customised products and prices that better suit the consumers here, it added.