Decoding HNIs

Introduction

Decoding the HNIs

Source of wealth Inheritance; entrepreneurship Entrepreneurship Work benefits Approach to investing Organized Informal Professional Drivers of spending Maintaining luxurious living Attaining luxurious living Value Attitude to perpetuation of wealth Wealth needs to remain within the extended family Wealth is unconditionally for immediate family Wealth is for family, but they must strive to merit wealth

The Inheritor

Motives for wealth creation Wealth preservation Self-recognition Self-actualization

The Self-made

The Professional

Source: T.O.P. India - CRISIL Research

Net worth to increase around 5 times over the next 5 years

Rs. 318 Trillion 2016 -17 (projected)

Rs. 65 Trillion 2011-12 (estimated)

Source: T.O.P. India - CRISIL Research

Metros account for more than half of the HNIs

18.6%
Other top 11-50 cities

14.6%

Rest of India

53.9% Metros

Other top 6 cities

12.9%

Source: T.O.P. India - CRISIL Research

Education Background

Most HNIs are better educated than their fathers

67.7%

49.3%

Graduate

13.5% 9.0% 11.6%

36.2%

Post Graduate/Masters

Professional

9.8%

2.9%

Others
Fathers Self

Source: T.O.P. India - CRISIL Research

Investment Trends

Major portion of the total investments goes to equity, followed by real estate
7%

34% 29%

30%

Equity

Real Estate

Debt

Alternate Assets

Source: T.O.P. India - CRISIL Research

Primary business is the source of main income, followed by the investments in land & properties

22.4%
19.6%
By investing in land and properties

Success in primary business

By investing in equity Inheritance/ Rich benefactor Consistent saving in low risk investments Others

13.9%

11.5%

10.7%

<7%

Source: T.O.P. India - CRISIL Research

Allocation of the income

28.2% 22.4%

28.3% 24.2% 19.3% 24.1% 19.7% 16.3% 10.3% 7.2%

Expense

Investment into theInvestment primary growing business wealth

for personal

Savings

Others

2010

2011

Source: T.O.P. India - CRISIL Research

Spending Pattern

Apparel and accessories shows highest rise in expenditure

150 100 50 0
Apparel / Accessor ies Vintage spirits/ Liquor

Jewelry/ Precious stones/ Diamond

Luxury watches

Househo ld electroni cs

Exclusive holiday packs

Home decor/ Crystals

Art/ Artifacts

Luxury writing instrume nts

2011

2010

Source: T.O.P. India - CRISIL Research

Big fat weddings are the main occasion of gatherings

Wedding or Wedding related ceremonies

Anniversary

50%

71.9%

Business or professional success

70.3%

Launch party

70.2%

Source: T.O.P. India - CRISIL Research

HNIs travel extensively

1 Trip

12.7%

3% 3.9%

7.7%

18.4%
20.9%

28.60% 38.5%

2 - 4 Trips
26.4%

5 - 10 Trips

52.4% 71.40%

10 - 20 Trips

30.9% 22.3%

53.8%

> 20 Trips

9.1% Work / Business travel related With Family/ Friends/ Relatives Sports/ Entertainment events For an Art exhibition/ Auction

Source: T.O.P. India - CRISIL Research

Most preferred destination beaches followed by shopping

0% 6% 8% 4%

Beach locations Shopping destinations

31%

Mountain treks Religious/ spiritual destinations

10%

Medieval locations Spa vacations

10% 16% 15%

Gambling destinations Theme locations Others

Source: T.O.P. India - CRISIL Research

Luxury Cars

BMW is the most aspired car brand, followed by Audi

7.8%

18.0%

6.3%

6.3%

14.8%

Others*

> 5%

12.5%
Source: T.O.P. India - CRISIL Research

*Brands including Ferrari, Skoda, Rolls Royce, Range Rover, Land Rover, Jaguar, Hyundai, Nissan, Mahindra, Bugatti, Beetle, Porsche, Bentley are part of the Others

SUV, the most preferred type of car

Ultra Luxury Cars

31.7%

SUV / Crossover

38.7%

12.5%
Sports Car / Convertible / Roadster

Others

17.1%

Source: T.O.P. India - CRISIL Research

Frequency of car change

Every year Every 2 years
1.6% 14.0% 24.8%

Every 3 years More than 3 years Not fixed

23.3%

36.3%

Source: T.O.P. India - CRISIL Research

So who can be a HNI?

He is in his early forties, married, with a kid An icon in the construction business and is as well respected as is popular He works so hard, so he (and his family) deserve(s) the best money can buy; and has a no compromise what-so-ever policy when it comes to luxury and comfort His social stature demands that he attend parties and socialize, thus class and sophistication are just as important. He tries to combine them all, to keep things simple His profession demands that he travel widely and frequently, and thus comfort is supremely important to him In the midst of work and socializing, he likes indulging in a little family time. They love going away for the weekend, and long drives, as it allows them to spend some quality time He always takes into account his familys tastes and opinions before making any big decisions
Source: Target Group Index (TGI)

Media Habits

Television has the maximum exposure, followed by outdoor

98% 85%

36% 19% TV 18%

16% 8%

Outdoor

Newspapers

Radio

Internet

Cinema

Magazines

Source: Target Group Index (TGI)

Newspaper is the most trusted medium, followed by TV

For in-depth analysis HNIs turn to

44% 23% 8% Newspapers TV 6%

Internet

Magazines

The most trusted source of NEWS and Information

41% 27% 9% Newspapers TV 6%

1%

Radio

Internet

Magazines

Source: Target Group Index (TGI)

Key driving factors for media choices

HNIs invest cautiously due to the slowdown

Have employed financial advisors/wealth managers

Sport events like Golf, Billiards, Derbies are loved by HNIs

Like to be invited for big fat weddings and other high profile events

Travel extensively for both official and personal purposes

Thank You