Wealthy Indians: Real Estate, Habits, and News Sources
In this report, your research team covers the demographics of wealthy Indian consumers, as well as providing insights into their consumer behavior and preferences.
- In India's top income quintile, 61.3% of the population lives in rural areas.
- Households in India's top income quintile have an average of 6.5 members, with an average of 4.6 adults (over age 18).
- The average age of a head of household for the top income quintile in India is 50.
- The average education level of a head of household for the top income quintile in India is secondary school. Moreover, 60% of those with a college degree or higher are in the top quintile of income-earners in India, and another 20% of those with a college degree or higher are in the fourth quintile. Roughly 50% of those with a high school degree are in this quintile.
- In India, households where the breadwinner has a college degree or higher earn, on average, three times the households where the breadwinner is illiterate.
- The percent of female heads of household for the top income quintile in India is 5.2.
- The majority of Indians living in urban areas (87%) fall into the top two income quintiles.
- High-income consumers in India are key consumers of durables, such as large appliances, TVs, and personal vehicles. As this income group in India grows in the coming years, projected to grow by 20 million by 2030, it's expected that this will result in a 15-20% growth in durables consumption.
- High-income consumers in India are spending more and more on non-essential category extensions driven by the desire for convenience and entertainment. For example, this income group is leading a growing market for app-based food delivery services, which the high-income working population of urban India is increasingly using to replace home-cooked meals. Affluent and elite householders in India spend 13 times and 35 times more in this category than low-income Indians. Moreover, this income group is spending on entertainment services such as video streaming services.
- One emerging consumer profile in India is the wealthy urban single. According to Nielsen India, this demographic group is roughly 7 million people. This group is very health-conscious; values entertainment in the home (TVs and streaming services, as well as new technologies like AR and VR); works long hours but also regularly works from home; and spends an average 20 hours a week on smartphones. They're typically aged 28-45, have an average monthly income of INR 65,000-70,000.
- Wealthy single urbanites typically base on consumption decisions on lifestyle considerations rather than functional needs. For example, " Single urbanites look beyond conventional appliances and aspire to buy lifestyle products that come with bold and innovative concepts that help them stand out in a crowd." Examples might include air purifiers, projectors, and Bluetooth speakers. In addition, they spend about 25% of their monthly income on food and beverages.
- Wealthy Indian consumers are motivated to buy premium and luxury products. India contributes 1-2% to global luxury goods market; however, "the market is growing at a compounded annual growth rate (CAGR) of about 25 percent." Jewelry, sports cars, luxury travel, beauty products, electronics, luxury apparel, fine wine, and fine dining are all categories showing strong growth in India. It's estimated that high-net-worth individuals in India spend more than 40% of their income on luxury goods and services. Indian luxury consumers are value-conscious; they value customization; and they're highly influenced by digital presence of brands.