The Great Indian Market
August 9, 2005
Results from the NCAER’sMarket Information Survey of Households
In association withBusiness Standard
The rapid rise in incomes will lead to an even faster increase indemand 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 incomeclasses
coupled with the rise in the size of the Great Indian Middle Class
Key Findings
13,149 8,727 6,024 3,437White Goods
6,774 4,335 3,006 1,850Refrigerators
9,957 6,295 4,580 1,785CTV Regular
8,369 4,663 2,599 760Motorcycles
3,466 1,560 788 276Cars
2009-102005-062001-021995-96
Demand of Consumer Durables(Figures in '000)
3,364 2,596 1,977 1,190WashingPowder
50 33 21 7Shampoos
10,586 8,514 6,977 4,582Edible Oil
2009-102005-062001-021995-96
Demand of Consumer Expendables(Figures in 000 tonnes)
Penetration of Consumer Durables(Number of households owning goods per '000 households)
451.7319.1247.1149.4White Goods
224.9160.7134.086.1Refrigerators
314.0213.0145.672.0CTV Regular
282.6147.670.829.3Motorcycles
91.450.230.016.1Cars
2009-102005-062001-021995-96
809.6745.6693.0607.4WashingPowder
583.2480.7391.7182.1Shampoos
999.6999.0998.3912.7Edible Oil
2009-102005-062001-021995-96
Penetration of Expendables(Number of households using consumables per '000 households)
Income Groupings and Ownership(Ownership per household, 2001-02)
Annualhousehold
Income('000)
Households(Million)
TwoWheeler
CTV Ref AC Car
Deprived <90 135.4 0.07 0.05 0.04 0.00 0.00Aspirers 90-200 41.3 0.47 0.40 0.34 0.02 0.04Middle Class 200-1,000 10.7 0.70 0.73 0.62 0.15 0.32Rich > 1,000 0.8 0.71 0.99 0.74 0.43 0.83
Total 188.2 0.20 0.17 0.14 0.01 0.03
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
Rural markets will increase in importance
How do middle class consumers in the rural Indiadiffer from their urban counterparts, and how willthis change in the years to come?
Do consumption patterns differ across occupationgroups in urban and rural areas as well?
Key Findings
61.360.158.1Low cost items
56.756.950.0Fans
23.723.923.8White goods
44.254.554.0Television
37.936.037.9Automotives
10.98.02.1Cars/Jeeps
57.758.252.7Mopeds
48.339.847.3Motorcycles
39.939.433.1Scooters
Consumer Durables
2009-102001-021995-96
Rural Demand- Consumer Durables(% of All India)
54.950.850.4Washingpowder
75.671.468.7Washing cakes
54.752.549.8Toilet soaps
33.031.927.2Shampoos
30.342.836.0Packagedbiscuits
28.127.328.6Healthbeverages
62.967.164.3Edible oil
Consumer Expendables
2009-102001-021995-96
Rural Demand- Expendables(% of All India)
Consumer Durables
2001-02 2009-10 2001-02 2009-10Motorcycle 134.3 320.7 109.0 250.9Television 942.8 1258.9 616.3 561.3Car 31.4 52.2 1.6 3.5
Consumer Expendables
2001-02 2009-10 2001-02 2009-10Edible Oil 1000.0 1000.0 1000.0 1000.0Shampoos 827.8 1000.0 354.5 458.4Washing Powder 904.7 1000.0 775.4 946.9
Urban Rural
Urban Rural
Urban-Rural Usage Pattern in Middle Income Group(Per 000 Households)
Two Wheelers
2001-02 2009-10 2001-02 2009-10Salary Earner 495.0 834.0 286.0 755.0Professionals 859.0 1539.0 521.0 1354.0Televisions
2001-02 2009-10 2001-02 2009-10Salary Earner 1080.0 1452.0 744.0 1056.0Professionals 1128.0 1759.0 929.0 1201.0
Urban Rural
Urban Rural
Ownership Pattern across Occupational Groups(Per 000 Households)
Do consumption patterns differ across towns of different sizes as welland 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 durablestoday?
Do more Mumbaikars own cars than Delhi-ites? How does the usageof durables differ across cities?
Key Findings
Town Size Two wheeler White goods Television Low cost goods>50 lakh 382.02 1149.95 1185.49 4150.1910-50 lakh 627.02 970.91 792.01 4825.135-10 lakh 504.19 756.54 845.5 4419.35< 5 lakh 346.07 427.68 682.53 3837.46
Ownership Pattern by Size 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 eatingVijayawada 4.6 3.3Indore 7.7 4.4Bangalore 8.2 3.3Chennai 5.2 4.9Delhi 6.3 4.8Mumbai 3.3 3.8Ahmedabad 6.9 5.1Kolkatta 4.1 5.1
Durables StockTop 67 Cities All India (% Share)
Scooter 243.2 78.6 44Motorcycle 138 70.8 27CTV Regular 486.7 145.6 47Cars/Jeeps 145.8 30 68Refrigerators 492.5 134 52Washing Machines 316.4 72.4 61
Usage Pattern
Share and Usage Pattern of Top 67 Cities in 2001-02
(Ownership in per ‘000 households; share of stock in percent)
422.3574.9212.1301.0Total
857.6822597.1526.8>300
703.8616.1391.6272.7180-300
647.9503.2226.3163.2135-180
221.5224.867.880.390-135
29.429.200<90
MumbaiDelhiMumbaiDelhi
Washing MachinesCarsIncome Class
(Rs. 000)
Usage of Durables in Delhi and Mumbai(Ownership per '000 household)
Does it make more sense to target a marketingplan for refrigerators at two wheeler owners ascompared to those owning TVs or even ACs?
Who buy second hand goods in India and in whichproducts are they more widely preferred?
Key Findings
Durables All India Urban RuralTwo wheelers 21.8 31.3 9.2Cars/Jeeps 83.8 89.0 17.1Televisions 26.3 36.7 8.7AC 85.9 88.2 31.7Cellphones 64.5 80.4 35.8Credit cards 12.9 36.1 4.0
Ownership of Refrigerators by those owing other Durable(Percent of households owing various durable)
5.61.4Washing Machines
2.34.0Refrigerators
3.01.8Color TV
12.54.5Motorcycles
16.311.2Scooters
RuralUrban
Share of Second Hand Goods in 2001-02(% of total purchase)
Thank You