EY - India - a pulse on the consumer products market

India — a pulse on the consumer products market

  • Share
EY - Key economic indicators

What to watch for?

  • With slowdown in spending, consumers are trading up and down across products
  • Pressures from volatility in input costs being aggravated by depreciating Rupee

What does a changing consumer mean for the sector?

Key trends

EY - Consumer confidence rising

Consumer confidence rising: India’s consumer confidence is the highest among 60 countries.*

E-commerce is gaining traction as a sales channel for both business and retail customers.

EY - E-commerce is gaining traction as a sales channel
EY - Renewed interest to invest in India

Renewed interest to invest in India: Post formation of a strong union government, India’s attractiveness as an investment destination has improved further.

Operational efficiencies, price hikes and new launches help companies manage growth in spite of lower volume offtake.

EY - Operational efficiencies, price hikes and new launches
EY - Increased value trading

Increased value trading: Global CP companies compete with white labels and local brands, which adversely impacts their potential to charge a brand premium.

Efficiency and automation will drive future growth as the sector.

EY - Efficiency and automation
EY - Volatility in most emerging markets along with ongoing struggles in China

Volatility in most emerging markets along with ongoing struggles in China are driving greater focus to the Indian market.


Key questions for management

  1. How do you increase market penetration and gain scale in the Indian consumer market?
  2. How do you measure effectiveness and optimize marketing spends in digital?
  3. How do you manage margins in the face of increasing pressure from modern trade and e-commerce?
  4. How do global HQs implement international practices for compliance and governance in India without hampering the speed of growth?
  5. How can retail and CPG companies sustainably tap the Indian e-commerce opportunity?


*Source: Nielsen Global Consumer Confidence Report Q4 2014

Top