MBA aspirants must be updated with General Awareness on current topics. General awareness topics With analytically drawn conclusions will benefit You in WAT / Extempore Speech / Essay / GD & PI.
Today, you will read General Awareness Topic:
"How big is India's consumer Bazaar?"
India is one of the leading economies in the world. However, the great extent of diversity in economic, political, social, cultural and geographical aspects of the Indian consumer market makes it challenging for many marketers.
Today, more than 50 percent of India’s population is below the age of 25. This means that brands that cater to youths and young adults will find India a haven. This generation is part of the post-liberalization era, which makes them more receptive to lifestyle changes.
Outlets like Coffee Bean and Tea Leaf, Costa Coffee, and Cafe Coffee Day are becoming more popular among youths today, which show that India’s consumers are not just purchasing products, but the package that comes with products – the ambience of an outlet, the service level, and the brand value.
In fact, the Indian consumer market is looking so bright that US coffee chain Starbucks also decided to open its seventh store in New Delhi. Today, Indian consumers are so well-informed that international brands can easily enter the Indian market without ample advertising.
Over the years, India’s shopping arcades and open grounds have transformed into shopping malls and multiplexes. India, home to over 1.2 billion people, is divided into two groups – the urban and the rural segments of the population. Over the years, there has been an increase in the rural to urban migration for better job opportunities and enhanced lifestyles. This has led to the expansion of the middle class, which presents great business opportunities for India.
Over the next five years, the Indian middle class is expected to reach 267 million, about 67 percent of the population. Based on a study, the annual income of a middle class household is between Rs 3.4 lakhs and Rs 17 lakhs. And currently, India has 31.4 million middle class households, which is equivalent to 160 million individuals.
According to a report published by the Centre for Macro Consumer Research at the National Council for Applied Economic Research (NCAER), the middle class represents only 13.1 percent of India’s population. However, when it comes to expenditure, this is the class that spends the most. Currently, the middle class owns 49 percent of the cars in India, 53.2 percent of the computers, 45.7 percent of the credit cards, and 52.9 percent of the air-conditioners. The middle class is able to spend on big ticket items because of the growing disposable income.
With the Internet revolution, Indians have the opportunity to make purchases at the comfort of their homes. According to a survey conducted by Google India, seven out of ten Indians carry out comprehensive research on the Internet before making purchases, either online or offline. With the Indian consumer market having access at the tip of the fingers, it is no surprise that consumerism has expanded by leaps and bounds.
Apart from the middle class, the elites and the affluent also contribute to the GDP of India significantly. The Indian consumer is a huge driving force behind the growth of luxury brands like Armani, Gucci, Versace and Ermenegildo Zegna. In fact, there is such a huge demand for luxury brands that according to industry projections, India’s luxury market will touch Rp 802.7 billion (US$14.73 billion) by 2015.
India’s consumer market is definitely gigantic, and it will continue to grow in the coming decade. Affluent and middle class households have more disposable income today, leading to the rise in consumerism by leaps and bounds.
In addition, since most of the Indian consumers are below the age of 25 and are well-informed, local and international brands have no problems breaking into the Indian consumer market. The Internet revolution is in its budding stage in India, but in a few years, we will see an increase in the number of online shoppers, which will definitely change the face of consumerism forever.