India has more consumers for luxury goods than the adult population of several countries. With over one million consumers in the segment, a number that is expected to treble by 2010, The Knowledge Company has produced India Luxury Trends 2006, India's first study on the sector. This comprehensive report aims to demystify India's highly sophisticated, intelligent and complex luxury consumer and carries up-to-date information based on an extensive survey through 12 towns and cities through the country. The Knowledge Company, an initiative of Technopak, one of India's leading management consulting firms, has produced this report.

According to the report, the immediate priorities for many consumers for luxury goods fall into the categories of housing, travel, education, higher end automobiles, entertainment electronics and other home lifestyle improvement products. However, the report estimates that within a short gap of 2 -3 years the market for luxury goods will boom in the categories of men's clothing, women's jewellery, women's accessories including handbags and footwear, watches and gourmet food & wines.

Announcing the release of the report, The Knowledge Company Chairman Mr. Arvind Singhal said, "The Knowledge Company provides cutting-edge market and consumer research reports and trend updates for various consumer product categories such as food and beverages, fashion and lifestyle, leisure and household goods and services, enabling real-time decision-making. India Luxury Trends 2006, which aims to provide information and knowledge on India's growing luxury market, is the first of a series of such reports from The Knowledge Company. We expect luxury marketers in other countries to find this report extremely useful when looking to enter into the Indian market. The Knowledge Company will also prepare reports on market insights like Consumer Outlook 2006 and Market Tracks which would study resources in markets like China, the Middle East and Russia, to name a few."

India Luxury Trends 2006 divides consumers for luxury goods into 4 categories:

· Luxuriented. Source of affluence is largely traditional and inherited wealth. Most importantly, they have high levels of exposure and awareness to world class living.

· New Rich. Adequate spending power. Acquiring orientation to luxury.

· Getting there. Acquiring spending power. Spends mainly on high end white goods, education of children, better housing and larger automobiles.

· Mid Affluents are also acquiring orientation to luxury, however unlikely to indulge beyond a limit.

The single most important reason for luxury retail not taking off in India is the lack of luxury retail environments. It is important to see how this segment will evolve in the future considering that existing retail formats in India are in 5 star hotels or as stand-alone stores.

The Knowledge Company Associate Director Saloni Nangia said, "India Luxury Trends 2006 is the first report to analyse the boom in the luxury space. It separates hype from reality and provides correct market estimations as opposed to 'guesstimations'. The Indian luxury market is growing at a tremendous pace and is a promising opportunity for industry, including real estate developers who may think to develop shopping malls dedicated only to luxury brands, for Indian manufacturers to create new products (and brands) positioned at the very top end of the market, and for entrepreneurs to create retail chains and businesses addressing the very exclusive needs of this exclusive group of customers."

The rich in India are not novices to the finer things in life. From the choicest wines and champagnes in the cellars of Maharajas to luxury cars and brands like Asprey and Gerard, luxury has been a part and parcel of India for more than 100 years.

India Luxury Trends 2006 is the first, authentic report of its kind based on primary research that included interviews with over 4000 luxury consumers across 12 cities in India. It is the only resource of its kind that helps determine the potential for various luxury products, the hidden motivators for purchase and the behavioural drivers of the typical luxury consumer. It is a must have tool for planning business strategies for India.

Highlights:

Who are these new generation affluent?

·CEO's and Other senior professionals in their thirties and early forties

·Entrepreneurs in myriad new businesses e.g. Technology, Manufacturing, Services

·Returning "prodigal children"

·Franchisees, Small and Medium Retailers

·Others

How many households fall in the luxury space in India?

·1.6 million households in India; this number is likely to cross 3 million by 2010

·Each household earns around Rs. 45 lakh (about $100,000) per year

·spend about Rs. 4 Lacs (US$ 9,000) per year on "luxury / very premium" goods and services

·The number of households is growing at 14 percent per year

What are the demographics of the cities included in the research?

·Primary data collected from 4000 luxury consumers

·Luxury consumers are concentrated in the North and West of the country

·Data collected from high-end consumers spread over 12 cities

·Cities include Delhi, Mumbai, Chennai, Bangalore, Kolkata, Ludhiana, Kanpur, Nagpur, Surat, Hyderabad, Coimbatore and Cochin

What are the categories of luxury goods covered?

·Detailed category analysis of 17 luxury categories

·Brand awareness maps in all categories

·Category penetration, purchase motivation, purchase intent and price perception

·Estimates of market sizes in the following categories:

o Clothing for men, women and children

o Accessories

o Time wear

o Footwear

o Fragrances

o Jewellery

o Cosmetics and skincare

o Digital Accessories ¾ Mobiles, PDAs, etc.

o Home electronics and appliances

o Intimate wear

o Furniture, art and antiques

o Tableware, crockery and similar collectables

o Fine dining and gourmet food

o Wine and liquor

o Travel and leisure

o Health and wellness

o Entertainment

Methodology used

·Divided equally among women and men

·Covering an age group between 25 and 55

· Examines psyche of consumers from urban as well as small towns in India

The Knowledge Company

The Knowledge Company is an initiative of Technopak, one of India's leading management consulting firms, which offers cutting edge market and consumer intelligence reports and trend updates for decision-makers. These include a series of market and consumer research reports for various consumer product categories such as food and beverages, fashion and lifestyle, leisure and household goods and services. The information collated and presented by The Knowledge Company is from extensively conducted primary research, backed up by a very large cross-section of secondary sources. The Knowledge Company products and services cater to consumer product businesses, industry associations, universities and economic think tanks, and independent researchers across the globe.

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Accord is a full service public relations agency that focuses on the needs of lifestyle brands. Our focus sectors are Tourism, Travel and Hospitality, Food & Beverage, Media and Entertainment and Retail and Real Estate. In the specific sector of Tourism, Travel and Hospitality, we have worked with Walt Disney World Resorts, The Claridges Group of Hotels and Resorts, British Airways, and India's first truly world class theme park and resort [coming up in Noida]. We are headquartered in New Delhi and have offices in Mumbai, Bangalore, Chennai and Kolkata.