Luxury Brands are becoming common place in India

Today??s brand conscious Indian is driving a Porsche Cayenne SUV, his Ermenegildo Zegna suit is made from superfine Italian wool, his wrist is adorned with a Patek Philippe Men??s Chronograph, his shades are Tag Heuer Visions, his crocodile leather shoes are Hugo Boss.

The Indian is growing day by day as people are spending money on luxury items. A couple of years ago ?¡ìC weeks in the case of the Porsche-he bought every single item abroad, spending hard earned foreign exchange ,lining up at the vat refund counters at airports. But not any more, the world??s most prestigious luxury brands are expanding their footprint in India, almost as if discovering a new world. Moreover, it is not just the luxury brands, there are also luxury plus for those who have the cash to splash on products with the cachet of exclusivity.

Luxury Market Statistics

The dazzling array of luxury goods available today is clearly catering to the growing number of Indians who are enjoying unprecedented level of affluence. Statistics show that in 2001-2002 there were 20,000 families in India with annual income of more than Rs 1 crore .By 2005 ,that number has increased to 53,000 families and by 2010 ,India will have an astounding 1,40,000 millionaires.

It is not just the big Indian cities like Delhi, Mumbai and Bangalore where the rich are located. A small town like Nagpur had nine millionaires in 1995-1996. By 2001, that figure increased to 425, with a growth rate of 91 percent. A high end luxury brand like Ermenegildo Zegna, whose customers include Bill Clinton, Pierce Brosnan, Shah Rukh Khan and Al Pacino, recently made a presentation in Ludhiana and Jalandhar.




Luxury Cars in India

Like anywhere else in the world, cars are the most visible symbol of a country??s high spending customers. The luxury car market in India has tripled in the past five years. Last year, luxury sports car maker Porsche made its Indian debut with the iconic 911 Carrera turbo, the Boxter and its highly rated Cayenne SUV. Within a week of a launch, Porsche dealers claim to have taken 19 orders in Delhi and 12 in Mumbai, mostly for the Cayenne SUV. Super luxury cars like Bentley??s Arnage R and its sports version are available locally at prices between Rs 1.5 crore and Rs 4 crore. By next year Ferrari enthusiasts will be able to buy the Ferrari Modena in India, along with luxury models from BMW range, Audi and sports car manufacturer Maserati.

It is a sign of what economic liberalization has done for millions of Indians. Sure, there are abysmal and shameful levels of poverty and India is still very much a Third world country in many respects. Yet, at the same time, country??s economic growth in the last decade, along with China's has been the envy of the world. Its per capita income has grown at an incredible rate of 70% during this period. The opening up of the Indian economy and parallel boom in the IT and service sectors have created an entire generation of wealthy Indians who are distinct from India??s traditional business families.



Growing Affluent Population

In terms of population percentage, it may seen minuscule. The seriously rich and affluent represent just 1 per cent of the entire population, but with a base of one billion people, it still adds upto 10 million high end customers, a substantial number in any market.

They are what is being termed Global Indians, the ones who are traveling abroad at the drop of a barbour hat. They are acquisitive, brand conscious and, above all they want the best and they want it now. If they can buy in their city so much better. These brands include some of the world??s most celebrated: Fendi and Louis Vuitton, Canali and Bvulgari, Cartier and Hugo Boss, Dolce & Gabanna and every Swiss luxury watchmaker. Last year, Jaeger Le Coultre launched its grand Reverso watch priced at Rs 20.8 lakh.

Unlike a few years ago, when Indian consumers had to do their shopping in London, Paris and New York, the world??s most luxury merchants are realizing that they cannot ignore the Indian market. But if you compare to the western market India is still a niche market for luxury products, but it is one that is growing fast and producing aspiration life styles where, unlike the earlier decades of socialist populism, display of wealth and luxury are no longer a dirty word.

In today??s deluxe India, the children of your domestic staff are wearing Levi??s and lee. For the brand conscious and trendy, it has to be Swarovski encrusted Seven of all mankind jeans, specially made for the Indian market. In fact, if you have got the cash, there is no limit to the splash.

What has facilitated the entry of these brands is the lowering of duties in some cases and easier regulation for automobiles, inspiring luxury automakers to launch their vehicle in India or expand their existing range.