As population size goes, 1,200 is not a big number. But if that many people are ultra affluent, they can do wonders for the market. Exactly that many women, with a combined net worth of about $100 billion, are said to be driving the growth of India's $9 billion luxury market. This amounts to 15 per cent of the overall market share.
Based on a survey cum analysis they did, industry body ASSOCHAM described these women as fashion forward, beauty conscious and ultra affluent working women. Majority of these 1,200 women live in Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Jaipur, Kolkota, Mumbai and Pune.
"Growing number of young working women (with high paying jobs) have increased awareness of global fashion and beauty trends are driving up the demand for high-end luxury products and accessories across various segments be it jewellery, watches, apparels, footwear, cosmetics and others," the survey notes.
"Luxury industry is becoming more female dominated as women’s brands have experienced a steep rise," says D.S. Rawat, secretary general of ASSOCHAM. He elaborates, "Working women or women with an active life have better spending propensity and are thus conscious of their appearance and are open to investing in luxury products."
The fallout? It was found that as professional women are emerging as the new decision makers and make most of their household purchases, it is imperative for luxury brands to open dedicated women’s stores and expand their product offerings to build long-term relationships with this new breed of luxury spenders. There is a huge scope for leading global luxury retail brands to expand their India footprint, by focusing on 'women special' product portfolio and carrying out innovative marketing campaigns.
About 20 per cent of the 500 respondents said they purchase only luxury products owing to their quality control and easy availability both online and offline. Affordability is not an issue as they earn enough to splurge. A majority of the rest said they buy at least one luxury product whenever they go shopping and have a plethora of luxury products lined up in their wishlist which grows by the day. There were women who maintained that luxury products are only overrated and pricey, and there is hardly any difference in quality compared to regular products. Jewellery, watches, apparel and accessories, personal care and electronic products are top five categories for women luxury buyers in aforesaid centers.