New Delhi, April 8:India will see a huge upturn in urbanisation while it has ended in the US and Europe, told by Amitabh Kant, CEO, NITI Aayog (National Institution for Transforming India).
During his speech at The Taj Luxury Symposium 2017 on Friday, Kant said luxury brands like BMW and Mercedes are doing well in the country.
Talking about digital platforms transforming luxury, he said: “Digital technology is going to bring a lot of immersive virtual reality and that is going to create a vast amount of unique experiences.”
“This will happen because India will see a huge upsurge in terms of e-commerce. India will see 300 per cent growth in the next four to five years in terms of e-commerce transaction.”
According to Kant an e-commerce company needs to spread out into rural areas as well.
“It’s nearing its completion in China. In India, it has just begun. India will see a huge upsurge in urbanisation. The second thing is the middle class is moving to the upper end of the market. India is creating a huge middle class.”
And the middle class, he says, is essentially an aspirational class.
“If you look at UK, the latest cars, perfumes and jewellery… The consumption boom was driven by the aspirational middle class. That is what is going to happen to India in the coming years and that will be driven digitally,” said Kant.
In fact, physical banking in India will be dead in the next five years, he says.
But Umang Bedi, Managing Director – India and South Asia at Facebook, feels that luxury brands are yet to build digital commerce strategy.
“It will take them sometime,” he said.
“The consumer is looking for a real story and looks beyond packaging. They want to know how the product is made, where it is made,” Bedi said.