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Indian Industry

Indian Consumer Class

India has a population of over 1 billion and 4 climatic zones . Several religious and personal beliefs, 15 official languages, different social customs and food habits characterize Indian consumer class. Besides , India is also different in culture if compared with other Asian countries. Therefore, India has high distinctiveness in demand and the companies in India can get lot of market opportunities for various classes of consumers. Consumer goods marketers experience that dealing with India is like dealing with many small markets at the same time.

Indian consumer goods market is expected to reach $400 billion by 2010. India has the youngest population amongst the major countries. There are a lot of young people in India in different income categories.
Consumer goods marketers are often faced with a dilemma regarding the choice of appropriate market segment.

In India they do not have to face this dilemma largely because rapid urbanization, increase in demand, presence of large number of young population, any number of opportunities are available . The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity .

As the restrictions on foreign investments were relaxed in 1991, Multi-National Companies have been entering India since then.

 

Market Size in $ million Market Share in %    

 

  Indian Companies   MNCs Indian Companies   MNCs  

 

1992

2004

1992

2004

Breakfast cereals

2

25

100

0

52

48

Wafers, potato chips

6

35

100

0

37

63

Washing Machines

40

570

98

2

51

49

TV

630

3,030

97

3

49

51


1992 $=30 rupees
2004 $=45 rupees
Source: Center for Monitoring Indian Economy (CMIE)

Indian consumer class can be classified according to the following criteria:

1. Income
2. Socio-Economic status
3. Age demographics
4. Geographical dispersion



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