Mumbai: Consumer spending in the country is likely to grow nearly four times in a decade to $3.6 trillion by 2020, driven by rising incomes and aspirations, widespread media proliferation and better physical reach across the country, says a study.
A joint report by Boston Consulting Group and industrial body Confederation of Indian Industry ( CII) says the overall consumer spending in 2010 was $977 billion. The study, 'The Tiger Roars - How a billion plus people consume and shop' , will be released on Thursday.
"The Indian consumer has shifted from forced denial to affordable indulgence," says Thomas Varghese, chairman of CII's national committee on retail and chief executive officer of Aditya Birla Retail. This "sensible consumption" has the potential to drive the economic growth of the country for years to come, he says.
Organised retail has developed an enabling environment to satisfy this consumption growth and allowing foreign retailers to invest in the country will boost it further, Varghese says. PepsiCo India Region Chairman & CEO Manu Anand, who is also the chairman of CII's national committee on FMCG, says that while the dramatic growth of the market is well known, the changing patterns of and attitudes toward consumption are not widely understood.
"It is critical for FMCG companies to understand the nature of this consumption demand and what is driving it," he says. "The Indian consumer pyramid is shaping into a diamond, but more importantly income is only one variable that is driving this consumption," he says. For instance, within the same income segment, attitudes and behaviours are dramatically different as consumers are trading up and down at the same time.
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