India to become the third largest consumer market by 2025
Rising affluence will make India the third-largest consumer market by 2025, making it imperarive for companies to adapt their business models to make the changing needs of the Indian Consumer. Consumption expenditure will increase three times to hit USD 4 Trillion by 2025.
The share of the household income of the elite will increase from 8 percent to 16 percent from 2016 to 2025. As a result the elite and the affluent categories will jointly account for 40 percent of the consumption as against 27 percent now.
Consumers in emerging cities behave differently from big-city consumers. Immediate gratification is becoming more important than asset creation. While India as whole is a GROWTH story, certain segments benefit more from rising incomes. Companies should develop a robust omni-channel strategy because digital will play a central role in how Indian Consumers decide what they will buy.