The liberalization of the Indian economy has resulted in high economic growth rates and widespread prosperity for the country, according to a new report on the luxury market in India from Kuick Research. These factors have allowed people to broaden their horizons and alter their mindsets, Kuick reports. The industrial and IT revolution experienced in India created an entirely new set of wealthy global Indians, and the increasingly open economy created new business opportunities and promoted entrepreneurship that resulted in the emergence of exceedingly successful first generation businessmen. According to the report, "India Luxury Retail Market Analysis," these self-made millionaires are increasing, and the number of Indian rupee millionaires has increased, as well as the list of dollar millionaires in India.
According to Kuick, this has led the preferences of the Indian consumers of luxury to evolve over time. Previously, luxury was essentially intertwined with foreign trips, and luxury goods were generally imported from Europe and the U.S. However, as luxury brands enter India and the number of new rich increase, the need for displays of wealth and social status has increased. Luxury in India has become about flaunting hard-earned wealth, and people have become extremely brand conscious, most likely due to recent changes in the mindset about and limitations in understanding the drivers of the luxury marketplace there.
Consequently, luxury retail has witnessed rapid growth in India. While most of the world's mature markets are undergoing a slowdown in sales, India is being heralded as holding much future potential. International brands do face many challenges in the country currently, but most view their venture into India as a long-term investment that will eventually yield massive returns. The Indian luxury market is expected to more than double its current size over the next five years, and the growth of India as a luxury products market and its potential are obvious, creating a positive sentiment for global brands, including beauty.