Global market research company Euromonitor International revealed the key megatrends influencing the Indian consumer market at a seminar in Mumbai. Megatrends are long-term shifts in consumer behaviour that shape demand and determine consumers’ priorities. In the Indian consumer market, disruptive companies are already tapping into one or more megatrends to activate disruption.
The report, titled ‘Megatrends: What is shaping the future opportunities in India?’ pointed out that there is 13% growth in consumer expenditure as the Indian middle class seeks a better lifestyle. FICCI estimated that there would be a 45% increase in discretionary spending by 2025.
Euromonitor International identified three key megatrends re-shaping the Indian market:
Connected Consumer: Connectivity is at the forefront of changing the consumer goods industries. It has redefined accessibility and consumer awareness, changing the way they live, work, shop and play. In 2018, India had 560 million internet users and Euromonitor expects 99% of mobile subscribers will have access to internet on their mobiles by 2030.
Premiumization: Indian consumers have the power to spend on what matters to them. With growing incomes, consumer expenditure grew 13% in 2017 – 2018, while discretionary spending is expected to increase by 45% by 2025.
Shopping re-invented: Internet retailing is expected to double by 2030 in India. Retail distribution will continue to blur and an omnichannel strategy will become mainstream as consumers develop a ‘everything, everywhere’ mindset. There has been a 7.5% year-on-year growth of modern store based retailing in 2018. Store-base retailing is expected to continue holding a huge lead over internet retailing till 2023, with more online players opting for physical presence.
Amulya Pandit, senior research analyst at Euromonitor International explained, “As a new shopper’s journey disrupts the Indian market, the way forward for companies is to elevate engagement by changing the way they analyse their retail formats.”
Rahul Jawale, consultant at Euromonitor International added, “New opportunities stemming from changing consumer behaviour are often met by new, fast-growing brands or local brands with a closer connection to their consumers. To efficiently deal with the disruptions, successful multinationals should keep a constant focus on key drivers to find growth opportunities, even in areas where growth appears impossible.”