Explore opportunities in the booming luxury market

Luxury Investing: The New Megatrend
In recent years, luxury investing has emerged as a new megatrend that is reshaping the consumer landscape in India. With the rise of the luxury class in India, demand for high-end products and services has surged, outstripping supply and driving growth across various sectors, from luxury vehicles to personal luxury goods.

The Rise of Luxury Vehicles in India
Luxury vehicles sold in India grew by an impressive 20% year-on-year in 2023, reflecting the increasing affluence and aspirations of Indian consumers. This growth could have been even higher if supplies were better planned, highlighting the untapped potential in the luxury market. SUVs, in particular, have been leading the charge in the personal vehicle category, with their share expected to rise from 51% to 62% by FY25.

The Booming Personal Luxury Market
Not only are luxury vehicles gaining traction, but the personal luxury market as a whole is also set to grow at a healthy rate of 12% according to industry reports. This growth surpasses GDP growth by a significant margin, indicating a shift towards premiumisation and luxury consumption among Indian consumers. Western luxury brands have taken notice of this trend, with names like Gucci, Louis Vuitton, and Cartier establishing a strong presence in the Indian market.

Opportunities for Investors
As the luxury market in India continues to expand, there are ample opportunities for investors to capitalize on this trend. Companies like Ethos, Brand Concepts, and Titan are well-positioned to benefit from the growing demand for luxury products and services. One notable player in the luxury car segment is Landmark Cars, India's premier dealership for premium and luxury vehicles.

Landmark Cars: Riding the Luxury Wave
Landmark Cars has established itself as a leading player in the luxury car market, representing top brands like Mercedes, Volkswagen, and Renault. With a diversified revenue stream that includes new vehicle sales, aftersales services, preowned vehicle sales, and finance and insurance, the company has seen impressive financial growth in recent years. From FY21-23, Landmark Cars' revenue grew by 73% and net profit increased by 667%, demonstrating its strong position in the market.

Investing in Luxury
As the luxury trend continues to gain momentum in India, investors should consider the potential growth opportunities in this burgeoning market. By keeping an eye on companies like Landmark Cars and other luxury brands, investors can position themselves to benefit from the premiumisation and luxury theme that is driving consumer spending in the country.

In conclusion, The luxury investing megatrend is reshaping the Indian consumer landscape, with strong growth seen across various sectors, from luxury vehicles to personal luxury goods. Investors can capitalize on this trend by identifying companies that are well-positioned to benefit from the rising demand for luxury products and services. As the Indian market continues to evolve, luxury investing offers a unique opportunity for investors to participate in the country's growing affluence and aspirational consumer culture.