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The India consumer story: On an ascent
India is one of the most compelling consumption stories in the world. Changing consumer preference has turned conveyance, healthcare, education, consumer services and consumer durables into the most attractive constituents of the Indian market.
n Indian consumer on the global map. India is the world’s fifth-largest and one of the fastest-growing consumer markets, with the third-largest middle-class population. It accounts for considerable portions of the world market in food, education, healthcare and clothing.
n Indian consumer sector in a flux. Over time and with growing purchasing power, the Indian consumer is moving from food to non-food, non-discretionary to discretionary and goods to services. Indian consumer companies need to refocus their strategies keeping such structural changes in view.
n Rising per-capita consumption and uptrading. With rising income levels, we expect the consumption of value-added products in the mass segment to continue on the upswing. Expansion of distribution in rural areas and rising modern trade as well as the evolution of small SKUs are driving up per-capita consumption.
n Growing pie but rising competitive pressure. We expect double-digit consumption growth in the next decade, which would see an influx of various domestic players and multinationals. Though early signs of margin compression are visible, the full impact should be felt only in the medium-to-long term.
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