New Delhi, Nov 19 (IANS): The luxury brands segment, impacted by the economic slowdown in 2013, is expected to bounce back by mid-2014 and see a growth of nearly 17 percent, a report said here Tuesday.

“The impact of the economic slowdown in 2013 has impacted the luxury market to a certain extent as well but by mid-2014 the market is expected to revive and continue its growth trajectory and grow at nearly 17 percent in the year 2014,” according to the report 'The changing face of luxury in India' done by CII and IMRB.

India can play a potentially transformational role in the global luxury market, said K.P. Krishnan, additional secretary in the finance ministry.

Luxury assets have grown at a relatively slower pace at CAGR (compounded annual growth rate) 9.4 percent in the last three years. Primary contribution to the growth came from luxury car segment. Luxury real estate segment is currently stagnant owing to weak investor sentiment.

But in the apparels and accessories segment, Indian designer-wear segment remained relatively unimpacted by the recessionary trends, while the personal care segment has emerged to be recession-proof.

The wine and spirits segment from consumption perspective is one of the fastest growing with above 25 percent year-on-year growth.

With continuous change in technology and innovations, electronics and gadgets have shown steady growth. Luxury watches and luxury cars have clocked 20 percent and 15 percent growth, respectively, on year-on-year basis.

Luxury hotels, travel, fine dining and spas have shown decent growth and would grow at 10-15 percent for the next year years, says the report.

In 2007, the luxury market stood at $3.66 billion. The initial successes for luxury brands were severely hit by the recession of 2008, but the Indian market posted a relatively faster revival compared to other markets, the study said.

“Since then, it has registered a healthy CAGR of 15.7 percent till 2012 with an estimated size at $7.58 billion,” the report said.