Growing market of useful and durable goods

After assessing the market, we find that the majority of the Indian population spends more on basic things for their needs as compared to the class which spends on expensive things. India has a low population of high income people, yet the India market is considered to be the world’s second or third largest market for the expensive brands or expensive cars.    

At present, there is confusion among the business world about our consumption patterns that revolve around long queues of people waiting to buy expensive sports utility vehicles (SUVs). This shows that people have ‘too much money’. On the other hand, the quarter revolves around a disappointing performance of results.

These results indicate an ‘unbalanced K-shaped growth’ in consumption, the disappearance of mass markets and rural markets, and ‘offloading expensive goods’ as a new strategy for success.

 Among the highest-spending urban Indians, 5 per cent, belong to families who spend Rs 11,24,000 lakh annually. The market had long ago experienced a shrinking gap between rural and urban areas.

Both the regions have started connecting with each other with the help of media, goods, roads and undeclared cities etc. The result of this is that semi-urban ‘urban consumers’ are coming to the fore.

The bottom 10 percent in rural areas and the top 5 percent in urban areas are slightly different, but the income of the rest is almost similar. Now the market is finally beginning to reach a larger population with consumers earning average incomes.

We often hear that even after the income level falls, the expenses on school fees and rent etc. do not reduce. People’s condition has definitely improved due to optimistic attitude about the future, but expenditure options are being prepared strictly.

Companies are paying attention on producing expensive but useful and durable products. These are such companies which prepares strategies, according to the prospective changing circumstances in the future.