Our market vision
The Indian high-end consumption market is evolving more rapidly than most of the business community had forecasted.
Indian consumers are accepting and adopting global trends much faster than anticipated. Digital and social media have made it possible for companies to connect with some of the once hard-to-reach Indian consumer.
Infrastructure challenges and regulatory constraints continue to exists, but high-end products consumption has gone beyond Delhi, Mumbai and Bangalore to Tier II cities like Chennai, Hyderabad and Pune.
The luxury market in India witnessed a robust growth of 20% over the past years and is today evaluated appx. $5,74 billion and projected to a size of $14,72 billion in 2015. Consumers for luxury and premium brands are pegged at 48 million of households which will grow to about 102 million in 2020.
A part of the evolving consumption ambitions, the luxury market is taking profit by the general surging forward of the general consumer market. Overall consumer spending is likely to expand 3.6times, from $991million in 2010 to $3,6million by 2020, and it enjoying a 14% annual growth rate.
- Our vision on high-end BtoC market
- The value chain of the high-end BtoC market
India's domestic market is expected to become the third pole for luxury in the world behind France and Italy as there has been an existing luxury industry for several centuries.
Several historical brands in the space are successfully emerging and acquiring leading position in the Indian high-end consumption market as consumers are showing a clear preference for Indian luxury products in different segments like jewellery, cosmetics, accessories, fashion.
Indians have typically been highly "badge consciousness" and products with prominent and historical logos have the capacity to capture the new consumption trends and to consolidate their leadership over the time.
The strategic challenge facing Indian emerging brands is how to build their "brand power", consolidate it over the time and how to structure their distribution network being in line with the overall brand strategy. Their final aim is how to transform their brand as a "social status symbol" by consumers.
IndEU investment strategy provide a tangible value added in the strategic development of emerging brands which is today considered by promoters as a key competitive advantage to select financial investors.
Due to its historical tradition in designing and manufacturing luxury products, India counts on several industrial companies operating in the traditional luxury value chain which held unique and ancestral know-how skills in segments like, textile production, textile colouring, performing ingredients selection and treatment for cosmetic industry and several other applications.
That area represents another source of value creation for a financial investor which could provide both finance and know-how to develop the company’s business model, emphasize their competitive advantages and then open to them new business opportunities on international markets.