Analysis of the most recent Consumer Price Index data released by Reserve Bank of India shows that Bangalore has the highest average cost of living in India, followed by Mumbai, then Chennai, Kolkata, and Delhi.

This is a chart from The Times of India, which indicates the CPI scores of the six different cities mentioned.

There are a variety of factors that contribute to the differential living costs of the cities, including aspirations of the people, political advantage and other factors. Here is an example of the variations in the price of cooking gas (LPG) cylinders, a staple need  for most households, since  piped gas is not available very widely yet.

Economist Vibhuti Patel of Mumbai’s SNDT University points out that Mumbai has very high rents. She also says basic food items like vegetables, fruits and grains are likely to cost more in Mumbai than Delhi, since the latter is closer to Punjab and other agricultural states.

“Consumer lifestyle is reshaping in the country and to be more relevant to the new generation, we need to have local relevance. We believe that coffee culture is fast catching up in urban India and there is an opportunity for us,” Philips India, President Consumer Lifestyle (Indian Subcontinent) A.D.A. Ratnam told a media agency.

The Dutch multinational  identified creation of new categories to supplement consumer lifestyle as one of its growth paths and is banking on products from the portfolio of Saeco International Group that was acquired by its parent Royal Philips Electronics in 2009.

“Our coffee machines are not going to be mass distribution products. These are primarily targeted at those niche customers who have a taste for fine coffee,” he said.  To start with, Philips India has introduced three products priced at Rs 13,995, Rs 54,995 and Rs 74,994. ($280, $1,100, and $1,500). Upscale (very upscale) consumers in Delhi, Mumbai and Bangalore across 18 retail points can now savor their Cappuccino, Espressos, Lattes and Macchiatos in style.

What this means:

We don’t know how successful this product line might be, but we can be sure that five years ago, at attempt to sell a $1,500 coffeemaker would not have been taken seriously in India. The times, they are a-changing.

Sold  in shopping centers throughout  North America, Seacret is a premium skincare product family with key ingredients derived from the Dead Sea.  The Phoenix, Arixona company’s products are available internationally in South America, Australia, New Zealand, Europe, Thailand, Japan and Israel and now LMG Retail of Chennai is selling it in India. It currently sell 37 SKUs in India with retail prices from $40 to $400.

Seacret Skin Care Body Butter

The first retail store  in Chennai opened at Express Avenue Mall and  new one is being built at Khader Nawas Khan Road, along with a spa. The company already has three kiosks  in the Delhi national capital region.

“A few more shops are in the pipeline. We will soon expand our footprint to Hyderabad, Mumbai, Pune, Bangalore, Ahmedabad, Coimbatore and Kochi,” said Mohammed Shagee with LMG

What this means:

The demand for personal care products in India appears insatiable, provided the foreign entrants has a measured and thoughtful approach.

According to the New York Times,India is captivating the mainstream cosmetics industry this year.

From high-end brands creating makeup shades based on the country’s bright colors to skin- and hair-care lines capitalizing on Ayurveda, when it comes to beauty, inside and out, the industry is increasingly turning to the world’s second-most-populous country.

France’s Clarins,just introduced a line of cosmetics “Enchanted” inspired by Holi, the Hindu festival of colors. The collection includes lip glosses with the names Pink Jaipur and Nude Delhi, and four products for eyes: shadows in violet and a coppery brown, and an update of kajal, the intensely pigmented traditional Indian eyeliner.

Chanel’s limited-edition Bombay Express de Chanel cosmetic line was designed for Karl Lagerfeld’s pre-fall 2012 collection, the Paris-Bombay Métiers d’Art show, which was strongly influenced by opulent Indian fabrics and embellishments. To complement the clothes, Peter Philips, Chanel’s creative director of makeup, designed four products, including a gold nail shade called Diwali, after the  festival of lights, and a golden powder named Route des Indes de Chanel.

The new six-piece Thakoon for Nars nail collection is a result of Thakoon Panichgul’s spring-summer 2012 line, which was inspired by the country and is heavy on gold accenting and bold colors, named in Hindi after popular Indian spices or medicinal plants, such as Amchoor (powdered dried raw mango).

According to the Economist Intelligence Unit list of top 120  HotSpot global cities, 12 American cities make the cut, led by New York City. The first Indian city that figures on the list is  Delhi at #68, edging out Mumbai at #70 and Bangalore at #79.

Other Indian cities on the list are Ahmedabad at 92, Pune at 97, Hyderabad at 98, Chennai at 105 and Kolkata at 106. Tehran, Iran is the last one listed at 120.

What this means:

One has to take any such list with a grain of salt. For example Pune traffic is so horrific at any time of the day (with few or no limited access highways in the city), I am surprised how they ranked it ahead of Hyderabad. Also Ahmedbad is a great city but  am not sure I would rank it ahead of Pune, or Hyderabad. For many, many executives Mumbai leads in India no matter what, because they HAVE to be there for any kind of success in India.