Research Paper
Changing Consumer Behaviour Patterns Of Indian Middle Class
Prof.Sundaram Rajagopalan
Dean Executive Education SP Jain Center of Management Singapore
Outline
Evolution of Indian consumer market in growth phase Consumer markets – India vs. China increasingly affluent Indian Middle class harder to ignore Indian middle class as a distinctive segment - profile, dimensions, and location Changing patterns of middle class behavior How India's rising and unique middle class will reshape Indian / Global consumer markets ? Implications to companies thru cases
Over the next two decades , India’s middle class will grow from about 5 percent to more than forty percent and create the world’s fifth - largest consumer market
- McKinsey Quarterly 2007
India’s economy has been growing rapidly …
What impact has growth had on Indian incomes and how quickly will they grow in the future? How is the distribution of income changing? When will its middle class take off? How is income growth effecting urban versus rural areas? How much of rising Indian incomes will be spent versus saved? What will Indian consumers spend their newfound wealth on?
Source : MGI
What does this mean for business and investment opportunities?
How should companies compete for the “new Indian consumer”?
India will emerge as the world’s fifth largest consumer economy
Indian incomes will triple over the next two decades, significantly reducing poverty Rising household incomes will be the key driver of consumption growth not changes in savings
A large urban middle class will develop, but rural areas will benefit too
Urban India will account for more than two-thirds of Consumption growth over the next 20 years Middle class households will dominate urban India Large cities tend to have highest incomes, but small ‘niche’ cities prospering too. Per-household consumption in rural India will reach today's urban levels by 2017
Indian Middle class defined…
Source: NCAER “The Great Indian Middle Class”;
Prof.Sundaram Rajagopalan
Dean Executive Education SP Jain Center of Management Singapore
Outline
Evolution of Indian consumer market in growth phase Consumer markets – India vs. China increasingly affluent Indian Middle class harder to ignore Indian middle class as a distinctive segment - profile, dimensions, and location Changing patterns of middle class behavior How India's rising and unique middle class will reshape Indian / Global consumer markets ? Implications to companies thru cases
Over the next two decades , India’s middle class will grow from about 5 percent to more than forty percent and create the world’s fifth - largest consumer market
- McKinsey Quarterly 2007
India’s economy has been growing rapidly …
What impact has growth had on Indian incomes and how quickly will they grow in the future? How is the distribution of income changing? When will its middle class take off? How is income growth effecting urban versus rural areas? How much of rising Indian incomes will be spent versus saved? What will Indian consumers spend their newfound wealth on?
Source : MGI
What does this mean for business and investment opportunities?
How should companies compete for the “new Indian consumer”?
India will emerge as the world’s fifth largest consumer economy
Indian incomes will triple over the next two decades, significantly reducing poverty Rising household incomes will be the key driver of consumption growth not changes in savings
A large urban middle class will develop, but rural areas will benefit too
Urban India will account for more than two-thirds of Consumption growth over the next 20 years Middle class households will dominate urban India Large cities tend to have highest incomes, but small ‘niche’ cities prospering too. Per-household consumption in rural India will reach today's urban levels by 2017
Indian Middle class defined…
Source: NCAER “The Great Indian Middle Class”;