indian retail consumerism

Indian Retail Consumerism

Prof S P Garg

JAIPURIA INSTITUTE OF MANAGEMENT

JAIPUR (INDIA)

[email protected]


• India Growth Story :

• 1.1 billion people

• 540 m youth

• 600,000 villages

• A long journey of entrepreneurship

• Process of change

• Social, economic ,political considerations


• GDP to grow 8-9 %• Great Indian Aspiring Middle Class :Engine of Growth• Middle income Rural Households :27 million• Middle income Urban Households :29 million• Young India :450 million below the age of 21• The Self Employed India• NEW INDIA :ENTERPRISING,ENERGISED INDIAN

SPIRIT• INDIAN WOMEN WORK FORCE


• Generation Transformation :Children born around 1990 have entered the work force category (100million 17 to 21 year old )

• Consumer class with annual household income > Rs 90,000----317 million (2006-07) to double to 620 million by 2011-12

• Liberation Children : A POWERFL TEENAGE MARKET SEGMENT

• High aspirational level & consumer confidence


• Distinctly different consumption basket• Urban & Rural segments• Rural India is not really poor ,nor it is totally

dependent on agriculture ( 50% of Rural GDP is non-agricultural )

• Consumption expenditure in Rural India :55 %• Special focus on Macro –consumers• Occasional but regular consumers• Community consumption styles


•Indian consumer : very value conscious•Emerging markets are fundamentally different• New attractive long term growth market•Indian consumer :Mosaic of traditionality & modernity


• Transformational Idea : “Fortune at the Bottom of the Pyramid”• “Under served consumers” have enormous

collective spending power & would become the next engine of growth

• Consumer India : large, virgin, first mover advantage• Poor consumers ,but getting less poor• Some rich people, increasing in number, getting

richer• Co existence of diversity• Exponential market growth


• Visible improvement in quality of life (education, health care ,housing, social security)

• Positive changes in income distribution• Purchasing boom in small towns• Comfort with Technology• Poor also Technology Embracers, not

Technology Rejectors• Liberalization of Agri/ Rural sector• Heavy investments in agri/rural social

infrastructure


TO SUM UP• Need for Developing localised strategies based

on local demographic, cultural ,social & economic factors and not adopting existing strategies in totality.

• Define your own India and prioritize strategies• “Made for INDIA” Strategy• Develop mental model for “MY TARGET INDIA”• Listen the Rural Markets & Rural Society• Create & adopt next best practices


• Different distribution system /channels• Different demand structure “Lots of people consume a little each,

which adds up to a lot of consumption”• Different Penetration model• AND FINALLY,• Need for Multi –tiered, consumer centric

needs multi- pronged strategies with a different Mind set.

indian retail consumerism

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