The growing consumer market in India

The invariably growing Indian economy is witnessing its golden age, with the fast moving consumer goods (FMCG) global companies foraying into India to harness the potential and reap the benefits of the rampantly growing economy. The FMCG in India form a significant part of the business world in India, as the heightened access to information has made the consumer more aware. It assists the consumer in comparing and asking for better products.

The growing consumer markets have reeled in a new era of retailing. No wonder the international fast moving consumer goods (FMCG) companies like Carrefour and the Wal Mart are pressurizing the Indian government to open the India’s multi-brand retail sector. Carrefour, the world’s second-largest retailer, opened its first cash-and-carry store in India in New Delhi on December 31, 2010 to tap the Indian Consumer Market. The store, Carrefour Wholesale Cash&Carry, is located in the Seelampur area, east of New Delhi in the Shahadara neighborhood.

Moreover, Chennai-based FMCG India space reported CavinKare’s plan to invest around US$ 109.50 million over the next two years in various expansion plans. In addition, Nestle, the fast moving consumer goods (FMCG) major, plans to invest US$ 50.49 million to set up its first research and development (R&D) centre in India at Manesar in adjoining Gurgaon district. The facility will be made operational by July 2012.
Similarly, the direct selling Fast Moving Consumer Goods (FMCG) company, Amway India Enterprises is aiming at a 25 per cent growth to clock US$ 545.7 million by 2012.

Additionally, the Swiss fast moving consumer goods (FMCG) player, Nestle plans to make further inroads into the rural consumer 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. India’s FMCG sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018.

Furthermore, according to data from market researcher Nielsen, the fast moving consumer goods industry posted a 14 per cent sales growth year-on-year in April 2010, the highest in eight months. US-based Harley Davidson, the iconic heavyweight motorcycle maker is targeting the urban consumers markets in India. Harley Davidson opened its first outlet in Hyderabad recently and plans to open more across the country.

Indian consumer market had access to private label products in food and beverage, apparel, footwear and fast moving consumer goods products.

On another note, the number of foreign tourist arrivals in India has increased as India continues to be a favored tourist destination for leisure, as well as business travel. Banking on the government’s initiative of upgrading and expanding the country’s infrastructure like airports, national highways etc, the Tourism and Hospitality industry is bound to get a bounce in its growth. Significantly, the Indian hospitality industry is projected to grow at a rate of 8.8 per cent during 2007-16, placing India as the second-fastest growing tourism and hospitality market in the world. Initiatives like massive investment in hotel infrastructure and open-sky policies made by the government are all aimed at propelling growth in the hospitality sector. The Indian hospitality sector is certainly the most apt replication of the belief ‘Atithi devo bhava’- touch of tenderness, a helping hand and a welcoming visage.

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