In the US and Europe, demand for diamonds has fallen but it continues to be high in the Indian market as people splurge on luxury goods to fulfil their aspirations.
Amid fears of a global slowdown and its possible repercussions on the Indian economy, the domestic demand for high-end luxury goods continues to rise. While Diwali is an occasion when people splurge on goods they aspire for, experts say that the trend is not limited to the festival season alone. Irrespective of the concerns surrounding the economy, high on the shopping list of many people are branded watches, high-end garments, luxury automobiles, latest electronic gadgets, expensive perfumes, and other such luxury products.
"This trend can best be described as a paradox. There are strong concerns about economic slowdown, but this hasn't in any way affected demand for higher-end luxury products," Abraham Koshy, professor of marketing at Indian Institute of Management, Ahmedabad, told DNA.
Echoing a similar view, diamond merchants say that demand for diamonds has picked up domestically. "Demand for diamonds in US and Europe has fallen, but it continues to be strong in the Indian market. In fact, the domestic market is providing the much needed support to the diamond industry. Rising income levels and burgeoning middle class are the main reasons for the spurt in diamond demand," says Dinesh Navadia, president of Surat Diamond Association. Koshy said that the many leading international brands of luxury goods were eyeing and enhancing their presence in India, a testimony to the growing aspirations and spending power of people.
"The sensitivity to price declines around Diwali, one of the biggest shopping periods in the country. The people are readily splurging on luxury goods to fulfill their aspirations," he said further.
Similarly, even the luxury cars had a good demand in this festive season. As compared to last year, Audi in Gujarat has grown by over 80% this festive season. As many as 80 cars were sold in the state in October alone, thus far. Anil Chhatwal, chief operating officer (COO), Audi Ahmedabad said, "Customers belonging to a certain income bracket are immune to such minor hiccups or changes. Luxury items and cars in particular hold an aspirational value. A connoisseur will buy one in his lifetime." Luxury cars constitute 1% of the Indian car spectrum. The company delivered 20 of their cars on Dhanteras and a further 12 are lined up for delivery on Labh Pacham.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}