News: Affluent Indians to grow 12% by 2009

(BL 22/09/2006) New Delhi - Believe it if you can. There are an estimated 7,11,000 individuals with liquid cash of over $ 1,00,000 in India, and the number is expected to increase to 1.1 million, growing annually at 11.6 per cent by 2009.

These individuals have cumulative liquid wealth of $ 203 billion, which is expected to rise by 12.2 per cent per year to $ 322 billion by 2009, says American Express' White Paper on `The Changing Lifestyle Expectations of the Affluent In India' that was released on Thursday.

Clearly, the affluent class is a fairly large chunk of the population and as a group, possesses both power and money and hence the demand it makes on the market is also top class. As a matter of fact, there is a fast emerging, young and dynamic affluent class in India for whom acquiring luxury is not an occasion, but something to be expected. Exclusivity is the mantra they follow.

According to the survey, affluent consumers seek the best brands, the best quality, and the best services. But in the midst of their pursuit of an exclusive affluent lifestyle, they have not lost sight of what they are. This class celebrates the fusion of global luxuries and indigenous Indian brands in their lifestyles. Shoddy products, sub-par services, unpleasant purchase experiences are no longer tolerated or forgiven.

All these facts, the survey points out, have opened a wide door for a number of premium brands, international and domestic, across all sectors - be it clothing, accessories, airline services or hotels. But with the huge growth in demand for such products and services, manufacturers and service providers also need to constantly prove their worth.

The survey, however, warns service and product providers that mass affluence doesn't mean mass marketing. Hence there is a need to focus on both a short and long term individual relationship building strategies with the class. The brands also must recognise that with growing competition it is imperative to maintain performance and customer satisfaction levels.

The survey also points out that since the Indian affluent class likes celebrating its `Indianness,' international brands need to create services and products that understand the Indian culture, create familiarity in the market place and earn the respect of affluent customers. Further, as the affluent Indian aspires to be extraordinary, all brands and services should endeavour to make the ordinary extraordinary to stay in the race.