India being undoubtedly considered to be biggest consumer market with infinite possibilities in every sector and industry.
Huge Population With Immense Disposable Income and Spending Capacity
India is not only one of the most populous country but also have the biggest number of people between the age group from 19 to 30 which specifies that the earning group make this like a favorite place of foreign countries to introduce their goods
This population mainly comprises youth which is experimental and trend driven, which shows the capacity of this market to get higher attention of the exporters for the success of their brands.
It’s the tendency of young people to try out new things, products and services as every time they visit a market sphere which may be local market,malls,nearby shops etc,They always search for new variants in products like snacks,confectioneries,sauces and frozen items under food category and beauty and skin care products under FMCG on the other hand.
So this is one of the most prominent reasons why the other economies want their market share or sales volume to grow in India.
The size of the market considering both organized and unorganized markets
Indian markets are classified under organized and unorganized where both have different set of attributes,policies,pros and cons.
Under the organized markets the government has its guidelines and control through which the companies as well as the customers both can have rights and facilities to safeguard their interests like:
- Compulsory wages to employees and labor.
- Safety and security for companies and brands.
- Enforcing laws and orders to maintain the proper and smooth operations in the market.
- Helping the companies and proprietors to set up their business in the form of different loans and guarantees .
Under the unorganised market the government does not safeguard and guarantee but also has no interference that means parties involved in the market decides the rules, regulations and ways of doing business and trade, there is no particular guideline or restriction for anyone to respond and work in a particular way.
- It has free policies with less restrictions and formalities.
- People have the opportunity to introduce their business whenever they want without government intervention.
- People can find labour skilled or unskilled at their choice of pay.
- The cost of transport,logistics,warehousing and maintenance are competitively low from the organised market.
Increasing demand from the middle class sector:
The middle class of India which comprises a large percentage of affluent class with higher spending plus the lower middle class which can be potential customers.
Both of these categories combine and make this class as the major area of concern by the companies in form of targeting,segment and taking various decisions regarding the process of designing and launching strategies of their products.
The first category is keen towards the usage of consumer durables like the white goods and electronic products. A recent survey has shown that the sales of refrigerators,air conditioners,electronic dishwashers and smartphones have touched a huge percentage of hike YOY, which clearly depicts that they will surely attract a large number of foreign brands from all over the world.
Because of the emerging middle class market the companies are also setting up their manufacturing units and service centers in different parts of India.
free trade policies on foreign direct investments:
The country has one of the most flexible and comfortable foreign policies for foreign investors, traders and financial institutions, as a result of which more foreign companies from all the industries are attracted towards India.
After the Industrial Revolution the west has made immense growth in various categories like electronics, power generation, automobiles etc. which had completely changed economies of different countries, the one who adopted these advancements got developed and others lacked behind which primarily led some economies being underdeveloped.
But due to the policies of globalization, which has got its popularity in late 90’s became a milestone in the demolition of trade gaps between the national boundaries.
Useful Sources: Pros & Cons of Trade Liberalization
Abundance Of Resources and Energy
India is one of the major countries being blessed by the treasure of useful minerals,metals and other resources which played a big role for its success in mass production of many commodities.
There are the resources which might be scarce but with the help of expertise of R&D department we have successfully utilised the resources.The raw materials in India can be easily available in comparison of other countries and the manufacturing units are allowed to set up their plants and units near the availability of these resources to reduce the cost of transportation.
The other resources apart from natural is the manpower, either skilled or unskilled
Both can be made available for performing various tasks and functions for different set of activities in all the targeted sectors like manufacturing,transport,sales,operations etc.
Cultural Diversity and Ethnic Inclusiveness
As the country is diverse in cultures, beliefs, values and customs it created another opportunity and market for different sets of goods and services at different occasions.
We observe that from the start of the year till the end, there are a number of festivals, occasions and celebrations. And that shows the enthusiasm of people residing in a country, it directly gives the chance to the companies to target their customers at this stage by categorizing their needs and relevant requirements.
For example when the festivals of Diwali,EId and Christmas arises there is a huge demand of clothes,beauty products,handloom and electronic products. The gets multiplied during this period.
The occasion of marriages and other functions like mundan,grah pravesh etc are some examples of those events which boost the demand of food items,gifting,decorative items etc.
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We are among the biggest economies in the world
This also plays a major role in the building up of great market to be invested in because the per capita income and GDP has rose to tremendous levels, where the average person spends 40% on direct consumer goods monthly.
We can say that the purchasing power is directly proportional to the income generated after taxes and other deductions
So, the individual is contributing in both ways as spending directly in the market and secondly paying taxes like GST and other duties to the government which further promotes foreign direct investments.
Useful Sources: Top 25 Economies Of The World
Digitalization and make in India projects:
The digitisation of the economy in terms of buying platforms,payment methods and customer engagement has made a remark on the growth of the market.
Different E- commerce platforms allowed the customer to have access of the virtual market from anywhere, which not only helped the customer but facilitated the seller too in the form of cost reduction in setting up a whole new retail unit.
The make in India project changed the minds of every foreign company. Now they started seeing India as an exporter of many products including many grains,cereals,spices,electronic items,toys,jewellery and gems, perfumes etc.
Other categories like automobiles in electronic car manufacturing, gadgets in smartphones and other sectors like cement, power generation and alternative energy sources made India an attractive place for other countries to import Indian goods.
Conclusion: with the advancements in technology and better foreign policies we achieved great success in building an ultimate consumer market for the world to explore!
