Indians are likely to spend USD 35 billion on online luxury stores by 2016, compared to USD 8 billion in 2012 growing at an compound annual growth rate of about 25 per cent, due to rise in disposable incomes, expansion of modern retailing and influence of western culture have provided a platform for promising growth for luxury industry in India, reveals the ASSOCHAM recent study.
The major key growth drivers are rising income level which leads to a change in spending patterns and creating good business opportunities in India, reveals the study.
Luxury shoppers are well-connected digitally and it becomes easier for brands to showcase themselves online
With more than 140 million internet users, India is the third largest internet market in the world. The rising middleclass is the biggest driver of the online retail growth. As per the findings, with more than 75% of the internet users under the age of 35, India is one of the world’s youngest internet populations.
Releasing the paper, Mr. D S Rawat, Secretary General ASSOCHAM said, “Luxury shoppers are well-connected digitally and it becomes easier for brands to showcase themselves online. Online path helps brand to educate potential consumers about luxury the products.
With deals or discounts, cash-on-delivery, EMI schemes and easy return policies, online shopping has offered luxury brands a new platform to engage and entice customers, said Mr. Rawat.
“Luxury products sold online include apparels, stylish accessories, watches and high end electronics. Most of these products are offered for sale at online portals at a price that is incomparable and certainly benefits the middle class audience too”, adds the study.
E-commerce is expanding the Indian luxury market, as online access and competitive pricing bring hitherto unattainable brands and products within the reach of consumers in the country’s lower-tier cities, said Mr. Rawat.
The global online luxury market is predicted to more than double between now and 2020 as major brands continue to increase their range availability on the web, with pure-plays set to outpace the sector as a whole.
The optimistic outlook is anticipated to continue in the luxury sector spanning products such as apparels, home decor, pens, watches, jewellery, wines & spirits, spas and even yachts – a heady mix of both lifestyle and individuality-defining products. Apparel, Cars and electronics are among the most attractive segments across the Indian market. The Benzs, BMWs, Rolls Royces, Audis, Jaguars are not rare sights in metros.
According to study, the luxury designer clothing market in India grew 35% to Rs 13,230 crore in 2012 and likely to touch Rs. 32,000 crore by the end of 2015. Luxury electronic gadgets growing at 38.5 per cent, and the luxury jewellery market at 42 per cent.
Some of the significant players who performed well in 2014 included – GUCCI, Christian Dior, Louis Vuitton, Ocean Style Yachting, Canali India, L’Oreal Luxe India, LVMH India, Judith Leiber, The Phenix Mills, The SPA Group, Geetanjali Group, The Bauers, Starwood Asia Pacific Hotels & Resorts, Da Milano Leathers, Reliance Brands, Hidesign and others.
Indian consumers’ love for luxury brands and these platforms offering them at discounted rates has also led to people taking to the online shopping platforms, adds the paper.
The multi-brand top-end and high-street luxury online showroom deals in brands such as Apple, Bang & Olufsen, Tag Heuer, Omega, Satya Paul, Just Cavalli, Rosenthal and Callaway. The site also offers services such as premium travel, hotels, shopping, nightlife, health and beauty etc.