Decoding HNIs

Introduction

Inheritance; entrepreneurship Entrepreneurship Work benefits

Decoding the HNIs

The Inheritor

The Self-made The Professional

Source of wealth

Wealth preservation Self-recognition Self-actualization

Motives for wealth creation

Wealth needs to remain within the extended family

Wealth is unconditionally for immediate family Wealth is for family, but they

must strive to merit wealth

Attitude to perpetuation of wealth

Maintaining luxurious living Attaining luxurious living Value

Drivers of spending

Organized Informal Professional

Approach to investing

Source: T.O.P. India - CRISIL Research

Net worth to increase around 5 times over the next 5 years

Rs. 65 Trillion 2011-12 (estimated)

Rs. 318 Trillion 2016 -17 (projected)

Source: T.O.P. India - CRISIL Research

Metros account for more than half of the HNIs

Source: T.O.P. India - CRISIL Research

53.9% Metros

12.9% Other top

6 cities

14.6% Other

top 11-50 cities

18.6% Rest of India

Education Background

Most HNIs are better educated than their fathers

2.9% 9.8%

36.2% 13.5%

11.6% 9.0%

49.3% 67.7% Graduate

Post Graduate/Masters

Professional

Others

Fathers Self

Source: T.O.P. India - CRISIL Research

Investment Trends

Major portion of the total investments goes to equity, followed by real estate

34%

30%

29%

7%

Equity Real Estate

Debt Alternate Assets

Source: T.O.P. India - CRISIL Research

Primary business is the source of main income, followed by the investments in land & properties

22.4% Success in primary business

19.6% By investing in land and properties

13.9% 11.5% 10.7% <7%

By investing in equity

Inheritance/ Rich benefactor

Consistent saving in low risk investments

Others

Source: T.O.P. India - CRISIL Research

Allocation of the income

22.4%

28.3%

19.3% 19.7%

10.3%

28.2%

24.2% 24.1%

16.3%

7.2%

Expense Investment into the primary business

Investment for growing personal wealth

Savings Others

2010 2011

Source: T.O.P. India - CRISIL Research

Spending Pattern

Apparel and accessories shows highest rise in expenditure

0

50

100

150

Apparel / Accessor

ies

Vintage spirits/ Liquor

Jewelry/Precious stones/

Diamond

Luxury watches

Household

electronics

Exclusive holiday packs

Home decor/ Crystals

Art/ Artifacts

Luxury writing

instruments

2011 2010

Source: T.O.P. India - CRISIL Research

Big fat weddings are the main occasion of gatherings

Wedding or Wedding related

ceremonies 71.9%

Business or professional

success 70.3%

Launch party 70.2%

Anniversary 50%

Source: T.O.P. India - CRISIL Research

HNIs travel extensively

9.1%

22.3%

53.8%

71.40%

30.9%

52.4%

38.5%

28.60%

26.4%

18.4%

20.9%

3.9% 12.7% 3%

7.7%

Work / Business travel

related

With Family/ Friends/ Relatives

Sports/ Entertainment events

For an Art exhibition/ Auction

1 Trip

2 - 4 Trips

5 - 10 Trips

10 - 20 Trips

> 20 Trips

Source: T.O.P. India - CRISIL Research

Most preferred destination – beaches followed by shopping

31%

16%

15%

10%

10%

8%

6% 4%

0% Beach locations

Shopping destinations

Mountain treks

Religious/ spiritual destinations

Medieval locations

Spa vacations

Gambling destinations

Theme locations

Others

Source: T.O.P. India - CRISIL Research

Luxury Cars

12.5%

14.8%

18.0%

BMW is the most aspired car brand, followed by Audi

7.8%

6.3%

6.3%

Others* > 5%

*Brands including Ferrari, Skoda, Rolls Royce, Range Rover, Land Rover, Jaguar, Hyundai, Nissan, Mahindra, Bugatti, Beetle, Porsche, Bentley are part of the ‘Others’

Source: T.O.P. India - CRISIL Research

Ultra Luxury Cars

31.7%

SUV, the most preferred type of car

SUV / Crossover

38.7%

Sports Car / Convertible /

Roadster

17.1%

Others

12.5%

Source: T.O.P. India - CRISIL Research

Frequency of car change

1.6%

14.0%

23.3%

36.3%

24.8%

Every year

Every 2 years

Every 3 years

More than 3 years

Not fixed

Source: T.O.P. India - CRISIL Research

So who can be a HNI?

He is in his early forties, married, with a kid

An icon in the construction business and is as well respected as is popular

His social stature demands that he attend parties and socialize, thus class and sophistication are just as important. He tries to combine them all, to keep things simple

He works so hard, so he (and his family) deserve(s) the best money can buy; and has a “no compromise what-so-ever” policy when it comes to luxury and comfort

His profession demands that he travel widely and frequently, and thus comfort is supremely important to him

In the midst of work and socializing, he likes indulging in a little family time. They love going away for the weekend, and long drives, as it allows them to spend some quality time

He always takes into account his family’s tastes and opinions before making any big decisions

Source: Target Group Index (TGI)

Media Habits

Television has the maximum exposure, followed by outdoor

TV Outdoor

Newspapers Radio Internet

Cinema Magazines

98%

85%

36%

19% 18%

16% 8%

Source: Target Group Index (TGI)

Newspaper is the most trusted medium, followed by TV

Newspapers TV Internet

Magazines

44%

23%

8% 6%

For in-depth analysis HNIs turn to

Newspapers TV Radio

Internet Magazines

41% 27%

9% 6%

1%

The most trusted source of NEWS and Information

Source: Target Group Index (TGI)

Key driving factors for media choices

HNIs invest cautiously due to the slowdown

Have employed financial advisors/wealth managers

Sport events like Golf, Billiards, Derbies are loved by HNIs

Like to be invited for big fat weddings and other high profile events

Travel extensively for both official and personal purposes

Thank You