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The ranks of India’s super-rich – defined by having a minimum average net worth of 250 million rupees ($5.6 million) over the past 10 years – are estimated to have grown by 30% to around 81,000 in 2011-12, according to a new study. In fact, many of them interviewed for the study gave exactly the response that we used in the headline when asked how they were faring.
And their number is expected to triple to around 286,000 over the next five years, says the new Top of the Pyramid report by Kotak Wealth Management and ratings agency Crisil Ltd., released earlier this week.
Not only are these fine folks barely feeling the effects of India’s economic slowdown, they want you to know that they are untouched, too. “One distinct facet” of such a person, the report says, “is his lifestyle and he goes to great lengths to maintain it.”
“Our respondents did not seem to feel that the circumstances warranted any cutbacks in spending. In fact, many of them even justified the increase in expenditure, in absolute terms, by pointing out that the number of non-discretionary items too was on the rise, to support that lifestyle.” So, an iPad that was considered nice to have last year is now considered compulsory.
They also want to make sure that they stay well separated, in branding terms, from the likes of you and me.
They like Mercedes, BMWs and Audis (don’t we all) but having exclusivity in a car, or even in a model, is important. Mercedes is viewed as an older fat-cat’s car while BMW and Audi have a younger image. Advantage BMW and Audi then.
“The preference for cars that project a youthful image is growing steadily,” the report said.
Further, German cars are becoming extremely popular among younger buyers compared with the Japanese brands that last year were considered to be trusted for Indian roads.
Surprisingly, most super-wealthy individuals buy cars on loan to take advantage of tax benefits.
They usually own three or four cars, “keeping with their lifestyle” and they “prefer to change cars frequently, to remain in vogue and give [themselves] the opportunity to outshine peers,” the report says.
The most favored car of the super-wealthy individuals remains the sports utility vehicle, perhaps because of the “rugged image that it inspires, coupled with it being ideal for short family holidays in nearby locales,” the report adds. You know the ones: they drive up behind you on the Ring Road, flash their lights, honk their horns and expect you to get out of the way because they have more cc’s. Not that we’re bitter.
The survey was conducted in Indian cities of Mumbai, Delhi, Bengaluru Hyderabad, Chandigarh, Ahmedabad, Vadodara, Chennai, Pune, and Kolkata between last December and April this year by interviewing 150 uber rich individuals and a host of personnel at major global luxury brands, art gallery owners, product dealers and industry body representatives.
Over 50% of the super-rich are in the four metros of Delhi, Mumbai, Kolkata and Chennai and the next top six cities account for around 12%.
The net worth of ultra rich households in the country was expected to increase five-fold from 65 trillion rupees ($1.2 trillion) in 2011-12 to 318 trillion rupees ($5.78 trillion) by 2016-17.
Besides cars, the super-rich mostly spend on clothes, luxury watches, diamonds and gold jewelry, the report suggests. Designer apparel and accessories top their shopping list followed by vintage spirits and precious stones.
What Downturn? Ask India’s Super-Rich - India Real Time - WSJ
The ranks of India’s super-rich – defined by having a minimum average net worth of 250 million rupees ($5.6 million) over the past 10 years – are estimated to have grown by 30% to around 81,000 in 2011-12, according to a new study. In fact, many of them interviewed for the study gave exactly the response that we used in the headline when asked how they were faring.
And their number is expected to triple to around 286,000 over the next five years, says the new Top of the Pyramid report by Kotak Wealth Management and ratings agency Crisil Ltd., released earlier this week.
Not only are these fine folks barely feeling the effects of India’s economic slowdown, they want you to know that they are untouched, too. “One distinct facet” of such a person, the report says, “is his lifestyle and he goes to great lengths to maintain it.”
“Our respondents did not seem to feel that the circumstances warranted any cutbacks in spending. In fact, many of them even justified the increase in expenditure, in absolute terms, by pointing out that the number of non-discretionary items too was on the rise, to support that lifestyle.” So, an iPad that was considered nice to have last year is now considered compulsory.
They also want to make sure that they stay well separated, in branding terms, from the likes of you and me.
They like Mercedes, BMWs and Audis (don’t we all) but having exclusivity in a car, or even in a model, is important. Mercedes is viewed as an older fat-cat’s car while BMW and Audi have a younger image. Advantage BMW and Audi then.
“The preference for cars that project a youthful image is growing steadily,” the report said.
Further, German cars are becoming extremely popular among younger buyers compared with the Japanese brands that last year were considered to be trusted for Indian roads.
Surprisingly, most super-wealthy individuals buy cars on loan to take advantage of tax benefits.
They usually own three or four cars, “keeping with their lifestyle” and they “prefer to change cars frequently, to remain in vogue and give [themselves] the opportunity to outshine peers,” the report says.
The most favored car of the super-wealthy individuals remains the sports utility vehicle, perhaps because of the “rugged image that it inspires, coupled with it being ideal for short family holidays in nearby locales,” the report adds. You know the ones: they drive up behind you on the Ring Road, flash their lights, honk their horns and expect you to get out of the way because they have more cc’s. Not that we’re bitter.
The survey was conducted in Indian cities of Mumbai, Delhi, Bengaluru Hyderabad, Chandigarh, Ahmedabad, Vadodara, Chennai, Pune, and Kolkata between last December and April this year by interviewing 150 uber rich individuals and a host of personnel at major global luxury brands, art gallery owners, product dealers and industry body representatives.
Over 50% of the super-rich are in the four metros of Delhi, Mumbai, Kolkata and Chennai and the next top six cities account for around 12%.
The net worth of ultra rich households in the country was expected to increase five-fold from 65 trillion rupees ($1.2 trillion) in 2011-12 to 318 trillion rupees ($5.78 trillion) by 2016-17.
Besides cars, the super-rich mostly spend on clothes, luxury watches, diamonds and gold jewelry, the report suggests. Designer apparel and accessories top their shopping list followed by vintage spirits and precious stones.
What Downturn? Ask India’s Super-Rich - India Real Time - WSJ
