Although several million Indians still live on less than a dollar a day, India also includes more and more millionaires, with an increase of 25%1 in a single year.
This trend is expected to continue: according to the 12th Global Wealth Report by Boston Consulting Group (BCG) published in June 2012, private fortunes should reach US$ 40,100 billion by 2016 across the Asia-Pacific region, including India.
A far cry from the heirs of prosperous, well-established families, many of these Indian millionaires have only recently made their fortunes in industries like real estate, construction, steel and technology. As they form the new social elite with breathtaking speed, they intend to get the most out of the notion of exclusiveness that is specific to luxury goods. Ardent consumers, they shop for only the best, the biggest, and the most uncommon.
1Global Source : Wall Street Journal, June 22, 2012
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1/ Despite talk of a slowing Indian economy, small-town shoppers are starting to splurge.
Sheltered by government subsidies, good monsoons, high land prices and a low reliance on credit, rural incomes were up by 12% last year and have been growing more rapidly than urban ones since 2008 according to brokers Kotak Institutional Equities.
2/ The Indian middle class is defined by a system of 12 socio economic classes (SEC) from A1 to E3 (each letter has 3 levels).
This system results from the crossing of education with the number of durable objects owned by each household (color TV, refrigerator, washing machine …) and possession of agricultural lands. To give an idea of the corresponding income level, the middle classes begin at A2 for the highest and stop at B2.
In terms of income per household:
- A monthly income of 30 000 to 40 000 rupees corresponds to SEC B1/B2 (approximately 461 to 615 euros)
- A monthly income of 40 000 to 50 000 rupees is the SEC A2/A3 (approximately 615 to 769 euro)
3/ “The typical consumption cycle always begins with cosmetics, then watches, leather goods, and jewellery before fashion or travel”
Senior Partner and Managing Director of Boston Consulting Group
“La Chine, pays du bonheur des géants du luxe pour encore au moins cinq ans”
[China, heaven for the luxury giants for at least five more years]
17 May 2012