10. Key points
• Average annual growth rate – 7.6%
• Rising employment
• Middle class – biggest segment
• Affluent class – slow pace growth
11. Statistics
• Rs. 1000000 and more
• 0.2% to 2%
Affluent
Class • Consumption share – 7% to 20%
• Rs. 200000 to Rs. 1000000
Middle • 50 million (5%) to 53 million (41%)
Class
• 94% (1985) to 61% (2005)
Extreme • 26% (2025)
rural poverty
12. Recent Investments
• Expedia – US$ 22 billion travel market
• Mobile handset market – 6% growth
• Online retail segment – Rs. 7000 crores
(2015)
• Sony India – market spending by 25%
• GCPL – growth by 10 times
13. Implications
• Consumer spending – US$ 3.5 trillion (2020) – BCC
and CII
• Focus
– Food
– Housing
– Consumer durables
– Transport
– Communication
• Forced denial to affordable indulgence
14. Global Attention-Consumer
Behavior
• Shift in the nature of demand drawing the global attention not just
volume.
• Increasing urbanization, Increasing incomes and rising aspiration for a
better life, especially, among the lower economic strata are some of the
factors reshaping the Indian consumer market
• Result: Brand Conscious, Quality Conscious, convenience, Eager to
explore organized retail.
15. Aspiration for the Better Life
• The lower strata of the middle class segment will begin to
be able to afford and demand products and services
beyond food and clothing.
• Increasing penetration of media and infrastructure
facilities will expose the rural
• India to urbanized lifestyle and fuel the latent desire for
improved living standards
16. Value Creation
• Customer are more choosy now due to a rise in income, increased
awareness about products and proliferation of choices
• So, Product, positioning and packaging innovation will be the key for
companies to attract this new consumer
• Companies are required to be GLOCOLISED.
– E.g International fast food chains like McDonnalds
17. Innovation
• Companies will have to drive innovation differently for different
regions and consumer classes
– E.g.-Sachet and pouch Innovation has given a head start to FMCG companies for
penetrating the rural India
• The rural India too like the urban area is beginning to demonstrate a
demand for packed goods but their purchasing power limits their
capacity to buy
– E.g. When products like edible oil and shampoos were made available in small
pouches, they were well received by rural India.