veenita mame ppt

8/4/2019 VEENITA MAME PPT

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The Mixed Message From

Consumer India

By

Avinash Kumar Singh


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Even though the world has justdiscovered it, the India growth

story is not new. It has beengoing on for 25 years old


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What is the India story?


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1) Rising GDP growth

% average annual GDP growth

1900 1950 1.0 1950 1980 3.5 1980 2002 6.0 2002 2010 8.3

Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001), 2000-2010 Finance Ministry

India Story


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2) Population growth is slowing

% average annual growth

1901 1950 1.0 1951 1980 2.2 1981 1990 2.1 1991 2000 1.8 2001 2010 1.5

Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001)

India Story


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% 1950 17

1990 52 2000 65 2010 80

Source: Census of India (2001)

3. Literacy is risingIndia Story


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% Million People

1980 8 65

2000 22 220

2010 32 368

4. Middle class is explodingIndia Story


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1980 46%

2000 26%

2010 16%

1% of the people have been crossing poverty lineeach year for 20 years. Equals ~ 200 million.

5. Poverty is decliningIndia Story


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6. Productivity is risingIndia Story

30% to 40% of GDP growth is due to rising productivity


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(US$ ppp)

1980 1178 2000 3051

Source: World Bank

7. Per capita income gains

India Story


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8. India is now the 4th largest

economy

India Story

And it will cross Japan between 2012

and 2014 to become the 3rd largest


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THE INDIA MODEL ISUNIQUE


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DRIVERS OF GROWTH

India East and S.E. Asia

Domestic Exports


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DRIVERS OF GROWTH


Domestic Exports Services Manufacturing


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DRIVERS OF GROWTH


Domestic Exports Services Manufacturing Consumption Investment


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DRIVERS OF GROWTH


Domestic Exports Services Manufacturing Consumption Investment High tech, capital Low tech, labour intensive industry intensive

industry


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Reasons for Success

Indias success is market led

whereas Chinas is state induced.The entrepreneur is at centre of

the Indian model


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Rise of globally competitive Indian companies:

Reliance, Jet Airways, Infosys, Wipro, Ranbaxy, Bharat Forge, Tata Motors, TCS, Bharati, ICICI and HDFC Banks


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Public space is a problem

+ Dynamic democracy

+ Free, lively media and press - Poor governance - High subsidies High fiscal deficit - No money for infrastructure


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The worlds economic centre of gravity isshifting-away from the established,

wealthy economies of Europe, Japan, andNorth America and towards the AsiaPacific

India is one of the fastest-growing large

economies in the world. Over the last 15 years India has changed

much faster than many predicted.


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The Indian Consumer Is Rapidly

Transforming

Outlook From Traditional to Modernized Traditional

Paradigm Shift in almost all aspects of life


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Expected Utility from Products/

Services From Functional to Lifestyle


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Eating habits From traditional meals to Indianised McDonalds


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Value From Merely Price, to Benefit /Effort (Price+Time + Convenience)

Saving time is moreimportant than

savinga few Rupees - 51%

Id rather havemore

time than money -47%

I like to shop,

butdo not havetime - 47%

I shop closest tomy home/office -

59 %

Source : Consumer Outlook


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Buying a TV set- Factors

Early ninetiesOne, availability; two, price; and, three,

picture quality Mid-nineties, the efficacy of an exchange scheme and the

number of channels a company offered

Todaysophistication -one of the fastest growing

segments of the market is high-end flatTVs


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As Indians have grown richer, they havebegun to spend more on vehicles, phones,

and restaurants, according to recentresearch on consumption patters byDeutsche Bank.

C l i


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Complete utilisation of space in traditional outlets

THANK YOU

ConclusionConclusion

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