Luxury Spending in India Expected To Grow 25% in 2016

Retail and Consumer Confidence
11/01/2016 09:11

A study by Assocham, the Associated Chambers of Commerce & Industry of India, expects the Indian market for luxury goods is to grow from its current level of $14.7 billion to $18.3 billion by end 2016, reports GJEPC. "This translates into a compound annual growth rate (CAGR) of about 25%, the study revealed". GJEPC further reports that the categories with high growth rates in 2015 such as luxury jewelry and personal care, electronics, SUV cars and fine dining are expected to grow 30-35 % over the next three years. Assocham Secretary General D S Rawat, identified rise in disposable income, brand awareness amongst the youth and purchasing power of the upper classes in Tier II & III cities as the three main factors that will drive the growth in the sector. He added that, the high income group consumer segment, which spends over 40% of their monthly income on luxury goods, is growing. The survey revealed that spending on luxury items by this segment has not been impacted by the global economic slowdown.