Indian consumers choice shifting to branded luxury products
May 12, 2024
New Delhi [India], May 12 : Indian consumers are transitioning from unbranded products to luxury items, as per a report titled '20 things about Indian consumers' by IndiaQuotient.
The report highlights a noticeable change in purchasing patterns, with consumers increasingly favoring branded luxury goods, indicating a growing market for luxury products in India.
According to the report, tech giant Apple dominates the market with a commanding 67 per cent share of premium smartphones priced above USD 800, followed by Samsung with a 31 per cent share. This data highlights the rising demand for high-end smartphone brands among Indian consumers.
Recently Tim Cook, CEO, Apple lauded Apple India's double-digit revenue growth, marking a new March quarter record. He described India as an "incredibly exciting market" and a major focus for the company.
Additionally, there has been a significant uptick in the prevalence of sunroof-equipped cars in India. In 2023, 25 percent of all cars sold have featured sunroofs, a notable increase from the 7 per cent recorded in 2018. This surge in demand for sunroof cars suggests a growing preference for luxury features among Indian consumers, despite their limited usability in India's hot climate. Consumers are willing to pay between Rs 50,000 to 60,000 for sunroof-equipped cars, indicating their increasing inclination towards luxury.
The report also points out a shift in purchasing behavior among the lower middle class. Driven by the rise of digitalisation in the country, the younger family members are assuming the role of "Chief Technology Officers", leading to a trend of digitizing and branding family purchases.
In the automotive sector, the premium motorbike segment in India witnessed a notable 32 per cent revenue growth in FY23, outpacing the overall motorbike market's growth of 14 per cent. Furthermore, sales of premium electric two-wheelers tripled in FY23 compared to the previous fiscal year, showcasing a growing preference for premium EVs among consumers.
Moreover, Indian conglomerates are collaborating with global luxury brands to cater to the increasing demand of Indian consumers. Tata has partnered with renowned international brands such as Cartier, Piaget, Jaguar, and Land Rover, while Reliance has joined forces with Balenciaga, Superdry, Valentino, and Tiffany & Co., bringing luxury offerings to Indian consumers.
Overall, the report highlights a significant shift towards branded luxury products among Indian consumers, propelled by factors like digitalization, evolving lifestyles, and heightened purchasing power.
