Uploaded byAshwin Malshe
Analysis of Indian industries
This document summarizes information about various Indian industries including luxury, pharmaceuticals, cosmetics, and processed food. It discusses key facts such as the size and growth rates of these markets in India. For example, it notes that the Indian luxury market size was $5.7 billion in 2010 and is expected to reach $15 billion by 2015. It also provides case studies on specific companies operating in India like Hermes, L'Oreal, and HUL.
More Related Content
Similar to Analysis of Indian industries
Analysis of Indian industries
- 1. Analysis of Indian Industries Prof.Ashwin Malshe Marketing Department – ESSEC
- 2. Agenda • Study fourIndian industries • Luxury • Pharmaceutical • Cosmetics • Processed food • Mobile banking (if time permits) • Case study on HUL Pureit water purifier
- 3. Source of Data •Most figures in this presentations are taken from multiple sources. A primary source has been industry reports published by consulting firms. I attribute data to the sources wherever applicable.
- 4. Luxury Market • Indianluxury market size - $5.7 billion in 2010 • Growth at estimated 20% per year • By 2015, the market size will be close to $15 billion • Six cities dominate – Delhi, Mumbai, Bangalore, Chennai, Hyderabad, an d Pune • Traditional ‘low margin, high volume’ model is restrictive for luxury penetration • Presence of multiple brands • Hermes, Paul & Shark, Diesel, Canali, Tumi, Aston Martin, Ferrari, Harley Davidson, Ducati, Kiehl’s, L'Occitane, Hakkasan, etc. Source – AT Kearney
- 5. Luxury • Indian consumer • Many Indians became rich recently (post 1990) • The typical luxury customer may be labeled ‘Parvenu’ • Wants to associate with other ‘haves’ and wants to disassociate from ‘have-nots.’ Uses loud signals • Price sensitivity remains high • Mercedes diesel sells much more than petrol version • Discounts are considered as entitlements by the Parvenus.
- 6. Luxury • Trademark laws • Counterfeits are common • Less than China, however • Poseurs are more likely to use them • PC Mallappa vs McDonald’s case • Delay in courts • Sales culture • Incentives are variable in most cases • High fixed as well as variable pay
- 7.
- 8. Hermes Saris • Pricedat $6,100 to $8,400 (€4,700 - €6,500) • Limited edition
- 9.
- 10. Hermes India • 3outlets: Delhi, Pune, and Mumbai • Low advertising budgets • No difference in product or store design as compared to Paris • Excellent sales staff
- 11.
- 12. Indian Market • Indianpharma market size was $11.6 billion in 2009 and growing at average rate of 14% annually • $20 billion by 2015 • Currently ranks between 10-14 in the world by size • Produces simple headache pills to sophisticated antibiotics • Almost every type of medicine is now made in India • 250 large companies control 70% market McKinsey and Corporate Catalyst India
- 13. Nature of PharmaIndustry • From 1970 to 2005, Indian law recognized only ‘process patents’ and not ‘product patent’ • Many Indian companies started producing top notch drugs by changing process • This stopped with WTO adoption in 2005 • Strong R&D base and low labor cost • Reaching the consumer through physicians • Direct to consumer advertising is relatively low
- 14. Emerging Trends • Globalpharma companies are investing directly in India • Latest regulatory changes have created some challenges • Contract R&D • Drug discovery and development • Clinical trial organization • Contract manufacturing • Contract co-marketing alliances
- 15.
- 16. Indian Market 3,000.0 2,500.0 2,000.0 1,500.0 2011 2012 1,000.0 2013 500.0 0.0 Hair Bath Skin Oral Men's Care and Care Care Grooming Shower
- 17. Whitening Cream • Largestselling beauty product in India • Women • Commercial • Pond’s series • Men • Commercial
- 18. al India • EnteredIndia in 1993 • Presence in 100 top cities and towns • Four divisions • Consumer products (Garnier) • Professional products • Active cosmetics (Vichy) • Luxury (Lancôme) • Own manufacturing in Pune for hair and skin care
- 19. al India Value Share Rank Beauty and personal care 3.50% 6 Color cosmetics 13% 3 Hair care 8% 4 Skin care 6.50% 2 Men's grooming 0.90% 14
- 20. Processed Food • MumbaiDabbawalas
- 21. Indian Market 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 2010 0.0 2011 2012
- 22. Packaged Wheat Flour •Pillsbury