Top of the Pyramid Report
Encyclopedia
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 & CRISIL
Research. The report throws a spotlight on Ultra HNI's priorities or motivation
s 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. The report is available free of cost, and can be downloaded from the Kotak and CRISIL websites.
s (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.
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.
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). 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
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.
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.
Primary research
Primary research consists in research to collect original primary data. It is often undertaken after the researcher has gained some insight into the issue by collecting secondary data...
Report
Report
A report is a textual work made with the specific intention of relaying information or recounting certain events in a widely presentable form....
based on the behaviour and spending patterns of the Ultra High Net Individuals (UHNI) in India published by Kotak Wealth Management & CRISIL
CRISIL
Credit Rating and Information Services of India Ltd. a global analytical company providing ratings, research, and risk and policy advisory services....
Research. The report throws a spotlight on Ultra HNI's priorities or motivation
Motivation
Motivation is the driving force by which humans achieve their goals. Motivation is said to be intrinsic or extrinsic. The term is generally used for humans but it can also be used to describe the causes for animal behavior as well. This article refers to human motivation...
s when it comes to spending and investing.
Kotak Wealth Management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
and CRISIL
CRISIL
Credit Rating and Information Services of India Ltd. a global analytical company providing ratings, research, and risk and policy advisory services....
Research, launched ‘Top of the Pyramid’ report in Mumbai on Tuesday, June 7, 2011. The report is available free of cost, and can be downloaded from the Kotak and CRISIL websites.
Summary
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 individualHigh net worth individual
A high-net-worth individual is a person with a high net worth. In the private banking business, these individuals typically are defined as having investable assets in excess of US$1 million. As explained below, the U.S...
s (UHNIs). Although, there is dearth of information on the earning, spending and investing trends of the ultra wealthy. Kotak and CRISIL
CRISIL
Credit Rating and Information Services of India Ltd. a global analytical company providing ratings, research, and risk and policy advisory services....
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.
Research Methodology
‘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.
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). 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
Definition of UHNH
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.
Profiles of UHNI's in India
The study identifies three distinct profiles of UHNIs or High net worth individualHigh net worth individual
A high-net-worth individual is a person with a high net worth. In the private banking business, these individuals typically are defined as having investable assets in excess of US$1 million. As explained below, the U.S...
in India – the inheritor, the self-made and the professional
Professional
A professional is a person who is paid to undertake a specialised set of tasks and to complete them for a fee. The traditional professions were doctors, lawyers, clergymen, and commissioned military officers. Today, the term is applied to estate agents, surveyors , environmental scientists,...
. 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.
External links
- topindiareport, official website
- kotakwealthmanagement, official website of Kotak Wealth