Emerging Opportunities in Indian Consumer Markets!

The Product Market Study on Consumer Behavior in India conducted by Matrade Chennai had pointed out that rural India has emerged as the major market for basic consumer goods. Value orientation of Indians was praised to the core and Indians were labeled as the 'most discerning consumers in the world'.

A recent study by the National Council for Applied Economic Research (NCAER) shows that 'The Great Indian Middle Class' with an annual household income of more than Rs 90,000 is growing at the faster rate than the growth rate of the lower income groups, which clearly means that the household income of people in India is increasing. In fact, it has been estimated that as many as 10 million people in India have an annual household income of above Rs 10 lakhs!

The opportunities to sell value-for-money merchandise to masses are at an all-time high at the moment. Walmart from US, Pantaloon from India, and Tesco from Britain may have started as small businesses in India but have achieved great successes now. Retail stores of global luxury brands, overseas travel, and lifestyle items are finding their ways to the hearts of Indian consumers.

Emerging Consumers Groups in India

• India, with its youngest population profile, leads the markets for youth. These can be further segmented into:
  • Teens from Affluent Families: sway the decisions of their parents and love fashionable dresses and accessories, eating out, movies, and clubbing - just about anything that is cool and available at the right price.
  • Call Center and ITes Employees: In IT-savvy cities, youth work part-time or full-time in KPOs and BPOs to sustain their higher-end lifestyles. Spa treatments, restaurants, and retail stores are their favorite pastimes and they really need domestic help, creches and household management services.
  • Noveau Rich and Young Entrepreneurs: The newfound riches find a way to manifest itself and should not be underestimated. Premium weekend getaways, luxury cruises, and romantic dinners in best suites suit them fine.
• Rising Heads in Multinational Companies: often travel between different time zones and love to keep themselves up-to-date on international cuisines and wines.
• Affluent Farmers from Rural India: likes to keep up with the city folk, possesses know-how of the latest trends in his business, and would like to show off by attempting to get only the best.
• Retired Affluent People: who live separately from children are often on the lookout for townships with focus on social, health and security needs of the elderly. Then, there are resorts in spiritual hotspots which attract them too.

Retail Management courses offer you an insight into consumer behavior of different market segments and train you in how to make businesses a success in India. On Shiksha, we offer you a number of Retail Management colleges and institutes that offer you diploma and postgraduate diploma courses in Retail Management.

Keep visiting this page over the next few weeks for some interesting discussions on Retail Management, job opportunities in Retail sectors, and what businesses are expected to perform best in Indian markets in the coming years.

Source: Ruchi Shrimali (Shiksha Team)

Date: 3rd May, 2011