June 8, 2007
Gen-X Are Drivers of
Indian Retail Boom: Study
New Delhi
India's booming retail industry, estimated to become a $427-billion
industry by 2010 from the current $328 billion, should increase its
focus on the youth as the most potential consumer, says a study.
The retail sector in India is undergoing a major paradigm shift,
boasting of a billion plus consumers of which over 50 percent are
less than 25 years of age with an enormous appetite for quality
products and have high purchasing power, said YouSumerism - Youth In
India: Opportunity Knocks - conducted by leading global professional
services firm Ernst & Young.
Effective capitalisation of India's youth would help the global
retailers, who are eyeing major investments in the sector, in
securing their business in an emerging market like India where
large-scale consumerism has yet not attained maturity.
"Those living in emerging markets still have the tendency to save
money. However by 2010 it is expected that the per capita income in
India will reach a tipping point which will then lead to accelerated
consumerism in India," Ashok Rajgopal, director (retail industry),
Ernst & Young said in a statement here.
"By targeting the youth population in India, retailers will be
investing for the future as they will be able to influence and
create loyalty from the start," Rajgopal added.
According to the study, Indian youth can be classified into three
age groups - 13-21, 22-28 and 29-35 - who have different behavioural
patterns and thus distinct habits.
It also elaborates on how consumerism differs between the behaviour
of youth in large cities and those in smaller towns, highlighting
the fact that regional set-up and ethnic backgrounds also could be
used as an effective tool to reach out to the youth.
"The Indian youth offers a huge lifestyle and luxury products and
services consuming audience," stressed Rajgopal.
He underscored that though the industry continues to be regulated,
the retail sector has become the cynosure of a considerable amount
of foreign investors.
Rajgopal said that India currently is most suitably poised for the
retail revolution to occur, adding: "The availability of quality
retail spaces and brand communication are seen as positive factors
inviting investment from retailers in the UK, Spain, Germany, Italy,
France and some from the United States as well."
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