Indian Consumer Market
Indian Consumer Market a change from pyramid to sparkling diamond
INDIAN CONSUMER MARKET A CHANGE FROM PYRAMID TO SPARKLING DIAMOND
Indian Consumer Market a change from pyramid to sparkling diamond
India’s ascendance as an economic power to reckon with, has forced the world to unravel the mystery called India.
An intriguing element of this mystery is India’s consumer market; characterized by diverse languages, regions, religions, economic and social status, this market has always been a tricky proposition to understand.
Now, as the market undergoes a paradigm shift due to India’s rapid economic growth and favorable demographics, it has also become a market impossible to dismiss.
Global corporations view India as one of the key markets from where future growth will emerge. The growth in India’s consumer market will be primarily driven by a favorable population composition and rising disposable incomes. A recent study by the McKinsey Global Institute (MGI) suggests that if India continues to grow at the current pace, average household incomes will triple over the next two decades and it will become the world’s 5th-largest consumer economy by 2025, up from 12th now. India’s consumer market till now was broadly defined as a pyramid; a very small affluent class with an appetite for luxury and high-end goods and services at the top, a middles-class at the center and a huge economically disadvantaged class at the bottom. This pyramid structure of the Indian market is slowly collapsing and being replaced by a diamond – a relatively large affluent class at the top, a huge middle class at the center and a small economically disadvantaged class at the lower end. The diamond represents increasing volume and value across all classes of Indian consumer market.
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INDIAN CONSUMER MARKET A CHANGE FROM PYRAMID TO SPARKLING DIAMOND
Number of household by annual income bracket, 1 Millions. Globals Strivers Seekers Aspiress Deprived 91.3 101.1 2005 1.2
INDIAN CONSUMER MARKET A CHANGE FROM PYRAMID TO SPARKLING DIAMOND
Indian Consumer Market a change from pyramid to sparkling diamond
India’s ascendance as an economic power to reckon with, has forced the world to unravel the mystery called India.
An intriguing element of this mystery is India’s consumer market; characterized by diverse languages, regions, religions, economic and social status, this market has always been a tricky proposition to understand.
Now, as the market undergoes a paradigm shift due to India’s rapid economic growth and favorable demographics, it has also become a market impossible to dismiss.
Global corporations view India as one of the key markets from where future growth will emerge. The growth in India’s consumer market will be primarily driven by a favorable population composition and rising disposable incomes. A recent study by the McKinsey Global Institute (MGI) suggests that if India continues to grow at the current pace, average household incomes will triple over the next two decades and it will become the world’s 5th-largest consumer economy by 2025, up from 12th now. India’s consumer market till now was broadly defined as a pyramid; a very small affluent class with an appetite for luxury and high-end goods and services at the top, a middles-class at the center and a huge economically disadvantaged class at the bottom. This pyramid structure of the Indian market is slowly collapsing and being replaced by a diamond – a relatively large affluent class at the top, a huge middle class at the center and a small economically disadvantaged class at the lower end. The diamond represents increasing volume and value across all classes of Indian consumer market.
PAGE 2 OF 7
INDIAN CONSUMER MARKET A CHANGE FROM PYRAMID TO SPARKLING DIAMOND
Number of household by annual income bracket, 1 Millions. Globals Strivers Seekers Aspiress Deprived 91.3 101.1 2005 1.2