| Categories | luxury-lifestyle |
|---|---|
| Frequency | Annually |
| Publisher | Kotak Wealth Management, CRISIL Research |
| Country | India |
| Language | English |
| Website | topindia.com |
The Top Of the Pyramid Report is a Primary research Report based on the behaviour and spending patterns of the Ultra High Net Individuals (UHNI) in India published by Kotak Wealth Management [1] & CRISIL Research. The report throws a spotlight on Ultra HNI's priorities or motivations when it comes to spending and investing.
Kotak Wealth Management and CRISIL Research, launched ‘Top of the Pyramid’ report in Mumbai on Tuesday, June 7, 2011.[2] The report is available free of cost, and can be downloaded from the Kotak and CRISIL websites.
Contents |
The phenomenal growth in the number of the super rich has laid the foundation for an expansion of the wealth management industry in India. It has also driven the entry and growth of luxury brands that cater exclusively to the tastes of the ultra high net worth individuals (UHNIs). Although, there is dearth of information on the earning, spending and investing trends of the ultra wealthy. Kotak and CRISIL seized the opportunity to create a report that analyses and tracks these trends year on year with specific reference to the Indian market.
The report also highlights the behavioural aspects such as what drives these individuals, what their priorities or motivations are when it comes to spending or investing, and whether there is any homogeneity in their actions as a class. The takeaways from this report can be used by professionals who manage the wealth of the ultra rich, and also will help niche companies operating in the segment to come up with more marketing or distribution strategies for their products.
‘Top of the Pyramid’ report is based on two main strands of research:
1) A series of in-depth interviews conducted with senior personnel at major global luxury brands, art gallery owners, product dealers and industry body representatives.[3]
2) Through a third-party market research agency, a market survey of 150+ ultra HNIs (defined as individuals with net worth of or in excess of Rs. 250 million) was conducted, with conversations lasting up to one hour. The respondents were spread across the three major metros, namely Mumbai, Delhi and Bengaluru, as well as Hyderabad, Ahmedabad, Chennai, Pune, and Kolkata (referred to as Other cities in this report).[4] The majority of the respondents (77 per cent) were from the three major metros. The survey took place between December 2010 and February 2011.
CRISIL Research undertook an analysis of the results of the survey, and every conclusion was subject to analytical review process
In this report, Kotak Wealth and CRISIL Research have defined an Ultra High Net worth Household (UHNH) as one having a minimum net worth of Rs. 250 million (as of FY 2010-11). The number of UHNHs is expected to triple to 219,000 and their net worth is expected to grow fivefold to Rs. 235 trillion by FY 2015-16. [5]
The study identifies three distinct profiles of UHNIs or High net worth individual in India – the inheritor, the self-made and the professional. It draws a clear differentiation between these three profiles in their approach to investing and spending, and perpetuation of wealth and lifestyle. It points out that UHNIs display greater risk aversion in personal investments. While real estate has been the most preferred avenue, alternate asset classes are now likely to gain popularity.