Indian consumer markets see profound change

The growth in demand for consumer products in India is seeing even more profound change. A recent Nielsen conference in New Delhi highlights good news for international brand owners :

– the desire for premium products

– interest in indulgent treats

– a shift from commodity to brand purchasing

– more regular adoption of previously luxury products

– growing interest in trialling new products

Overlaying these factors, particularly relevant for the urban middle classes, comes the exceptional growth from rural markets interested in buying bigger packs for greater value.

Now comes the (highly controversial) announcement from the Indian government on proposals to accept foreign direct investment in retailing. If successful this takes away the great barrier of channel fragmentation as consolidation and internationalisation will be inevitable. Naturally, how this pans out will depend on the politics but, for brand owners, better distribution is a big plus. No surprises then that P&G recently announced local manufacture of personal care products.

“Being in the right place at the right time” comes to mind…..

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