- India's consumer market is projected to grow substantially between 2005-2025, driven by rapid income growth. Household income and spending are forecasted to nearly triple and quadruple respectively in this period.
- Food and beverages currently make up the largest share of household spending but this share is expected to decline as discretionary spending increases from 30% to 70% of the total.
- The number of high-income "rich" households is estimated to grow from 12 lakh in 2005 to over 9.5 million by 2025, accounting for nearly a quarter of India's total income. This segment influences overall consumption trends.
This presentation will give you an insight into the great organization "PATANJALI" which is competing with great giants in the FMCG sector and taking a credible amount of their share in the product category in which they are also present.
The document provides a summary of the Brand Asset Valuator (BAV) analysis conducted for Colgate and its competitors (Pepsodent, Close Up, Anchor, Dabur) in India. A questionnaire was used to collect data from 31 respondents on the four BAV pillars: differentiation, relevance, esteem, and knowledge. Scores were calculated for each brand on each pillar. The analysis found that Colgate has the highest scores for relevance and esteem. On the BAV power grid, Colgate is in the leadership category. Pepsodent and Close Up were found to be declining brands, while Anchor is unfocused and Dabur has low brand stature. The BAV provided insights
ITC was incorporated in 1910 as Imperial Tobacco Company of India. It has since diversified into various business segments including hotels, paper, FMCG, agri etc. It remains a market leader in cigarettes in India with various brands. ITC entered hotels in 1975 and has various brands across luxury to economy segments. It entered FMCG in 2001 due to regulatory pressures on tobacco and sees growth potential. ITC sources raw materials from farmers through its e-Choupal initiative, building long term relationships. It continues investing in new business areas and product innovation.
Whirlpool of India Limited is a manufacturer of home appliances that produces refrigerators, washing machines, air conditioners and other appliances. It manufactures products in 13 countries and markets them in over 170 countries under various brand names. Whirlpool has over $18 billion in annual revenue and 68,000 employees worldwide. The company focuses on global expansion, innovation, and sustainability to continue its growth.
The document discusses Himalaya Health Care, an Ayurvedic pharmaceutical company. It provides background on Ayurveda and Himalaya's history. Himalaya was founded in 1930 and launched the first anti-hypertensive drug in 1934 after studying a plant used to calm elephants. Today Himalaya uses modern science to research and validate Ayurvedic treatments, creating standardized herbal products sold in 67 countries. The document also discusses Himalaya's commitment to community initiatives in health, education, sustainability and empowerment.
Patanjali produces a range of personal care products including toothpaste, face wash, soaps, shampoos, hair oil, conditioner and mehendi. The document analyzes consumer perceptions of Patanjali products in Mumbai and Lucknow through 42 in-depth interviews. It finds that Patanjali toothpaste effectively addresses consumer needs around sensitivity, gum bleeding, cavity fighting and fresh breath. Users are attracted to its ayurvedic ingredients and affordability. Similarly, Patanjali face wash is seen as removing dirt, oil and reducing acne while keeping skin clean and fresh.
This document summarizes a presentation about Bajaj Auto Ltd. It discusses the company's history, products, market segments, organizational structure, financial performance, and SWOT analysis. Bajaj Auto is a major Indian vehicle manufacturer known for scooters, motorcycles, and auto rickshaws. It is India's largest exporter of two and three-wheelers. While Bajaj enjoys strong financials and manufacturing capabilities, it could further develop new products, tap export markets, and target younger consumers to maintain growth.
ITC Classmate is the leading stationery brand in India with a 20% market share. It entered the stationery market in 2002 through its Paperkraft brand and launched Classmate in 2003. Classmate targets students, educational institutes, and corporate employees across rural and urban India. Its marketing positions Classmate as recognizing and celebrating the uniqueness of every child. While Navneet and Bilt are its main competitors, Classmate differentiates through durable, high-quality products and cover designs. It promotes individuality through the tagline "You are one of a kind."
This presentation will give you an insight into the great organization "PATANJALI" which is competing with great giants in the FMCG sector and taking a credible amount of their share in the product category in which they are also present.
The document provides a summary of the Brand Asset Valuator (BAV) analysis conducted for Colgate and its competitors (Pepsodent, Close Up, Anchor, Dabur) in India. A questionnaire was used to collect data from 31 respondents on the four BAV pillars: differentiation, relevance, esteem, and knowledge. Scores were calculated for each brand on each pillar. The analysis found that Colgate has the highest scores for relevance and esteem. On the BAV power grid, Colgate is in the leadership category. Pepsodent and Close Up were found to be declining brands, while Anchor is unfocused and Dabur has low brand stature. The BAV provided insights
ITC was incorporated in 1910 as Imperial Tobacco Company of India. It has since diversified into various business segments including hotels, paper, FMCG, agri etc. It remains a market leader in cigarettes in India with various brands. ITC entered hotels in 1975 and has various brands across luxury to economy segments. It entered FMCG in 2001 due to regulatory pressures on tobacco and sees growth potential. ITC sources raw materials from farmers through its e-Choupal initiative, building long term relationships. It continues investing in new business areas and product innovation.
Whirlpool of India Limited is a manufacturer of home appliances that produces refrigerators, washing machines, air conditioners and other appliances. It manufactures products in 13 countries and markets them in over 170 countries under various brand names. Whirlpool has over $18 billion in annual revenue and 68,000 employees worldwide. The company focuses on global expansion, innovation, and sustainability to continue its growth.
The document discusses Himalaya Health Care, an Ayurvedic pharmaceutical company. It provides background on Ayurveda and Himalaya's history. Himalaya was founded in 1930 and launched the first anti-hypertensive drug in 1934 after studying a plant used to calm elephants. Today Himalaya uses modern science to research and validate Ayurvedic treatments, creating standardized herbal products sold in 67 countries. The document also discusses Himalaya's commitment to community initiatives in health, education, sustainability and empowerment.
Patanjali produces a range of personal care products including toothpaste, face wash, soaps, shampoos, hair oil, conditioner and mehendi. The document analyzes consumer perceptions of Patanjali products in Mumbai and Lucknow through 42 in-depth interviews. It finds that Patanjali toothpaste effectively addresses consumer needs around sensitivity, gum bleeding, cavity fighting and fresh breath. Users are attracted to its ayurvedic ingredients and affordability. Similarly, Patanjali face wash is seen as removing dirt, oil and reducing acne while keeping skin clean and fresh.
This document summarizes a presentation about Bajaj Auto Ltd. It discusses the company's history, products, market segments, organizational structure, financial performance, and SWOT analysis. Bajaj Auto is a major Indian vehicle manufacturer known for scooters, motorcycles, and auto rickshaws. It is India's largest exporter of two and three-wheelers. While Bajaj enjoys strong financials and manufacturing capabilities, it could further develop new products, tap export markets, and target younger consumers to maintain growth.
ITC Classmate is the leading stationery brand in India with a 20% market share. It entered the stationery market in 2002 through its Paperkraft brand and launched Classmate in 2003. Classmate targets students, educational institutes, and corporate employees across rural and urban India. Its marketing positions Classmate as recognizing and celebrating the uniqueness of every child. While Navneet and Bilt are its main competitors, Classmate differentiates through durable, high-quality products and cover designs. It promotes individuality through the tagline "You are one of a kind."
This document provides an overview of the Indian FMCG sector and Hindustan Unilever Limited (HUL). It discusses that the Indian FMCG sector is the 4th largest sector in India with an estimated size of Rs. 1,300 billion. It then lists the top 10 companies in the FMCG sector. The rest of the document focuses on providing details about HUL, including its mission, vision, portfolio of brands, strategies and financial performance.
COMPARATIVE ANALYSIS BETWEEN ITC AND HULAkashMajji
This document provides information about a summer training project conducted by a student named M. Akash on the comparative analysis of ITC and Hindustan Unilever. It includes an introduction, certificate of work, declaration by the student, acknowledgements, table of contents, and outlines the various chapters that will be covered in the project report including the introduction of the companies, industry profile, company profiles, comparison of financial status, product ranges, sales figures, manpower resources, comparative analysis and findings/suggestions.
LG Electronics implemented a Blue Ocean strategy in India to create uncontested market space. It localized products like refrigerators to meet local needs. LG expanded its portfolio into new product categories, targeted new consumer segments, and entered emerging markets. It saw positive results in the first quarter of 2007 with double digit growth in mobile and display divisions. The Indian Premier League created a blue ocean in cricket by eliminating aspects like spectator time and unpredictability, while raising entertainment and flexibility. It attracted new audiences like families and women. KBC was also a blue ocean success by transforming the TV landscape away from repetitive dramas. It engaged viewers directly and brought in a mega star host to create a new value curve.
Hindustan Unilever Limited is India's largest fast-moving consumer goods company with a presence in over 100 countries. It touches the lives of two out of every three Indians through its wide range of home and personal care products. HUL has over 15,000 employees and manufactures products in 40 factories across India, distributing to over 6 million retail outlets through a network of 2000 suppliers. The company is committed to innovation and sustainability and aims to add vitality to life through meeting everyday needs of consumers.
Cipla is an Indian pharmaceutical company with a global presence in 170 countries. It aims to ensure access to affordable medicines. The summary discusses Cipla's supply chain management and logistics processes, including:
1) Procuring raw materials from suppliers and conducting manufacturing at its 34 plants in India.
2) Storing finished goods in warehouses using inventory control systems before distribution.
3) Transporting drugs to retailers, medical stores, laboratories and customers through distribution centers.
Patanjali Ayurveda Ltd. is an Indian consumer goods company founded in 1997 that produces and sells food products, personal care, ayurvedic medicines, and household items. The company operates out of Haridwar, India and was founded by yoga guru Baba Ramdev with a mission to offer consumers healthy, natural products at affordable prices. Patanjali offers a wide range of over 150 product lines that include ayurvedic medicines and supplements, herbal cosmetics, food items like flour, spices, and packaged snacks.
K.A. Hamied founded Cipla in 1935 in Mumbai, India. Cipla is a leading pharmaceutical company that specializes in generic and branded generic drugs. It has over 22,000 employees worldwide. Cipla manufactures drugs to treat diseases like tuberculosis, malaria, cancer and HIV/AIDS. The company has received several awards for innovation and exports. In the past year, Cipla's revenues crossed $1 billion for the first time despite a sluggish start, with an overall turnover growth of 18%.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise boosts blood flow, releases endorphins, and promotes changes in the brain which help regulate emotions and stress levels.
The document contains 5 questions related to an MBA exam on accounting for business decisions. It provides information on the exam such as the number of questions, total pages, instructions for candidates, and 5 sample exam questions covering topics like financial accounting vs management accounting, preparing financial statements from trial balances, and calculating costs. The document serves as a sample exam for students taking an accounting exam.
Hindustan Unilever (HUL) and ITC Ltd are two major players in India's FMCG sector. While HUL is a pure-play FMCG company with a wide portfolio of household and personal care brands, ITC has a larger reliance on its tobacco business. However, ITC is diversifying into non-tobacco FMCG segments like food and personal care. Both companies follow different strategies - HUL focuses on overall low costs and quality, while ITC leverages its large distribution network and rural procurement model. Their future growth will depend on new product launches and investments in brand building.
This presentation is based on my Award Winning National Level White Paper presented at St. Joseph Business School, Mangalore, 2011. This paper discusses the potential Rural India, the "bottom of the pyramid" has to offer to businesses and the challenges faced in IMC (Integrated Marketing Communications) implementation in reaching out and then retaining the rural customers.
This document discusses branding strategies used by VIVO and its competitor OPPO in India. It outlines VIVO's strategies such as focusing on consumer needs, brand promises, channels, awareness, and feedback. It also discusses OPPO's strategies around cameras, selfies, and celebrity ambassadors. Both companies invest heavily in sports sponsorships, with VIVO sponsoring the IPL cricket league and OPPO sponsoring the Indian cricket team. The purpose of strong branding strategies is to develop successful brands that are differentiated from competitors.
Patanjali is an Indian FMCG company founded in 2006 by Baba Ramdev and Acharya Balkrishna. The document provides an overview of Patanjali's history, products, marketing strategies, and environmental factors. It discusses Patanjali's introduction of the FMCG industry in India, the roles and importance of its marketing department, its use of the 4Ps marketing mix framework, and a SWOT analysis identifying its strengths in natural ayurvedic products and brand ambassador Baba Ramdev, weaknesses in promotions and rural distribution, opportunities in the domestic market and exports, and threats from competitors and economic slowdowns.
A presentation on LIFEBUOY which is based on some basic marketing strategies and how to acquire & retain customers through its uniqueness and attributes.
This document provides an overview of Reliance Jio, including its organizational profile and products. Reliance Jio is a subsidiary of Reliance Industries focused on providing 4G mobile and broadband services in India. It holds pan-India licenses and spectrum and aims to provide high-speed internet connectivity and digital services. Reliance Jio offers various apps and services and is building out a next-generation network to handle increasing demand for data and voice.
Asian Paints aims to become one of the top five decorative coatings companies worldwide by leveraging its expertise in emerging markets and building long term value in industrial coatings through global partnerships. It intends to provide paints according to market demand and ensure desired levels of quality customer service. Titanium dioxide and petroleum-based raw materials constitute 30-50% of Asian Paints' total manufacturing costs. Asian Paints has efficient supply chain, inventory, and logistics management practices that help reduce costs and increase profit margins relative to competitors. It utilizes information technology systems like SAP and I2 to integrate its supply chain and improve customer satisfaction.
The document discusses segmentation, targeting, and positioning strategies for Hindustan Unilever's soap and detergent brands. It outlines how HUL segments the soap and detergent market based on factors like hygiene, beauty, price, and quality. It then discusses which segments HUL targets for its different brands. The document also provides examples of how HUL positions its brands through concepts, branding, and packaging that appeal to targeted segments.
LG Electronics is a South Korean electronics company founded in 1958. It has a wide range of products including mobile phones, TVs, appliances, and air conditioners. LG has manufacturing facilities in India and a large distribution network in over 110 countries. It focuses on innovation, localization of products for Indian consumers, and competitive pricing to maintain its leading position in key product categories in India such as refrigerators, TVs, and air conditioners.
ITC Limited is one of India's largest and most valuable conglomerates with diversified businesses in FMCG, hotels, paper, packaging, agri-business, and IT. It has a leading position in cigarettes, branded packaged foods, personal care, hotels, and agri-business. ITC has achieved strong financial growth over the past 18 years and is ranked among the most respected companies in India. The company aims to sustain its position as one of India's most valuable corporations through world-class performance and creating value for stakeholders and the Indian economy.
Dettol is a leading antiseptic brand owned by Reckitt Benckiser that provides various antiseptic products like liquid, soap, and handwash. It has established itself as a trusted brand for family health and hygiene over the years through effective advertising focusing on a mother's role in protecting her family from germs. Dettol remains the market leader in the antiseptic liquid category in India with 84% market share as of 2008 due to its competitive pricing and versatile product portfolio appealing to consumers' need for germ protection.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India reached US$52.75 billion in FY2018 and is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020.
- Rural consumption is a major driver of growth, with the rural FMCG market expected to reach US$220 billion by 2025 from US$23.63 billion in FY2018.
- Household and personal care accounts for 50% of the FMCG market, followed by healthcare at 31% and food and beverages at 19%.
- Rising incomes
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020 from US$52.75 billion in FY2018.
- Final consumption expenditure is set to increase at a CAGR of 25.44% from 2017-2021 to reach nearly US$3.6 trillion by 2020 from US$1.82 trillion in 2017.
- The rural FMCG market in India is expected to grow to US$220 billion by 2025 from US$23.63 billion in FY2018
This document provides an overview of the Indian FMCG sector and Hindustan Unilever Limited (HUL). It discusses that the Indian FMCG sector is the 4th largest sector in India with an estimated size of Rs. 1,300 billion. It then lists the top 10 companies in the FMCG sector. The rest of the document focuses on providing details about HUL, including its mission, vision, portfolio of brands, strategies and financial performance.
COMPARATIVE ANALYSIS BETWEEN ITC AND HULAkashMajji
This document provides information about a summer training project conducted by a student named M. Akash on the comparative analysis of ITC and Hindustan Unilever. It includes an introduction, certificate of work, declaration by the student, acknowledgements, table of contents, and outlines the various chapters that will be covered in the project report including the introduction of the companies, industry profile, company profiles, comparison of financial status, product ranges, sales figures, manpower resources, comparative analysis and findings/suggestions.
LG Electronics implemented a Blue Ocean strategy in India to create uncontested market space. It localized products like refrigerators to meet local needs. LG expanded its portfolio into new product categories, targeted new consumer segments, and entered emerging markets. It saw positive results in the first quarter of 2007 with double digit growth in mobile and display divisions. The Indian Premier League created a blue ocean in cricket by eliminating aspects like spectator time and unpredictability, while raising entertainment and flexibility. It attracted new audiences like families and women. KBC was also a blue ocean success by transforming the TV landscape away from repetitive dramas. It engaged viewers directly and brought in a mega star host to create a new value curve.
Hindustan Unilever Limited is India's largest fast-moving consumer goods company with a presence in over 100 countries. It touches the lives of two out of every three Indians through its wide range of home and personal care products. HUL has over 15,000 employees and manufactures products in 40 factories across India, distributing to over 6 million retail outlets through a network of 2000 suppliers. The company is committed to innovation and sustainability and aims to add vitality to life through meeting everyday needs of consumers.
Cipla is an Indian pharmaceutical company with a global presence in 170 countries. It aims to ensure access to affordable medicines. The summary discusses Cipla's supply chain management and logistics processes, including:
1) Procuring raw materials from suppliers and conducting manufacturing at its 34 plants in India.
2) Storing finished goods in warehouses using inventory control systems before distribution.
3) Transporting drugs to retailers, medical stores, laboratories and customers through distribution centers.
Patanjali Ayurveda Ltd. is an Indian consumer goods company founded in 1997 that produces and sells food products, personal care, ayurvedic medicines, and household items. The company operates out of Haridwar, India and was founded by yoga guru Baba Ramdev with a mission to offer consumers healthy, natural products at affordable prices. Patanjali offers a wide range of over 150 product lines that include ayurvedic medicines and supplements, herbal cosmetics, food items like flour, spices, and packaged snacks.
K.A. Hamied founded Cipla in 1935 in Mumbai, India. Cipla is a leading pharmaceutical company that specializes in generic and branded generic drugs. It has over 22,000 employees worldwide. Cipla manufactures drugs to treat diseases like tuberculosis, malaria, cancer and HIV/AIDS. The company has received several awards for innovation and exports. In the past year, Cipla's revenues crossed $1 billion for the first time despite a sluggish start, with an overall turnover growth of 18%.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise boosts blood flow, releases endorphins, and promotes changes in the brain which help regulate emotions and stress levels.
The document contains 5 questions related to an MBA exam on accounting for business decisions. It provides information on the exam such as the number of questions, total pages, instructions for candidates, and 5 sample exam questions covering topics like financial accounting vs management accounting, preparing financial statements from trial balances, and calculating costs. The document serves as a sample exam for students taking an accounting exam.
Hindustan Unilever (HUL) and ITC Ltd are two major players in India's FMCG sector. While HUL is a pure-play FMCG company with a wide portfolio of household and personal care brands, ITC has a larger reliance on its tobacco business. However, ITC is diversifying into non-tobacco FMCG segments like food and personal care. Both companies follow different strategies - HUL focuses on overall low costs and quality, while ITC leverages its large distribution network and rural procurement model. Their future growth will depend on new product launches and investments in brand building.
This presentation is based on my Award Winning National Level White Paper presented at St. Joseph Business School, Mangalore, 2011. This paper discusses the potential Rural India, the "bottom of the pyramid" has to offer to businesses and the challenges faced in IMC (Integrated Marketing Communications) implementation in reaching out and then retaining the rural customers.
This document discusses branding strategies used by VIVO and its competitor OPPO in India. It outlines VIVO's strategies such as focusing on consumer needs, brand promises, channels, awareness, and feedback. It also discusses OPPO's strategies around cameras, selfies, and celebrity ambassadors. Both companies invest heavily in sports sponsorships, with VIVO sponsoring the IPL cricket league and OPPO sponsoring the Indian cricket team. The purpose of strong branding strategies is to develop successful brands that are differentiated from competitors.
Patanjali is an Indian FMCG company founded in 2006 by Baba Ramdev and Acharya Balkrishna. The document provides an overview of Patanjali's history, products, marketing strategies, and environmental factors. It discusses Patanjali's introduction of the FMCG industry in India, the roles and importance of its marketing department, its use of the 4Ps marketing mix framework, and a SWOT analysis identifying its strengths in natural ayurvedic products and brand ambassador Baba Ramdev, weaknesses in promotions and rural distribution, opportunities in the domestic market and exports, and threats from competitors and economic slowdowns.
A presentation on LIFEBUOY which is based on some basic marketing strategies and how to acquire & retain customers through its uniqueness and attributes.
This document provides an overview of Reliance Jio, including its organizational profile and products. Reliance Jio is a subsidiary of Reliance Industries focused on providing 4G mobile and broadband services in India. It holds pan-India licenses and spectrum and aims to provide high-speed internet connectivity and digital services. Reliance Jio offers various apps and services and is building out a next-generation network to handle increasing demand for data and voice.
Asian Paints aims to become one of the top five decorative coatings companies worldwide by leveraging its expertise in emerging markets and building long term value in industrial coatings through global partnerships. It intends to provide paints according to market demand and ensure desired levels of quality customer service. Titanium dioxide and petroleum-based raw materials constitute 30-50% of Asian Paints' total manufacturing costs. Asian Paints has efficient supply chain, inventory, and logistics management practices that help reduce costs and increase profit margins relative to competitors. It utilizes information technology systems like SAP and I2 to integrate its supply chain and improve customer satisfaction.
The document discusses segmentation, targeting, and positioning strategies for Hindustan Unilever's soap and detergent brands. It outlines how HUL segments the soap and detergent market based on factors like hygiene, beauty, price, and quality. It then discusses which segments HUL targets for its different brands. The document also provides examples of how HUL positions its brands through concepts, branding, and packaging that appeal to targeted segments.
LG Electronics is a South Korean electronics company founded in 1958. It has a wide range of products including mobile phones, TVs, appliances, and air conditioners. LG has manufacturing facilities in India and a large distribution network in over 110 countries. It focuses on innovation, localization of products for Indian consumers, and competitive pricing to maintain its leading position in key product categories in India such as refrigerators, TVs, and air conditioners.
ITC Limited is one of India's largest and most valuable conglomerates with diversified businesses in FMCG, hotels, paper, packaging, agri-business, and IT. It has a leading position in cigarettes, branded packaged foods, personal care, hotels, and agri-business. ITC has achieved strong financial growth over the past 18 years and is ranked among the most respected companies in India. The company aims to sustain its position as one of India's most valuable corporations through world-class performance and creating value for stakeholders and the Indian economy.
Dettol is a leading antiseptic brand owned by Reckitt Benckiser that provides various antiseptic products like liquid, soap, and handwash. It has established itself as a trusted brand for family health and hygiene over the years through effective advertising focusing on a mother's role in protecting her family from germs. Dettol remains the market leader in the antiseptic liquid category in India with 84% market share as of 2008 due to its competitive pricing and versatile product portfolio appealing to consumers' need for germ protection.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India reached US$52.75 billion in FY2018 and is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020.
- Rural consumption is a major driver of growth, with the rural FMCG market expected to reach US$220 billion by 2025 from US$23.63 billion in FY2018.
- Household and personal care accounts for 50% of the FMCG market, followed by healthcare at 31% and food and beverages at 19%.
- Rising incomes
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020 from US$52.75 billion in FY2018.
- Final consumption expenditure is set to increase at a CAGR of 25.44% from 2017-2021 to reach nearly US$3.6 trillion by 2020 from US$1.82 trillion in 2017.
- The rural FMCG market in India is expected to grow to US$220 billion by 2025 from US$23.63 billion in FY2018
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
1) The FMCG market in India is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020 from US$52.75 billion in 2017-18.
2) Total consumption expenditure in India is set to increase at a CAGR of 22.57% from 2016-2021 to reach nearly US$3,600 billion by 2020 from US$1,595 billion in 2016.
3) The rural FMCG market is expected to grow to US$220 billion by 2025 from US$29.4 billion in
The report *State of D2C in India: A Logistics Update* talks about the evolving dynamics of the d2C landscape with a particular focus on how brands navigate the complexities of logistics. Third Party Logistics enablers emerge indispensable partners in facilitating the growth journey of D2C brands, offering cost-effective solutions tailored to their specific needs. As D2C brands continue to expand, they encounter heightened operational complexities with logistics standing out as a significant challenge. Logistics not only represents a substantial cost component for the brands but also directly influences the customer experience. Establishing efficient logistics operations while keeping costs low is therefore a crucial objective for brands. The report highlights how 3PLs are meeting the rising demands of D2C brands, supporting their expansion both online and offline, and paving the way for sustainable, scalable growth in this fast-paced market.
The document summarizes key information about the fast moving consumer goods (FMCG) sector in India:
1) The FMCG market in India is expected to grow at a CAGR of 20.6% to reach $103.7 billion by 2020 from $49 billion in 2016. Total consumption expenditure is also forecasted to increase significantly in this period.
2) Rural consumption is a major driver of growth in the FMCG sector, with the rural FMCG market expected to reach $220 billion by 2025.
3) Food and personal care account for around two-thirds of total FMCG revenues in India. Hair care and food products are the largest segments currently.
Indian Female Innerwear’s $12 Billion OpportunityRedSeer
India currently stands at quite an interesting juncture of consumption. It consists of a majority of young populace who are mainly driving the growth of income per capita and consumption. India’s GNI (Gross National Income) per capita was US$ 2,120 in 2019 which is lower than the US (US$ 65,850) and China (US$ 10,410). However, India’s GNI per capita is expected to grow at 7% between 2019 and 2025, which is faster than US’ and China’s expected growth rates between 2019 and 2025 at 2.9% and 6.1% respectively.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 20.6% from 2016-2020 to reach $103.7 billion from $49 billion in 2016.
- Total consumption expenditure in India is projected to increase at a CAGR of 22.57% from 2016-2021 to reach nearly $3,600 billion by 2020 from $1,595 billion in 2016.
- The rural FMCG market in India is estimated to grow to $220 billion by 2025 from $29.4 billion in 2016, driven by rising rural incomes.
The document discusses the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% and reach US$103.70 billion by 2020 from US$52.75 billion in FY2018.
- Final consumption expenditure is set to increase at a CAGR of 25.44% from 2017-2021 and reach nearly US$3.6 trillion by 2020 from US$1.82 trillion in 2017.
- The rural FMCG market in India is expected to grow to US$220 billion by 2025 from US$23.63 billion in FY2018, as rural
The document discusses the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020 from US$52.75 billion in FY2018.
- Final consumption expenditure is set to increase at a CAGR of 25.44% from 2017-2021 to reach nearly US$3.6 trillion by 2020 from US$1.82 trillion in 2017.
- Rural consumption is a major driver of growth in the FMCG sector. The rural FMCG market is expected to grow to US$220 billion by 2025 from US
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020 from US$52.75 billion in 2017-18.
- Total consumption expenditure in India is set to increase at a CAGR of 22.57% from 2016-2021 to reach nearly US$3,600 billion by 2020.
- The rural FMCG market in India is expected to grow to US$220 billion by 2025 from US$29.4 billion in 2016, as rural consumption drives growth in the sector
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020 from US$52.75 billion in FY2018.
- Final consumption expenditure is set to increase at a CAGR of 25.44% from 2017-2021, reaching nearly US$3.6 trillion by 2020 from US$1.82 trillion in 2017.
- The rural FMCG market in India is expected to grow to US$220 billion by 2025 from US$23.63 billion in FY2018
The first and foremost prediction
for 2025 is that the global apparel
consumption will become US$ 2.6
trillion from a present level of US$
1.7 trillion. This means a market
addition of US$ 900 bn. over next 10
years which presents a huge business
opportunity for sector players. Majority
of this market addition is expected to
happen in China and India.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 20.6% to reach $103.7 billion by 2020 from $49 billion in 2016.
- Total consumption expenditure in India is projected to increase at a CAGR of 22.6% from 2016-2021 to reach nearly $3,600 billion by 2020.
- The rural FMCG market in India is estimated to grow to $220 billion by 2025 from $29.4 billion in 2016, indicating rising rural consumption.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% to reach $103.70 billion by 2020 from $52.75 billion in FY2018.
- Final consumption expenditure is projected to increase at a CAGR of 25.44% between 2017-2021 to reach nearly $3.6 trillion by 2020 from $1.82 trillion in 2017.
- Rural consumption is a major driver of growth in the FMCG sector. The rural FMCG market is estimated to grow to $220 billion by 2025 from $23.
Marketing is defined as the process of creating, communicating, delivering and exchanging products and services that have value for customers, partners and society. The key elements of marketing include identifying customer needs, developing products to meet those needs, determining appropriate pricing, selecting distribution channels and promoting products. Marketing aims to create value for customers to build strong, long-term customer relationships and capture value in return. It involves identifying, satisfying and retaining customers while focusing on customer needs above all else.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% to reach $103.70 billion by 2020 from $52.75 billion in FY2018.
- Final consumption expenditure is projected to increase at a CAGR of 25.44% between 2017-2021 to reach nearly $3.6 trillion by 2020 from $1.82 trillion in 2017.
- Rural consumption is a major driver of growth in the FMCG sector. The rural FMCG market is estimated to grow to $220 billion by 2025 from $23.
The Rising Bottom of the Pyramid in India Kimberlee Luce
This document discusses the potential for growth in consumption among India's large lower-income population, known as the "Bottom of the Pyramid" or BoP segment. It notes that over 70% of Indian households earn less than $4,000 annually but are steadily becoming richer. The upper part of the BoP segment in particular seeks out aspirational products and represents a major opportunity for companies. Successful companies catering to this segment offer value, innovate to lower costs and effectively reach customers, while also establishing long-term, trusting relationships.
The document summarizes strategies adopted by FMCG companies in India to boost growth. Key strategies include strengthening rural networks, launching mobile apps, introducing new products, expanding into new markets and categories, focusing on e-commerce, implementing green initiatives, using analytics, and increasing investments. FMCG companies are also leveraging consumer goods expos and partnerships to generate opportunities. Overall the strategies aim to increase rural and online penetration and take advantage of rising demand.
FMCG market in India is expected to grow at a CAGR of 27.86% to reach US$ 103.70 billion by 2020 from US$ 52.75 billion in 2017-18. Rural consumption is a major driver of growth in the FMCG sector, with the rural FMCG market in India expected to grow to US$ 220 billion by 2025 from US$ 23.6 billion in 2018. FMCG companies are adopting strategies such as promotions and offers, new product launches, expansion into new geographies and categories, and focusing on online sales to tap into growth opportunities in India.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 20.6% to reach $103.7 billion by 2020 from $49 billion in 2016.
- Total consumption expenditure in India is projected to increase at a CAGR of 22.6% from 2016-2021 to reach nearly $3,600 billion by 2020 from $1,595 billion in 2016.
- The rural FMCG market in India is estimated to grow to $220 billion by 2025 from $29.4 billion in 2016, indicating rising rural consumption.
The Surrogacy (Regulation) Bill, 2016, cleared by the Cabinet, only allows “altruistic surrogacy” for childless couples who have been married for at least five years. Then too, the surrogate mother should be a “close relative” of the couple, should be married and have borne a child of her own
The document summarizes Keynesian income determination through the aggregate demand-aggregate supply model. It defines consumption and investment functions, which together determine aggregate demand. Consumption depends on income through the marginal propensity to consume. Investment is assumed constant in the short-run. Equilibrium income is reached at the point where aggregate demand equals aggregate supply. This can be modeled as either the AD-AS approach where equilibrium Y satisfies C+I=C+S, or the savings-investment approach where I=S. Numerical examples are provided to illustrate the equilibrium income calculation under each approach.
A depository receipt (DR) represents shares of a foreign company that are held in trust by a local custodian bank and traded on a local stock exchange. There are several types of DRs including American Depository Receipts (ADRs), Global Depository Receipts (GDRs), and Indian Depository Receipts (IDRs). DRs allow foreign companies to raise capital and list their shares indirectly on foreign exchanges to avoid stringent listing requirements.
The Competition Act of 2002 aims to ensure fair competition in markets and protect consumer interests over firm size. It established the Competition Commission of India (CCI) to eliminate anti-competitive practices, promote competition, and regulate combinations (mergers and acquisitions). The CCI, headed by a High Court judge, may pass orders directing firms to discontinue anti-competitive agreements or practices, impose penalties up to 10% of turnover, and approve or reject combinations. Its orders are enforceable like High Court orders, and appeals go to the Supreme Court. The Competition Amendment Bill of 2007 set up the Competition Appellate Tribunal as a quasi-judicial body to hear CCI appeals.
India currently has current account convertibility, which allows free flow of capital for imports/exports of goods and services. It also has partial capital account convertibility, allowing individuals to invest up to $25,000 abroad. However, full capital account convertibility has not been achieved, as transactions over $1 million still require central bank approval. Full convertibility could lead to capital flight and exposure to volatility from speculative international capital flows.
The document summarizes key aspects of the Indian Union Budget for 2013-2014. It proposes a tax credit for individuals earning under Rs. 5 lakh annually and increases surcharges on high-earning individuals and companies. It also outlines plans to increase revenues from tax proposals, asset sales, and spectrum auctions. Expenditure on subsidies, infrastructure, rural development and defense are projected to rise. Custom duties are reduced or increased on various goods.
This document discusses various risks faced by banks such as credit risk, liquidity risk, market risk, and operational risk. It summarizes Basel I, Basel II, and Basel III capital adequacy frameworks which establish minimum capital requirements for banks. It outlines the key components of Tier 1 and Tier 2 capital and how risk weighted assets are calculated to determine the capital adequacy ratio. The Reserve Bank of India requires banks to maintain a minimum capital to risk-weighted assets ratio of 9% under Basel II norms.
India's balance of payments was under stress in 2011-12 as the trade and current account deficits widened. Exports grew at a slower rate while imports grew significantly, leading to a large trade deficit. The current account deficit also increased substantially. While capital inflows increased, they did not fully finance the current account deficit, resulting in a drawdown of foreign exchange reserves. The growing integration of India's economy with the global economy has helped growth but also increased vulnerability to external shocks. Focusing on domestic macroeconomic rebalancing can help reduce this vulnerability.
Ad and AS in determination of equilibrium priceShashank Singh
The document discusses the downward slope of the aggregate demand (AD) curve and the upward slope of the aggregate supply (AS) curve in the short run. The AD curve slopes downward due to the real balance effect, interest rate effect, and foreign trade effect as price levels rise. The AS curve is horizontal at low output levels as unused resources allow expansion without cost increases. It slopes upward between potential and full employment as bottlenecks and declining marginal productivity cause costs to rise. The AS curve is vertical at full employment when no further output gains are possible. Short-run macroeconomic equilibrium occurs where the AD and AS curves intersect at an output and price level.
India has a large population that could provide a big talent pool for medals, but population alone is not enough. There are challenges with the sports culture and priorities in India. Currently, athletes have to fight hard against a lack of infrastructure, apathy, societal pressures that discourage sports, lack of finance and opportunities. Things are improving but there is still a long way to go. Getting private companies more involved in funding and running specific sports could help address investment issues if the government provides concessions and incentives for success.
The document summarizes India's industrial policy changes since 1991, including:
- Abolishing licensing for all but a few industries like alcohol and cigarettes.
- Allowing private sector investment in industries previously reserved for public sector like defense.
- Liberalizing foreign direct investment limits over time, now allowing up to 100% in most sectors.
- Removing mandatory convertibility of bank loans into equity for private firms.
India has an extremely diverse population of over 1 billion people as of 2001. Some key points:
- India has high population density, with West Bengal being the most densely populated state.
- The gender ratio favors males, with the overall ratio being 933 females to 1000 males in 2001.
- Literacy rates have increased over time but are still relatively low, with the overall rate at 65.4% and only 53.6% for females in 2001.
- India has a young population, with over half under 25 years old and 40% under 19, as well as a large working age population and kids population.
- The population is projected to remain relatively young and dominated by the working age group
This document discusses consumer behavior, which examines how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items. It defines consumer behavior as acts of individuals directly involved in obtaining and using economic goods and services. Understanding consumer behavior is important for marketers as it helps them design effective marketing strategies for different consumer segments based on factors like age, income, and occupation that influence purchase decisions. A simple model of consumer behavior shows the external influences, consumer decision-making process, and resulting consumer decisions and actions.
This document discusses consumer behavior and provides a model of factors that influence it. It defines consumer behavior as acts of obtaining, using, and disposing of goods and services, including the decision processes involved. A simple model of consumer behavior is presented showing external influences and marketing stimuli affecting the consumer decision making process and resulting in consumer decisions and actions. A more detailed model then outlines various personal, psychological, social, and cultural factors that shape consumer behavior, such as age, gender, motivation, perception, learning, beliefs, attitudes, and reference groups.
Titan is India's largest watch manufacturer with 60% market share. It introduced quartz technology watches with international styling in 1987, shifting watches from functional products to fashion accessories. Titan focused on brand marketing, establishing exclusive showrooms and appointing Aamir Khan as brand ambassador to appeal to various age groups. It introduced multiple brands like Sonata and Fastrack at different price points to target various segments. Titan aims to maintain its reputation for quality, expand into designer watches, and tap the rural market while staying ahead of competition.
Sprite is a lemon-lime soft drink launched in India in 1999 that has become the market leader in the lime category. It is known for its distinctive green bottle and bubbly design. Sprite targeted youth through advertisements with slogans like "Obey your thirst" and sponsorship of sports like basketball. Its ads portray an irreverent but straightforward attitude aligned with youth preferences. Recent campaigns in India focus on its refreshing and honest personality to build its brand identity and loyalty among youth.
Cadbury Dairy Milk chocolate was launched in the UK in 1905 and became very popular in India after its introduction in 1948. However, over time its target audience became limited to children. In the 1990s, Cadbury shifted its focus to appeal to both children and adults through campaigns showing the "kid in all of us". This helped boost sales. Later, Cadbury expanded rural distribution and introduced variants to strengthen its brand against growing competition. It also implemented stronger packaging after a 2003 worm infestation issue and hired Amitabh Bachchan as its ambassador to rebuild its image. Cadbury continues working to adapt to new challenges through creative branding.
The document summarizes several models of buyer behavior:
1. The economic model views buyers as rational actors seeking to maximize utility within their budget.
2. The learning model sees buying influenced by learned stimuli and responses.
3. The psychoanalytical model draws on Freudian psychology, viewing buyers as having deep-seated motives driving behavior.
4. The sociological model recognizes social influences like groups and class on buying decisions.
5. Systems models like the Nicosia and Howard-Sheth models conceptualize buyers as systems processing marketing stimuli into responses.
This document summarizes a case presented by students Suman Kumar, Vijay Soni, and Nikunj Sharma regarding shrimp-turtle regulations imposed by the US on developing countries. The US required other countries to use Turtle Excluder Devices (TEDs) on shrimp boats or face an import ban, citing the need to protect sea turtles. Developing countries argued this violated WTO rules and negatively impacted their shrimp industries. The case discusses the regulations and countries' positions in more detail over several pages before concluding the WTO found in favor of the developing countries.
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2. India’s Consumer Market –
Size and Composition
What is the size of India’s consumer market at
present?
How will it grow by 2025?
What constitutes India’s consumption basket?
What does ‘consumer India’ consume today?
How is the consumption basket shifting how?
How will it be in 2025?
How much the Indians ear now?
3. India’s Consumer Market –
Size and Composition …Contd.
How will income distribution change in the
coming years?
How will household income grow by 2025?
What will Indians spend their new-found income
on?
What categories will grow in their share in the
consumption basket?
4. India’s Consumer Market –
Size and Composition …Contd.
What do We Mean by Consumer Market /
Consumption Basket?
A consumer market basically represents the
spending by households / people. The term
‘consumption basket’ too basically refers to the
same. They both correspond to private final
consumption expenditure (PFCE) of households
plus non-profit organisations serving
households, in the domestic market.
5. India’s Consumer Market –
Size and Composition …Contd.
What do We Mean by Consumer Market /
Consumption Basket? …Contd.
In other words, they reflect the spending by
the ultimate consumers. It is usually
categorised into expenditures on food,
clothing, rent, transport and communications,
consumer goods, education, medical needs,
etc.
6. India’s Consumer Market –
Size and Composition …Contd.
In India, a larger percentage of GDP
is accounted for by private
consumption basket (Research Report by
Morgan Stanley)
7. India’s Consumer Market –
Size and Composition …Contd.
Size of India’s Consumer Market at
Present
In 2005 India’s consumer market stood as
shown in the Table in the next slide. It can be
seen from the table that presently, ‘food,
tobacco and beverages’ (FTB) category is
the largest expenditure head at 45 per cent of
the total expenditure. ‘Transport and
communication’ comes next at 16 per cent.
8. India’s Consumer Market –
Size and Composition …Contd.
India’s Consumer Market in 2005
Category Consumption 2005 (in Rs. Billion, at
2000 prices)
Food, beverages, and tobacco 7,147
Transportation 2,788
Housing and utilities 2,019
Personal products and services 1,274
Health care 1,148
Apparel 931
Education and recreation 762
Household products 484
Communication 344
9. India’s Consumer Market –
Size and Composition …Contd.
Share of food decreases and share of other
products gets larger
A large share goes to transport and
communications
More goes to medical care too
Shares of the expenditure on education,
clothing, and household goods remain
stable
10. How would India’s Consumer Market and Indians’
Income and Spending Grow Between 2005 and 2025?
(Source: Adapted from McKinsey Global Institute Report)
How would Household Income Grow by 2025
Income levels will almost triple if India
continues on its current high growth path over
the next two decades. We assume compound
annual growth of 7.3 per cent from 2005-2025,
a marked acceleration from the 6 per cent
growth of the previous two decades. Forecasts
for India’s read GDP growth rate over the
coming two decades will generally, range
between 6 and 9 per cent per year.
11. How would India’s Consumer Market and Indians’
Income and Spending Grow Between 2005 and 2025?
(Source: Adapted from McKinsey Global Institute Report) …Contd.
How would Household Income Grow by 2025 …Contd.
Average real household disposable income will
grow from Rs. 113,744 in 2005 to Rs. 318,896 by
2025, a compound annual growth rate of 5.3 per
cent as against the 3.6 per cent of the previous 20
years.
The shape of the country’s income pyramid will
change dramatically.
India’s middle class will swell by over eleven
times from its current size of 50 million to 583
million people.
12. How would India’s Consumer Market and Indians’
Income and Spending Grow Between 2005 and 2025?
(Source: Adapted from McKinsey Global Institute Report) …Contd.
How would Household Income Grow by 2025 …Contd.
9.5 million Indian households will be among
the country’s rich / global class in 2025.
Rural households will benefit too. Annual
household income growth will accelerate
from 2.8 per cent over the past two
decades to 3.6 per cent over the next two
decades.
13. How would India’s Consumer Market and Indians’
Income and Spending Grow Between 2005 and 2025?
(Source: Adapted from McKinsey Global Institute Report) …Contd.
How would Household Income Grow by 2025 …Contd.
While despite significant GDP growth in
recent years, as of today, India remains
dominated by people in deprived and
aspirer classes, over 291 million people will
move from desperate poverty to a more
sustainable life between 2005 and 2025.
14. How would India’s Consumer Market and Indians’
Income and Spending Grow Between 2005 and 2025?
(Source: Adapted from McKinsey Global Institute Report) …Contd.
How would Household Spending Grow by 2025
Indian spending patterns will also evolve
and shift with basic necessities such as
food and apparel declining in relative
importance, and categories such as
communications and health care growing
rapidly.
15. How would India’s Consumer Market and Indians’
Income and Spending Grow Between 2005 and 2025?
(Source: Adapted from McKinsey Global Institute Report) …Contd.
How would Household Spending Grow by 2025 …Contd.
Aggregate consumption / spending will quadruple, in
real terms, from 17 trillion Indian rupees today to 70
trillion by 2025 – a fourfold increase in the coming 20
years. By 2015, it will have doubled and reached 34
trillion. This soaring consumption will vault India into
the premier league among the world’s consumer
markets. It will climb from its present rank of the 12th
largest to the fifth largest consumer market in the
world by 2025. By 2015, it would have become almost
as large as Italy’s market. And, by 2025, it will be
surpassing Germany’s consumer market.
16. How would India’s Consumer Market and Indians’
Income and Spending Grow Between 2005 and 2025?
(Source: Adapted from McKinsey Global Institute Report) …Contd.
How would Household Spending Grow by 2025 …Contd.
Discretionary spending will account for 70 per
cent of all spending by 2025.
As the incomes rise, the ‘share-of-wallet’ of
consumer spending will change significantly.
The rich / global class will wield 20 per cent of
total spending and the new middle class will
come to dominate, controlling 59 per cent of
India’s consumption power.
17. India’s Consumer Market –
Size and Composition …Contd.
Share-of-wallet shifts from category to category
not Just from brand to brand
Today, marketers are struggling to retain consumers’
share-of-wallet to their respective categories.
Retaining the market share of one’s brand within the
given category comes only next. The category-to-
category competition confirms that the consumer is
shifting his / her share-of-wallet across categories. For
example, consumers have been transferring a part of
what they have traditionally been spending on FMCG
items to durables / semi-durables / technology
products.
18. India’s Consumer Market –
Size and Composition …Contd.
India’s Consumer Market – Size and Projected Growth Category-Wise
(in Rs. Billion, at 2000 prices)
Category Market
size 2005
Market
size 2025
Market
growth
CAGR
(%)
Transportation 2,788 13,754 10,965 8.3
Food, beverages, and tobacco 7,147 17,296 10,150 4.5
Health care 1,148 8,902 7,775 10.8
Personal products and services 1,274 7,424 6,150 9.2
Education and recreation 762 6,120 5,359 11.0
Housing and utilities 2,019 6,624 4,605 6.1
Communication 344 4,288 3,944 13.4
Apparel 931 3,267 2,336 6.5
Household products 484 1,828 1,344 6.9
Source: McKinsey Global Institute Report
20. The Rich / Global Indians
The rich / global Indians comprise of households
with real earnings of more than Rs. 10 lakh or
$21,890 a year ($117,650 at PPP). As a share of
the total, ‘the rich’ is not a large segment in
consumer India. However, in absolute terms,
their number is significant. It is a particularly
significant segment when we consider their
consumption –s size and pattern. It is also a high
growth segment. Actually, two things are
happening: (i) their number is growing and (ii)
they are getting richer and consuming more.
21. The Rich / Global Indians …Contd.
McKinsey has estimated that there were 12
lakh households in the ‘rich’ class in 2005 and
has projected that it will grow at a rate of 8.6
per cent and reach 2 million households by
2010. The number would grow almost eight
times and reach 9.5 million by 2025.
Interestingly, by then they will be earning
almost a quarter of the country’s income.
22. The Rich / Global Indians …Contd.
Showing a new attitude towards consumption
The rich / global class does not hide their grandeur
anymore. They do not believe in living for tomorrow.
They believe in living life king size today, instead of
merely squirreling away wealth for future
generations. A sizeable section among them is after
instant gratification. The growing sales of diamonds,
furs, caviar and champagne, exquisitely crafted
artifacts, customised modern art, and expensive
accessories, are accounted for, by this high-end /
affluent consumers.
23. The Rich / Global Indians …Contd.
Indulgence regardless of cost; buying
status through super brands
They are willing to pay the due price for the
exclusivity they seek. The higher end in this
breed, in particular, does not battle an eyelid
about spending lakhs on club memberships
and games like polo and gold, and expensive
holidaying. They are actually looking out, all
the time, for ‘new things’ on which they can
spend their money.
24. The Rich / Global Indians …Contd.
Indulgence regardless of cost; buying
status through super brands …Contd.
Every new gizmo that hits the market is a
must-have for them. They spend
conspicuously. They are constantly upgrading
their lifestyle to that of the affluent in the
West. The high purchasing power, in
combination with interaction with the rest of
the world, especially Europe and the US, has
brought the western world into their homes.
25. The Rich / Global Indians …Contd.
‘The rich’ are found in tier-two cities and
rural areas too
Evidence suggest that today half of the ‘rich’
are found in India’s tier-two cities and
selected rural areas. Consumer goods
marketers today, focus their marketing efforts
here too, along with the metros. LG,
Samsung, Maruti, Hyundai, Daimler Chrysler
and others are examples.
26. The Rich / Global Indians …Contd.
‘The rich’ are found in tier-two cities and
rural areas too …Contd.
They have ramped up distribution to tap this
growing base of affluent consumers in smaller
cities. Evidence suggest that non-metro cities
like Chandigarh, Shimla, Ludhiana,
Jalandhar, Pune and Amritsar are becoming
more receptive by the day to premium cars,
home theatres, and other high-value
consumer products.
27. The Rich / Global Indians …Contd.
‘The rich’ are found in tier-two cities and
rural areas too …Contd.
The rich plus the upper crust of the middle
class form a unique consumption group in the
contemporary Indian context. Luxury / high-
end products depend entirely on them. With
other products too, the premium brands
greatly depend on them. That is why this
segment is sometimes described as the
‘image segment’ of consumer India.
29. The Middle Class
Who Constitute the Middle Class? What is its
Size?
The Strivers and Seekers together – those with
incomes of Rs. 2 lakh to 10 lakh per annum –
constitute the middle class. The Seekers (with
incomes of Rs. 2-5 lakh) form the lower part of
the class and the Strivers (with incomes of Rs. 5-
10 lakh) the upper part. McKinsey has estimated
that in 2005, the Indian middle class comprised
13 million households and 50 million consumers.
30. The Middle Class …Contd.
Who Constitute the Middle Class? What is its
Size? …Contd.
Thus, as a percentage of the total population, the
Indian middle class is still relatively small,
comprising approximately 5-7 per cent of the
population. Of course, the size would change if
we changed our definition of the class, i.e. the
income bracket. For example, if we consider
everyone with income of Rs. 1 lakh to 10 lakh
per annum as part of the class, the size would of
course bulge.
31. The Middle Class …Contd.
By 2025, it will have 583 million, making India
a truly ‘middle-class country’
According to both NCAER and McKinsey
studies, the middle class is growing at the fastest
rate and will continue to do so in the coming
twenty years. By then it would have reached 41
per cent of the population or 128 million
households with 583 million consumers. There
will be a bulge in the categories of strivers as
well as seekers.
32. Fig. 1 – Indian Consumption is Currently Dominated by the
Aspirers – the class immediately below the middle class in income
– Position in 2005 (E)
Note: Figures are rounded to the nearest integer and may not add
up to 100 per cent.
Source: MGI India Consumer Demand Model, v1.0
7%
6%
12%
51%
24%
Household Income Brackets (in Thousand
Indian Rupees)
Globals (>1,000)
Strivers (500-1,000)
Seekers (200-500)
Aspirers (90-200)
Deprived (<90)
33. Fig. 2 – Indian will be Dominated by the Middle
Class by 2025 (F)
Note: Figures are rounded to the nearest integer and may not add
up to 100 per cent.
Source: MGI India Consumer Demand Model, v1.0
3%
17%
35%
24%
20%
Household Income Brackets (in Thousand
Indian Rupees)
Globals (>1,000)
Strivers (500-1,000)
Seekers (200-500)
Aspirers (90-200)
Deprived (<90)
34. The Middle Class …Contd.
Concentrated Somewhat in Urban Areas
India’s middle class is presently concentrated
to a good extent in cities and class I towns. A
marketer can cover over a half of the middle-
class market, by reaching out to top 50 cities
in the country in terms of population. He can
reach over two-thirds of the market by
covering top 100 cities.
35. The Middle Class …Contd.
Not totally confined to urban areas, not
just to the big cities, anyway
The middle class is not, however, confined
totally to the metros / other big cities or to
urban areas in general. This would be evident
from the district-wise income index published
by different agencies. The ET district-wise
income index, for example, shows that higher
incomes are not confined to the metros.
36. The Middle Class …Contd.
Not totally confined to urban areas, not
just to the big cities, anyway …Contd.
While Mumbai, Delhi, Bangalore and Chennai
quite expectedly grab the top four ranks,
along with them districts like north and south
24 Parganas, Indore, Ernakulam, and
Muzaffarnagar, also find a place in the top 25
list.
37. The Middle Class …Contd.
Not totally confined to urban areas, not
just to the big cities, anyway …Contd.
While the top six Indian cities – Mumbai, Delhi,
Chennai, Kolkata, Bangalore and Hyderabad –
account for 14 per cent of India’s GDP, cities
with a population of more than half a million –
tier-two cities like Nagpur, Surat, Vadodara,
Ahmedabad, Vijayawada – account for about 13
per cent of the GDP. There is a sizeable middle
class in the rural areas too.
38. The Middle Class …Contd.
Not totally confined to urban areas, not
just to the big cities, anyway …Contd.
An NCAER study reveals that rural
households in the upper income categories
are growing at a much faster pace than urban
households in the corresponding categories.
39. The Middle Class …Contd.
There are middle-class consumers in
small towns; they are buying high-end
durables
There is a reasonably-sized segment of
middle class consumers in small towns too –
towns with less than one lakh population.
They have begun contributing significantly to
sales of high-end durables such as flat
televisions and frost-free refrigerators.
40. The Middle Class …Contd.
There are middle-class consumers in
small towns; they are buying high-end
durables …Contd.
According to an estimate by ORG-GFK, they
contributed about 33 per cent of flat television
sales, about 28 per cent of frost-free
refrigerator sales and 20 per cent of fully
automatic washing machine sales.
Consumers in the rural areas are included in
this. Higher income has fuelled the growth.
41. The Middle Class …Contd.
There are middle-class consumers in
small towns; they are buying high-end
durables …Contd.
According to recent industry estimates,
consumption of premium bikes and top end
cars by middle class in rural areas have gone
up by 35-40 per cent. They are also now
looking for value products, and better-
technology products, not just cheap products.
43. The Changing Profile of the
Middle Class
A Class Growing in Confidence
The middle class is at the centre of the socio-
economic changes now taking place in the
country.
It is better educated and better exposed to
matters global. The younger among them
usually have a professional qualification.
Opportunities are available to the class as
never before. They enjoy far greater scope to
shape their future than their parents ever had.
44. The Changing Profile of the
Middle Class …Contd.
A Class Growing in Confidence …Contd.
It has become possible for exceptionally talented
young people in the class to make big fortunes in
a short time, via enterprise as well as
professional work. Many entrepreneurs are
emerging from the class every year, many of
them seizing key slots in the IT and other New
economy businesses. The class is non-
ideological, pragmatic and result oriented. What
we see today is ‘a confident new middle class’.
45. The Changing Profile of the
Middle Class …Contd.
Acquires a New Political Clout
Along with the explosion in size and the
growth in economic power, the class has
acquired a new political clout. No political
party can now risk displeasing this group. It
has the clout to shape the government’s
policies in may fields. It is not swayed much
by considerations such as religion, region,
caste, and language, or even ideology.
46. The Changing Profile of the
Middle Class …Contd.
Acquires a New Political Clout …Contd.
It has a common agenda, a simple agenda for
that mater – get good income, provide for the
best goods and services and enjoy life. The
developments in recent years have brought
some tangible gains to them and they would
oppose any move at the policymaking level to
change that equation. They have become a
powerful lobby. They also have the support of
the media in good measure.
47. The Changing Profile of the
Middle Class …Contd.
Becomes India’s ‘Consumption
Community’
The middle class is becoming the
‘consumption community’ of the country.
Their number as well as spending power has
been growing at a rapid pace. Often, they
spend more than what they earn at the given
point in time, in order to cope with their new
social image. Availability of credit has come
to their rescue.
48. The Changing Profile of the
Middle Class …Contd.
Becomes India’s ‘Consumption Community’
…Contd.
Expensive fabrics, ready-mades, stereo-
music systems, CTVs, refrigerators, electric
mixer cum grinders, pressure cookers, gas
stoves and now, cell phones have become
essential items for the class. Appliances like
washing machines, vacuum cleaners,
microwaves, and dishwashers are gaining a
rapid entry into the homes of the upper
segment of the class.
49. The Changing Profile of the
Middle Class …Contd.
Becomes India’s ‘Consumption Community’
…Contd.
Personal transport is becoming a must for
them. The massive expansion in the two
wheeler and passenger car markets is linked
to the demand from this class. The rise of the
stock markets over the past few years is also
attributed, to some extent, to the growing
economic strength of the class.
50. The Changing Profile of the
Middle Class …Contd.
Becomes India’s ‘Consumption Community’
…Contd.
A combination of factors like increasing
disposable income arising out of larger job
opportunities at higher wages – in sectors like IT,
insurance, finance, and retail.
Today, a person in the middle class just starting
a job goes for own house and car. His high
income coupled with the availability of ample
loan facilities / finance options permits such
purchases.
51. The Changing Profile of the
Middle Class …Contd.
Paradigm shift in outlook on consumption
No longer is the consumer willing to wait,
save, and defer consumption. He or she
wants to consume now and pay later.
52. The Changing Profile of the
Middle Class …Contd.
Spending Pattern Undergoes a Major Shift
The share of spending on grocery has fallen
significantly while that on clothing, personal care,
and eating out has risen significantly. Analysis
shows that people in the age group of 20-24
years are spending the largest proportion of their
incomes on consumer durables like TV’s,
fridges, and microwaves and those in 35-44
group are spending it on apparels and
furnishings. Practice of giving gifts is growing.
53. The Changing Profile of the
Middle Class …Contd.
From Functional Living to Lifestyle Living
to Flaunting the Affluence
In the past, the middle-class was, by and
large, voting for functional living, buying most
of the products for functional reasons. They
have now started buying many products for
emotional reasons. Spending has shifted from
conventional to aspirational. They now feel
the need for projecting a specific image.
54. The Changing Profile of the
Middle Class …Contd.
From Functional Living to Lifestyle Living
to Flaunting the Affluence …Contd.
It is the change in their lifestyles that has
brought about the change in their
consumption habits. Yesterday’s luxuries are
fast becoming today’s necessities. Spending
big is fine with them. So is living on credit.
Unlike their fathers who were content driving
an Ambassador for 25 years, they change
their car every two years.
55. The Changing Profile of the
Middle Class …Contd.
From ‘family-need based spending’ to
‘spending for pampering oneself’
Earlier, middle class people were generally
spending more for the family than for
themselves. Today, most of them happily
lavish things on themselves. This trend is
more visible among the younger in the class.
56. The Changing Profile of the
Middle Class …Contd.
Goes after lifestyle products / activities
According to a KSA Technopak Consumer
Outlook report, the present day urban middle
class is going after lifestyle – oriented
products and activities – items such as
entertainment, clothes, eating out, and
vacations. Many of them – from the upper half
of the segment in particular – are now
embracing many hitherto unaccustomed
products. comfort products.
57. The Changing Profile of the
Middle Class …Contd.
Goes after lifestyle products / activities …Contd.
They have moved up from spending on basic
products to the lifestyle categories – air travel,
personal grooming, alcoholic beverages, leisure,
entertainment, CDs, DVD players, camcorders,
digital cameras, and several convenience and
comfort products. Health awareness has turned
them towards health insurance. They are also
spending substantial sums of money on fitness
centres, skincare products and health food.
58. The Changing Profile of the
Middle Class …Contd.
Goes after lifestyle products / activities …Contd.
They also now have a more liberal attitude to
eating out, and travel. In their homes,
computers and related furniture are replacing
bookshelves in children’s rooms. They prefer
to shop at a supermarket instead of a local
grocery store and watch a movie in a
multiplex rather than a cinema house of the
older type.
59. The Changing Profile of the
Middle Class …Contd.
Products from across the globe make it to Indian
retail shelves
The Indian consumer is also getting global.
Imported brands in several categories like
food, home-cleaners, shampoos, soaps and
health foods are now seen to occupy a good
part of the shelf space of the supermarkets.
Three factors – awareness, availability and
affordability – are aiding it.
60. The Changing Profile of the
Middle Class …Contd.
Products from across the globe make it to Indian
retail shelves …Contd.
Many consumers have travelled abroad and
are used to the imported brands. They now
have access to them in India. Even first-time
consumers buy it since it is aspirational. Many
imported brands have moved on from a mere
high-end usage category to the middle-class
one and are poised to be volume pushers.
61. The Changing Profile of the
Middle Class …Contd.
Seek World-Class Shopping Experience
Today’s middle class is also looking for world-
class shopping experience. A good shopping
place and a decent mix of products is not
enough; they want food courts, entertainment
facilities, amusement facilities for children,
and hassle-free parking facilities. They are
also after intangibles like best ambience and
best mall arrangement.
62. The Changing Profile of the
Middle Class …Contd.
Seek World-Class Shopping Experience
…Contd.
The shoppertainment concept has spread all
over India. It confirms the new leisure-
pleasure-shopping lifestyle of the middle
class. Middle-class Indians in metros and tier-
two cities are now making a good part of their
purchases from such modern retail outlets.
63. The Changing Profile of the
Middle Class …Contd.
Go for modern, attractive and fully loaded
homes
Many middle-class Indians are now either buying
/ building new modern and attractive homes or
are redesigning their existing houses. House
improvement and improvement of interiors are a
significant preoccupation of a large number of
present-day middle-class Indians. Of course,
with many women working from home, there is
also a genuine need now to accommodate a new
workspace in the house.
64. The Changing Profile of the
Middle Class …Contd.
Go for one more car, one more TV..
The middle class homes – the higher end of
the class in particular – are now aspiring for
buying ‘one more’ in every category. They
need a second car, a second TV and a
second refrigerator. This is an indication of
their growing needs, the growing purchasing
power, and the growing willingness to spend.
65. The Changing Profile of the
Middle Class …Contd.
Go for one more car, one more TV …Contd.
Marketers fuelled this desire by appropriate
offers and campaigns like, Onida candy,
positioned as a bedroom TV, the Bajaj Sunny
selling as ‘a bike for your wife’, Akai’s free
offer of a 14-inch TV along with every 29-inch
model and HDFC’s additional mini credit card
for city shopping.
66. The Changing Profile of the
Middle Class …Contd.
Go for fast replacement of appliances /
gadgets
Many middle class consumers now change
appliances every 4-5 years. Earlier, they were
doing it over 10-12 years. In the case of mobile
handsets, they are now willing to change within
two years. According to a survey by the mobile
handset industry, 76 per cent of those contacted
said they would change their handsets within the
next 12 months and 18 per cent said they would
do so in the next 12 to 24 months.
67. The Changing Profile of the
Middle Class …Contd.
Proliferation of new generation coffee
cafes
In the context of the changing lifestyle and
eating habits, a mention must be made about
the growth of the new generation coffee cafes
too.
68. The Changing Profile of the
Middle Class …Contd.
The Globetrotter
Mobility is also high now with the middle class;
travel by road, rail or air, are all on the increase. In
fact, holidaying is now becoming very popular.
People travel to all corners of the country for
enjoyment and relaxation. Foreign travel too is
becoming popular. The middle-class Indian’s foreign
travel began with forays into destinations in South
East Asia, the Gulf and the UK and has spread to
other parts – especially the US – in more recent
years. Travel has become a mass market.
69. The Changing Profile of the
Middle Class …Contd.
The Middle-Class Youth, Poised to Change
Traditional Profile of Consumer India
Young India is on the Move; in Fast-
Forward Mode
It is the best way to express the emerging
youth market – fast forward. They are going
to be the big spender, from now on. They
drive taste trends; especially leisure and
lifestyle trends will be set by this group; they
experiment the most.
70. The Changing Profile of the
Middle Class …Contd.
The Middle-Class Youth, Poised to Change
Traditional Profile of Consumer India
Young India is on the Move; in Fast-Forward
Mode
Much of the retail book is already being driven by
them; consumption of items like sports shoes,
apparel and cell phones are shooing up because
of them. Already lakhs of young middle-class
Indians (median age of 24) now live ‘the life of
the rich’. It is a sight of ‘the young and the
restless’ being unleashed.
71. The Changing Profile of the
Middle Class …Contd.
The Teens
The middle-class Teens (Teenagers) – 13 to 19
years olds – form another distinct and sizable
segment of ‘consumer India’. It must be noted that
there is a slight overlap between ‘youth’ and ‘teens’
in our discussions as the 18-19 group is included in
both. An IRS study shows that this group consumes
about 30 per cent of the mainstream products. It is a
particularly important consumer segment for product
categories like garments, cosmetics, personal care
products, fast foods and soft drinks, and consumer
electronics / IT products.
72. The Changing Profile of the
Middle Class …Contd.
The Teens …Contd.
Compared to their seniors, the present-day teens
are more modern and adventurous. In them, we
see the blend of the Western and Indian
lifestyles. As a general rule, they care less for
aspects like religion and tradition, and more for
material comforts and physical well-being. They
seek novalties, and are after a ‘New Look’ in
most respects. ‘Variety’ interests them. And most
of them are quick in adopting ‘current fashions’.
73. The Changing Profile of the
Middle Class …Contd.
The Teens …Contd.
They are more receptive to change. Their tastes
and preferences can be influenced relatively
more easily. It is, of course, not easy to dupe
them. Marketers can motivate them to try new
things. As the ‘teenage market’ is gaining in
importance, many manufacturers now
particularly target the teens and make distinct
offer to suit them.
74. The Changing Profile of the
Middle Class …Contd.
Consumer electronics players target the
teenager
In urban / semi-urban India, there is a large tech-
savvy, computer-oriented, teenage-group, whose
parents have the required affordability. Naturally
consumer electronics players target them. HP
has targeted them for its latest digital cameras.
Their assessment is that ‘Photo printers and all-
in-one products are now used widely by the
teenage group for communication and instant
image-sharing’.
75. The Changing Profile of the
Middle Class …Contd.
Consumer electronics players target the
teenager …Contd.
Philips too has recognised the importance of
the segment. To quote the company, ‘Youth,
especially the teenager, wants to integrate
PC with entertainment gadgets, which has
prompted us to incorporate PC links into the
audio systems.’
76. The Changing Profile of the
Middle Class …Contd.
The Tweens
The middle-class tweens also represent big
consumer power. In the chapters on
Marketing Environment and Consumer
Behavior we talked about the advent of the
tweens as a distinct and powerful segment of
consumers across the globe. Here, we are
particularly concerned about the tweens as a
consumer segment in India.
77. The Changing Profile of the
Middle Class …Contd.
The Tweens …Contd.
Future consumption in the country is going to
be dominated by this category. At present,
they influence most of the purchases of the
family. When a marketer is able to secure a
person as a customer at a young age, he has
a greater possibility of maintaining that
relationship over the long term. Marketers
cannot afford to take this demographic
segment lightly.
78. The Changing Profile of the
Middle Class …Contd.
The Kids
The middle-class kids (those below the
‘tweens’ in age), also represent sizable
consumer power.
80. The Lower Income Section
Now, let us turn to the third category, the
lower income section. It corresponds to the
‘aspirers class’ with household incomes of
Rs. 90,000 to Rs. 2 lakh a year. It represents
a sizeable demand base for some categories
of products. Though the per capita purchasing
power of the consumers here is low, their
number being very large, the size of the
market represented by them as a class, is
large.
81. The Lower Income Section
…Contd.
According to NCAER data / estimate, the
lower income section will constitute 34 per
cent of total households by 2010. NCEAR has
also found that over 75 per cent of the
purchase in categories like cooking oil, tea,
detergent cake, bath soap, tooth powder,
transistor radios, and lower priced footwear,
come from people with below Rs. 25,000 per
annum per capita income.
82. The Lower Income Section
…Contd.
This translates into an income of around Rs.
1,00,000 per household, per annum. The
section provides a continuous stream of first-
time users of several branded FMCG
products, heralding continuously increased
penetration of these products.
83. The Lower Income Section
…Contd.
With this Class, Product Categories
Compete for the Same Consumer Rupee
Though incomes with this class have been
rising in recent years, purchasing power
continues to act as a limitation on their
consumption of different products. P.M.
Sinha, former chairman, Pepsi India, has
made some interesting observation on this
which is given in the next slide:
84. The Lower Income Section
…Contd.
‘Yeh dil maange more’ did Touch This
Consumer, But His Pocket did Not Match
Proliferations of brands / choices have no doubt
kindled consumer’s desires. He has now got a
taste of what the world has to offer. Not
surprising, therefore, that ‘Yeh dil maange more’
finds so much resonance with the lower income
Indian consumer! But sadly, his pocket has not
become matchingly deeper.
Source: Adapted from a speech by Sri P.M. Sinha, former
chairman, Pepsi Co. India.
85. The Lower Income Section
…Contd.
The climbing up process will continue
In recent years, this class has been moving
up. Every year, its upper most part has been
joining the middle class. The process will
continue. At the aspirational level, a good part
of this group is already a part of the middle
class.
86. The Lower Income Section
…Contd.
The class is poised to become a market for mobile
phone
Earlier, India became a big market for mobile phones as
the middle class joined the market. Now, even the lower
income section is joining the fray. Both service providers
and handset makers are looking at them as a viable
segment. Handset makers are bringing in mobile
phones below $30 a piece as part of their strategy to
reach out to them. Chinese made handsets are going to
be made available still cheaper. With this, the section is
expected to take to the cell phone in a big way in the
coming years.