Indians splurge on luxury without guilt

The economic slowdown has seemingly not affected the Indian consumers as much as their counterparts in Hong Kong, France or U.K. At least, their appetite for luxury remains healthy as ever. In 2008-09, Indians spent more on impulse, bought luxury products based on the brand's global show-off value and felt the least guilty after splurging, reveals a survey of over 8,000 people across 11 nations.

The survey conducted by global market intelligence firm Synovate showed two in three people across 11 markets treat themselves to luxury every now and then, but one-third feel guilty about it. In sharp contrast to the overall global trend though, Indians came out as people who don't mind dishing out an extra few lakhs if a luxury product really appeals to them and over 70 per cent at least don't feel pangs of guilt.

So while 35 per of those polled worldwide felt luxury was "everything over and above what you need," Indians did not agree. The top answer in India was "Luxury is more about quality than it is about price," with 28 per cent choosing that definition.

Key insights the study found about the affluent Indian consumer

• 28 per cent Indians felt a luxury product is mainly a show off and the reputation of the brand mattered most. A majority of people globally said they regarded a luxury buy as a treasured item but Indians did not quite think so.
• 74 per cent Indians said they did not feel guilty after spending on a hugely expensive product such as a car or a diamond. In contrast, 50 per cent Britishers felt pangs of guilt.
• 29 per cent Indians, the highest among all nations, admitted that they bought luxury items on impulse, irrespective of the price. The global average is 10 per cent.
• 79 per cent Indians buy luxury items only if the logo's reputation impresses them. Worldwide, only 47 per cent prefer to buy logoed items.
• 79 per cent Indians base their buying decisions on what they read in magazines, on TV, especially depending on which celebrity is seen endorsing it. In contrast, 70 per cent of Dutch, 65 per cent of French and 64 per cent of UK consumers said they would not go by what others endorsed.