5

What's New?

A close look at Garvita India’s strategy We feel privileged that part of our job includes interacting with industry veterans and gaining …

The Mapping Revolution

Know how MAPS of the FUTURE will solve real-life problems. Today we will talk about the Mapping Revolution, that is expected to …

In this blog, we uncover the economics of Installing a Rooftop Solar Power System. Many people saw their electricity bills skyrocket this …

In this blog, we will talk about the opulence of spending by wealthy Indians and cover Stanley Lifestyle that caters to them. …

In this blog, we delve into the investing wisdom of Mr. Anil Goel. “I lost all the money I had made till …

How can you reap the benefits of the booming luxury market in India

In this blog, we will talk about the opulence of spending by wealthy Indians and cover Stanley Lifestyle that caters to them.

“Money is Freedom” – Horace Walpole, an English writer and the youngest son of Britain’s first Prime Minister, said this to emphasize that wealth provides the freedom to enjoy life to its fullest, including indulging in luxurious experiences.

However, the wealthy, who already know how to indulge, are the last to need this advice.

With the upper middle class, wealthy, and ultra-wealthy in India seeing a significant wealth expansion, there has been unprecedented opulence. Today, we will explore how these rich Indians spend their money and how you can benefit from their spending.

# of Rich Indians are Inching Up

In 2023, the number of ultra-rich Indians earning more than ₹1 crore annually reached a staggering 2.69 lakh. That’s a whopping 49.4% increase since 2019!

After the lockdown ended, we all expected a surge in consumption due to pent-up demand, and boy, did it happen! People are travelling more, dining out, and splurging on phones, cars, and houses. But the scale and speed of spending by ultra-rich Indians? It has surpassed everything!

Let’s dive into some jaw-dropping examples of how these wealthy individuals are spending their money and how you might benefit from this trend.

Splurging on Tourism

Across the travel spectrum, companies and service operators are seeing a growing demand for luxury and premium travel experiences. Here are some exciting highlights:

Ananda in the Himalayas: post-COVID, the number of Indians subscribing to the “Comprehensive Wellness Program” at Ananda has doubled. This program, which costs ₹1.35 lakhs per night (excluding taxes), offers a rejuvenating escape in the serene Himalayas.

(Ananda in Himalayas)

Cleartrip: Business class bookings have doubled in the last year. More and more people are opting for the comfort and luxury of premium travel.

Splurging on Luxury Hotels

In 2023, luxury hotels in India, including the Indian Hotel Company (IHCL) and Marriott International, saw record growth, with new openings and occupancies rates > 70%.

IHCL: Launched 18 hotels with 1,800 rooms.

Marriott: Opened 12 hotels with 1,431 rooms.

Postcard Hotel: Plans to open a new hotel in 2024 with rooms priced at ₹1.95 lakhs per night.

(IHCL Hotel)

Taking luxury a step further, there’s a growing demand for bulk bookings of boutique luxury properties at stunning locations. Prices range from ₹3 lakhs to ₹10 lakhs per night, and entire properties are often booked for a secluded experience, even if guests don’t use the entire space.

Splurging on High-end Fashion

The luxury brands are making waves in India by catering to the unique tastes of Indian consumers. Here are some exciting updates:

Dior: They hosted India’s first seasonal fashion show, setting a new trend in the fashion industry.

Louis Vuitton (LV): Launched ‘The Rani Pink Line’ of shoes, blending traditional Indian aesthetics with luxury.

Bulgari: Introduced the mangalsutra, a traditional Indian jewelry piece, into their collection, making it a luxurious must-have.

These developments show how luxury brands are not just entering the Indian market but are also localizing their offerings to resonate with Indian consumers.

Splurging on Luxury Cars

The luxury car market in India saw impressive growth, increasing from 38,000 units in 2022 to 47,000 units in 2023. This represents a year-over-year growth of about 23%, with all car brands experiencing record-breaking sales.

(If you wish to read more on this, check this link.)

Splurging on Luxury Homes

The growth in luxury home market in India has been nothing short of spectacular, especially in metro cities. Here’s a snapshot of what’s happening:

Overall Growth: The sales of luxury homes priced at ₹50 crore and above rose by 51%, from 29 homes valued at ₹2,859 crore in 2022 to 45 homes valued at ₹4,319 crore in 2023. Of these, 14 homes were in the ₹100 crore+ segment.

Mumbai

Market Status: Mumbai’s luxury realty market became the 8th most expensive in the world in 2023 and had grown for 10 straight years by May 2024.

Trends: CEOs and business owners are frequently buying apartments in South Bombay for around ₹100 crore every other week.

Delhi NCR

DLF: Sold apartments worth ₹20,000 crore across three projects in the last 18 months, with all units selling out within 72 hours of launch.

Godrej Properties: Garnered more than ₹2,000 crore each during launch day sales of four projects, including three in NCR.

Max Estate & Signature Global: Sold out their high-end house inventory within an hour of launch.

Other Cities

Similar growth trends are being witnessed in other major cities, reflecting an unprecedented demand for luxury homes. Here are some surprising stats.

So, we’ve talked about how the ultra-wealthy are snapping up luxury homes like there’s no tomorrow. But you might be wondering, how can you benefit from this trend? Well, the answer lies in Stanley Lifestyle, a brand making waves in India’s luxury furniture market. So, let’s see what the deal is.

Stanley Lifestyle Limited

The company designs and manufactures high-end luxury furniture and markets it across the top 25 cities in India through its own and franchise retail stores.

The idea is pretty simple. Every house needs furniture, right? And when you’re buying a luxury apartment, you’re not going to settle for just any retail furniture store or a rental service like Furlenco. You want something aesthetic, customizable, and highly expensive that matches the grandeur of your new home.

Importing furniture can be a hassle with all the paperwork and waiting time. So, when you’re based in a top metro city and looking for luxurious furniture, Stanley Lifestyle is the go-to place. They offer exquisite pieces that perfectly complement the opulence of luxury apartments.

Before we move ahead, let’s understand the basics of the company’s business.

Decoding the Supply Chain

Now, let’s see how they bring luxury furniture to life.

1. Sourcing Material

Premium Leather: Stanley imports top-quality leather from certified tanneries across Europe. It is the largest importer of leather for making furniture in India, sourcing 60-70% of its raw materials from abroad.

Timber: They also source timber from FSC (Forest Stewardship Council) certified vendors across South India, ensuring sustainability and quality.

2. Manufacturing

Stanley operates two state-of-the-art manufacturing units in Bengaluru:

Electronic City Facility: This is their flagship, fully integrated facility where they create highly customizable furniture under the “Stanley” brand. It’s all about meeting the unique needs of their clients.

Bommasandra Jigani Link Road Facility: Here, they manufacture products at scale under the “Sofas & More by Stanley” brand. This facility also handles contract manufacturing and is operated by Stanley OEMs Ltd., a subsidiary of the company.

3. Design & Craftsmanship

For a piece of furniture to truly embody luxury, it must boast a unique design and exceptional craftsmanship.

Design: They have a 15,000 sq. ft. product development facility at their Electronic City location, staffed by a master Italian designer and 48 employees. In FY2023, they designed and manufactured 88 new products.

Craftsmanship: Stanley employs 58 craftsmen (both permanent and on contract) who specialize in leather marking, cutting, carpentry, sewing, stitching, metal work, and polishing. These artisans are the backbone of their ultra-luxury furniture.

(Almost all the products the products offered under ‘Stanley Next Level’ and ‘Stanley Boutique’ are handmade. More on this ahead)

4. Retailing (Sales)

Stanley has the largest network of various types of outlets offering luxury furniture products in India, each catering to different customer segments:

Stanley Level Next: Targets ultra-luxury home solutions with price points of ₹5 lakh and above.

Stanley Boutique: Focuses on the luxury category with price points between ₹3-5 lakh.

Sofas & More by Stanley: Aims at the super-premium category with price points between ₹1.5-3 lakh.

Stanley operates 34 ‘company-owned and company-operated’ (COCO) stores in major metro cities like Bengaluru, Chennai, New Delhi, Mumbai, and Hyderabad. These stores are the heart of Stanley’s luxury experience.

But that’s not all! They also have 21 ‘franchise-owned and franchise-operated’ (FOFO) stores spread across 22 cities in 9 states and Union Territories. This means you can find Stanley’s exquisite furniture in even more locations.

And if you’re looking for mid-value products, Stanley has got you covered too. They sell these through a vast dealer network across India.

But you might be asking, why would someone prefer Stanley Lifestyle over others. Well here lies its competitive advantages.

Competitive Strengths:

Integrated Manufacturing – Retail

One of Stanley’s biggest strengths is its integrated supply chain, which allows them to customize products quickly and provide excellent after-sales support. This means you get bespoke furniture tailored to your needs without long wait times.

Pan India Presence

Stanley’s extensive presence across India is a game-changer. Wealth is growing not just in top cities but across the country. Stanley has strategically located standalone stores in major metro cities like Bengaluru, Chennai, New Delhi, Mumbai, and Hyderabad. Plus, they’re expanding to increase their reach even further.

Comprehensive Product Offering

Stanley is your one-stop solution for home furniture. Their product portfolio includes everything from sofas and cabinetry to furniture for living rooms, dining rooms, family rooms, kitchens, bedrooms, and home offices. Whatever your furniture needs, Stanley has you covered.

With these strengths, Stanley Lifestyle is well-positioned to cater to the growing demand for luxury furniture across India. So, whether you’re furnishing a new home or upgrading your current space, Stanley offers the quality and customization you need.

As a result, today Stanley Lifestyle is a standout in the luxury furniture market. It’s the 4th largest player in the home furniture segment in India by revenue in FY23. It’s was among the first Indian companies to enter the super-premium and luxury furniture market and it is a leading luxury furniture brand in India, known for its extensive manufacturing and retail operations.

IPO – More Growth

Good News!!! Now, you can get a piece of this opulence. Stanley Lifestyle launched an IPO on June 21st, and it just closed yesterday with the company raising ₹200 Cr.

Stanley’s Plan to Utilize ₹200 Cr.

New Stores: ₹90.1 Cr. to open new stores across all three formats.

Anchor Stores: 3 new stores (30,000 sq. ft. each) in Delhi, Telangana, and Maharashtra, costing ₹40 Cr. over the next 2 years.

Renovations: ~ ₹10 Cr. to renovate 15 existing stores across 5 states and UT.

Equipment: ~ ₹8.2 Cr. for new machines and equipment to enhance manufacturing facilities.

So if you want to benefit from the booming luxury home market in India, Stanley Lifestyle could be a company to keep under watch.

(Disclaimer: This is not investment advice and we haven’t done a deep dive into the company. It’s just one of many stocks to consider in the ongoing luxury boom.)

✍️ Written By – Adnan Amroliwala (@twt_adnan), Bastion Research

Fin Meme of the Week



Follow us


error: Content is protected !!
Scroll to Top

Latest Updates

Coverage Status Company Update Date Research Material Report
Active ***** 5th July 2024 Business Understanding Note
Active ***** 7th June 2024 Quarterly Update - Q4 FY24
Active ***** 30th May 2024 Business Understanding Note
Active PSP Projects Ltd. 26th May 2024 Quarterly Update - Q4 FY24
Active ***** 24th May 2024 Quarterly Update - Q4 FY24
Active ***** 17th May 2024 Quarterly Update - Q4 FY24
Active ***** 9th May 2024 Quarterly Update - Q4 FY24
Active ***** 3rd May 2024 Quarterly Update - Q4 FY24
Active ***** 1st May 2024 Business Understanding Note
Active ***** 26th April 2024 Quarterly Update - Q4 FY24
Inactive ***** 14th April 2024 Business Understanding Note
Active ***** 9th April 2024 Business Understanding Note
Active ***** 1st April 2024 Business Understanding Note
Active ***** 28th March 2024 Business Understanding Note
Active ***** 26th March 2024 Business Understanding Note
Active ***** 26th March 2024 Business Understanding Note
Active PSP Projects Ltd. 11th March 2024 Business Understanding Note