Almost 35 percent of the luxury brand sales in India are coming from the non-metro cities including Kochi, Bellary, Aurangabad, Pune, and Ludhiana. The luxury brands should try harder to tap the smart consumer group that is ready to spend in such places, claims a new report titled ‘Emerging Consumers of Luxury, India tier 2 and 3’ by CII-IMRB on the luxury Indian market.
The report states that despite the low outreach and engagement by the luxury brands, the sales via references in the tier 2 and tier 3 cities in the country. This is similar to the sales that happen in the metros. The growth rate of the luxury product sales and service consumption in these cities has been surpassing those in the metros in the past three years. The key tier 2 and tier 3 cities mentioned above have contributed to 16 percent of the overall luxury product sales and consumption of premium goods.
The report is based on the data that is collected from the primary as well as secondary sources. Also, the data from the respondents that include both men and women in the age group of 20 to 55 years with an annual household income of more than Rs 1 crore are included. The report covered the tier 2 and tier 3 towns including Ludhiana, Coimbatore, Chandigarh, Kanpur, Bhopal, Anand, Kochi, Patna and Rajkot. As per the report, the consumers valued quality of the luxury products at 75 percent. Apart from quality, 69 percent of the consumers prefer luxurious aspects, 64 percent desire style, 63 percent want modernity and 61 percent seek reliability.
In these cities and towns, men prefer spending on accessories, apparels, gadgets and cars, claimed the report. On the other hand, women spend in apparels, accessories and jewels. The peer pressure is claimed to play a vital role in the decision making of the women in such places.
