The Indian luxury market has not seen a significant rise when compared to other major countries in the world, mainly due to the majority of the population lagging behind the rest of the world financially.
However, there has been a steady rise in the growth of luxury brands in India over the last few years and this has resulted in Titan and four Indian Jewellery groups to feature in the Top 100 luxury companies in the world. According to the Deloitte’s Global Powers of Luxury Goods 2019, Kalyan Jewellers, Joyalukas, PC Jewellers, Tribhovandas Bhimji Zaveri Limited and Titan are the 5 companies that featured in this list.
Nevertheless, none of the Indian companies managed to break in the Top 20. The Top 20 has some of the biggest brands when it comes to luxury items like Gucci, Louis Vuitton, Cartier, Prada, Estee Lauder and so on. With the luxury market capped at close to $ 247 Billion, the potential of this market is huge and India is slowly catching up with the rest of the top guns.
According to Compound Annual Growth (CAGR), 20 of the top 100 companies are growing faster than the rest with their market price improving considerably well in the recent past.
The positive thing to look at it from an Indian perspective is that three companies feature in this list, namely, Titan, PC Jewellers, and Joyalukas Group. Titan had a CAGR value of little over 19%, PC Jewellers with little over 14% and Joyalukas with little less than 13%, making them the fastest growing Indian luxury brands according to data of FY 2015-17.
What can we credit to this growth?
The credit for the growth of the Indian luxury market goes to several factors with the main being the rise of HENRYs in the country. HENRYs are people belonging to a category of High-Earners-Not-Rich-Yet. India is seeing a significant increase in the number of people belonging to this category. With them having a good amount as disposable income, they have been a significant cause for the rise of sale of the luxury items in India. In addition to that, integration of technology has also helped, as now people can get all these products by sitting at their home through various online portals or e-commerce platforms.
The average age of the HENRYs in the country is estimated to be 43 as of now. However, we can expect to see that number into the 30s in the coming years and thus see a more significant jump in the sale of luxury goods.