Many of these youth's are in their mid 20's and still live at. They have little or no bills to pay for and in most cases spend about 60%-70% of their income shopping (Source Wall Street Journal, Wallets crack open in India , January 3rd, 2006). Majority of these youths are working for call centers or other technology firms, and increasing living a more western life style of consumption.
Despite the bright prospects, many foreign companies are still struggling to enter the Indian market. Stores like Wall-Mart have been prevented to invest in operating their own stores in India . Many of the foreign brands have now entered India through franchise agreements, which require companies to cede a lot of control to local operators.
What ever the case, the Indian economy is growing in size at a rapid pace, and the year 2006 will bring new consumers to the market at an increasing growing rate. The challenge most companies face is how to sell products to brand conscious consumers at a price they can afford and how to keep up with the growth rate which in most cases is about 30%-50% a year compared to 3%-5% on average in the developed world.
No comments:
Post a Comment