According to a study by the Mckinsey Global Institute, each consumer in India will spend over Rs. 200 a day, on an average, by the year 2025, steered by a ten-fold increase in the country’s middle class population and a three-fold jump in house income during this period. The aggregate consumer spending could more than quadruple to Rs. 70 trillion by 2025, from about Rs. 17 trillion in 2005. So it is understandable that Consumerism is likely to dominate the Indian market in the next few years.
India’s rapid economic growth has set the stage for fundamental change among the country’s consumers. The same energy that has lifted hundreds of millions of Indians out of desperate poverty is creating a massive middle class centred in the cities. Twenty years ago, urban India’s lifestyles and buying trends were a far cry from what we see today.
With limited choices, consumers purchased commodities from the few brands available. In 1991 India threw her doors open to international trade, and the situation changed dramatically and so did consumerism in India. Today, consumers are spoilt for choice and fully acknowledge that they rule the market. Manufacturers cater to their whims and give the consumer complete control of market trends. Despite India having a low per capita income, it still remains a lucrative market, even for costly products.
One of the key reasons is that small businesses are playing a major role to help in preparing a consumerist society for India’s large population. Small business makes India a consumption-led economy based country where public spending per Gross Capital formation is 40% while private consumption is 60%; among them, retail consumption is 62% whereas nonretail consumption is 38%.
If India’s small business can continue its recent growth, Indian consumer tends to associate himself with products that communicate the message of family values, traditions, care and affection.
No comments:
Post a Comment