SMILING FACE OF BOOM……

Smiling Face of Boom………….

Electronics
Consumer
Goods
Goods
Growth Seen In All
Directions.
Gross Domestic Rural Living
Product Standards
REASON FOR BOOM……
Consumer boom.
Rise in income.
Better infrastructure.
Growth in GDP due to major economy growth.
MNC’s setting up in India.
Laws and regulation regarding export & import.
SECTORS FOR GROWTH
Telecommunication.
Retail.
Information technology.
ITES.
Consumer Goods Boom In Market
Significant sale of 10 million cell phones.
Sale of 10 million TV sets
6.34 million personal computers were sold.
Over a million new cars were sold .

Tremendous Boom In Selling And Purchase Of Goods In Market

Growth In Countries ‘GD
P’
‘GDP’ grew by 9.4%. in Last fiscal
India is the fastest growing major economy after China .
Growing rapidly a little behind Chinese economy which is
10% per annum .
GROWTH OF INFRASTRUCTURE
New airports in Bangalore & Hyderabad.
Renovation of Delhi & Mumbai airports .
New apartments coming up in cities and towns .
TELECOMMUNICATION BOOM
Cell phone market in India has increased to $16.7 billion .
Mobile phone market growing at over 20% annually .
6 million plus mobile subscribers every month add up .
All the leading handset giants are launching their sets sim
ultaneously .
The Driving Force
Electronics & home appliance market is growing at aroun
d 10% per annum .
The middle class & the youth are driving the growth in bo
th these sectors.
The major growth coming from small town and rural are
as .
Supported by increased sale of electronic appliances in ru
ral area.
GROWTH IN URBAN AREAS
There will be 600 new shopping malls in India by 2010 .
Malls are coming up in almost all locations .
In Urban India growth is happening in housing and retail s
ector .
Big growth is happening in National Capital Region ie ; M
umbai ,Bangalore , Hyderabad & Kolkata .
GROWTH IN RETAIL
Structure of Indian Retail sector
Organized Retail Sector.
Unorganized Retail Sector
ORGANIZED RETAIL SECTOR
Characterized by typically large no. of retailers.
Greater enforcement of taxation mechanism.
Better labor law monitoring system.
Successful in metro cites.
UNORGANIZED RETAIL SECTOR
Represents 97% of total retail marked.
Characterized by typically small retailers.
More prone to tax evasion.
Lack of labor law supervision.
EXCULSION OF GLOBAL Retailers
Global retail chains like “Wall – Mart” & “Tesco” are yet t
o make their entry into India .
Its good for our own retail chains in India.
“Reliance Fresh” , “Subhiksha” & “Shoppers Stop” are exp
anding their reach day by day in India .
MNC’S IN INDIA
Dell computers & Flextronics are setting up plants to mak
e PCs & Laptops .
Dell computers & Flextronics are setting up plants to mak
e PCs & Laptops .
E.g. The hype is visible from several examples , one could be
from “Sriperumbudur” its just a little town 40km outside
Chennai , where about a decade ago it was a rice field an
d turned into hi-tech factories of electronic goods.
THE BIG QUESTION???
THE BIG QUESTION
The big question is whether this growth will continue or n
ot ?
The growth in production of consumer durables fell to 5.
3% against 7.4% last year .
Reports from Confederation On Indian Industry says that
there are signs of decline in the market .
REASON FOR DOWNFALL
Increase in interest rates of loans.
First sign of downfall : car sales growth fell to 11% in april
& may , as opposed to 20.7% in previous year .
Reason being most Indians purchase cars by taking loans ,
hence high interest rate will lead to less sales.
Rise in EMI.
Gradual decline in capital goods.
OTHER FACTORS FOR DOWNFALL
Other problems could be the rise in global commodity pri
ces .
Steel price is rising , hence price for cars will also go high .
As loans are already up , majority will keep distance from
the market .
PAMPERED INDIAN ECONOMY
Till now Indian consumers had been protected from the rise
in oil prices but this cushion may not last for long as
we can see the hike in petroleum price as well as commodit
y price in current economy .
These problems could slow down things further . Also both
revenue and profit
are high.
POSSIBLE SOLUTION FOR THE PROBLEM
India is a growing economy with immense capability.
Higher incomes and better life style.
Ever increasing demand.
Middle class and rural market developing as ultimate gro
wth factors.