Shifting shopping habits to reshape the industry
We expect 2020-30 to be a transformational decade for India’s consumers as the informal or “unorganised” sector shrinks, and both disposable incomes and demand for discretionary goods rise. Within staples, we see more participation by organised players in food and beverages and reduced competition in beauty and personal care. Discretionary players have room to grow via network and category expansion.
Huge growth lies ahead in discretionary
As more people join the middle class and the share of the elite and affluent class expands, the desire for aspirational goods and services is likely to increase, making discretionary spending a more significant part of household budgets. Companies need to adopt new marketing strategies to cater to increasingly diverse consumer segments. Footwear, apparel and jewellery should see accelerated growth.