"Shining Star" The Indian Consumer Market

INDIA... its a large and a vibrant nation, with 23 official languages, about 1000 unofficial languages, 1600 dialects, eight major religions, and a land mass of more than 3.2 million square km.... Whats important among everything is that the current economic scenario has unleashed gigantic opportunities for the country. 

But the question here is... Why would anyone be interested in this opportunity. the answer is not far to find. A large, growing, consumption-driven economy, a slowing down in development markets, a young consumer base, and a modern retail race that has not even seriously begun yet, is a once-in-a-half-century opportunity. And a consumer who is ready and waiting and is under served.

Facts:Indian Consumer Market

• India is the 2^nd largest growing market in the world.

• Indian consumer market is poised to grow 3.6 times between 2010 to 2020. Faster than most other emerging market.

•  Consumer spending is likely to expand 3.6 times. From $911 billion in 2010 to $3.6 trillion in 2020.A 14% annual growth.

• Consumer spending globally is just 5.5%.Indian will constitute 5.8% of world’s total consumer spending. 

• The consumer market in the developing countries is more diverse that in developed countries.

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There are few yet strong facts that support the boom of consumer market base in India.......

Urbanization:

Source: Mckinsey

> Resulting in better excess to products and increasing the purchase.
> 80% urban household have T.V. as compared to rural household only 39% have T.V.

Nuclear Family:

> Youth are becoming much more independent and indulge themselves more than their parents, more spending on clothes, food, big & better housing, education & leisure activities.

> Generation Y have greater choice than their prior generation:

• This generation is also caution about their beauty and personal care, that has led to growth of The Beauty and Personal Care market to almost 20 times over past 20 years.
• Car model rose to 160 from just 5 in 1990's.
• T.V. channels have exploded from just 1 to 500.
• Outstanding loans jumped from $7 million in 1996 to $167 billion in 2011.

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INDIAN CONSUMER: In India the desire to trade up is the highest compared to any other developed economy. Almost 34% of consumer tends to trade up to the goods that offer higher quality, better functionality, or strong brand appeal. It is also observed that many Indian consumer are brand conscious however not brand loyal. In fact, more than half of the Indian consumer chooses from a basket of brands rather than seek out a specific brand.

Source: BCG

The rapidly rising household incomes and a robust mounting  population will lead to a striking increase in overall consumer spending.

The upcoming changes in the Indian consumer market will create major opportunities and challenges for both the Indian and multinational businesses. the companies will need to appeal and educate large number of new consumers, create and retain brand loyalties as tastes changes with rising income, and introduce high value products and service at suitably low prices to be accessible to the emerging middle class.