Despite the global economic slowdown, size of the High Income Group (HIG) consumers continue to enlarge and spend over 40% of their monthly income on some of the world’s largest luxury brands, while the Middle Income Group (MIG) consumers have come under heavy pressure, reveals ASSOCHAM’s latest survey.
The factors that have fuelled the luxury industry’s growth are the rise in disposable income, brand awareness amongst the youth and purchasing power of the upper class in Tier II & III cities in India, whereas the middle income groups spending on food products and education have increased significantly in the last 10 years.
The ASSOCHAM recent survey on “Indian Luxury Market Holds Strong despite Global Economic Downturn” was conducted in major places like Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabd, Pune, Chandigarh, Dehradun etc. A little over 200 employees were selected from each city on an average. Delhi ranks first in spending most on luxury brands followed by Mumbai (2nd), Ahmedabad (3rd) Chandigarh (4th), Kolkata (5th), Bangalore (6th), Chennai (7th) and Dehradun (8th), says DS Rawat, secretary general of ASSOCHAM.
Full report here Times of India