The Great Indian Market

August 9, 2005
Results from the NCAERs
Market Information Survey of Households
In association with
Business Standard
The rapid rise in incomes will lead to an even faster increase in
demand for consumer durables and expendables
As a result, the ownership of goods will also go up significantly
What will power this is the increased usage in different income
classes
coupled with the rise in the size of the Great Indian Middle Class
Key Findings
13,149 8,727 6,024 3,437 White Goods
6,774 4,335 3,006 1,850 Refrigerators
9,957 6,295 4,580 1,785 CTV Regular
8,369 4,663 2,599 760 Motorcycles
3,466 1,560 788 276 Cars
2009-10 2005-06 2001-02 1995-96
Demand of Consumer Durables
(Figures in '000)
3,364 2,596 1,977 1,190
Washing
Powder
50 33 21 7 Shampoos
10,586 8,514 6,977 4,582 Edible Oil
2009-10 2005-06 2001-02 1995-96
Demand of Consumer Expendables
(Figures in 000 tonnes)
Penetration of Consumer Durables
(Number of households owning goods per '000 households)
451.7 319.1 247.1 149.4 White Goods
224.9 160.7 134.0 86.1 Refrigerators
314.0 213.0 145.6 72.0 CTV Regular
282.6 147.6 70.8 29.3 Motorcycles
91.4 50.2 30.0 16.1 Cars
2009-10 2005-06 2001-02 1995-96
809.6 745.6 693.0 607.4
Washing
Powder
583.2 480.7 391.7 182.1 Shampoos
999.6 999.0 998.3 912.7 Edible Oil
2009-10 2005-06 2001-02 1995-96
Penetration of Expendables
(Number of households using consumables per '000 households)
Income Groupings and Ownership
(Ownership per household, 2001-02)
Annual
household
Income
('000)
Households
(Million)
Two
Wheeler
CTV Ref AC Car
D eprived < 9 0 1 3 5 . 4 0 . 0 7 0 . 0 5 0 . 0 4 0 . 0 0 0 . 0 0
Aspirers 9 0 - 2 0 0 4 1 . 3 0 . 4 7 0 . 4 0 0 . 3 4 0 . 0 2 0 . 0 4
Middle Class 2 0 0 - 1 ,0 0 0 1 0 . 7 0 . 7 0 0 . 7 3 0 . 6 2 0 . 1 5 0 . 3 2
R ich > 1 ,0 0 0 0 . 8 0 . 7 1 0 . 9 9 0 . 7 4 0 . 4 3 0 . 8 3
Total 1 8 8 . 2 0 . 2 0 0 . 1 7 0 . 1 4 0 . 0 1 0 . 0 3
Growing Prosperity - All India
1,31,176 1,35,378
28,901
3,881
651
189
63
11
5
41,262
9034
1712
546
201
40
20
1995-96 2001-02
<90
91-200
201-500
501-1,000
1,001-2,000
2,001-5,000
5,001-10,000
10,001+
1,32,249
53,276
13,183
3,212
1,122
454
103
52
75,304
22,268
6,173
2,373
1037
255
141
2005-06 2009-10
<90
91-200
201-500
501-1,000
1,001-2,000
2,001-5,000
5,001-10,000
10,001+
1,14,394
Income figures in 000 per annum at 2001-02 prices, households in 000 numbers
R ural markets will increase in importance
How do middle class consumers in the rural India
differ from their urban counterparts, and how will
this change in the years to come?
D o consumption patterns differ across occupation
groups in urban and rural areas as well?
Key Findings
61.3 60.1 58.1 Low cost items
56.7 56.9 50.0 Fans
23.7 23.9 23.8 White goods
44.2 54.5 54.0 Television
37.9 36.0 37.9 Automotives
10.9 8.0 2.1 Cars/Jeeps
57.7 58.2 52.7 Mopeds
48.3 39.8 47.3 Motorcycles
39.9 39.4 33.1 Scooters
Consumer Durables
2009-10 2001-02 1995-96
Rural Demand- Consumer Durables
(% of All India)
54.9 50.8 50.4
Washing
powder
75.6 71.4 68.7 Washing cakes
54.7 52.5 49.8 Toilet soaps
33.0 31.9 27.2 Shampoos
30.3 42.8 36.0
Packaged
biscuits
28.1 27.3 28.6
Health
beverages
62.9 67.1 64.3 Edible oil
Consumer Expendables
2009-10 2001-02 1995-96
Rural Demand- Expendables
(% of All India)
Consumer Durables
2001-02 2009-10 2001-02 2009-10
Motorcycle 1 3 4 . 3 3 2 0 . 7 1 0 9 . 0 2 5 0 . 9
Television 9 4 2 . 8 1 2 5 8 . 9 6 1 6 . 3 5 6 1 . 3
Car 3 1 . 4 5 2 . 2 1 . 6 3 . 5
Consumer Expendables
2001-02 2009-10 2001-02 2009-10
Edible Oil 1 0 0 0 . 0 1 0 0 0 . 0 1 0 0 0 . 0 1 0 0 0 . 0
Shampoos 8 2 7 . 8 1 0 0 0 . 0 3 5 4 . 5 4 5 8 . 4
Washing Powder 9 0 4 . 7 1 0 0 0 . 0 7 7 5 . 4 9 4 6 . 9
Urban Rural
Urban Rural
Urban-Rural Usage Pattern in Middle Income Group
(Per 000 Households)
Two Wheelers
2001-02 2009-10 2001-02 2009-10
Salary Earner 4 9 5 . 0 8 3 4 . 0 2 8 6 . 0 7 5 5 . 0
Professionals 8 5 9 . 0 1 5 3 9 . 0 5 2 1 . 0 1 3 5 4 . 0
Televisions
2001-02 2009-10 2001-02 2009-10
Salary Earner 1 0 8 0 . 0 1 4 5 2 . 0 7 4 4 . 0 1 0 5 6 . 0
Professionals 1 1 2 8 . 0 1 7 5 9 . 0 9 2 9 . 0 1 2 0 1 . 0
Urban Rural
Urban Rural
Ownership Pattern across Occupational Groups
(Per 000 Households)
D o consumption patterns differ across towns of different sizes as well
and how is this likely to change over the next few years?
How do consumption patterns vary across the top cities?
How important are the top cities in the demand for major durables
today?
D o more Mumbaikars own cars than D elhi- ites? How does the usage
of durables differ across cities?
Key Findings
Town Siz e Two wheeler White goods Television Low cost goods
> 5 0 lakh 3 8 2 . 0 2 1 1 4 9 . 9 5 1 1 8 5 . 4 9 4 1 5 0 . 1 9
1 0 - 5 0 lakh 6 2 7 . 0 2 9 7 0 . 9 1 7 9 2 . 0 1 4 8 2 5 . 1 3
5 - 1 0 lakh 5 0 4 . 1 9 7 5 6 . 5 4 8 4 5 . 5 4 4 1 9 . 3 5
< 5 lakh 3 4 6 . 0 7 4 2 7 . 6 8 6 8 2 . 5 3 3 8 3 7 . 4 6
Ownership Pattern by Siz e of Town
(Per 000 Households)
Household Expenditures Across Top Cities
(Proportion of total expenditure in households earning
over Rs 3 lakhs per annum)
Cities Health Outdoor eating
Vijayawada 4 . 6 3 . 3
Indore 7 . 7 4 . 4
Bangalore 8 . 2 3 . 3
Chennai 5 . 2 4 . 9
D elhi 6 . 3 4 . 8
Mumbai 3 . 3 3 . 8
Ahmedabad 6 . 9 5 . 1
Kolkatta 4 . 1 5 . 1
Durables Stock
Top 67 Cities All India (% Share)
Scooter 2 4 3 . 2 7 8 . 6 4 4
Motorcycle 1 3 8 7 0 . 8 2 7
CTV R egular 4 8 6 . 7 1 4 5 . 6 4 7
Cars/Jeeps 1 4 5 . 8 3 0 6 8
R efrigerators 4 9 2 . 5 1 3 4 5 2
Washing Machines 3 1 6 . 4 7 2 . 4 6 1
Usage Pattern
Share and Usage Pattern of Top 67 Cities in 2001-02
(Ownership in per 000 households; share of stock in percent)
422.3 574.9 212.1 301.0 Total
857.6 822 597.1 526.8 >300
703.8 616.1 391.6 272.7 180-300
647.9 503.2 226.3 163.2 135-180
221.5 224.8 67.8 80.3 90-135
29.4 29.2 0 0 <90
Mumbai Delhi Mumbai Delhi
Washing Machines Cars
Income Class
(Rs. 000)
Usage of Durables in Delhi and Mumbai
(Ownership per '000 household)
D oes it make more sense to target a marketing
plan for refrigerators at two wheeler owners as
compared to those owning TVs or even ACs?
Who buy second hand goods in India and in which
products are they more widely preferred?
Key Findings
Durables All India Urban Rural
Two wheelers 2 1 . 8 3 1 . 3 9 . 2
Cars/Jeeps 8 3 . 8 8 9 . 0 1 7 . 1
Televisions 2 6 . 3 3 6 . 7 8 . 7
AC 8 5 . 9 8 8 . 2 3 1 . 7
Cellphones 6 4 . 5 8 0 . 4 3 5 . 8
Credit cards 1 2 . 9 3 6 . 1 4 . 0
Ownership of Refrigerators by those owing other Durable
(Percent of households owing various durable)
5.6 1.4 Washing Machines
2.3 4.0 Refrigerators
3.0 1.8 Color TV
12.5 4.5 Motorcycles
16.3 11.2 Scooters
Rural Urban
Share of Second Hand Goods in 2001-02
(% of total purchase)
Thank You