Western India's love affiar with luxury brands
India is amidst a huge boom in the luxury retail segment and a closer look reveals that the western region of India is one of the most lucrative destinations for luxury retailers.
Indian consumers are a highly heterogeneous lot in terms of demand and aspirations. So, while incomes are rising and lifestyles are improving by leaps and bounds across India, some pockets of the country offer more promise than others in terms of demand for luxury brands. The metros certainly take the cake for being consumption hubs, but in a broader sense, the western region of the country is better endowed with up end consumers.
Higher purchasing power
Vishal Mirchandani, CEO, Lifestyle Stores, Piramyd Retail Limited, explains, “A huge amount of wealth creation from the exploding stock markets and real estate sector has driven consumer’s aspirations to ‘new highs’. The stock market culture being the strongest in the western region (Mumbai, Pune and Gujarat) means that there is a bias in shareholder wealth residing in this region.”
A study by A T Kearney points out another reason why the western region may be a more fertile ground for luxury malls. It finds that 52 per cent of luxury consumers are found to be industrialists in the 25-34 years age category.
The western region has more than its fair share of young industrialists. The same study also points out that cities like Pune, Ahmedabad and Surat with high numbers of rupee millionaire households, are potential targets of low ticket size luxury brands.
Lifestyle
While being wealthy is a precondition for luxury consumption, it usually translates into such consumption only when coupled with lifestyles to support it. Vishal Salgia, COO Vama, Mumbai’s premier high-end retail department store, feels that luxury brands are attracted to the western region. “Brand and fashion awareness is very high in Mumbai,” he says. “This is because consumers are well-travelled and extremely literate. They know what a brand is, the fashion associated with a brand, etc”.
Ruchita Sharma Bhardwaj, a lifestyle trend spotter who is currently researching on a book on ‘Luxury in India-The New Paradigm’ with French author Michael Boroian adds, “The mind set of the western region is more akin to ‘experimentation in fashion and luxury goods rather than ostentation and badge value as in the northern region.”
Tejas Vahalia
Higher purchasing power
Vishal Mirchandani, CEO, Lifestyle Stores, Piramyd Retail Limited, explains, “A huge amount of wealth creation from the exploding stock markets and real estate sector has driven consumer’s aspirations to ‘new highs’. The stock market culture being the strongest in the western region (Mumbai, Pune and Gujarat) means that there is a bias in shareholder wealth residing in this region.”
A study by A T Kearney points out another reason why the western region may be a more fertile ground for luxury malls. It finds that 52 per cent of luxury consumers are found to be industrialists in the 25-34 years age category.
The western region has more than its fair share of young industrialists. The same study also points out that cities like Pune, Ahmedabad and Surat with high numbers of rupee millionaire households, are potential targets of low ticket size luxury brands.
Lifestyle
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While being wealthy is a precondition for luxury consumption, it usually translates into such consumption only when coupled with lifestyles to support it. Vishal Salgia, COO Vama, Mumbai’s premier high-end retail department store, feels that luxury brands are attracted to the western region. “Brand and fashion awareness is very high in Mumbai,” he says. “This is because consumers are well-travelled and extremely literate. They know what a brand is, the fashion associated with a brand, etc”.
Ruchita Sharma Bhardwaj, a lifestyle trend spotter who is currently researching on a book on ‘Luxury in India-The New Paradigm’ with French author Michael Boroian adds, “The mind set of the western region is more akin to ‘experimentation in fashion and luxury goods rather than ostentation and badge value as in the northern region.”
Tejas Vahalia
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