Indian consumer market is the much acclaimed market in the world and it is expected to emerge as the largest consumer market in the world by 2030, leaving behind China and US. India is going to be the third largest middle class consumer market by 2020 and moreover, by 2030, India will surpass the big countries like China and US with the largest consumer spending of around USD 1 trillion. The most powerful economic trend in this would be the sudden growth in the middle class. The average income has increased in the middle class and it has boosted up the consumer behavior. Nowadays people have started looking for better health, better products and better services. This sudden change started in the year 1990 and it increased the foreign investment along with an increase in information technology export market. According to reports, 130 million people will be joining the working class in India in the next decade. Fewer than 15s will remain unchanged and the people over 65 years of age will increase by only 18 million, which will not be a big change. This will have major consequences for consumer markets. The major effect will be that the number of wage-earners will increase and this will automatically increase the income available for consumption. Women from smaller families will come out and opt for good career for them. And it will add up to the family income. India has mostly driven out by personal consumption. This was 62% in 2005 which was more than Japan’s. The saving of income will increase to 37% of GDP by 2020, thus reducing the personal consumption to around 50 percent. Till 2005, only 12 percent of urban and 4 percent of rural households could be counted under middle class, but this figure is going to increase to 57 percent in the year 2015. By 2025, the figure will hike more where 4 to 5 urban families will come to middle class and around a quarter of rural families will come to the middle class category. By 2015 the urban middle-income households will rise up to 235 million and by 2025 it will reach to 439 million. The families with lesser income will shrink more in the next two decades from 100 million to 43 million households. Consumption of most fast moving consumer goods is very low urban India. But with the rise in the market, the demand for the goods has increased a lot. The marketers have started looking at the rural market in the coming 10 years. The use of multiple brands in one household has also increased the rural as well as consumer market. The market trends have changed a lot in the past few years. India’s market will continuously increase and change and one can see remarkable changes in the Indian market in the next 10 years. Marketers will start looking at more complex markets. The market categories that are focused to working women will also grow rapidly. Rural India will remain challenging as of now.
Posted on: Mon, 12 May 2014 10:02:40 +0000