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India's consumer spending in 2020 will be equal to Germany's total economy

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India’s retail market expected to double to $3.6 trillion by 2020: report

New Delhi: Backed by robust economic growth and rising household incomes, consumer spending in India is expected to touch $3.6 trillion (about Rs.240 trillion) by 2020, increasing India’s share in global consumption to 5.8%—more than twice its current levels.

Not just that. By 2020, India’s retail sector is expected to double to $1.1-1.2 trillion from $630 billion in 2015 at a compound annual growth rate (CAGR) of 12%, said a joint report released by lobby group Ficci (Federation of Indian Chambers of Commerce and Industry) and consultancy PricewaterhouseCoopers.

Titled Shaping Consumer Trends, the report was released Thursday at Massmerize 2016— an annual convention on retail, packaged consumer goods and e-commerce.

The report’s projections indicate that the average household income in India will triple to $18,500 in 2020, from $6,400 in 2010—acting as a major driver in retail growth and leading to evolution of new consumer segments.

Customers are getting more sophisticated, driving firms to focus on premium products, the report said. “Increasing disposable income levels and a rising number of sophisticated consumers have given rise to consumers seeking ‘premium’ products,” it added.

According to IMRB’s Kantar World panel report published in 2013, nearly 50% of the total number of new launches in the personal care category has been in the premium segment.

The report highlights that the growth in the retail sector will be fuelled by both organized brick-and-mortar stores and e-commerce.

“India’s overall retail opportunity is substantial and a strong growth in e-commerce is expected due to a demographic dividend (young population, rising standards of living and upwardly mobile middle-class) and rising internet penetration,” stated the report, adding about 32.18 crore people, accounting for about 25.4% of total population, are using Internet in India, according to digital information and research company eMarketer.

The report also noted a shift in the focus of e-commerce players, towards their own private labels.

The report said that private labels account for 10-30% of the total revenues of the e-commerce companies.

In 2015, online grocery platform BigBasket (Supermarket Grocery Supplies Pvt Ltd), which sells fruit, vegetables, meat, pulses and spices under its own brand, generated 35% of its revenues from private labels.

According to the report, the e-commerce market is expected to reach $125 billion in terms of gross merchandise value (GMV) by 2020, growing at the rate of 31%. GMV is the total value of goods sold over a period of time, without accounting for discounts or sales returns.

The report said that the packaged consumer goods sector will cross the $100-billion mark by 2020, growing at a rate of 18%.

“Rapid macroeconomic, demographic and lifestyle shifts in the country clearly point towards exponential growth in the packaged goods industry. These shifts, bolstered by policy and regulatory changes have a strong potential of taking India towards its goal of becoming largest consumer market over the next decade,” it said.

According to the report, the maximum consumer spending is likely to occur in food, household, transport and communication segments.

Sanjiv Puri, chief operating officer at consumer goods company ITC Ltd and chairman of Ficci FMCG committee, agreed.

“With a lot of investment initiatives and GST (goods and services tax) coming in, there is a great opportunity in food processing,” he said.

FMCG is short for fast moving consumer goods.

Led by opportunities in the sector, ITC has invested nearly Rs.25,000 crore in about 65 projects—“a lot of which is in food processing,” Puri added.

The report said that consumer goods firms will now be focusing on online and social media channels to get into consumer’s mindshare due to the growing mobile internet revolution in India. It said that about 650 million people are expected to be online by 2020, out of which 250 million will be shopping online —spending more than $50 billion. Interestingly, at least $5 billion of this expenditure is expected to be on packaged consumer goods.

“India will be domestic consumption-driven growth story, and, on our part, at Walmart India, we are growing our cash and carry business in the country and plan to take our store count to 70 stores with a full omni-channel strategy. This is an exciting market for us,” said Krish Iyer, president and chief executive at Walmart India.

The report also offers insights on the recent changes in policies (100% FDI in trading of food products produced and/or manufactured in India, clarity on FDI in e-commerce, GST among others) that have led to an increase in investment opportunities.

Vasanth Kumar, executive director at apparel retail brand Max Retail, said there are opportunities in both FMCG and retail sectors. “With the GST coming in, productivity will go up, along with manufacturing and retailing. With that we can participate in the consumption and growth story in India,” Kumar said.


http://www.livemint.com/Industry/ro...ket-expected-to-double-to-36-trillion-by.html

Looks like Indian economy would overtake Germany's economy by 2020 to become the 4th largest economy nominaly We are already 3rd Largest economy PPP wise .
 
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New investments being made

Investments
Following are some major investments and developments in the Indian consumer market sector.

  • US-based food company Cargill Inc, aims to double its branded consumer business in India by 2020, by doubling its retail reach to about 800,000 outlets.
  • Yum!Brands, plans to open 100 Taco Bell outlets in India over the next five years, which makes Indian expansion a key part of its plan to triple its outlets outside US to 1,000.
  • Hamleys has stated that India is one of the most important markets for Hamleys globally, and outlined plans of opening six more stores, taking its total store count in the country to 32 by the end of March 2017.
  • Roche Bobois Group, outlined plans of opening new stores in cities like Hyderabad, Chennai, Pune, Kolkata and Ahmedabad, in order to make India one of its top five markets by 2021.
  • Diageo, the world’s largest spirit maker, has announced opening of a new business service centre called Diageo Business Services India (DBSI) in Bengaluru, which aims to increase its workforce to 1,000 from 100 currently.
  • Amway, India’s largest company in the Rs 7,500 crore (US$ 1.12 billion) direct-selling market, plans to invest Rs 400 crore (US$ 60 million) over the next five years to expand its product portfolio and open 50 ‘express’ stores in top 20 cities of India, in addition to strengthening its e-commerce website.
  • Furlenco, an online furniture rental company, has raised US$ 30 million in series B round of funding led by LightBox Ventures, Axis Capital and a number of high net-worth individuals, which will be used to expand its geographical presence and product offerings in the next 12 months.
  • Dyson, the UK-based manufacturer of innovative vacuum cleaners and air purifiers, plans to enter Indian consumer market by 2017 and invest GBP 154 million (US$ 190 million) over the next five years in areas of retail infrastructure, marketing, promotion and taxes to the government.
  • Zefo, a Bengaluru-based refurbished goods marketplace, has raised Rs 40 crore (US$ 6 million) in a funding round led by Sequoia India, with participation from Beenext and Helion Venture Partners, which will be used to expand its team, invest in technology, and expand its presence in Mumbai and Delhi, which were recent additions.
  • Adidas India Private Limited, outlined plans of opening around 30-40 big flagship stores across Delhi, Mumbai and Bengaluru, by 2020.
  • Swiss watchmaker Montres Corum Sàrl, better known as Corum, has partnered with the luxury watch retailer Ethos Watch Boutiques to sell Corum watches in India, in order to strengthen its presence in India by rebuilding its distribution network and boosting revenues.
  • AO Smith, a US based water technology and air purification solutions company, sees India as one of key markets and plans to grow at double-digit growth rate, having invested US$ 75 million so far.
  • Crocs India Pvt Ltd, outlined plans of increasing its store count in India from 38 to 100 by the end of 2017, and increasing its focus on the casual footwear category to expand its consumer base and thereby boost its overall revenue.
  • Panasonic Corporation plans to set up a new manufacturing plant for refrigerators in India with an investment of Rs 250 crore (US$ 37.5 million), and also invest around Rs 20 crore (US$ 3 million) on an assembly unit for lithium ion batteries at its existing facility in Jhajjar.
  • Bosch & Siemens, the largest manufacturer of home appliances in Europe, plans to manufacture more products in India in the next three years, led by rise in demand for premium home and kitchen appliances.
Government Initiatives
The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online retail of goods and services through the automatic route, thereby providing clarity on the existing businesses of e-commerce companies operating in India.

With the demand for skilled labour growing among Indian industries, the government plans to train 500 million people by 2022 and is also encouraging private players and entrepreneurs to invest in the venture. Many governments, corporate and educational organisations are working towards providing training and education to create a skilled workforce.

The Government of India has drafted a new Consumer Protection Bill with special emphasis on setting up an extensive mechanism to ensure simple, speedy, accessible, affordable and timely delivery of justice to consumers.

In the Union Budget 2017, the government has proposed to spend more on the rural side with an aim to double the farmer’s income in five years; as well as the cut in income tax rate targeting mainly the small tax payers, focus on affordable housing and infrastructure development will provide multiple growth drivers for the consumer market industry.

Union Cabinet reforms like implementation of the Goods and Services Tax (GST) and Seventh Pay Commission are expected to give a boost to consumer durable sector in India.






Consumer spending in India poised for explosive growth: report


By 2020, consumption will reach US$3.6 trillion, as new generation hits its prime spending years, according to a recent CII-BCG report

The Boston Consulting Group (BCG) and The Confederation of Indian Industry (CII) jointly released a study titled An In–Depth Analysis of How a Billion Plus People Consume. “This report examines the shape and size of consumption expenditure in India in detail, and its expected evolution over the next decade. While India’s robust consumption growth presents attractive opportunities for companies, its unique diversity and variety makes it challenging to capture these opportunities. Towards that end, this report presents a framework and approach on how to de–average the opportunity to better segment consumers and effectively understand their buying preferences," says Abheek Singhi, Leader of the Consumer & Retail Practices, BCG India and co-author of the report.



Buoyed rising household income, the coming of age of a new generation, and other socioeconomic forces, overall consumer spending in India is likely to expand 3.6 times from US$991bn in 2010 to US$3.6 trillion by 2020. The projected 14% growth rate is much faster than the anticipated annual global growth of 5.5% and even faster than the anticipated growth in emerging economies of 9%. By 2020, India will constitute 5.8% of global consumption more than double the 2.7% it now represents.



Despite the current global economic environment, India continues to march along a robust growth path. With the recent regulatory changes, increasing consumption levels and changing consumer preferences, the FMCG and retail sectors are standing at the point of inflexion," says Amitabh Mall, Partner & Director, BCG India.



India has a billion plus consumers spanning all income segments. The income pyramid is real but does only a partial job of explaining consumer attitude and behaviour. This report provides a definitive view of the income segmentation and more importantly uses other parameters of location, education and occupation to define the seven segments in India.

  • Professional Affluent (2% of households)
  • Traditional Affluent (4% of households)
  • Urban Aspirers (8% of households)
  • Rural Aspirers (6% of households)
  • Large Town Next Billion (6% of households)
  • Small Town and Rural Next Billion (24% of households)
  • Strugglers (50% of households)
Food, housing & consumer durables and transport & communication are expected to be the Top 3 categories, accounting for 65% of consumption in 2020. The Professional Affluent are expected to dominate consumption in 2020, accounting for 26% of total consumption expenditure, up from 16% in 2010. By contrast, spending by struggler households will decline from 26% in 2010 to 11% in 2020.



"The roar of the Tiger is a fitting metaphor for consumer spending in India. Consumer spending in India will continue to roar, but the companies that try to capture it may not be so fortunate. India is a big and growing consumer market, but not an easy one. Understanding the size and shape of the prize and where it is hidden in the challenging fabric of India are the first steps to capturing it," concludes Abheek Singhi.


http://www.indiainfoline.com/articl...r-explosive-growth-report-113103007422_1.html

Consumer spending in India is expected to triple by 2020.



Indian consumer spending is projected to rise to $3.6 trillion in 2020, from $991 billion in 2010.

Source: Boston Consulting Group

http://www.businessinsider.in/16-Fa...ted-to-triple-by-2020-/slideshow/37120467.cms

Household final consumption expenditure, etc. (% of GDP)


For india it is 59 % approx
http://data.worldbank.org/indicator/NE.CON.PETC.ZS
 
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did some guy like run away with your GF or something man? Your hatred is too personal.

Nope, just point out the sad facts that India is bragging with. Most people would be embarrassed to talk about how its own economy per capita will be 1/15 of another country in 2020. To India, it's a source of pride.

Just compare how India like to use PPP for national power comparison. Even though absolute PPP is the most useless data figure to measure economic power of a country.

it is 1/15th

India is doing as bad then... LOL
 
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Nope, just point out the sad facts that India is bragging with. Most people would be embarrassed to talk about how its own economy per capita will be 1/15 of another country in 2020. To India, it's a source of pride.

Just compare how India like to use PPP for national power comparison. Even though absolute PPP is the most useless data figure to measure economic power of a country.



India is doing as bad then... LOL

It is 1/15 now. India used to be 1/100th 30 years ago. The differential will keep reducing
 
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With such a large consumer spending by middle class we should force all the companies to make in India .
 
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Most people would be embarrassed to talk about how its own economy per capita will be 1/15 of another country in 2020. To India, it's a source of pride.

Today it's 1/6th (PPP)

Just compare how India like to use PPP for national power comparison. Even though absolute PPP is the most useless data figure to measure economic power of a country.

PPP isn't used for national power comparison.

''Using PPPs instead of market exchange rates to convert currencies makes it possible to compare the output of economies and the welfare of their inhabitants in real terms (that is, controlling for differences in price levels).''

http://www.imf.org/external/pubs/ft/fandd/basics/ppp.htm
 
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India will beat all the major economies except USA and China in the next two decades.
India's rise as an economic and military power cannot be stopped.
 
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Nope, just point out the sad facts that India is bragging with. Most people would be embarrassed to talk about how its own economy per capita will be 1/15 of another country in 2020. To India, it's a source of pride.

Just compare how India like to use PPP for national power comparison. Even though absolute PPP is the most useless data figure to measure economic power of a country.



India is doing as bad then... LOL

But you're the biggest bragger on the forum, how did you decide you can lecture others I wonder?
 
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Per capita?
India sux!

Each German is placed better off than an Indian.
Is India producing better quality engineered products than Germany?
Germany beats even the US & Japan in Automotive industry.
Frivolous news to prop up Indian (Modi) ego?

Err!

From the net:

cars.png
 
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