Source : Flickr/Dennis Jarvis
As the country’s economic growth continues, consumption in India is set to be tripled to $4 trillion by 2025. If such rate of consumption indeed come true, then the country is set to become world’s third largest consumer economy according to a report released today by The Boston Consulting Group’s (BCG) Center for Customer Insight (CCI).
Nimisha Jain, a BCG partner and report coauthor said, “India’s consumer market is poised for fundamental change. As the consumer market continues to grow and evolve, companies will need to shed conventional wisdom, try multiple business models simultaneously, and be prepared for rapid change internally to adapt to changing consumer needs and behaviors.”
Abheek Singhi added, “A set of emerging social trends could reshape consumption patterns significantly. These include more—and better educated—women taking their rightful place in society, greater pride in being Indian, and increasing time compression, each of which will drive exponential growth in various categories differently.”
As the purchasing power increases, more people are more likely to increase their expenditures. Kanika Sanghi stated in the report, “Already, a rising number of consumers in all segments are using the internet as their first port of call in framing and driving their purchase decisions. Our research found that about 70 per cent of those who have access to the internet go online to make informed purchase decisions. As consumers get more comfortable with digital capabilities, their usage patterns exhibit growth that belies age and other demographic variables.”