India's super rich spend most on jewellery, clothes and accessories and then leisure travel, according to a Kotak wealth management report.
"Last year ultra HNIs (high networth individuals) spent most on jewellery, apparel and accessories followed by leisure travel, reflecting that they spend a significant part of their expenses suiting the entire family," the report said.
According to the report, put together by the Kotak Group and Ernst & Young (EY), the number of super rich in the country saw an increase of 16 per cent in 2013-14. The Kotak report counts 1,17,000 Indians as super rich and defines the term to mean any household worth over Rs 25 crore.
While they spent an average 16 per cent of their money on jewellery, they spent 15 per cent on apparel & accessories and 14 per cent on holidays.
"While jewellery displays the ultra HNI's interest in exclusivity and exquisite craftsmanship, it is also a useful mode of investment. Besides gold, there is a great deal of interest in precious stones as well, due to their high returns," the report titled 'Top of the Pyramid 2014' said.
The super-rich rely on family jewelers, and are largely indifferent to brands in this space, it said. High duties on imported jewelry has made them deal mostly with domestic jewellers.
While clothes have always been an area of spending for the ultra-rich, a new trend according to the report is the emergence of designer clothing for children. "This has been further boosted by the launch of designer lines for kids, such as Young Versace and Baby Gucci, leading to high spends on the apparel category," the report said.
Favoured destinations for holidays in the fiscal year gone by were Singapore and Dubai, which doubles up as a luxury shopping haunts as well.
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