Jewellery, watches, apparel and personal care top categories for women luxury buyers: Assocham Survey
Fashion-forward, beauty-conscious and ultra-affluent working women in India are driving up growth of India’s $9 billion worth luxury market and account for overall market share of about 15 per cent in this regard, according to a just concluded survey-cum-analysis conducted by apex industry body 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.
“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 an analysis based on a survey conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
“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 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,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the chamber’s analysis. He further added, “Luxury industry is becoming more female dominated as women’s brands have experienced a steep rise.”
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.
ASSOCHAM had also 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 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 rest of the respondents said that luxury products are only overrated and pricey, besides there is hardly any different in quality compared to regular products.
Jewellery, watches, apparel and accessories, personal care and electronic products are top five categories for women luxury buyers in aforesaid centres.
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.