Last Updated: April 24, 2014
CEO and President, South West Asia Samsung
Updated: December, 2013
DURABLES SECTOR REPORT | March, 2014
FMCG SECTOR REPORT | March, 2014
India is likely to be the world's largest consumer market by 2030, according to a report by global consultancy Deloitte. The country’s retail market is projected to touch US$ 1.3 trillion by 2020, as per Mr KV Thomas, India’s Consumer Affairs Minister. With the online medium of retail gaining more and more acceptance, there is a tremendous growth opportunity for companies (international and domestic) in the retail and fast-moving consumer goods (FMCG) segment.
The Indian consumer sector can be broadly categorised into urban and rural markets. The bourgeoning sector is attracting global marketers like never before. The pace at which India’s consumer market is changing can be put down to dramatic shifts in consumer behaviour, increasing urbanisation, presence of a strong service sector, changing lifestyle, and most significantly, the expanding retail segment.
Businesses that can cater to the requirements of India's ambitious middle class, keep prices reasonable, build brand loyalty in new consumers, and adapt to a rapidly changing environment will find tremendous rewards in India’s potential-filled consumer market.
Companies across the world are tuning their strategies and offerings to cater to Indian tastes and preferences. The following are some of the efforts, investments and developments in the sector:
India’s urban population has contributed majorly to the growth of the online market in the country. Around 30–40 per cent of the total retail in India’s top 75 cities is expected to be carried out online in the next 7–10 years, said Mr Arvind Singhal, Chairman and Founder, Technopak Advisors. Amazon, the world’s biggest internet retail company, has seen potential in the Indian market. In June 2013, India became only the tenth market where Amazon has established a country-specific retail website.
With rural India getting increasingly empowered with all forms of technology, online portals are going to be vital for companies trying to access these markets. Of the total online market products, consumer durables account for 34 per cent, apparel and accessories 30 per cent, books 15 per cent, beauty and personal care 10 per cent, and home and furnishing 6 per cent. Over 50 per cent of sales in these product categories take place in non-metro cities.
Some of the biggest deals in the online retail and retail space in the past three years materialised in the quarter ended September 2013. Flipkart.com raised US$ 200 million from existing investors – private equity firms Tiger Global Management LLC, Accel Partners and Iconiq Capital, and MIH (a part of South Africa’s Naspers Group ). This investment is the largest in online retail in the country.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Loading blogs ...
Happily Unmarried : For the Fun of It
"It's a revolt against convention. Happily Unmarried counters the propensity of marketers to create products in the conventional backdrop of happily married couples...