With India’s per capita consumption and disposable income increasing fast, India Inc found itself answering some pertinent questions relating to consumption trends and patterns.
The panel was in agreement with the fact that such diverse and varied consumption patterns were a result of liberalisation, but also agreed that these patterns in India could not be compared to any other economy.
Fast moving consumer goods (FMCG) giant Hindustan Unilever (HUL) Chief Executive Officer and Managing Director Nitin Paranjpe said, “There has particularly been an increase in the sales of personal care products in the economy, which is a direct reflection of the fact that Indians now are willing to spend on themselves, a phenomenon that was scorned earlier.”
He went on to say that apart from this, there is also a trend towards instant gratification that has taken over the Indian markets, and it was now tough to distinguish between urban and rural consumers. This, he noted, was due to the recent adoption of technology and the shift in demographics, especially in organised retail.
Over the next 12 years, consumption was sure to grow manifold, he said.
Also present was Niren Choudhary, MD, Indian subcontinent, Yum! Restaurants, who pointed out that India had four key insights as far as its consumption market goes. First, India is arguably the youngest market in the world and that there is going to be a substantial change in the near future. Second, the consumption pyramid in India is dominated by value for money, followed by the price point value syndrome.
‘Chunky Economics’ is another term that corporates seemed to have coined to describe current consumption trends in the country. Choudhary said this basically meant, “First world costs at third world affordability.”
And lastly, the population factor is what the panel agreed what made the Indian economy a different ball game altogether. Reports claim that out of a population of one billion, 100 million can afford to pay the prices that MNCs charge.