Page 145 - MYM 2015

And More Contrasts
India has some of the richest people in the world. The Hinduja brothers, with headquarters in the UK, have only been displaced to No 2, in 2015, as the richest
in the UK, and much richer than the Queen of England who occupies 7th place. L N Mitttal, who also lives in the UK, is known as the steel king of the world; again among the richest in the UK and in the world. There are others, in India, and elsewhere– too many to list here.
Against this backdrop, just 3% of India’s population pays Income Tax. The others are, or claim to be, below the taxation limit. 50% of the population has no access to sanitation, potable drinking water, or to electricity. Though progress is being made, albeit slowly, 30% of the population is still below the poverty line.
A Present and a Future Full of Hope
It is a game of numbers. The US Department of Agriculture has released the figures ($) which show that:
• In 2015, the GDP in USA is 16.80 trillion and will rise in 2030 to 24.8 trillion
• In 2015, the GDP in China is 9.24 trillion and will rise in 2030 to 22.2 trillion
• In 2015, the GDP in India is 1.90trillion and will rise in 2030 to 6.6 trillion
Japan is expected to move from 4.9 trillion to 6.4 trillion in the same period, followed by Germany, Brazil, and UK. Thus, the global economic order will change radically, with some emerging economies catapulting into prominence and the USA, becoming far less dominant. (2)
Less incomes / but more numbers
In a tabulation of disposable incomes of citizens of several countries, India ranks 129 out of 176 nations.
In this listing,
But it is total population number which holds the key. India has 300 million in the so called “Middle Class” alone, which is nearly equal to the total population of the USA!
A New Hierarchy of Needs
Census 2011, India, helped to reinforce the new robust consumption pattern that has been established across urban AND rural India, over the past decade. The study of Indian households has also highlighted the changing hierarchy of needs.
Toilets and bathrooms can wait, BUT
Vehicles of entertainment, communication and transport cannot wait.
Thatched roofs and mud oors and walls, are no deterrent to embellishing the home with color television sets, computers and laptops.
And MOBILE is the buzzword, whether it is a two wheeler or a wireless handset.
Is it not strange that:
More households have televisions THAN bathrooms;
More households have telephones (mobiles) THAN toilets;
More households have two wheelers THAN closed drainage;
More households have PCs /Laptops THAN concrete walls;
More households have bicycles THAN running tap water?
Open Spaces for Business – Vacancies Exist
This explains the huge appetite of companies throughout the world to take a slice of the India market (as well as other countries in BRICS). And they do so, even when they look at the “top of the line” luxury market – of Gucci, Channel, Fendi, in offerings of bags, shoes, perfumes, dress and even underwear clothing!
In April 2015, Audi unveiled the new TT automobile, and plans to bring in 5 new models in 5 months, to counter Mercedes, 10 new launches planned for 2015 alone. Audi and Mercedes both sold nearly 11,200 cars each, in the preceding year. Both occupy the highest end of the market.
The market penetration of consumer durables in India v/s global average in 2014, per 1000, is:
your
mind I145
Switzerland is No 1 with:
$6,301
USA is No 3 with:
$3,258
UK is No 4 with:
$2,960
Japan with:
$2,782
China with:
$731
India with:
$452
Washing machine 8.8 % India 70.0% Global
Air conditioners 3.0 % 60.0%
Refrigerator 21.0% 85.0%
TV 60.0 % 89.0%
marketing