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McKinsey global has released its India consumer research and here
are a few key insights from the report
Indian income will triple over the next two decades.
Over the next two decades, the countrys middle class will grow from
about 5 percent of the population to more than 40 percent and create the
worlds fifth-largest consumer market.
In 2005 private spending reached about 17 trillion Indian rupees($372billion), accounting for more than 60 percent of Indias GDP, so in this
respect the country is closer to developed economies such as Japan and
the United States than are China and other fast-growing emerging
markets in Asia.
India remains the least urbanized of the emerging Asian economies.
Today only 29 percent of Indians live in cities.
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INDIA SHINING
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Extreme rural poverty has declined from 94 percent in 1985 to 61
percent in 2005
In 1985 93 percent of the population lived on a household income of
less than 90,000 rupees a year, by 2005 that proportion had been cut
nearly in half, to 54 percent.
The growth that has pulled millions of people out of poverty is alsobuilding a huge middle class that will be concentrated in Indias urban
areas.
If India can achieve 7.3 percent annual growth over the next 20 years,
465 million more people will be spared a life of extreme deprivation
About 400 million Indian city dwellersa group nearly 100 million
people larger than the current population of the United Stateswill
belong to households with a comfortable standard of living.
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Discretionary spending in India will rise from 52 percent of
total private spending today to 70 percent in 2025.
By 2025 Indias wealthiest citizens will total 24 million, more
than the current population of Australia. By that year too, Indias
affluent class will be larger than Chinas comparable segment,
projected at about 19 million people
Spending on purchases that improve the economic prospects
and quality of life of a person or familyhealth, education,
transport, and communicationswill soar and eventuallycommand a greater share of consumption than they do elsewhere.
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Despite Indias fondness for cricket and Bollywood
movies, recreational products and services will take a
smaller slice of household spending there than in othercountries.
Transportation, already the largest category of expense
after food, will take a bigger portion of household budgetsin coming years, exceeding its share in all of our
benchmark countries. The highest growth will come from
car purchases. Categories such as clothing and household
goods are expected to post slower annual growth relative to
overall consumption
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By 2025 Indias wealthiest citizens will total 24 million,
more than the current population of Australia.
India will witness the rapid growth of its middle class
households with disposable incomes from 200,000 to
1,000,000 rupees a year. That class now comprises about 50
million people, roughly 5 percent of the population.
Today 57 percent of private spending is spread across
rural areas, but by 2025 cities will command 62 percent of
the countrys spending power.
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In absolute terms the countrys urban population will expand
significantly, from 318 million today to 523 million in 2025.
The shift in spending power from the countryside to the
cities will place the bulk of Indias private consumption within
easier reach of major companies
Needless to say, India is shining, stock market is on a joy
ride and now we need more Indian startups to put the icing on
the cake.
So all DEAR startups, look at the opportunities that lies ahead
and make your mark.
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Consumerism is a social movement to protect consumer rights.
It is all about protection of the interests of the consumers.
According to Philip Kotler a social movement seeking to
augment the rights and powers of the buyers in relation to
sellers.
Consumerism, interpreted as a collective effort of the consumers
to protect their interests, is a manifestation of the failure of thebusiness, including that of public sector, and the government to
guarantee and ensure the legitimate rights of the consumers.
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Consumerism is an organized movement of citizens and government
to strengthen the rights and power of buyers in relation to sellers.
The consumer is exposed to many hazardous-physical, environmental
and exploitation due to unfair trade practices.
He needs protection against:
products which are unsafe for consumption such as drugs andcontaminated food products and products which may cause badly
injury such as defective electrical appliances.
mal-practices and dishonesty by sellers. He should have adequate
rights and right of recourse to redressal measures against defaultingbusinessmen.
environmental pollution of air, water and noise and effective
measures should be devised to keep the surroundings neat and clean.
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Need And Reasons
1. In vast country like India, it is very difficult to organize the
consumers. The people besides being the backward havelinguistic, cultural and religious difference which makes the
problems quiet intricate or complex.
2. Majority of our population is illiterate, uneducated, ignorantand ill-informed.
3. Poverty, lack of social awareness, accepting life as it is and
passive outlook are some of the factors which make consumermovement difficult to increase.
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4. There may not be a positive common objective for the
consumers except their desire for safe quality products, forreasonable price and a feeling of strong negative reactions against
the products. In wake of large scale production and the variety and
choice conferred on the consumers, a consumer needs guidance
which can only be appropriately provided by a consumer
organization.
5. The advertisement bombarded on the consumers make them
quite confused and hence again a need for consumer guidance
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Consumers Rights
Consumer rights are now an integral part of our lives like aconsumerist way of life. They have been well documented and
much talked about. We have all made use of them at some point in
our daily lives. Market resources and influences are growing by
the day and so is the awareness of one's consumer rights. These
rights are well-defined and there are agencies like the government,consumer courts and voluntary organizations that work towards
safeguarding them. While we all like to know about our rights and
make full use of them, consumer responsibility is an area which is
still not demarcated.
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In the 20th century, the presence and influence of the market grew
dramatically in consumer life. We began to purchase things from the
market for a price. Soon, mass production and industrial production
came into being, giving the consumer world an entirely new
dimension. Have you ever wondered how much urban consumers
depend on the market for fulfillment of even their basic needs? This
over-dependence on the market and the inherent profit motive in
mass production and sales has given manufacturers and dealers agood reason to exploit consumers. As a consumer, every one should
know how market products are constantly under-weight, of inferior
quality and do not prescribe to quality standards specified by
quality-control agencies. Consumers not only do not get value for
their money but also often have to suffer losses and inconvenience
due to market manipulations.
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As Under section-6 of Consumer Protection Act, consumer has the following
rights:
1. Right to safety: It is Right to safety against such goods and
services as are hazards to health, life and property of the consumer.
For example, bogus and sub-standard drugs ; appliances made oflow quality of raw material, such as, electric press, pressure cooker,
etc. and low quality food products like bread, milk, jam, butter etc.
Consumers have the right to safety against loss caused by such
products.
2. Right to be Informed/ Right to Representation: consumer has also
the right that he should be provided all those information on the
basis of which he decides to buy goods or services. This
information relates to quality, purity, potency, standard, date of
manufacture, method of use, etc. of the commodity. Thus, producer
is required to provide all these information in a proper manner, so
that consumer is not cheated.
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3. Right to choose: Consumer has the full right to buy good or
services of his choice from among the different goods or services
available in the market. In other words, no seller can influence his
choice in an unfair manner. If any seller does so, it will be deemed as
interference in his right to choice.
4. Right to be Heard: Consumer has the right that his complaint be
heard. Under this Right the consumer can file complaint against all
those things which prejudicial to his interest. First there rightsmentioned above (Right to Safety; Right to be Informed; Right to
choose) have relevance only if the consumer has right to file his
complaint against them. These days, several large and small
organisations have set up Consumer service cells with a view toproviding the right to be heard to the consumer. The function of the
cell is to hear the complaints of the consumers and to take adequate
measures to redress them. Many newspapers like The Economic
Times have weekly special columns to entertain the complaints of
the consumers.
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5. Right to Seek redress: This provides compensation to consumer
against unfair trade practice of the seller. For instance, if the
quantity and the quality of the product do not confirm to thepromise of the seller, the buyer has the right to claim compensation,
such as free repair of the product, taking back of the products,
changing of the product by the seller
6. Right to consumer education: Consumer education refers to
educate the consumer constantly with regards to their rights. In
other words, consumers must be aware of the rights they enjoy
against the loss they suffer on account of goods and services
purchased by them. Government has taken several measures toeducate the consumers. For instance, Ministry of civil supplies
publishes a quarterly magazine under the title Upbhokta Jagran.
Doodarshan telecasts programme tittles Sanrakshan Upbhokta
Ka.
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In addition to this six rights of consumer given by govt. of
India, The UnitedN
ations organisation also given tworights:
1. Right to Basic Needs: The Basic need means those goods
and services which are necessary for the dignified living of
people. It includes adequate food, clothing, shelter, energy,
sanitation, health, care, education and transportation. Allconsumers have the right fulfil these basic needs.
2. Right to Healthy Environment: This right provides
consumers the protection against environment pollution sothat the quality of life enhanced. Not only this, it also gives
stress that the need to protect the environment is for future
generations as well.
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Consumers Responsibilities
1. Consumer should exercise his right: Consumers have manyrights with regard to the goods and services. They must be aware
of their rights while buying. These rights are: Right to safety, Right
to be informed, Right to representation, Right to seek redressal,
Right to consumer education, etc.
2. Cautious consumer/ Do not buy blindly: The consumers should
make full use of their reason while buying things. They should not
take the sellers word as final truth. In other words, while buying
consumer must get information regarding the quality, quantity,
price, utility etc. of goods and services.
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3. Filing complaint for the redressal of genuine grievances: It is
the responsibility of a consumer to approach the officer concerned
there is some complaint about the goods purchased. A late complaintmay find that the period of guarantee/warrantee has lapsed.
Sometimes, consumers ignore the deception of businessmen. This
tendency encourages corrupt business practices.
4. Consumer must be quality conscious: The consumers should
never compromise on the quality of goods. Therefore, they should
not buy inferior stuff out of greed for less prices. If the consumers
behave like this, there cannot be any protection for them from any
quarter. It is also the responsibility of the consumers only to buy
goods with the ISI, Agmark, Woolmark, FPO etc. printed on them.
All these symbols indicative of the good quality of the goods.
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5.Beware of false advertisement: The sellers exaggerate the quality of
their goods in the advertisement. Therefore, it is the responsibility of
the consumers to recognize the truth of advertisement.
6. Do not forget to get Receipt and Guarantee/warrantee card: One
should always get a receipt or bill for the things purchased. In case a
guarantee/warrantee card is also offered by seller, it should also be
taken. In case the goods purchased are of inferior quality or somedefects appears and bothers the customers, these documents will be
of great help in settling all kinds of dispute with the seller.
7. Do not buy in hurry: The first important responsibility ofconsumers is that they should not buy in hurry. It means that the
consumers should make an estimate of the things they want to buy
their along with their quantity required by them. They should also
take in consideration the place from where to buy the things.
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Role Of Judiciary
In our country judiciary plays a very vital role. Onrecommendation of the amendment of consumer protection
Act in 2000 the consumer protection councils or forums are
created at district, state and national level. Under the Act
there is a provision of Three-Tier Judiciary to redress thegrievances of consumers in a simple, speedy and
inexpensive way; namely
1. District Forum at District level
2. State Commission at State level3. National Commission at National level
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1. District Forum: According to consumer protection Act, state
governments can set up one or more district forums in each District.
There are three members including the presiding officer. Out of thisone member must be a lady. They must have a qualification of
District Judge and must be appointed by state government. Its main
feature is that it can hear cases up to Rs.20 Lacs. Any appeal may go
to state commission within 30 days.
2. State Commission: One state commission is appointed by thestate government in each state. It also has three members out of
which one is a lady member but they must have qualification of High
Court Judge and should be appointed by state government. It can
hear cases involving sum exceeds Rs.20 Lacs and upto Rs.1 Crore.
Any appeal may go to national commission within 30 days.
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3. National Commission: It is appointed by central
government. It consists of five members out of which one
must be a lady member. They must have qualification
equivalent to Supreme Court Judge. It has a Jurisdictionto hear complaints amounting more than Rs.1 Crore. Any
appeal may go to Supreme Court within 30 days.
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Role ofNon- Governmental organizations
In addition to government many about 500 non-governmental
organizations (N.G.Os) are making efforts in order to safeguard theinterest of consumer. These organizations perform the following
functions:
1. Accelerating consumer awareness/Educating consumers: The
first priority of consumer organization is to accelerate consumersawareness towards their rights. To accomplish this task which they
have to perform are:
(a) To publish Brochures, Journals.(b) To arrange seminars, conferences and workshops.
(c) To educate consumers to help themselves.
(d) To provide special education to women about consumerism.e To encoura e to follow desirable consum tion standards.
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3. Filing Suit on Behalf of consumer: Whenever a consumer fails
to raise his voice of protect regarding his complaints, these
organizations come to his rescue and file a case in the court. By
rendering services to consumers, the consumers get a feeling thatthey are not alone in their fight. They also run voluntary complaints
for the guidance of consumers.
4. Helping educational institutions: These organizations tell the
educational institutions the way to prepare courses of study keepingin view the interest of consumers.
5. Promoting network of consumer association: Consumer
organizations are trying to grow their numbers. They want to cover
all regions so that consumers of all regions get benefited by their
services.6. Extending support to government: Consumer organizations by
informing government agencies about adulteration, artificiality,
inferior quality products etc. This helps government to conduct
proceedings in time.
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Role OfConsumer Coordinating Council
The name of the highest body of consumer Association is consumer
coordinating council. This body has started many programmes forconsumer protection. The main objectives of this council are:
(a) To establish coordination among consumers for their welfare.
(b) To educate and train activists working for consumer protection.
Role OfPress/Media
Whenever there is any revolution or a campaign is run for PublicAwareness, News papers and journals play a very significant role.
Indian Express is the first for this noble cause . Press takes
following steps to make consumer protection campaign a success.
(a) To publish articles(b) To make available columns
(c) To show live telecasts.
(d) To publish consumer complaints
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Role Of Education Institutions
The importance of consumer protection is being realised at variouslevels of education Viz. School, College, University. At school
level institutions like C.B.S.E. had prepared syllabus in which
central guiding points of consumer protection have been
highlighted. Similarly at University level INDIRA GANDHI
NATIONAL OPE N UNIVERSITY (IGNOU) has prepared aspecial course for under graduate and post- graduate students.
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Role OfConsumer Protection Council
The consumer protection council provides the
establishment of a Central Consumer Protection Council
by the central government and state ConsumerProtection Council by state governments. The main
objectives of the councils are:
1. To protect the rights of consumer
2. To promote the rights of consumer
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ConclusionConsumer protection laws are federal and state statutes governing sales
and credit practices involving consumer goods. Such statutes prohibit and
regulate deceptive or unconscionable advertising and sales practices,
product quality, credit financing and reporting, debt collection, leases, and
other aspects of consumer transactions.
The goal of consumer protection laws is to place consumers, who areaverage citizens engaging in business deals such as buying goods or
borrowing money, on an even par with companies or citizens who
regularly engage in business. Historically, consumer transactions
purchases of goods or services for personal, family, or household use
were presumed fair because it was assumed that buyers and sellersbargained from equal positions. Starting in the 1960s, legislatures began to
respond to complaints by consumer advocates that consumers were
inherently disadvantaged, particularly when bargaining with large
corporations and industries. Several types of agencies and statutes, both
state and federal, now work to protect consumers.
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We believe the more guidelines are required because there are always
two sides of a coin, each instance of Consumer affairs could be easily
termed as another Consumer mistreatment. By the time market
forces have time to operate, far too many consumers are dead,
maimed, or impoverished. Within a nation-state, national laws may
prevent some of this harm, but once national boundaries are crossed,
their effectiveness is limited, and consumers can hope for very limitedprotection, If online trade proliferates and consumer fraud becomes a
major problem, nation-states and commercial interests that provide
online access are fairly restricted in the action they may take to curb
unacceptable and deleterious practices. Certainly if consumers
perceive online commerce as a hazardous place to make purchases,they will not choose this alternative, and a major opportunity for
electronic commerce may be forfeited. Consequently, there is strong
motivation for reputable business to observe high commercial
standards of behaviour.