Marketing luxury cars in India
Dr Varsha Jain
Mudra Institute of Communications, Ahmedabad
India may be a land full of poverty. But it has always had a taste for luxury, dating back to its extravagant emperors and rulers.
Most of the big global luxury brands have entered India only in the past decade, chasing the nation's economic growth. By 2010 India had become the 12th biggest market in the world in terms of the number of high-net-worth individuals (HNI), according to the 2010 World Wealth Report from Capgemini and Merrill Lynch Wealth Management. Despite more recent economic volatility, India is expected to be a key driver of growing HNI numbers in Asia in 2013.
The Indian luxury market, which is valued at US$3 billion, is expected to more than double in size in the next five years. The segment that consumes luxury products consists of senior corporate executives, non-resident Indians, and Indians returning back to India. This segment has two million households in India, earning US$100,000 annually, and is expected to grow by 13% per annum. These affluent Indians travel abroad for business as well as for leisure very frequently, and hence are exposed to luxury items by various lifestyle TV channels, upmarket magazines, and online sources.