India's luxury goods market was driven by an increase in disposable income and technology penetration, furthering e-commerce.
Titan and four Indian jewellers were named in top 100 global luxury brands but not a single one of them was in top 20, per a report. Vying a spot among big luxury goods companies and their popular brands such as Louis Vuitton, Estee Lauder, Cartier, Gucci, Prada, among others, India’s Titan, Kalyan Jewellers, PC Jewellers, Joyallukas and TBZ made it to the list, according to Deloitte’s Global Powers of Luxury Goods 2019 report.
Among Indian names, the list was mostly dominated by jewellery companies — Kalyan Jewellers India Pvt. Limited, PC Jeweller Ltd, Joyalukkas India Pvt. Limited, and Tribhovandas Bhimji Zaveri Limited with the exception of Titan. The report also gave an insight into the luxury goods market, pegging it around $247 billion.
Within the 100 global brands, 20 of them are growing fastest based on their CAGR. Three Indian companies featured in this list as well. For FY15-17, Titan with a CAGR of over 19%, PC Jeweller with a CAGR of over 14% and Joyallukas with CAGR of little less than 13% are among the fastest growing top 20 luxury companies. Globally, Canada Goose Holdings Inc., Coty Luxury and Furla lead the list with India’s Titan following closely.
Indian growth secret
A rise in disposable income and penetration of technology, combined with the ability to buy online, has led to an increase in the Indian growth in the luxury goods market, the report said.
Also, it is not just major metros that are to be thanked for the Indian growth. Markets beyond metros and rising number of HENRY’s (High-Earners-Not–Rich-Yet) in India is a major driving force for this market, per Deloitte report.
HENRY’s are the growth drivers, globally
Categorized by their digital astuteness, love for online shopping and big spending, a new class of individuals who are impacting the market’s growth is emerging. HENRY’s or High-Earners-Not–Rich-Yet is a “new consumer class who is likely to become or remain affluent or ultra-affluent in the future,” said Deloitte report. Their average age is estimated to be 43 and these individuals will be crucial to the luxury goods market in the near future, it added.