The benchmark set for being considered super rich in India is an average net worth over past ten years of 250 million rupees which is equivalent to $5.6 million. The super rich club is growing rapidly and they had 81,000 members in 2011-12. A study was conducted jointly by Kotak Wealth Management and ratings agency Crisil Ltd. According to their report the number of super rich in India will grow to 286,000 over a five year period. The report which is titled Top of the Pyramid describes in detail their buying behavior and preferences. The billionaires and the super rich in India have been unaffected by the slowdown of the Indian economy. They also want to reaffirm that they are unaffected. They are conscious about their lifestyle and would do anything to maintain it. For them the increase in expenses is justified as the list of must have items has grown longer. Things that were considered a luxury have become a necessity.
Cars: Status Symbol
The report that was released this week was preceded by an extensive survey in Indian cities of Mumbai, Delhi, Bengaluru Hyderabad, Chandigarh, Ahmedabad, Vadodara, Chennai, Pune, and Kolkata. The survey conducted between December last and Aril this year interacted with 150 super rich individuals and also officials representing global luxury brands, their dealers and industry body representatives. The survey found that they prefer Mercedes, BMWs and Audis and go in for exclusivity in a car and even in a model. BMW and Audi are considered to have a younger youthful image. The Japanese brands which seemed to be the most trusted ones for the Indian road condition are steadily loosing out to the German automakers as they have become the first choice of the younger buyers. One interesting fact that emerged from the survey was that even these super rich get the banks to finance their car purchases to avail of tax benefits. The cars are considered a status symbol representing their lifestyle. They normally own a fleet of four or five cars and keep changing over to newer models to remain in vogue and ahead of their peers.
Designer Apparels and Exclusive Travel Destinations
The survey found that after cars the rich spend the most on clothes, luxury watches, diamonds and gold jewelry. Designer apparels and accessories are at the top of their shopping list. They also splurge on vintage spirits and precious stones. One major avenue of expense for them used to be destination and theme weddings but current trends indicate that the preference has shifted to throwing lavish parties for birthdays, launch parties and wedding anniversaries. They serve as the occasion to show off their wealth. When it comes to travel they have a distinct preference for foreign destinations. Spain, Italy, Switzerland and the likes are considered mass holiday destinations and the super rich from India travel their only for work or business but when it comes to vacations they prefer exclusive locations like Machu Picchu or Bora Bora island. Fifty percent of the super rich in India are concentrated in the four metros of Delhi, Mumbai, Kolkata and Chennai. The next top six cities account for around 12% and the rest are evenly distributed around the country. The net worth of the super rich club in India is estimated at about $1.2 trillion today and is expected to grow to $5.78 trillion by the year 2016-17. Here check our list of most expensive gifts for rich.