The Hindu Business Line : `Growing affluence redefines lifestyle aspirations'

A spectacular change is underway around the lifestyle aspirations of affluent Indians. "A confluence of positive social and economic factors is fusing a new mindset," says a study on `India's affluent space' by American Express Bank Ltd.

According to the study, the changing attitude among the Indian population alters the landscape for luxury and premium lifestyle providers in a way that was unimaginable some time ago.

The new mindset is influenced by growing self-confidence, expanding consumerism, increased spending power, greater access to international affluent lifestyle goods and services and, to top it all, sheer desire.

By possession, persona

Affluence in India today is marked by both possessions and persona. There were an estimated seven lakh individuals with liquid wealth of $ 1,00,000 and more in 2005, said the study. "This is expected to increase to over 1.1 million by 2009, representing an annual growth rate of 11.6 per cent," it said, adding that these individuals accounted for an estimated cumulative liquid wealth of $ 203 billion in 2005, which is expected to go up to $ 322 billion by 2009, growing annually at 12.2 per cent.

The acquisition of luxury is no longer an occasion — it is an expected, said the White Paper. Affluent Indian consumers are driven by making every aspect of their lives extraordinary and simple is relevant only when connected to "simply the best".

More brands, more access and more exposure has created a new perspective too when it comes to product or service expectations. Shoddy products, sub-par services, unpleasant or worse purchase experiences are no longer tolerated.

Increasing awareness

This young and dynamic affluent population has increasing awareness of and access to goods and services from around the globe. This is accelerating their desire and demand for exclusivity.

These affluent consumers are willing to spend enormous and sometimes disproportionate sums to grasp the luxury.

The study said, at the same time, they have not lost sight of who they are or where they come from.

"They are determined to stay rooted in the traditions and culture of the country as well as connected to the larger community, including sharing their success through philanthropy."

As more and more women acquire their own `affluent' status, they express a specific desire for the best and more when it comes to personal indulgence, pampering and the pursuit of `refined living'.

"And beyond the obvious, affluent women appreciate and value products and services that are tailor-made with them in mind, not fashion but financial services, not cosmetics but customised cars," added the study.

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