Explore Other Industries
Last Updated: August 26, 2015
CEO and President, South West Asia Samsung
Latest update: August, 2015
•The consumer durables sector raked in revenues worth US$ 7.3 billion in FY12
•Growth has been healthy over the years; the sector recorded a CAGR of 10.8 per cent over FY03-12
•Consumer durables market is expected to double at 14.7 per cent CAGR to US$ 12.5 billion in FY15 from US$ 6.3 billion in FY10
Last Updated: August, 2015
DURABLES SECTOR REPORT | August, 2015
FMCG SECTOR REPORT | August, 2015
India’s consumer confidence continues to be the highest globally and has improved in the second quarter of calendar year 2015 (Q2), riding on a positive economic environment and low inflation. Nielsen’s findings reveal that the consumer confidence of urban India increased by one point in the second quarter of 2015 from that in the preceding quarter. Urban India’s consumer confidence is 131 in the second quarter of 2015, up three points from 128 in the previous corresponding period. The current score helps India stay on top of the global consumer confidence index for the quarter and is followed by the Philippines (122) and Indonesia (120). Confidence in India has risen for the seven consecutive quarters.
Global corporations view India as one of the key markets from where future growth is likely to emerge. The growth in India’s consumer market would be primarily driven by a favourable population composition and increasing disposable incomes. A recent study by the McKinsey Global Institute (MGI) suggests that if India continues to grow at the current pace, average household incomes will triple over the next two decades, making the country the world’s fifth-largest consumer economy by 2025, up from the current 12th position.
According to a report by Boston Consulting Group (BCG) and the Confederation of Indian Industry (CII), India’s robust economic growth and rising household incomes would increase consumer spending to US$ 3.6 trillion by 2020. The maximum consumer spending is likely to occur in food, housing, consumer durables, transport and communication sectors. The report further stated that India's share of global consumption would expand more than twice to 5.8 per cent by 2020.
India’s market is consumer driven, with spending anticipated to more than double by 2025. The Indian consumer segment is broadly segregated into urban and rural markets, and is attracting marketers from across the world.
The growing purchasing power and rising influence of the social media have enabled Indian consumers to splurge on good things.
A study by US-based networking solution giant CISCO, reveals that in India, the second-largest smartphone market globally, the number of smartphones is expected to grow strongly to over 650 million by 2019.
According to CISCO’s Visual Networking Index (VNI) global mobile data traffic forecast for 2014–19, in India, one of the world's fastest growing Internet market, the number of tablets is estimated to reach more than 18 million by 2019.
Rating agency Crisil estimates that online retailing, both direct and through marketplaces, will grow threefold to become a Rs 50,000 crore (US$ 8.06 billion) industry by 2016. Also, the growth in Internet retail is expected to boost offline retail stores.
Following are some major investments and developments in the Indian consumer market sector.
The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in the electronics hardware-manufacturing sector through the automatic route. The government has also enabled 51 per cent FDI in multi-brand retail and 100 per cent in single-brand retail so as to attract more foreign investment into the country.
With the demand for skilled labour growing among Indian industries, the government plans to train 500 million people by 2022 and is also encouraging private players and entrepreneurs to invest in the venture. Many government, corporate and educational organisations are working towards providing training and education to create a skilled workforce.
According to a recently published TechSci Research report, "India Food Services Market Forecast & Opportunities, 2020", the food services market in India is expected to expand at a CAGR of over 12 per cent through 2020, primarily driven by increasing disposable income, changing lifestyle, and changing tastes and preferences of consumers. Another major factor propelling the demand for food services in India is the growing youth population, primarily in the country’s urban regions. India has a large base of young consumers who form the majority of the workforce and, due to time constraints, barely get time for cooking.
According to the report titled "India Machine-to-Machine (M2M) Modules Market Opportunities & Forecast, 2020", the M2M modules market in India is expected to exceed US$ 4.4 billion by 2020. The market research firm stated that over the last few years, India has become one of the fastest growing markets for M2M modules in Asia-Pacific (APAC).
Research firm Nielsen projected that rural India’s FMCG market will surpass the US$ 100 billion mark by 2025. Online portals are expected to play a key role for companies trying to enter the hinterlands. The Internet has contributed in a big way, facilitating a cheaper and more convenient means to increase a company’s reach.
Exchange Rate Used: INR 1 = US$ 0.016 as on July 8, 2015
References: Media reports, press releases
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Loading blogs ...
FUTURISTIC SOLUTIONS, CURRENT SCENARIOS
eToilets, the self-flushing, self-monitoring technology-based sanitation solution, is no longer a dream, but has been brought into reality by Eram Scientific Solutions (ESS).
Copyright © 2010-2015 India Brand Equity Foundation
All material, information, data, images or content on this website is subject to copyright or other applicable intellectual property laws and no part of it can be reproduced in any form (including paper or electronic form) without prior written consent and approval from IBEF. Infringements are subject to prosecution under the applicable laws. For consent related queries and conditions,
please write to email@example.com
An initiative of the Ministry of Commerce & Industry, Government of India