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Twenty years ago, India’s
buying and lifestyle trends were no way similar to what we see today. With
limited choices, consumers and few brands to choose from. In 1991 India threw
its door open to international trade, and the situation changed dramatically
and so did consumerism in India. Today, consumers are spoilt for choices and
fully acknowledge that they rule the market.

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Despite India having a low
per capita income it still is a lucrative market, even for trendy lifestyle
products. One reason is India’s large population. A sizeable section of country’s
citizen forms the working population. As foreign trade grew it opened up
various job opportunities and gave spending power to the people. Lifestyle
sector in India is still growing and is expected to grow rapidly in the coming
few years. Currently it’s generally included
under the umbrella of retail sector but is constantly pushing to get a identity
of its own.























Indian lifestyle segment is broadly segregated into
urban and rural markets, and is attracting marketers from across the world. The
sector comprises of a huge middle class, relatively large affluent class and a
small economically disadvantaged class, with spending anticipated to more than
double by 2025.

India hit ten-year high and stood first among the
63 nations surveyed in the global consumer confidence index with a score of 136
points for the quarter ending December 2016.

Global corporations view India as one of the key markets from where future
growth is likely to emerge. The growth in India’s lifestyle market would be
primarily driven by a favourable population composition and increasing
disposable incomes.

India’s robust economic growth and rising household
incomes are expected to increase consumer spending to US$ 4 trillion by 2025.
The maximum consumer spending is likely to occur in housing, consumer durables,
lifestyle, and transport and communication sectors.






Categories of products

Luxury jewellery,
apparels, accessories and watches are some of the major products in the sector.
While various estimates exist on the size and growth potential of the Indian lifestyle
market, most estimates align on anticipated growth rate of around 20% given the
tremendous potential waiting to be harnessed in such products.


Market Size and characteristics of
each segment

Jewellery and
watches are the largest lifestyle industry segments with around 47% of the
total market followed by apparel and accessories with 14% of the total
lifestyle market.  Gold demand in India
rose 30 per cent year-on-year to 298.4 tonnes between January-June 2017, backed
by robust buying towards the end of quarter ending June 2017.$
India’s gems and jewellery exports rose 11 per cent year-on-year to US$ 6.78
billion in April-May 2017, supported by increase in exports of silver
jewellery, gold medallions and coins.#
Cut and polish diamond export constituted about 53 per cent of the total gems
and jewellery exports in value terms in FY17.

The gems and
jewellery market in India is home to more than 500,000 players, with the
majority being small players.

India is one
of the largest exporters of gems and jewellery and the industry is considered
to play a vital role in the Indian economy as it contributes a major chunk to
the total foreign reserves of the country. UAE, US, Russia, Singapore, Hong
Kong, Latin America and China are the biggest importers of Indian jewellery.
The demand for gold in India rose by 15 per cent year-on-year to reach 123.5
tonnes during January-March 2017, according to the World Gold Council (WGC).
The Goods and Services Tax (GST) and monsoon will steer India’s gold demand
going forward.

The overall
net exports of Gems & Jewellery during April 2017 stood at US$ 3.2 billion,
whereas exports of cut and polished diamonds stood at US$ 1.75 billion. Exports
of gold coins and medallions stood at US$ 553.59 million and silver jewellery
export stood at US$ 768.92 million during April 2017. India has become the
second largest exporter of diamonds, gems and stones to China, as total exports
grew by 28.48 per cent year-on-year to touch US$ 2.48 billion in 2016, as
stated by Mr Prakash Gupta, Consul General of India in Shanghai.

Though the
sale is increasing but the major problem in the jewellery market is same like
the retail market that a major part of it is unregulated.












apparel segment is also promising as the Indian retail market was worth Rs
41,66,500 crore (US $641 billion) in 2016 and is expected to reach Rs
1,02,50,500 crore (US $1,576 billion) by 2026, growing at a Compound Annual
Growth Rate (CAGR) of 10 per cent. It is envisaged that the current fashion
retail market worth Rs 2,97,091 crore (US $46 billion) will grow at a promising
CAGR of 9.7 per cent to reach Rs 7,48,398 crore (US $115 billion) by 2026. The
main consumers of the segment of watches are the rising urban population with
higher spending capacity. This segment has doubled from  FY’2013 to FY’2018 by experiencing a high
growth at a CAGR of 23.3 % in the period FY’2014-FY’2018.


and Competition:




Tanishq, Tbz, PC Jewellery, Nakshatra


Casio, Timex, Titan, Citizen




Allen Solly, Wrangler, Levis









Market Trends





Growth drivers:

biggest driver is Indians affinity towards buying gold because Indians buy gold
on all occasions and with increase in the disposable income this seems to be
increasing more

as an investment is also favoured by many business class people of India

being a major manufacturer of cut and polish diamond and exports about 93% of
it is also a factor on more focus on this industry.

being the driver of the entire Lifestyle sector with about 65% of market share.





Market Trends




Growth drivers:

increase in the young working population especially women and growing opportunities
in the service sector act as the biggest growth drivers for the lifestyle
industry, 60% of the Indians are below the age of 30.

demand for luxury watches in India and other countries to benefit the market

watches a niche segment thriving on the growing prominence of fitness

popularity of the smart watches in the country








Market Trends











The overall size of the perfume industry of India is
currently estimated at Rs 2000 crores, which is projected to grow by 50% to Rs
3000 crores by next 5 years. The current online perfume market is at Rs 148
crores which is projected to grow by approximately 120% to Rs 345 crores. As
Indian consumers are increasingly turning to online shopping, the online market
share of the perfume category, which is currently 7% of the total perfume
market, is set to increase to approximately by 11% by next 5 years. Gujarat
contributes to approximately 6% of the total perfume market in India.


Growth drivers:

in the disposable income of middle class

used by the young generation

increase in the young working population especially women and growing opportunities
in the service sector act as the biggest growth drivers for the lifestyle
industry, 60% of the Indians are below the age of 30.

for Indian taste and heavy advertising steals the show






Market structure


Titan Company Limited, a joint venture between the TATA Group
and the Tamil Nadu Industrial Development Corporation (TIDCO) commenced
operations in 1984 under the name Titan Watches Limited and is currently the
major player in the lifestyle sector with 65% market share. Titan Company is
the fifth largest integrated own brand watch manufacturer in the world. Over
the last three decades, Titan has expanded and explored into under penetrated
markets and created leading brands across categories.





The CaratLane Bestsellers

Eye wear




Swot Analysis


as fashion accessory

and price positioning

image and trust in the jewellery segment

value and after sale service offered



USP is low cost watch

of futuristic approach

of flexible thinking

much marketing of the fragrance SKIN

pricing of the perfume is incorrect considering it doesn’t fall under premium
range or the affordable range, it falls between them.



34 million watches are sold through gray market channels


rural market

existing distribution channel and market coverage



many players will dilute and market and the profit margin

priced china watches

phones have reduced the dependency on wrist watches

many competitors in the jewellery market

unregulated markets















Competitor characteristics








Diamonds and jewellers


Lifestyle and retail


Beautiful, elegant and timeless



Patronized by all woman who adore  the
diamond who buys diamond  for prestige, for a status symbol and to gain

Target Group

Upper middle and upper class from the urban


Depicts the culture and tradition of India


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