Luxury market to grow rapidly: Report

Luxury market to grow rapidly: Report

According to a CAGR report, the luxury market is expected to grow by 12.45%

Representative image. (AFP Photo)

The Indian Luxury market is expected to grow rapidly at a CAGR of 12.45% over the next five years.

Luxury Goods market in India is estimated at $15 billion in 2019 with Luxury Watches and Jewellery being the largest segment with a share of $8.8 billion, according to the India Business of Fashion Report 2020. 

The report attributed the growth to the rising per capita and growing aspirational middle class. “Growing affluent and educated middle class and an increasing list of HNWI India have furled up the luxury spending in India.”

The report further tells that consumer spending in emerging cities is rising by more than 13% per annum whereas expenditures in top tier cities are growing by 10%. 

The major challenges that the industry has been facing, mentions the report, include infrastructure; Counterfeits, which constitute of around 10% of the Indian Luxury market; Government regulations including the Goods and Services Tax (GST); conservative buyer, high import duty and shortage of skilled labour.