Aarya (02)

Archit (11)
Gaurav( 20)
Gowtham (29)
Raj Karan (38)
Sambit (47)
Varsha (56)

4 STRATEGIES

SIZE OF THE PRIZE

UNDERSTANDING THE
PRIZE

FINDING THE PRIZE

CAPTURING THE PRIZE

THE SIZE OF THE PRIZE

UNDERSTANDING THE PRIZE

HOUSEHOLD INCOME: India has had a wide range of struggler households.
More than one-third of the population is likely to reach aspirer class by 2020
compared with 20% in 2010 and 9% in 2000.
The share of households(strugglers) are earning less than $3,300 which is likely
to fall from 51% in 2010 to 28% by 2020.

URBANIZATION
In 2010, 31% Indias population lived in cities
By 2020, the % will be raised to 35% . As people move from rural areas to cities
they tend to increase their expenses
People living in urban areas have better access to goods and are more exposed
to consumerism
For Eg-, television is owned by 80% of urban households, whereas in rural
households it is only 39%.

THE NUCLEAR FAMILY

The % of nuclear family increased from 61% in 2006 to 66% in 2010.
A nuclear family spends more on clothing, housing, education and leisure
activities whereas they both spend equally on food and health.
The per capita expenditure of these families is 20%-50% higher than that of joint
families.

GEN-I
Economic liberalization in 1991 marked a turning point for India.
They have different believes and have made different choices other than their
parents.
The GenI have far greater choice than prior generations. The number of car
models, for example has jumped from about 5 in 1990 to more than 160 today.

3. FINDING THE PRIZE

Affluent

Professional Affluent
Traditional Affluent

Aspirers

Urban Aspirers
Rural Aspirers

Next Billions
Strugglers

Large Town Next Billions

Small Town Next Billions

AFFLUENT :
Annual household income > US $18,500
This section of the society are well educated, have companies in middle or large
scale sectors or good jobs with sufficient income.
This segment constitutes 6% of households in India.

ASPIRERS
Annual household income between US $ 7,400 and US $ 18,500.
This section of the society are educated, have middle sized businesses or stable
jobs with income sufficient to live comfortably..
This segment constitutes 14% of households in India.

NEXT BILLION
Annual household income between $ 3,300 and $ 7,400.
They have basic education and have small businesses or hold low paying jobs.
This constitutes 30% of households in India.

STRUGGLERS
Annual household income < US $ 3,300.
Typically illiterate with limited education. These consumers have jobs that are
manual labour.
Strugglers are generally based on daily wages.

Graph

4. CAPTURING THE PRICE.

For companies to invest in a developing country like India, they need to have a
deep understanding to capture the market.
Hence, they need the following two strategies to achieve the same.
1. Follow an Indian Market Approach :. Consumption Pattern.
. Lifestyle.
. Attitudes and Behavior.
. Financial Maturity.

UNDERSTANDING THE EVOLUTION OF

CONSUMPTION TREND

Children : Driving consumption growth.

Internet wave.
Trading up.
Brand : Strong recognition, weak loyalty.
Healthy living.

CONCLUSION
The resonance of a Tiger Roar in current years shows the consumer spending in India. Within the same
income segment, the attitudes and behaviours are dramatically different as consumers are trading up and
down at the same time. The increase in consumption will be driven by four factors - rising incomes,
increased aspirations of the young India, widespread media proliferation that has democratized the
phenomena and the increased physical reach in all the corners of the country. Thus, this 'sensible
consumption' has the potential to drive the economic growth of the country for years to come. Organized
retail has played an important role in supporting the creation of this demand - through developing an
enabling environment to satisfy this consumption growth. The shape of that growththe changing patterns
of and attitudes toward consumptionis even less well understood. Most notably, a new generation of
consumers has grown up in an era of economic liberalization and social freedom. The members of this
generation are entering their prime spending years, and they will indelibly and dramatically reorient the
market. Call them Gen I. I stands for India, independence, and individuality. There are segments and
categories where consumers are paying more for more but in others they are cutting down consumption.
Indian consumer pyramid is shaping into a diamond but more importantly income is only one variable that