A new report estimated that around a billion Indians have no money to spend on discretionary goods or services, although India is home to 1.4 billion people, Bbc reported.
According to the Blume Ventures report, a venture capital company, the country’s consumer class, in fact the potential market for start-ups or business owners, is only as large as Mexico, 130-140 million people.
In addition, as digital click payments on a button facilitate the transaction, an additional 300 million are “emerging” or “aspiring” consumers, however, these are reluctant expenditure that just start to open their handbag strings.
According to the report, the consumer class of the third economy in Asia is not “widen” as much as it “deepened”.
This essentially means that the rich population of India does not really develop in number, despite the fact that those who are already rich become even richer.
Particularly accelerating the trend of “premiumization” where brands stimulate growth to double the expensive and improved products that are aimed at rich, rather than focusing on mass market offers, all of this shapes the country’s consumers’ market in a distinct manner.
This can be observed in the zoom of sales of ultra-luxury closed housing and premium phones, even if their low-end variants are fighting.
In addition, affordable houses now represent only 18% of the global market in India, against 40% five years ago.
On the other hand, brand products also capture a larger share of the market.
The long-standing opinion according to which the post-payic recovery of India has been in the form of K, where the rich are more rich, while the poor have lost purchasing power, was reinforced by the conclusions of the report.