An ASSOCHAM study has stated that the online luxury stores will see an influx of $35 billion dollars in 2016 and by 2020 the study foresees the market to get doubled. Through 2017-2018 the market is expected to grow at a compounded annual growth rate of 27 per cent.
While India has always had a traditional luxury clientele, who shopped on their trips abroad, the inflow of money in the rising Indian economy in last two decades has also seen rise in the premium segments. As a result, Indian people have become more discerning, gradually raising their standards for quality and service, and looking for more luxury experiences.
The key growth drivers in the rise of consumerism in the luxury segment are:
1. Growing influence of the Western culture over Indian retail market.
2. Growing Internet access and disposable income – There is increased awareness of luxury through Internet. More than 75 per cent of Internet users in India are youngsters who are connected to e-retail and have the money to spend on luxury brands.
3. Rising middle class – Luxury brands are now focusing their attention beyond the rich and elite to cover the demand of rising middle class in India.
4. Expansion of modern retailing – The expansion of supermarkets and high-end luxury stores across India has boosted the luxury segment, providing lower prices and higher availability and higher customer awareness.
Brands are targeting Indian shoppers through social media, opulent offline stores, shops on popular e-commerce majors, and attractive discounts and deals. They also offer services like delivery at the customer’s doorstep, easy exchange policies, free home trials, EMI, payment by cash on delivery or through credit/debit cards.
Sites like Paytm are also offering cash back with every purchase, making shopping online – especially for luxury goods – extremely appealing and lucrative.
The brand conscious Indian shopper can get all luxury items in India, complete with great deals.