India has the third largest consumer market after the US and China. Being the world’s sixth largest economic country, with 7.5 percent of the annual GDP growth rate, it is the consumer behavior that contributes the most in predicting the economic growth of the country. The growth of GDP rate is also raising the interest of Indian investors and manufacturers to set up industries which will progressively increase the production rate of the country and provide employment opportunities to the people. With India being positioned as the world’s second largest mobile phone manufacturer with 120 factories registered till 2018, the users of the smartphones are expected to increase by 829 million by 2022. This growth has not only increased the number of consumers but has also transformed the behavior of how consumers shop today. 2030 is assumed to be the year when India will see a tremendous jump in consumer spending driven by increased incomes, more than a billion diverse internet users and growing millennial population.
As the population growth continues, consumer spending in India is also expected to grow up to $3.6 trillion by 2020 which is almost four times to what it was a decade ago. Even though there is an increase in the overall spending, the Indian consumer market still holds the value conscious nature. The Indian Consumers, especially, the present generation is much more selective towards their choices as compared to the other consumers. This aspiration will increase the demand for standard products within affordable prices. The standardization of products has not just made the consumers comparative but has also resulted in the fall of International companies which once ruled the industry. For example, Nokia had to shut down its products for a brief period of time due to the lack of features that were provided by other manufacturers at a reasonable price. Nokia improvised their products and restarted the business but because of promising top brands, it could not make it to the top again.
Today, India is the world’s second largest users of the internet and this number of internet consumers is increasing gradually, which is changing the dynamics of the Indian consumer market. With the expansion of the market, numerous brands and products have made it easier for the consumers to pick the best, thus making it difficult for the manufacturers. The dynamics of the Indian Consumer Market have changed drastically with the needs of the consumers and also the emerging competition between the companies and brands. It is essential that the sellers think out of the box or provide something new and innovative that can drive the consumers towards their products, goods or services. With higher income, easy access to products and numerous options at hand, the consumer ecosystem is transforming tremendously. With today’s consumers’ decisions based on quality, convenience and value for money, the consumers are keen on trying new products, thus, the need of the hour for the companies is to tweak their services to keep up with the changing needs of the consumer market.