In 2021, a year when the second wave of the pandemic overshadowed discretionary spending, luxury goods and items have turned the tide. High-end cars, gold and jewelry, and luxury residential projects have seen an increase in numbers over the past year, exceeding not only pre-pandemic levels but also, in some cases, levels reported 5-10 years ago.
* German automaker BMW grew 35% in 2021, its highest level in India in a decade.
* In the first nine months of 2021-2022, the value of gold imports topped last year’s number of $ 34.60 billion to reach $ 37.98 billion.
* ‘The Camellias’, DLF’s Gurgaon-based super-luxury project, recorded new record sales worth Rs 1,037 crore in the July-September 2021 quarter.
The trend is evident in the sales run by high-end automakers.
During the year, the BMW Group sold 8,876 units of BMW and MINI cars and 5,191 units of high-end motorcycles.
Rival Audi, a Volkswagen Group company, reported a doubling of retail sales to 3,293 units in India in 2021, from 1,639 units in 2020. The rise was propelled by Audi’s premium electric cars – e -tron 50, e-tron 55, e-tron Sportback 55, e-tron GT, RS e-tron GT – and the Q range and A sedans with petrol transmission.
In the first nine months of calendar year 2021, Mercedes Benz India had surpassed 2020 annual sales. In the July-September quarter alone, the company doubled sales to 4,101 units from 2,060 units at the same. quarter of 2020. The company also reported that it has built a “strong order base” for most of its existing and new products.
India’s largest real estate company in terms of turnover, DLF Ltd, said its super-luxury segment was âoutperformingâ, supported by the performance of its âCamelliasâ project. The company sold 34 units in the project, each unit typically going at a rate of around Rs 40,000 per square foot.
According to real estate consulting firm Anarock, the share of luxury home sales in total residential sales rose to 12% (in the first nine months of 2021) from 7% before Covid 2019.
In another study, Anarock said that during the July to September quarter, units worth Rs 4,000 crore were sold in the Mumbai metropolitan area in the luxury and ultra segments. -luxury. The luxury segment includes units priced between Rs 1.5 crore and Rs 2.5 crore, and the ultra-luxury segment includes units priced above Rs 2.5 crore.
The commodity space has also seen a preference for luxury goods.
After two consecutive years of decline, in 2020-21, the value of India’s gold imports reversed the trend and grew to $ 34.60 billion. In the first nine months of the current fiscal year, the value of gold imports has already exceeded last year’s number to reach $ 37.98 billion. Commercial data. Spot gold prices on the world market have increased by around 60% over the past five years.
The sharp increase in imports of valuables was also visible in the latest gross domestic product (GDP) printout for July-September. The import of valuables – assets with store value such as works of art, precious metals and jewelry – amounted to Rs 1.19 lakh crore in July-September this year, on highest of all quarters of GDP (base year series 2011-12). It was Rs 42,253 crore in the second quarter of last year and Rs 44,242 crore in the second quarter of 2019-2020.
A Euromonitor luxury goods report in 2021 noted that after drastic declines in 2020 across the market as a whole, in line with restrictions and limited mobility in response to the pandemic, luxury goods in India have experienced a recovery in 2021, driven mainly by improving demand during the second half of the year.
Limited international travel opportunities may have diverted some of the demand to local luxury retailers.
The gold and jewelry segment also saw significant growth as the festivals and wedding season approach towards the end of 2021.
In a call for results held on November 12, 2021, Saurav Banerjee, CFO of Mumbai-based retail jewelry chain Tribhovandas Bhimji Zaveri, said: âWe have witnessedâ¦ a completely different kind of scenario. from what it was three or four months ago. The customers come back in absolute hordes. I would say that there was a huge demand, which was generated during the whole period between Dussehra or Durga Puja until Dhanteras and Diwali. We have seen the income generation very similar to what it was in 2019-2020â¦ So we have seen those kinds of numbers come back and which is very encouraging for us â.