Indian consumer segment is broadly segregated into urban and rural markets, and is attracting marketers from across the world. The sector comprises of a huge middle class, relatively large affluent class and a small economically disadvantaged class, with spending anticipated to more than double by 2025.
- The growing purchasing power and rising influence of the social media have enabled Indian consumers to splurge on good things. The Indian consumer sector has grown at an annual rate of 5.7 per cent between FY2005 to FY 2015. Annual growth in the Indian consumption market is estimated to be 6.7 per cent during FY2015-20 and 7.1 per cent during FY2021-25.
- A study by US-based networking solution giant CISCO, reveals that in India, the second-largest smartphone market globally, the number of smartphones is expected to grow strongly to over 650 million by 2019. India continues to witness high rate of mobile phone subscriptions. Indian smartphone shipments increased 28.8 per cent in 2015 to reach 103.6 million, thus crossing the 100 million mark, and becoming one of the fastest growing smartphone markets in Asia Pacific region. Sales of 4G-enabled handsets increased to 13.9 million units in quarter ending December 2015. According to CISCO’s Visual Networking Index (VNI) global mobile data traffic forecast for 2014–19, in India, one of the world’s fastest growing Internet market, the number of tablets is estimated to reach more than 18 million by 2019.
- Rating agency Crisil estimates that online retailing, both direct and through marketplaces, will grow threefold to become a Rs 50,000 crore (US$ 7.34 billion) industry by 2016. Also, the growth in Internet retail is expected to boost offline retail stores.
Consumer durables revenues have been growing at a healthy pace
- The consumer durables sector revenues reached US$ 9.7 billion in FY15 and is expected to reach US$ 12.5 billion in FY16
- Consumer durable market expected to grow at CAGR of 13 per cent from FY05 to FY20
- Around two third of the total revenue is generated from urban population and rest is generated from rural population
- Samsung has emerged as the market leader in the consumer durable segment followed by the Indian giant Videocon