According to Manu Anand, CEO, PepsiCo India, India's consumer pyramid is shaping into a diamond. The Indian consumer markets are majorly driven by increase in disposable incomes, apart from other factors like change in demographics, entry of foreign players, liberalisation, Government efforts et al. Asia's third largest economy currently accounts for 2.7 per cent of the global consumption.
Indian consumer markets are experiencing a flurry of investments as more and more foreign majors are getting attracted towards a set-up which is considered to be economically safe and with huge potential. The Indian consumer markets- majorly comprising retail, fast moving consumer goods (FMCG), luxury brands and e-commerce- have witnessed lot of developments in the recent past. Some of them are discussed hereafter.
Cumulative FDI inflows in single-brand retail trading during April 2000 to November 2011 stood at US$ 44.45 million, according to the Department of Industrial Policy and Promotion (DIPP).
Business Monitor International (BMI) has recently released its India retail report for first quarter of 2012 which projects that total retail sales will grow from US$ 422.09 billion in 2011 to US$ 825.46 billion by 2015. Explosion of organised retail in a big way is one of the major factors behind such a positive forecast. Certain developments in this space are given below:
Emergence of internet retailing (e-tailing) and e-commerce as a completely new space is driving the growth of number of online shoppers. As a result, the internet retailing companies are getting attracted towards Indian markets which are poised to grow leaps-and-bounds in the years to come. There are about 17 million online shoppers in India and the number is projected to grow over three times in the years to come.