With about one sixth of the global population, India is currently one of the most lucrative consumer markets in the world. Much has been written about the development of India’s market over the last few years, however little has been mentioned regarding its long term effects on India’s consumer market. While India continues to grow as an economic power - lifestyle changes and an increase in consumerism has spread across the country. Urbanization and rising education levels are just two of the issues that will have an effect of the average income in India. An increase in income could spark an increase in household consumption; reports have suggested that India would climb from the twelfth largest consumer market to the fifth largest within two decades. These upcoming changes will create major opportunities for both Indian and multinational consumer goods companies.
It is inevitable that with the rise in income, Indian spending patterns will change. The middle-class of Indian society is expected to swell to over ten times its current size! With a staggering reduction in poverty, basic necessities such as food and clothing will become less important and more money is predicted to be spent on communications and technology. Who will benefit from India’s rapidly growing consumer market? One industry in particular will be vending machine businesses as consumerism demands instant and continuous access to goods. Vending machines is in an industry which will continue to grow as India’s economy continues to strengthen. With the growing trend of organised retail – which is embodied in vending machines - an increase in desirability in areas of growing urbanization is inevitable. Furthermore, improved technology and new applications have replaced older machines which had been scarcely maintained. Looking at the facts and statistics, vending machines, are one of many markets that will benefit from this boom in consumerism!
For businesses that can meet the ever-developing needs of India’s wannabe middle class, keep prices low to reflect the realities of Indian incomes, adapt to fast changing market requirements and build brand loyalty in new consumer – a substantial reward could attainable in India’s quickly growing consumer market.
Mark long has spent the last decade researching the growth in consumerism across Asia. At present, he works as a consultant for an International <a href="http://www.fnbserviceshul.com/about_us/index.aspx">consumer goods company</a> who is looking to expand its <a href="http://www.fnbserviceshul.com">vending machines business</a> in both Pakistan and India.
The Boom in Indian Consumerism