INDIA TO BECOME THIRD-LARGEST CONSUMER ECONOMY BY 2025
as the world economy struggles and many developed countries are
trying to alter their consumption through austerity drive, India
could end up as the third largest consumer economy by 2025 according
to a report by the Boston Consulting Group (BCG).
Consumption in India is set to triple to $4 trillion by 2025 as rising affluence drives changes in consumer behaviors and spending patterns that have big implications for companies. Nominal year-over-year expenditure growth of 12% is more than double the anticipated global rate of 5% and will make India the third-largest consumer market by 2025.
consumer market is poised for fundamental change. As the consumer
market continues to grow and evolve, companies will need to shed
conventional wisdom, try multiple business models simultaneously, and
be prepared for rapid change internally to adapt to changing consumer
needs and behaviors.
A set of emerging social trends could reshape consumption patterns significantly, which will drive exponential growth in various categories. Online spending is taking off: the number of online buyers has increased sevenfold to 80 million to 90 million. Digital influence on broader consumer spending is significant and growing rapidly. Digitally influenced spending is currently about $45 billion to $50 billion a year, and that figure is projected to increase more than tenfold to $500 billion to $550 billion, and to account for 30% to 35% of all retail sales by 2025. As a result, omni channel interaction is more and more important, but its significance may vary from category to category as Consumers’ purchase pathways also are increasingly complicated.
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