Indian Consumer Markets

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 Some very Interesting Facts abount Indian Consumer Markets.

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Gautam  Bansal

 Some Interesting statistics and facts about Indian Consumer Market (Worlds largest emerging consumer Market)

Rural Consumers

Mega retail chains are looking to build a high-quality supply chainretailers such as Bharti-Wal-Mart, Carrefour and Reliance are working to strengthen their supply chain formula by roping in farmers as stakeholders. Despite being the biggest names in the trade, these retailers are ploughing rural areas to teach innovative farming methods and find the best suppliers among them.Hindustan Unilever Ltd (HUL) is planning to significantly increase its rural reach. Currently, HUL products reach approximately 250,000 rural retail outlets and the company intends to scale it up to nearly 750,000 outlets in two years time. Swiss FMCG player, Nestle plans to make further inroads into the rural markets. The company has asked its sales team to deliver “6,000 new sales points every month in rural areas” to expand presence in Indian villages, according to Antonio Helio Waszyk, Chairman and Managing Director, Nestle India.

FMCG

According to a FICCI-Technopak report, India's FMCG sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018. The report states that implementation of the proposed goods and services tax (GST) and the opening of foreign direct investment (FDI) are expected to fuel growth further and raise the industry's size to US$ 47 billion by 2013 and US$ 95 billion by 2018.According to figures released by market researcher Nielsen, demand for personal care products grew faster in rural areas than urban areas during the period January-May 2010.In shampoos, rural demand grew by 10.7 per cent in value terms, while in urban markets, it rose by 6.8 per cent. Similarly, toothpaste sales grew by 9.1 per cent in rural India and by 4.4 per cent in urban markets. Furthermore, according to data from market researcher Nielsen, the FMCG industry posted a 14 per cent sales growth year-on-year in April 2010, the highest in eight months.

Consumer Durables

According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the consumer durables and electronics sector has registered a 30 per cent growth during January-March 2010. According to the industry body, the total size of consumer durables and electronics sector is around US$ 6.58 billion. While flat panel display registered a growth of 70 per cent, air conditioner (AC) sales increased by 50 per cent. Additionally, the industry also witnessed a 40 per cent healthy growth in home appliances business during the same quarter.

Automobiles

Passenger vehicles sales shot up 33 per cent to 554,000 units in the April-June 2010 quarter over the year-ago period, according to the Society of Indian Automobile Manufacturers (SIAM). Moreover as per SIAM, the Indian passenger vehicle market is likely to grow by 12-13 per cent for the year ending March 2011.German luxury car-manufacturer Audi aims to increase its market share in India to 25 per cent from the present 20 per cent by end of 2010. It aims to sell 2,700 units in the country by the end of 2010 as against 1,658 in 2009.The company plans to invest US$ 36.8 million in building production capacity by 2015.Toyota Motor Corp will invest about US$ 103 million to produce engines and transmissions for the Etios compact car in India developed for the local market.Yamaha is planning a major initiative in rural India by launching more models in the affordable price range in 2010. “We are very strong in Tier 1 and Tier II cities. Now onwards, our focus will be rural India (Tier III towns). We will launch more models in the affordable price range to dominate the rural market," according to Pankaj Dubey, National Business Head, India Yamaha Motor. At present, around 15 per cent of its sales come from the rural market and Dubey sees this demand increasing substantially in 2010.If Yamaha is looking at the rural market, US-based Harley Davidson, the iconic heavyweight motorcycle maker is targeting the urban consumers in India. Harley Davidson opened its first outlet in Hyderabad recently and plans to open more across the country. According to Anoop Prakash, Managing Director, Harley-Davidson India, the company will open outlets in other cities including Delhi and Mumbai before the end of 2010.