Indian millionaires are growing in numbers and the population of individuals with liquid wealth of $1 million is expected to touch 1.1 million by 2009, says a survey by plastic card major American Express.
The millionaire club, which is currently pegged at 71,000, is expected to expand by 12.8 per cent annually, the report titled 'Inside the Affluent Space' said.
It said their estimated cumulative liquid wealth of $203 billion is expected to increase to $322 billion by 2009.
The study also offers an insight into attitudes, behaviour and expectations of the rapidly growing population of affluent consumers in India.
Releasing the report, American Express senior vice president Atul Mathur said: "India's strong economic growth, combined with other social factors and increasing consumerism is steering a dramatic change in the lifestyle aspirations of the country's rapidly growing affluent segment."
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India's Wealth Explosion |
| 711,000 individuals with liquid wealth of $100,000; expected to reach 1. 1 million by 2009 |
| Estimated cumulative liquid wealth of $203 billion; expected to increase to $322 billion by 2009 |
| In 2005, there were 83,000 millionaires (financial assets of $1 million or greater) in India |
| By 2009, the number of millionaires is expected to grow annually at 12.8% |
The research was conducted to understand the marketplace and underlying consumer lifestyle desires, he said.
"The affluent population is growing very rapidly and is expected to grow 12 per cent on an average across both the mass affluent and high net worth individual segments over the next few years," American Express country manager Rob Hennin said.
'Inside the Affluent Space' shows that affluent consumers in India have a very clear idea about what they expect from their lifestyles and from those who provide it to them. If businesses want to attract and retain these customers, they need to be very clear about these expectations too.
The new insights into the affluent consumers' mindset are powerful and will compel luxury marketers to refine and even change their approach to this consumer segment in India.
Lifestyle expectations, wealth growing rapidly ·
"The affluent population is growing rapidly. In fact, it is expected to grow at a rate of approximately 12% on average across both the mass affluent and high net worth individual segments over the next several years. Today in India, these consumers already account for nearly US$203 million in cumulative wealth," said Rob Hennin, country manager, American Express India.
To better understand this mindset, the study used an innovative and internationally recognised research technique to conduct research among affluent consumers themselves as well as high-end service providers who, in turn represented the changing lifestyle of thousands of other consumers.
It identified five new insights into affluent consumers' expectations that define the 'I've Made It' mindset:
Brand me affluent! Possessions and persona symbolize affluence: More affluence and more access are creating a lifestyle competition among India's affluent. To be branded 'affluent' it takes the 'right' possessions and the 'right' attitude. ·
Nothing but the best! Simple is only relevant in the affluent lifestyle when connected to 'simply the best' -- in every aspect of their lives. Even the ordinary must be special. ·
Luxury is having the world at my fingertips, first! The explosion of international and Indian brand choices is changing luxury, exclusivity and mindsets. Now it's: 'If I want it, I can get it -- and, it's exclusive only if I'm among the first to have it.' ·
Ethnic Chic: Blending the best of both worlds: Affluent consumers are blending indigenous Indian brands and global luxuries to create a distinctively unique and very Indian -- lifestyle experience.
You think I'm demanding? Next! No exceptions, no apology is the mantra of India's affluent in their demand for recognition, respect and no-flaw delivery of their affluent lifestyle. And, no forgiveness, either.
In particular, women emerged as a distinct voice 'Inside the Affluent Space,' signaling a micro-trend in the marketplace. As more and more women acquire their own status as affluent individuals -- with their own money -- their expectation is escalating specifically around 'the best' and more of it when it comes to personal indulgence, pampering and the pursuit of 'refined living.'
