In this edition of our ‘Getting to know you’ series, MultiConnexions’ Jaimie Elliott looks at affluent Indian and South Asian communities in Australia and around the world – and shares some data and insights about this audience in time for India’s 75th Independence Day.
Wealth throughout South Asia (India, Pakistan, Sri Lanka, Nepal, Bangladesh) has been rapidly growing since 2014, at an annual rate of 7 per cent – higher than the East, South-East and Pacific. The Indian and Bangladeshi economies are driving this growth.
With overall wealth levels rising, so too are numbers of affluent people. India has an estimated 412,000 millionaires/ affluent households at present, and the number of Indian affluent people is expected to grow by 71 per cent by 2022.
The affluent class in India value dual citizenships in developed nations including the UK, US, and Australia.
With such promising trends and significant business and professional migration from the Indian sub-continent, Australian brands and organisations would do well to sit up and take note of the opportunities these audiences represent – particularly as other source countries of affluent/ wealthy spenders are falling back.
Over-indexing in real estate
More wealthy South Asians are seeking to migrate and invest into Australian properties than ever before. The Hurun Indian survey shows that Indians prefer to go into personal investments to grow wealth, including real estate.
Australia is well placed to tap into this investment practice and stands to gain from growing investment in real-estate. The Australia Bureau of Statistics found that in 2020 over 1.1 million people migrated to Australia from South Asia, with over 60 percent of them from India. In 2018, one third of all Australian real-estate properties purchased were buyers born in India, compared to a quarter who were Australian born.
Living the luxury lifestyle
In addition to investments, wealthy South Asians prefer the finer things in life and take pride in purchasing, gifting, and showing off their hard-earned luxury goods. India is carving out a reputation as a global luxury hotspot, attracting increasing numbers of global brands seeking to tap into this appetite for the finer things in life. It is one of the most diverse, exciting, challenging, and rewarding markets for brands seeking to establish a presence.
There has been rapid growth in industries as diverse as luxury clothing, accessories, cosmetics, healthcare, entertainment, and technology. South Asians are continuously seeking new, bold, and innovative goods to match their status, and continue to do so upon migrating to Australia – representing a huge opportunity.
Driving with style
The Indian luxury car market studied was valued at more than USD 1 billion in 2020, and it is expected to top USD 2 billion by 2026, registering a CAGR of more than 6% during the forecast period. India is a huge market for vehicles and poses a very high potential for luxury cars. Porsche India’s sales grew 52 per cent in Q1 2021, luxury automaker records best quarterly figures in 7 years. The trend to buy luxury cars by affluent South Asians in Australia is aligned to these insights.
Prioritising education
Affluent South Asians strive to ensure that their children are given the best education possible. Affluent Indian parents do not object the idea sending their children abroad. In fact, 47 per cent of billionaires in India send their children overseas for education, with Australia being a popular choice. Recent years have seen an increase in Indian students in Australia, with may attracted to the Australian schooling lifestyle, study working rights, university ranking, and overseas networks. According to Australia’s Department of Education, in 2021 India, Nepal, and Pakistan were in the top 15 source countries of students that abroad in Australia.
With that all being said, what does this mean for Australian Brands?
The rise of affluent members of the Indian/ South Asian diaspora represents opportunities for Australian businesses to focus on marketing to this growing and lucrative niche segment.
With large growth expected to continue, it is important for marketers to be aware of these consumers and consider entering this market. Strong and targeted multicultural advertising and marketing campaigns can win over wallets and generate revenue from these potential consumers.
Person to person relationships are highly valued, along with digital communication, PR and traditional community media as well as country-of-origin entertainment and sports.
For further information on targeting affluent/ wealthy multicultural audiences including Indians/ South Asians, contact MultiConnexions today.