An Indian "closet Consumer" of luxury goods characterised by "inner conflict between a middle class mindset and a globally rich income level" has emerged as a major phenomenon, an industry body said Sunday.
"Despite their newfound riches, however, findings indicate that there is an inherent mindset that is 'middle class' in India, even among those who can no longer be classified as middle class on the basis of their income," the Confederation of Indian Industry (CII) said in a report titled "The Changing Face of Luxury in India", published jointly with market research firm IMRB International.
"The inner conflict between a middle class mindset and the globally rich income level, between conspicuous consumption and a level of luxury which is a reward for hard work shapes what we call the 'closet consumer'," CII said here in a statement.
The report gives an overview of the luxury market in India, that has seen robust growth of 15 percent over the last three years and is estimated to have reached $7.58 billion in 2012. Categories like apparel and accessories, perfumes, fine dining and automotives have contributed most to this growth, CII said.
Closet consumers are cost conscious and seek value even when buying luxury products.
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"Based on their current lifestyles, values and needs from luxury, a segmentation framework (in the report) divides these consumers into four distinct segments spanning across those who are Connoisseurs, Experientialists, Aesthetes and Flaunters," said CII
"Luxury as a concept is not alien to India. Our culture is unique in that Indians have historically never seen a dichotomy between spirituality and materialism. The dominant Hinduism lays out the rules for the universe, in which preservation always goes hand in hand with wealth and prosperity," CII said.
A CII - ET Dialogue on Luxury conference with foreign participants is scheduled to be held here Nov 19.