global trends india
TRANSCRIPT
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8/3/2019 Global Trends India
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global.trendsIndiaonaglimpse.
Astableeconomy.
Overthelastdecade,theIndianeconomyhasshownhighandstablegrowthrates.
Inthefinancialyear2010-2011,thegrowthratewasabove8%andevenduringthe
financialcrisisin2008,theeconomygrewby5-6%.Indiasconsumingclasshasbeena
majorkeydriver.
Ayoungpopula6on.
Currently,Indiaisoneofthemostpopulouscountriesintheworld.Withapredicted
populaKonof1.5billionin2025,IndiawillovertakeChinaastheworldsmost
populouscountry.AddiKonally,45%ofIndia'spopulaKonisundertheageof20which
isequalto550millionIndians.Thisdevelopmentrevealsayoung,digitalandlargely
untappedconsumerpotenKal.
Atrend-se8ngna6on.
Thedynamicandthesurgeoftherisingmiddleclassisapparentacrossvarious
markets.Fromtheincreasingdemandofelectronicgoodstothelatestinluxurycars,
thecountryprogressivelyfollowsglobaltrends,whilstseSngitsownatthesameKme.
Picture:Isabelle-JasminRoth
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8/3/2019 Global Trends India
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Trend1
DigitalRevolu6on
Withtheworlds4thlargestinternetusage(over121million
users)andanexpectedgrowthto500millionusersby2020,
IndiawillconKnueitsdigitalgrowthin2012.However,that
numbercoverslessthan10%ofIndiaspopulaKon,leaving
morethan1billionwithoutaccesstotheweb.Especiallythe
e-commerceindustryisofferingvastpotenKalduetoa
growthof47%in2011,whilstgeneraKngemployment
opportuniKesforabout10millionpeopleatthesameKme.ForeigncompanieslikeAmazonandWalmartmade
significantinvestmentsin2011.Homegrowncompanies,
suchasFlipkartandnapdeal,whichknowtheIndianmarket
wellenoughtotailortheirservicestoitsquirksforinstance
apredilecKonforcashovercreditcardshavebeengrowing
atanimpressiverate.Themobilemarketisgrowingatan
evenlargerrate,withtheworldssecondlargestmobile
phoneusage,includingover881millionacKveusersin2011.In2012,thegrowthscenarioisesKmatedtoconKnuewith
+8,5%.
Sources:EconomicTimes,BusinessStandard,EFYTimes.
Facts
InIndia,fivemillionnew
subscribersaresigningup
formobilephone
connecKonseverymonth,
especiallyinruralareas.
(Source:IndiaNews,
01/2012)
RuralinternetusageisesKmatedtogrow+94%
from2011unKl2012.
(Source:ReferralCandy,
12/2011)
BusinessOpportuni6es
(1)E-Commerce:ThepotenKalofIndiase-commerce
marketisesKmatedtogrow.Hence,awaveofinternaKonal
investments,acquisiKonsandpartnershipsin2012is
expected.Ase-commercegrows,thedemandforonline
faciliKesandserviceswillincrease.
(2)RuralMarkets:RuralIndiaisexpectedtofuelthegrowth
inmobilephoneservices,ascellphonesbecomeavitaltool
forthegovernmentinitsfinancialinclusionprogram.In
addiKon,ruralinternetusageisesKmatedtogrow+94%
from2011unKl2012.
RuralMobileConnec6vity
Picture:Watblog.com
By2016,smartphonesales
areexpectedtoreach30
millionhandsetsinIndia.
(Source:RenubResearch,
01/2012)
Twothirdsofoveralle-
commercetransacKonsin
Indiaareorderedvia
mobilephones.
(Source:BBC,01/2012)
Facts
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Trend2
LuxuryMarket
Indiamakesupjust2%ofgloballuxurygoodsales,butthe
marketisexpectedtogrow25%perannum.In2011,the
esKmatedworthoftheoverallluxurymarketwasUD5.75
billion.ItisexpectedtoreachUD14.8billionin2015.
Therefore,IndiaisnolongerameretesKnggroundbuta
lucraKvemarketforinternaKonalluxurybrands.Thekey
driverbehindthischangeisanewspendingpaernof
Indiasgrowingmiddleclass.However,themarketissKllatanascentstage,concentraKngonthethreemajormetrociKes
NewDelhi,MumbaiandBangalore.Inthewakeofthe
Governmentallowing100%foreigndirectinvestment(now,
only51%isallowed)inthesinglebrandretail,manyforeign
luxurybrandswouldsoonentertheIndianmarket.The
countryisesKmatedtobecomeamanufacturinghubfor
globalluxurybrandswithinthenext5years.Thisalsomakes
senseinviewofthefactthatupto130%taxisapplicableonimportedluxurygoods.
Sources:FinancialChronicle,Ernst&Young,TimesofIndia,
BizNews,CII-ATKearney
Facts
DuetothetradiKonof
invesKnginprecious
jewelleryforweddings,
Indiaisthelargest
consumerofgoldand
diamondsintheworld.
(Source:IBEF,11/2011)
Indianmenarecatchingup:
Thecountryisthe4th
desKnaKonintheworld
thathostsamen'sfashion
week.
(Source:HindustanTimes,
01/2012)
79%ofIndiansprefer
logoedluxuryitems.
(Source:Synovate,12/2009)
BusinessOpportuni6es
(1)Non-Metro-Customers:Tier-2-CiKes,suchasChandigarh,
Ludhiana,PuneorLucknowshowvastpotenKalforluxury
brands.Themajorityofluxurycompaniesareeyingto
aggresivelyentersmallerIndianciKes.Theluxurymarketin
smallertownsisgrowing15-20%anually.
(2)Interna6onalwardrobeforIndianmenvs.localized
wardrobeforIndianwomen:WhileIndianwomensKllfocus
ontradiKonalouitssuchassaris,Indianmencontributethe
bulkofglobalbrandsrevenues,turningconvenKonal
wisdomaboutfashioncompletelyonhishead.
Example
Hermeslaunchedasaree
lineinIndiain2011,
providingaluxuryitemto
meettheIndianmarkets
needs.Withsareesmadein
ParisandsoldatstarKng
pricesofUD2000,Hermes
isen-routetobeingbothan
internaKonalandnaKonal
luxurybrand.
Picture:HermesIndia,2008
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Trend3
UrbanAge
IndiaiswitnessinganurbantransformaKonofanenKrely
novelscaleandspeed.ItisesKmatedthatthecountrys
urbanpopulaKonwillincreasefrom286millionin2001to
320millionin2011and530millionin2021.Buttheurban
centresarealreadyunderstrain.PopulaKonsofnew
megaciKessuchasBangalore(currently5.5million)or
Chennai(currently4.7million)willincrease,andexisKng
mega-ciKessuchasMumbai(19million)andNewDelhi(16.7million)willtripleinsizeby2050.Around10millionIndians
migratefromruralareastociKeseachyear,whichcreates
massiveneedsofurbanhousing,infrastructureand
employmentopportuniKes.Hence,forthefirstKmeinIndia,
thepoliKcalpowershisfromtheruralcountrysidetothe
ciKes.Butthecountriesgrowthscenarioalsooffersasetof
newbusinessopportuniKesforfirmsfocusingonthevariety
oftargetgroupsinurbanmarkets,starKngwithBoom-of-the-Pyramid-customerstomiddle-class-clients.
Source:MinistryofUrbanDevelopment,NewDelhi,
WorldBank
Facts
30ruralmigrantswillarrive
inIndiasciKesevery
minuteoverthenext20
years.Therefore,Indiahas
tobuild500newciKes.
(Source:WorldBank,
05/2010)
Indiasurbanareasaccount
forabout60%ofthe
overallenergy
consumpKon,butatthe
sameKme,theproducKvity
oftheurbansector
contributes60%toIndias
GDP.
(Source:TERI,AFD,IDDRI,
12/2010)
BusinessOpportuni6es(1)UrbanInnova6on:DuetothespeedoftransformaKon,
IndiafuncKonsaslaboratoryforurbanproductsandservices:intheprivatesectorthroughentrepreneurship;in
thepublicsectorthroughnewandinnovatepolicyguidelines
andimplementaKonstrategies.
(2)UrbanTransporta6onMarket:ThepotenKalforsmaller
butsafercitycarsandnewprivate-publictransportaKon
modelswillincreaseasthedemandofurbanmobilitywill
risedrasKcallyinexisKngandupcomingmega-ciKes.
AboutAvantgardeIndia
Isabelle-JasminRoth
ManagingDirector
Avantgardeisaglobal
communicaKonsagency
withafocusonexperienKal
markeKng.In2012,
AvantgardeIndiawillstart
itsoperaKonsinNewDelhi.
Contact
Isabelle-