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Introduction to Consumer India

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  • Slides 3 and 4 : I thought it would be a good idea to start the presentation with some facts about India, which will capture the attention of students as well as enlighten them about various aspects of India. As you had mentioned, I’ve incorporated these 2 slides of facts for those who are completely uninformed and ignorant about India.Image Sources:http://inhabitat.com/indian-railways-going-green-with-eco-toilets/http://roseville-california.olx.com/bollywood-dance-class-iid-57105786Text Sources: http://www.buzzle.com/articles/interesting-facts-about-india.htmlhttp://india.gov.in/myindia/facts.phphttp://www.businessinsider.com/amazing-facts-about-india-2010-12#
  • Image Sources:http://www.indiabuzzing.com/2007/09/30/will-population-be-a-boon-or-a-bane-for-india/http://www.asianews.it/news-en/Indian-activist:-G8-called-to-outline-future-development-of-peoples-12697.htmlhttp://aminmakda.blogspot.com/2009/02/indias-population-to-be-largest-in.htmlhttp://www.hindujagruti.org/activities/campaigns/national/india-map-controversy/
  • Image Source:http://en.wikipedia.org/wiki/File:World_population.PNG
  • Image Source:http://www.global-innovation.net/projects/grd/india/index.html
  • Image Source:http://business.outlookindia.com/printarticle.aspx?265639http://www.theepochtimes.com/n2/content/view/22829/http://trak.in/tags/business/2010/05/25/ambani-brothers-patchup-ril-rnrl/http://en.wikipedia.org/wiki/Sunil_Mittal
  • Image Source:http://www.britannica.com/EBchecked/media/100006/Workers-transplanting-rice-near-Mangalore-Karnataka-Indiahttp://www.tourismofkerala.com/culture.htmlhttp://travel-packages.locateindia.com/hot-destinations/cultural-tour-india.htmlhttp://gordonpifher.com/?cat=5http://tripp.in/?p=63http://getbangaloreonline.com/2010/12/02/sarkozy-visit-france-to-open-consulate-in-bangalore/http://ceoworld.biz/ceo/2009/11/12/infosys-technologies-to-acquire-us-based-insurance-bpo-mccamish-systems
  • Image Sources:http://www.travelpod.com/travel-blog-entries/vdrover/1/1259051848/tpod.html#pbrowser/vdrover/1/1259051848/filename=mozilla%3Aen-GB%3Aofficial%2526biw%253D1280%2526bih%253D594%2526tbm%253Dischhttp://getbangaloreonline.com/friends-activity/http://mothsmokelingers.wordpress.com/tag/oberoi-trident/http://www.123rf.com/photo_8234125_portrait-of-young-indian-business-woman.html
  • Image Source:http://www.hondacsr.com/en/human_detail.phphttp://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:21493265~pagePK:141137~piPK:141127~theSitePK:295584,00.htmlhttp://www.greatmirror.com/index.cfm?navid=496&picturesize=medium
  • Image Sources:http://irfanurs.blogspot.com/2010/12/3-jhalak-2010.htmlhttp://www.watblog.com/2009/07/15/over-100-million-rural-mobile-subscribers-in-india-opportunity-for-mvas/http://udaycars.com/high-mileage-cars-in-india
  • Image Source:http://www.topnews.com.sg/category/companies/spicejethttp://www.topnews.com.sg/category/companies/kingfisher-airlines
  • Image Source:http://www.ultimatesuccess4u.info/jewellerywarehouse.info/kerala-jewellery-shops/http://www.nriinformation.com/images_india.htm
  • Image Source:http://dilipkumar.in/articles/global-warming/india-desertification-isro-study.htmlhttp://newshopper.sulekha.com/india-monsoon-agriculture_photo_912124.htm
  • Image Source:http://bangalore.olx.in/training-facility-bangalore-india-iid-22256141http://www.telegraph.co.uk/news/worldnews/1530907/Call-centres-are-blamed-for-a-rise-in-loose-living-among-Indias-affluent-new-elite.htmlhttp://www.global-innovation.net/projects/grd/india/ict/soft/index.html
  • Image Sources:http://www.indiabuzzing.com/2007/09/30/will-population-be-a-boon-or-a-bane-for-india/http://www.asianews.it/news-en/Indian-activist:-G8-called-to-outline-future-development-of-peoples-12697.htmlhttp://aminmakda.blogspot.com/2009/02/indias-population-to-be-largest-in.htmlhttp://www.hindujagruti.org/activities/campaigns/national/india-map-controversy/
  • Transcript

    • 1. INTRODUCTION TO CONSUMER INDIA Prof. Sameer Mathur, Ph.D.
    • 2. Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009
    • 3. Agenda Indian Context and Consumer India Characteristics of India Long Term Sustainable Growth India’s Tipping Point
    • 4. The Unique Indian Context • Largest democracy; 7th largest Country. • Largest employer in India: Indian Railways. • A bigger movie market than America and Canada combined, India sold 3.2 billion tickets last year.
    • 5. Basics of Consumer India • Consumer India is large • Mostly poor, but getting less poor • Increasing number of rich people • Totally schizophrenic => unusual strategic complexity
    • 6. Consumer India is Large • Large Population (Growing at 1.6% annually) • 18% of world’s population by 2030 World Population Comparison
    • 7. Mostly Poor but Getting Less Poor • Increase in Per Capita Income US$ 120 in 1991 to US$ 720 in 2007. • Large reduction in number of people below poverty line.
    • 8. Increasing Number of Rich People • Per Capita Income levels comparison Top 10% of India’s population = Top 60% of Malaysia’s population = Top 80% of Brazil’s population • However, a small percentage of India’s large population is still a large number of people.
    • 9. Totally Schizophrenic • Diversity within India: – 23 languages, 28 states, Climatic Diversity – Co-existence of Rich and Poor – Social Development Disparities – Varying norms and cultures – Varying Economies: Agricultural vs Infotech
    • 10. India: Long Term Sustainable Growth 1. Change Confluence 2. Real GDP Growth • 1990’s Average: 6.3% p.a and 2000’s Average: 6.2% p.a 3. Demographics • 400 million people below 21; 20 million new babies each year 4. Low Political and Social Risk : Democracy 5. Strong institutions 6. Comparable to an IPO
    • 11. India’s Tipping Point Step changes in consumption, comfort and aspiration Changing shapes of income distribution Strong India getting larger Sophisticating middle-class consumers Generational Transition 2005 Growth of self-employed strivers Rural India’s metamorphosis Tech comfort of masses spreading India’s Tipping Point
    • 12. Strong India Getting Larger • Entrepreneurial - generates wealth through trade, finance and technology. • Visible improvements in education, healthcare and housing.
    • 13. Change in the Shape of Income Distribution Urban Areas: Pyramid  Diamond  Cylinder (future)
    • 14. Change in the Shape of Income Distribution Rural Areas: Pyramid  Diamond  Distinct Diamond (future)
    • 15. Step Changes in Consumption, Comfort and Aspiration 1. Actual Visible Consumption Increases – Cars and two wheelers, Cell phones, Televisions 2. Visible Consumption breeds more consumption 3. Step change in consumer confidence 4. Affordability growth greater than income growth – Drop in prices of goods and an increase in their performance
    • 16. Step Changes in Consumption, Comfort and Aspiration 5. Increased comfort with borrowing Low interest rates, Increasing confidence, EMI Repayment 6. Decline of the poverty effect Consumption increase lags behind income increase 7. Rampant Rise in Aspiration
    • 17. Sophisticating Middle-Class Consumers • Price drops lead to increase in sales volumes and creation of markets to cater to middle-income India. • Increase in high-quality budget hotels, airlines, apparel brands, pre-paid card and high-end banking facilities.
    • 18. Generational Transition 2005 • Liberalization generation will lead to consumption-friendly ideology. • The first non-socialist generation of India.
    • 19. Growth of Self-Employed Strivers • Rise of the self-employed and the service economy. • 90% of rural households and 60% of urban households are headed by a self-employed person. Source: NCAER
    • 20. Rural India’s Metamorphosis • Decreased dependence on agriculture which depends on the monsoon season • Reduction in boom and bust cycles
    • 21. Tech Comfort of Masses Spreading • Increased IT awareness and IT employment opportunities across all social classes.
    • 22. Summary • Consumer India is large • Mostly poor, but getting less poor • Increasing number of rich people • Totally schizophrenic => unusual strategic complexity
    • 23. Summary India’s Tipping Point Step changes in consumption, comfort and aspiration Changing shapes of income distribution Strong India getting larger Sophisticating middle-class consumers Generational Transition 2005 Growth of self-employed strivers Rural India’s metamorphosis Tech comfort of masses spreading
    • 24. Summary Indian Context and Consumer India Characteristics of India Long Term Sustainable Growth India’s Tipping Point
    • 25. Background Reading
    • 26. Recommended Reading
    • 27. Over 1 Million views from more than 100 countries Prof. Sameer Mathur Top 1% most viewed Over 250 presentations on Marketing www.BuddingMarkets.com

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