- Amex India’s CEO has reported that demand for luxury goods and services has increased across the country.
- The Indian luxury market is estimated to be worth approximately $8bn and could reach $200bn by 2030.
- India’s population of millionaires has grown in the past 10 years, particularly those with ultra-high net-worth individual status (UHNWIs).
Millennials and Gen Z have created a luxury spending surge in India, with new generations of Indian and international UHNWIs purchasing through the Indian luxury goods market, which is valued at approximately $8bn.
Sanjay Khanna, CEO and Country Manager of American Express Banking Corp India (Amex India), suggested that this young generation of UHNWIs has larger disposable incomes due to the country’s significant economic growth in the past 10 years.
The change in UHNWIs’ location and increased population is especially prevalent in India's leading financial cities, such as Jaipur, Mumbai and Hyderabad.
Khanna also noted that Amex is focusing on upholding its “premium positioning” and has constantly been developing new products, perks and rewards for its high-end customers.
In an interview, Khanna recognised the need for Amex India to ensure that it can fulfil its goal of dominating the premium segment by catering to the needs of affluent customers.
According to Khanna, the idea of ‘premium’ has a different meaning in regard to the two sets: for the UHNWI customer base, it means exclusivity and access provided by American Express itself, and in the mid-market segment, it reflects the status value and its corporate associations and advantages.
In the past 10 years, the demand for luxury goods and services has increased outside of major cities and has been embraced by first and second-generation entrepreneurs.
The growth has also influenced the expansion of India’s overall economy from approximately $500bn in 2002 to its current value of approximately $3.4tn.
As a result, this growth has created substantial wealth for first-generation entrepreneurs, increased purchasing power for those living in secondary and tertiary cities and encouraged international UHNWIs to purchase residences in the country’s leading cities.
UHNWIs looking to purchase luxury goods from the Indian market should use a safe money transfer method when completing their payments.
A Bain & Co study conducted in Q4 2022 estimated that India’s luxury sector could grow to $200bn by 2030. The study also predicted that India’s millionaire population will grow to 16.5 million by 2027 due to the influx of international millionaires migrating to the country.
Wealthy individuals looking to invest in luxury items should utilise safe methods of money transfer when sending funds.
UHNWIs interested in visiting and experiencing India’s luxury culture can use our online money transfer comparison tool to compare foreign exchange rates.
