For some, it is a cash cow and a commercial bonanza; to others, a waste of money.
Choose your location to get a site experience tailored for you. Rising affluence is the biggest driver of increasing consumption. Behind the growth headlines is an even more important story: These shifts have big implications for how companies position themselves now. Inwe took an updated look at emerging developments, basing it on new research among 10, consumers in 30 locations nationwide.
The evolution in consumer behaviors is playing out largely as we predicted four years ago, but, inevitably, new developments, as well as twists and turns, are affecting consumer attitudes and consumption.
It presents an assessment of how companies need to adjust their strategies and models to meet shifting circumstances. Within this segment, the urban elite and affluent are fueling most of the growth. Bywealthy urbanites will be responsible for one-third of total consumption.
The migration to urban centers is not concentrated in a few cities as it is in countries such as Indonesia or Thailand; nor is urbanization in India occurring as quickly as in China.
In India, the population is booming in scores of small cities across the country. Much of this growth will take place in small towns. In terms of consumption expenditures, emerging cities those with populations of less than 1 million will be the fastest growing.
We expect emerging cities to see the highest growth in the number of elite and affluent households through By then, the number of such households will have increased by a factor of more than 2. Consumers in emerging cities behave differently from the big-city consumers.
They have a strong value-for-money orientation, significant local cultural affinity, and a more conservative financial outlook. They have high purchasing aspirations but are often constrained by product availability.
Emerging cities of similar sizes and growth rates differ from each other and from metropolitan centers in just about all other respects.
It would be a mistake to approach consumers in these cities as a homogeneous group. In addition, as the cities grow larger, companies will need to segment further within each one, to identify small areas of opportunity.
The best opportunities in major metropolitan areas may be concentrated in a small set of micromarkets, depending on the consumer segment that a company wants to reach. Similar breakdowns can be applied to New Delhi and other major cities.
Many attractive micromarkets can be found outside the big metropolitan centers: To identify the real pockets of opportunity, marketers need to apply a sophisticated approach to regional segmentation. As we also noted four years ago, the extended Indian joint family has given way to nuclear households, which we define as a couple or a single person, with or without children.
Spending Patterns Evolve Rising incomes affect spending patterns in various categories differently. Certain categories and subcategories become more or less relevant to consumers as their incomes increase.
We have found that the classic S-curve growth pattern does not always hold true and that different categories exhibit very different growth trajectories.
The study revealed five broad categories of correlations between rising income levels and expenditures. The categories reflect the following consumption-income relationships: Consumption takes off at a certain income level.
Consumption increases linearly with income. Consumption increases slightly with income. Consumption stabilizes after a certain income level is reached. Consumption decreases after a certain income level is reached. A clear understanding of these correlations helps identify a growth trajectory for each of these categories and subcategories.
In many cases, historical growth is not a good predictor of the future. For example, mobile-phone sales and mobile internet connections are likely to show disproportionately high growth rates over the next decade as incomes rise quickly.
TV sales, on the other hand, increase only slightly with rising incomes, so they are more likely to maintain their historical growth trajectory.Jul 21, · Impact of MNCs in Indian Economy.
Discuss Impact of MNCs in Indian Economy within the Marketing Management forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Here's an International Marketing project on..
Impact of MNCs in Indian Economy .. >>> Advertisements. International Journal of Marketing, Financial Services & Management Research_____ ISSN Vol.2, No.
3, March ().
There are very few single firms which can have a strong impact on Indian economy. Some of them being Indian Railways, State Bank of India and maybe Oil and Natural Gas Corporation(ONGC).
Business Standard, India's leading business site for Live Markets, Live BSE & NSE quotes, latest news, breaking news, political news, analysis and opinion on markets, companies, industry, economy, policy, banking and personal finance news and more.
3 Spotlight on India’s entertainment economy Economy and demographics The Indian economy is on a path of robust growth, with annual growth in GDP over the last three years averaging %. 1 India’s GDP stood at US$ trillion in The country remains the second fastest growing major economy in .
Impact of Fii on Indian Economy Words | 24 Pages. accumulation.
Though, despite this shortage of investment, these countries have developed a strong urge for industrialization and economic development.