Consumerism in India: Abhimanyu Abhishek Bansal Rohit Rajan

CONSUMERISM
IN INDIA

Abhimanyu
Abhishek Bansal
Rohit
Rajan
CONSUMERISM

The movement seeking to protect and
inform consumers by requiring such
practices as honest packaging and
advertising, product guarantees, and
improved safety standards.

Consumerism also refers to
the consumption of goods at a higher
rate.

Consumption trends in India have been changed significantly

This is no longer the India of Gandhi, which was famous for
his simplicity and austerity. The change in values, habits, and
lifestyles in Indian consumer, not just from Gandhi's day, but
from a decade ago--is undeniable

Now we have , inside the malls, young people in Reeboks
sipped coffee at Barista Coffee, the Starbucks of India. They
wandered through Indian department stores and stopped for
snacks at McDonald's and Subway
CONSUMER MARKETS
Retail
Estimates by the Retailers Association of India (RAI), the apex body of organised,
modern retailers, have shown that the country's US$ 21.05 billion organised
retail segment has grown 20 per cent in the September quarter 2009-10.

Rural Consumers
According to Calcutta Management Association Rural Marketing Meet, over 300
million people would move up from the category of rural poor to rural lower
middle class between 2005 and 2025 and rural consumption levels are expected
to rise to current urban levels by 2017.

FMCG
According to a FICCI-Techno park report, despite the economic slowdown,
India's fast moving consumer goods (FMCG) sector is poised to reach US$ 74
billion by 2018.

Luxury Products
The country's largest real estate developer, DLF, sold luxurious apartments
worth US$ 219.1 million in December 2009the company's highest
monthly sales in its history.
Indian luxury market is expected to reach $450 million.
The Indian car market is seeing big-ticket launches luxurious cars such as
sports utility vehicles (SUVs); new launches include those by Tata Motors,
Toyota, Skoda, BMW, Mercedes, Renault, Mahindra and Jaguar.

Consumer Durables
A combination of changing lifestyles, higher disposable income, greater
product awareness and affordable pricing have been instrumental in
changing the pattern and amount of consumer expenditure leading to
strong growth in the consumer durables industry.
In 2009, overall industry sales of LCD televisions grew by 93-94 per cent
over the earlier year. Multimedia mobile phones have grown from 800,000
units in 2008 to 1.8 million in 2009.

Automobiles
The year 2009 saw the Indian automobile industry post significant export
growth and launch new models for the domestic market, bucking the
trend of most global automobile majors in the year. Experts maintain that
during 2009, the car market grew 15 per cent over the previous year and
that similar numbers were expected for 2010.
According to a report by the global rating firm, Fitch, the Indian
automobile industry saw a growth of 10-12 per cent in sales in 2010.

FACTS TO BE NOTICED
McKinsey global has released its India consumer research :
Indian income will triple over the next two decades.
The rise in average disposable income has made India the 12th largest
consumer economy in the world.
Over the next two decades, the countrys middle class will grow from
about 5 percent of the population to more than 40 percent and create the
worlds fifth-largest consumer market.
Today 57 percent of private spending is spread across rural areas, but by
2025 cities will command 62 percent of the countrys spending power.
In 2007 private spending reached about 17 trillion Indian rupees,
accounting for more than 60 percent of Indias GDP, so in this respect the
country is closer to developed economies such as Japan and the United
States than are China and other fast-growing emerging markets in Asia.
India remains the least urbanized of the emerging Asian economies. Today
only 29 percent of Indians live in cities

Accelerating Household Income in India
Average household disposable income

SOURCE : Mckinsey Global Institute
India - a large consumer goods spender:
An average Indian spends around 40% of his income on groceries and 8% on
personal care products. A larger part of the total spending pie along with a
large base (in terms of population) makes India one of the largest FMCG
markets.

Consumer Protection Act 1986 (Copra)

Copra is one of the most progressive and comprehensive piece of
legislations enacted for the protection of consumers. It was enacted after
in-depth study of consumer protection laws in a number of countries and
in consultation with representatives of consumers, trade and industry and
extensive discussions within the Government.

Merits
Simplicity, straightforwardness and inexpensiveness.
Swift disposal of disputes.
Comprehensible to layman.
Easily accessible.
Consumer welfare oriented.

LOOPHOLES In COPRA

Devoid of practibility- legal technicalities which need lawyers to deal
with.
Irregular functioning of consumer council.
Constrained powers of judges i.e. magisterial powers (though enhanced
by the amendment of 2003 but not yet implemented).

EFFECTS OF CONSUMERISM
Consumerism is appreciated in Western economies since a persons
standard of living is valued by his or her material possessions. There are
certain positive effects such as:

Positive Consumerism Effects:

More industrial production.
A higher growth rate economy.
More goods and services available.
More advertising since goods manufactured have to be sold.
Increased production will result in more employment opportunities.
A variety of goods and services to choose from.
More comforts for a better living style.
Negative Consumerism Effects:

Craving for goods is high. The wants and desires of the people increase.
The better their income, the better their purchasing power. But in case,
they are not able to do so, then they feel dissatisfied.
Over-dependence on labour saving devices.
Crime rate also increases as wants to possess expensive gadgets increase.
Thefts become common and daylight robberies take place.
Personal relationships also get affected as people are busy trying to earn
more to maintain their standard of living.
Consumerism has also resulted in ecological imbalances. The natural
habitat is being destroyed to create more goods and build more buildings
affecting the weather. Global warming will eventually result in health
problems. Industrial pollution is affecting people in many ways.
Consumerism is also depleting the natural resources of the respective
country.

Consumerism in India: Abhimanyu Abhishek Bansal Rohit Rajan

Uploaded by

Copyright:

Available Formats

Consumerism in India: Abhimanyu Abhishek Bansal Rohit Rajan

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Consumerism in India: Abhimanyu Abhishek Bansal Rohit Rajan

Uploaded by

Copyright:

Available Formats

CONSUMERISM

You might also like