Parallel to the growth of online food and grocery retail, the luxury market in India is also witnessing promising growth, according to a new ASSOCHAM study. Indians are likely to spend USD 35 billion on online luxury stores by 2016, it reveals.
“With deals or discounts, cash-on-delivery, EMI schemes and easy return policies, online shopping has offered luxury brands a new platform to engage with and entice customers,” D S Rawat, Secretary General ASSOCHAM, said while releasing the study.
The major key growth drivers are rising income levels, which lead to a change in spending patterns. The study also indicates that just like young customers, mature shoppers too are increasingly comfortable with online shopping.
“Earlier only youngsters were experimenting with buying stuff from internet. Now, even the mature customer is also getting accustomed to e-commerce,” Rawat added. “Luxury products sold online include apparel, stylish accessories, watches and high end electronics. Most of these products are offered for sale at online portals at a price that is incomparable and certainly benefits the middle class audience too.”
The rising middle class is the biggest driver of the online retail growth. With more than 140 million internet users, with 75 per cent of them being under the age of 35, India houses the world’s third largest and youngest internet population.
The optimistic outlook is anticipated to continue in the luxury sector spanning products such as apparel, home decor, pens, watches, jewellery, wines & spirits, spas and even yachts — a heady mix of both lifestyle and individuality-defining products. Apparel, cars and electronics are among the most attractive segments across the Indian market, the study notes.
According to the report, some of the significant brands/ retailers who performed well in 2014 include Gucci, Christian Dior, Louis Vuitton, Ocean Style Yachting, Canali India, L’Oreal Luxe India, LVMH India, Judith Leiber, The Phoenix Mills, The SPA Group, Gitanjali Group, The Bauers, Starwood Asia Pacific Hotels & Resorts, Da Milano Leathers, Reliance Brands, Hidesign and others.