The Indian

Consumer Circa
2020….

1
1
India Is Shining .. And So Is The Indian Consumer

• Indians are consuming like never before

• Metropolitan India is rocking and leading

the consumption drive

• Women are out in the corporate workplace

breaking glass ceilings

• The global, corporate Indian has arrived

 But Lest We Forget …. Will The
Real Indian Consumer Please Stand
Up ?

3
Indians Still Spend Half Their Income On ‘Roti, Kapda
Aur Makaan’ …
Food
40%

Misc Rent,utilities
10% 12%

Education,
entertainment
4% Apparel
5%

Furnishing
Transport 4%
19% Healthcare
6%
Source: NSSO 2006-07
Small Town India Spends As Much Or More Than
The Metros
Food 1.2
1.0
Rent,utility 1.0
1.0
Education 1.2
1.0 0.5 – 1 Million
Transport 1.0
1.0
Apparel 0.9
1.0 10 Million +
Footwear 1.2
1.0
Vacations 0.5
1.2
Jewelry 1.1
1.0
Durables 1.2
0.9
Healthcare 1.0
1.1
Mobiles 1.6
1.1
Furnishings 1.6
0.9
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

Source: Technopak’s ICT 2007

Most Indian Males Who Work Are Self-employed

• Only 4% are employed in white collar occupations

• Another 13% are clerks/salesman

• 83% work for themselves

The Indian ‘Power’ Woman Is Conspicuous By Her
Absence

ƒ 16% of women work outside the home

ƒ Of them, 62% work as skilled/unskilled

labourers

ƒ 1% are executives
This Is An SEC A Household
And, No, Not All South Indians Are Vegetarians

• 3 out of 4 Indians over 15 years of age is a non-

vegetarian

• Close to 7% of the food budget in urban India is

spent on meat, fish and eggs

• The North, at 37%,has the lowest incidence of non-

vegetarians; and the South the second-highest at
78%!

Source: Technopak’s India Consumer Trends’07

So What Is The Truth About The
Indian Consumer’s Evolution?

10
We Have More Money To Spend

• The number of households classified as

‘middle-class’ has grown one and a half
times since 2001

• The number of ‘rich’ households has

doubled

• Discretionary income has risen –

• The share of food in consumer
expenditure has fallen from 51% in
2000 to 40% in 2007
The Action Today Extends Far Beyond The Metros

% of urban % of urban % of total market

City type population market (cumulative)
(cumulative)
Top 4 16 20 9

Top 9 24 30 13
Top 62 43 50 22
Top 141 53 60 27

Top 338 63 70 31

Top 530 69 75 33

Top 784 74 78 35
But The Most Significant Change Has Been In The
Movement Up The Needs Hierarchy
From Survival Being The Paramount Need

Nehruvian ethics

Struggle for
future survival

Shortages

Physiological
To Survival Into The Future

Education

Hoarding

Savings

Bank Security
deposits
Physiological
To The First Wave Of Liberalisation

Neo-traditionalists Love, Belonging

Fear of westernization
Security

Physiological
To Globalisation … And The Consumer Today

Pokhran II

Big Brother

Corus Esteem

Status symbols Love, Belonging

Love marriages Security

Physiological
Rising confidence
And A Convergence Of Aspirations

E
D

C B
Where Will The Indian
Consumer Be In 2020 ?

19
There Will Be More Of Us … And We Will Be Richer

• A staggering 29% of Indian households will be earning

over Rs 2 lakhs per annum by 2020 – as against 9% in
2006

• Translating to 75 million households – up from 18

million households in 2006
More Than Half Will Know Only A Liberalised India

Born between Age in 2020 % of population Cumulative %

2016-2020 0-4 8.3
2011-2015 5-9 8.4
2006-2010 10-14 8.4
Liberalisation's Children-
2001-2005 15-19 8.4
60%
1996-2000 20-24 8.7
1991-1995 25-29 8.9
1986-90 30-34 8.6
1981-1985 35-39 7.4
1976-1980 40-44 6.5
Transition's Children
1971-1975 45-49 5.8
29%
1966-1970 50-54 5.2
1961-65 55-59 4.5
Midnight's Children
Before 1961 60+ 10.7 Source:11%
Census of India 2001
Liberalisation’s Children

• Never known any other type of economy

• Habituated to wide availability of

products, services, credit

• Accustomed to more globally integrated

environment

• Used to a more powerful and visible

India

• Gandhi and Nehru as much in the past

as Ashoka and Akbar
Self-expression And Identity Driven

Who am I beyond…

My family

My job

My education
Esteem

Love, Belonging

Security

Physiological
Self-confident, Assertive, Risk Takers

• Used to having products and money

• Failure doesn’t mean threat to survival

• More entrepreneurs, more diverse professions

• Increased openness to new technology, new products

and ideas

• Increased experimentation in food, clothing, dining

out, travel…
Socially Conscious
• More active and demanding of their
politicians and corporate

• Demand for environment and ethics-

friendly products

• Volunteerism, belief in social causes

on the rise

• Social responsibility by corporate will

be on consumer’s agenda as well --
vigilante consumers will monitor and
comment on every product
Seeking Themselves

• Willing to exercise ‘different’ choices

• Seeking out brands and products that

speak to their specific belief system

• Going beyond the brand – they give the

brand status

• Mutating consumers – bargain hunting in

one category, splurging in another,
specialised luxe items in everyday products
Targeting The Self-Expression Generation

• Niche is the new mass

• Finding micro-niches in every product category

• “I’ll try anything once”

• Enabling consumers to try products more easily

• Here today, gone tomorrow

• Temporary by design

• Ethical products
• Provenance, production and CSR activities of brands
will be a key factor
Targeting The Self-Expression Generation

• efamily
• Creating virtual communities around shared interests,
building virality into the brand

• Prosumers
• Integrating the consumer into product design

• Instant, if not sooner

• Products and services that can anticipate or instantly
serve the consumer
“The times, they’re a changing…”
Bob Dylan
ƒ 13 years ago, the most expensive car in India was the Esteem
ƒ 13 years ago, the most expensive car in India was the Esteem

ƒ 10 years ago, it cost 16 rupees to make a call on a mobile

ƒ 13 years ago, the most expensive car in India was the Esteem

ƒ 10 years ago, it cost 16 rupees to make a call on a mobile

ƒ 13 years ago, the most expensive car in India was the Esteem

ƒ 10 years ago, it cost 16 rupees to make a call on a mobile

ƒ 5 years ago, we paid 16, 000 rupees to travel from Mumbai to Delhi
ƒ 13 years ago, the most expensive car in India was the Esteem

ƒ 10 years ago, it cost 16 rupees to make a call on a mobile

ƒ 5 years ago, we paid 16000 rupees to travel from Mumbai to Delhi

ƒ 1 year ago, the 20-20 World Cup was a dream

The Future Is Changing @ the Speed of Thought

Are you ready ?

Thank You!

36
For Further Dialogue, Please Contact :
Preeti Reddy
Sushmita Balasubramaniam
Priyadarshini Narendra
Tara Prabhakar
Technopak Advisors
Fourth Floor, DLF Tower 8-A
DLF Cyber City, Phase II
Gurgaon 122 002
(National Capital Region of Delhi)
Haryana, India
Tel : (91-124) 454 1111, 288 1111
Fax : (91-124) 454 1198, 454 1199
preeti.reddy@technopak.com
sushmita.balasubramaniam@technopak.com
priyadarshini.narendra@technopak.com
tara.prabhakar@technopak.com
Technopak Advisors
11 A, 11th Floor, Canberra Block,
UB City, 24 Vittal Mallya Road,
Bangalore 560001
Karnataka, India
Tel : (91-080) 40348600, 41233388
Fax : (91-080) 40348699