Luxury automobiles have the highest penetration in tier II and III towns, followed by apparel for women and accessories used by both men and women in the luxury products segment, according to a survey done by the CII-IMRB.

The study added that electronic gadgets such as mobiles and home electronics also have a reasonably high penetration.

“In keeping with what we saw as the psychological characteristics of the consumer in these cities, men tend to need to signal their power or status that is possibly best done through automobiles which by sheer size and presence is hard to miss,” the study noted.

At the same time it said that women, on the other hand, tend to buy luxury products to enjoy which possibly explains the prevalence of luxury apparel.

“Men’s watches too, are a category often portrayed as signals of power, heritage and opulence, thus fitting in with the need for social signalling, whereas men’s apparel even in metro India is yet to get into the luxury sphere with any intensity,” the luxury report added.

It also said that the experiential aspects of luxury ownership such as art or travel are still at very low levels of penetration in the tier II-III towns.

This survey was done through a face-to-face research with high net-worth individuals in non-metros, men and women in the age group of 20-55 years, with an annual household income of over ₹1 crore.

Respondents were asked queries on luxury product categories owned by them and how do they currently access and engage with luxury products or brands in the country.

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