EY - India - a pulse on the consumer products market

India — a pulse on the consumer products market

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EY - Key economic indicators

What to watch for

  • Will the new government have a positive impact on consumerism?
  • Will Goods and Services Tax (GST) be implemented in 2015?

What does a changing Indian consumer bode for consumer product companies and retailers?

Key trends

EY - Consumer consumption has slowed down

Consumer confidence remains intact – India’s consumer confidence is the highest among 60 countries.*

Operational efficiencies, price hikes and new launches help companies manage increasing commodity pressure.

EY - Operational efficiencies, price hikes and new launches
EY - E-commerce is gaining traction

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

Renewed interest in investing in India – After formation of a strong union government, India’s attractiveness as an investment destination has improved further.

EY - Renewed interest in investing in India
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.

Increasing presence of Indian managers in global HQ is driving greater focus on the Indian market.

EY - Increasing presence of Indian managers in global HQ

Key questions for management

  1. How do you increase market penetration and gain scale in the Indian consumer market?
  2. How do you measure the effectiveness and optimize marketing spends in digital?
  3. Given that the bargaining power of modern trade is increasing, how do you simultaneously manage the growth and interests of traditional and modern trade in India?
  4. How do global HQs implement international practices for compliance and governance in India without hampering the speed of growth?


*Source: nielsen-global-consumer-confidence-report-q2-2014

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