BIG FAT INDIAN WEDDING
Decoding the marriage space
I am Aarihant Aaryan! Welcome to the Iron sharpen Iron newsletter,
Every week I share my homework from my startup journey, learning about human behavior, and sometimes decoding industries and business models for fun.
I can’t control my curiosity :) )
An average Indian makes 150,000INR per year in India. But the same average Indian spends a minimum of 20,00,000 for a wedding
Wedding market size The wedding market size is $50B, and more than 1 crore weddings take place in India every year with a growth rate of 20 to 25%.
Types of Indian wedding spending: 70% of weddings come under the
‘low expenditure’ bracket.
However, the money spent between the high spenders and elite (total 7%) can exceed the amount spent on these 70% weddings.
what do people mostly spend on a wedding?
The wedding market itself is a mixture of many markets into one.
More than 60,000cr is spent on jewelry - it is 12% of the total jewelry industry.
10,000cr worth of apparel is brought for a wedding every year.
30,000cr are spent on durable goods.
10,000cr worth of tents and pandals are set up for weddings in a year
8,000cr worth of wedding cards are brought for weddings in a year.
How do they accumulate money for the event?
With the high cost of weddings and the low per capita income of India, a large part of an individual’s lifetime savings is spent on the wedding.
20% life of income is spent on an Indian wedding.
20% of all loans taken in India are for Indian weddings
80% of Indians take a loan to meet wedding expenses
India isn't the largest wedding market:
A large number of second and third marriages is a big reason for the USA having the largest wedding industry in the world.
India's divorce rate is 1% The USA divorce rate is 44.2%
This keeps me thinking, that our ancestors solved divorce really well by doing expensive marriages and letting the world know.
Your status itself becomes a barrier to exiting something you announced.
Facts about weddings in India:
524 minimum guest size in a wedding INR 1,00,000 CR is spent every year on wasted wedding gifts for couples.
Imagine if these couples were gifted stocks or insurance - it really takes an effort to give value added gift.
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Interesting study