The steadily rising affluence of the Indian middle class and the resulting rise in demand for luxury goods has catapulted several of the country’s luxury brands to the global top hundred. According to a recent report by consultancy Deloitte, three of them have even found their way into the list of twenty fastest growing luxury brands in the world. All three — Titan Company, PC Jeweller and Joyalukkas — have significant jewellery businesses.
Titan Company’s saw annual luxury goods sales rise 23.6 per cent, with strong organic growth in its jewelry division for the second straight year (FY17). PC Jeweller’s annual sales were up 13.4 per cent, Joyalukkas’ at 9.6 per cent.Of the five Indian brands that figured in Deloitte’s list of top 100 luxury brands, released in its annual ‘Global Powers of Luxury Goods’ report last week, all have climbed the list in terms of ranking. Titan Company, at rank 27, has moved up by one place. Kalyan Jewellers, Joyalukkas and Tribhovandas Bhimji Zaveri have moved up two places, while PC Jeweller has risen by three.
The rise of India’s luxury firms has been driven primarily due to the rapidly increasing domestic market they cater to. While the number of Indians who qualify as middle class differs based on the methodology and metrics used, most studies agree that this number has been on a steady upward march. This is reflecting on the fortunes of Indian luxury goods brands.
According to Deloitte’s analysts, more than 50 per cent of global consumers will be considered middle class by 2020 and the luxury market will continue to experience “significant growth to accommodate this rising new class”. The report identifies two demographic sections that dominate this market: High-Earners-Not–Rich-Yet (HENRY) and the young Gen Z “with high disposal income” and who “are very prominent within the rising economies... Both China and India are attractive markets for brands in this regard”.
However, analysts believe that Indian luxury brands need to tweak their approach, especially due to rapid technologisation. “The traditional definitions and characteristics of luxury are evolving, thereby creating new opportunities for both existing players and entrants. The next few years are going to be dynamic for the Indian luxury market with increasing growth and competition seen especially in the bridge to luxury segment,” a spokesperson said.