THE LUXURIOUS INDIA

THE WORLD OF LUXURY 2.0

 The rich Indian buyer today pays
more than DOUBLE THE PRICE for a
Rolls-Royce or Bentley model than
his counterparts in the US or Europe
 POINTS TO BE DISCUSSED

An insight of HIGH NET WORTH HOUSEHOLDS in India.

The business trends in the different luxury categories.
The consumption trends in the different luxury categories.
The profiles of those who dominate the marketing of luxury
products and goods in the country.
The broad trends in different luxury markets from real estate
to art.
 ULTRA HIGH NET WORTH HOUSEHOLDS
According to a Kotak Wealth Management report:

Ultra HNHs have net worth of Rs 25 crore and above. Their top-spending
categories are jewellery and apparel, followed by travel goods & holidays.

The number of ultra HNHs was 146,600 in 2015/16, up 7 per cent from the
previous year & the growth over five years comes to 16 per cent per year.

That figure is expected to more than triple to 348,000 households over the
next five years with a combined net worth of 415 trillion rupees.
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 THATS RICH!
Indians are growing their wealth
faster than the world average.

Rich Getting Richer 11.7%

People with more than $100 mn net worth now Indias growth in
account for 14% of Indias total wealth. wealth in 2015 over
< $1 mn 1-20 $mn 20-100 $mn >100 $mn 2014, second only
to China(24.3%) in
2010 85 43 8 the Asia Pacific.

2014 77 7 3 13

2015 74 8 3 14

2020 65 13 3 19
 LUXURY IS AN EXPERIENCE, AN
OBJECT THAT BECOMES PART OF A
COLLECTION & WITH WHICH ITS
OWNER CAN SPEND HIS ENTIRE LIFE
 INDIAN LUXURY MARKET
The luxury market totalled $14.7 bln In 2015. it was sought to be worth more
than $18.3 bln by 2016-end.

The spending on luxury cars is likely to grow at 18-20%over the next three years,
driven by demand from smaller towns and cities.

In 2015, luxury retail space in India increased to 1.44% of the overall retail space,
from 1% .

UHNHs spend over 40% of their monthly income on some of the worlds largest luxury
brands whereas the MHNHs consumers spend 8-10% of income on luxury products.
 INDIAN LUXURY MARKET

50
45
45
40
35
Sales $Bln

30
25
20 18
14
15
10.5
10 8.5
5.8
5
0
2012 2013 2014 2015 2016 2020
Axis Title

YoY Growth
 SEGMENT WISE BREAK-UP
CosmeticsApparel
Accessories
2% 2% 0%
Watches & Jewellery
Watches & Jewellery
27%
Food&Wine
Technology 27%

Cars

Hotels & Vacations

Food&Wine

Cosmetics
Hotels & Vacations
12% Technology
Apparel 22%

Accessories Cars
8%
 THE BUSINESS TRENDS

Womens Accessories & Mens Clothing Have Been The

Two Main Drivers Of Luxury Business

Luxury Retailing
Luxury Traveling
Luxury Living
Luxury In Wellness
Exotic Food
Luxury Health & Fitness
 INDIAN LUXURY RETAILING
T.S.G International & Rock N Shop
Sells 20 Luxury Brands To millennials who want
something edgy

Genesis Colours Pvt Ltd

Portfolio Includes brands such as Giorgio Armani,
Jimmy Choo, Coach, Hugo Boss & Tumi.

Ethos
Its 42 retail outlets in India sell 15 luxury watch
brands.
 INDIAN LUXURY TRAVELING
Select Cars Pvt Ltd
It deals in four of the top five luxury cars Rolls
Royce, Aston Martin, Lamborghini & Ferrari.

Pride Motors Pvt Ltd

One Of The Indias Highest Luxury Car Seller.

Lamborghini Delhi
A Gateway To Most Expensive Lamborghini In
India.
 INDIAN LUXURY LIVING

OMKAR 1973 SUN ESTATES DLF MAGNOLIAS

House of big cricket names Apartments overlooking the
like Virat & Yuvraj. A Luxury Villa in Goa. golf course
 LUXURY WELLNESS

RESHMA SUTRA ASEEM DALAL,

MERCHANT & FASHION INDO COUNT
PRIYANKA Into luxury apparel and It produces bed
LAKDAWALA fabric, Neel Sutra is linens treated with
They are into wellness completely essential oils; anti-
apparel. As many as 25 handwoven, which is microbial and
herbal ingredients go then treated with
temperature control
into their fabrics, which essential oils. bed linens
are completely organic
 LUXURY HEALTH, FOOD & FITNESS

Rait Spa, Leelas ESPA, The KayaKalp Spa at

Thar desert The Leela ITC Grand Chola

MODEKURTI NAMEET, Pranav Bahl, Shrirang Sarda, Founder,

co-founder, First Agro Swadeshi Mushrooms Sarda Farms
 THE LUXURYS PRODUCTS

Super Expensive Cars

Super Riding Bikes
Luxury Holidays
Tech Royale
Luxury Art Collection
Luxury Immigration Market
 LUXURY CONSUMERS

CHANGING SHARE OF LUXURY LUXURY BUYERS BY AGE

CATEGORIES
60%
100%
51 48 44 39
90% 50% 53%
80%
70% 40%
60%

Buyers In %
Share %

16
50% 16 30% 32%
16
19
40% 45
40 20%
30% 36
29
20% 10% 15%
10%
0% 0%
2008 2010 2012 2016 25-34 35-44 45+
YoY

Luxury Products Luxury Servics

Luxury Assets AGE RANGE
 DISPOSAL INCOME BY
200
0.2 Million CATEGORY
Income in Thousand $ Per

180
$ 170K
160 SUPER RICH
140 2 Million
0.4 Million 1.2 Million
$ 65K
Annum

120 $ 70K
$ 115K
CLEAR RICH NEAR RICH
100 SHEER RICH
80
The newly affluent
60 consumer from a
growing middle
40 class will drive new
luxury spending.
20

0
-0.5 0 0.5 1 1.5 2 2.5

No. Of Households In Million

 LUXURY CAR BRANDS IN INDIA
Luxury Car Sales 2015
Total Sales in
Others(JLR,
In 2015, the luxury segment, 1% of the Indian VOLVO, RR) 2015 Are
35300 Units.
car market, grew 13% to about 35,000 units. 8%
AUDI
BMW 32%
92% Market is dominated by BMW, AUDI & 21%
Mercedes Benz.

Sales are expected to grow to 87000 units by

2020.

The sector is expected to grow at the rate of Mercedes

15% per annum in period 2015-18. 39%

AUDI Mercedes BMW Others(JLR, VOLVO, RR)

 SUPER RIDING BIKES
"Indians are looking for adventure and freedom
and riding a superbike gives them a sense of
both," says Vimal Sumbly, Managing Director,
Triumph Motorcycles India.

Around 10,000 superbikes have been sold in India

so far, with the market growing at 25 per cent,
twice that of regular two-wheelers.

Almost all the leading global superbike makers sell

in India as well: Ducati, Triumph, Indian, BMW,
Moto Guzzi and Harley-Davidson.

The costliest model of super bikes available in

India is the Panigale 1299R, with an ex-showroom
price of Rs 49 lakh.
 LUXURY HOLIDAYS

Consumers' desire for curated, real-

time and experience-led luxury is
spurring huge growth in luxury travel -
globally as well as in India.

6.2% Projected 10-yr growth rate of

luxury travel market. Thats much faster
than the projected growth rate of 4.8%
of overall travel.

12.8% CAGR of Indias luxury market,

higher than any of other countries in
the study, including other BRICS
nations.
 TECH ROYALE
Luxury has always been a subjective concept. It varies depending on geographies and
cultures. With these caveats, here are some gadgets, devices and more which elevate
the sensory experience & considered as luxuries.

SAMSUNG SUHD 4K TV 88 INCH HTC VIVE REALITY HEADSET SONY VPLVW1100ES THEATRE BANG & OLUFSEN BEOLAB 90
Rs 23,99,900 Rs 55000 PROJECTOR Rs 75,00,000
Rs 18,50,000

PEPPER ROBOT APPLE WATCH GOLD ASTRA 2000 FULLY AUTOMATED WILLIAMS WARN PERSONAL
Rs 7,00,000 For 3 Months. Rs 10,00,000 Rs 8,50,000 BREWERY
Rs 3,45,000

Modern and Contemporary
South Asian Art, London, Oct 18,
2016 Vasudeo S. Gaitonde,
Untitled, Oil on canvas, 1973.
(Estimate: 900,000-1,400,000)
LUXURY ART COLLECTION
The Khosrovani-Diba collection,
Modern and Contemporary
London, Oct 19, 2016 Radha
South Asian Art, London,
consoled by Krishna in a forest
October 18, 2016 Francis
at night, attributed to Purkhu,
Newton Souza, The Deposition
Kangra, circa 1820.
400,000-600,000
(Estimate: 50,000-80,000)
 THE LUXURY CHALLENGES

The future of luxury in India depends on how fast it can

penetrate the Hinterland Individuals as they are no
longer afraid to flaunt their dough.

Luxury Penetration In Hinterland.

The Global Presence Of Indian Luxury.
The Economics Of Luxury Malls In India.
 LUXURY IN HINTERLAND
Buying Behaviour Of Tire-I & Tire-II Cities For
Luxury Sales In Metro, Tire-I & Tire-II Cities.
Luxury
7%
18%
16% HandBags 15%
5%

16%
55% Perfumes &
Cosmetics 18%
10%
22%

24%
Jewellery 25%
Mum, Del, Kol, Chennai 32%
Bangluru, Hyderabad, Ahmedabad, Pune, Nagpur, Ludhiyana
0% 5% 10% 15% 20% 25% 30% 35%
Jaipur, Lucknow, Kanpur, Surat, Indore, Vadodara
Rest Of India Metro Tire-I Tire-II
 GLOBAL PRESENCE OF INDIAN
LUXURY BRANDS

Amrut Distilleries Forest Of Chintz Neerav Modi,

share shelf space with A four-year-old high- Jewellery Designer
premium leading end jewellery & First Indian Luxury
brands like Harrods & accessories brand, brand to have a store
Waitrose in London & Invited at the Paris at Madison Avenue in
Scotland. Fashion Week. New York.
 ECONOMICS OF LUXURY MALLS
The cost of construction of a luxury
mall is almost three times more than a
regular mall which is for overall
development (excluding the land
cost) in metros is in the range of Rs
7,000-9,000 per sq. ft.

The rental for a luxury mall ranges from

Rs 500 to Rs 1,500 a sq. ft per month
much higher than regular mall.

"The luxury consumers are frequent

overseas flyers and they really don't
care about buying here," points out DLF EMPORIO MALL
Rajneesh Mahajan, Executive High-end luxury malls may not be a viable
Director, Inorbit Malls. proposition in India.
 SOME MORE INSIGHTS

People still believe to buy in 1.2% Consuming Offine

Stores rather than to buy online.

98.8%

Shop IN STORES Shop ONLINE

Locating The Money

43.7%
56.3%
A large percentages of Indias
millionaires now live in
emerging cities & towns such as
Metro Cities Non-Metro Cities Ahmedabad & Chandigarh
 START-UPS RISE IN LUXURY MARKET
According to a report from
Euromonitor International,
India is the fastest growing
emerging market for luxury
goods, growing by more than
$225 million a year
considerably stronger than
Singapore and Australia.
Thanks to rising Internet
penetration and disposable
income, the online segment of
the market is also growing,
and start-ups are taking the
plunge.
MOST POPULAR LUXURY BRANDS