The Indian Retail Market and The Reasons Behind its Huge Growth!

The Indian retail market has grown exponentially in the last 5 years or so itself, both in terms of commercialization and purchasing power. And that has attracted a lot of international brands to the country. It’s no wonder, that if you were to visit a mall in the country today, you would find every major brand that you can possibly think of under a single roof.

I call it, “Trying to grab a piece of the pie”. And it won’t be wrong to say that either, otherwise why else would all the brands try to woe the Indian consumer into buying their stuff.  But, if you were to look about a decade back, you would find that there were no malls in the country then, and neither there were so many brands out there. So what happened all of a sudden? Well, let’s check it out…

# The BPO Revolution

You might ask, “What role does a BPO A.K.A Business Process Outsourcing have to play in this?” it’s quite simple, with the coming of the BPO’s the primary target of the Indian retail market i.e. ‘The youth’ were finally able to find a job even before they finished college. What this means is simple, unlike earlier, when the youth of the country were dependent on their parents to make the decisions for them, regarding what to buy and what not to buy, suddenly the youth found themselves in a position to make those decisions for themselves, due to the amounts of money they were suddenly able to earn.

And this sudden boom in the income stream of the youth in the country didn’t go unnoticed. Since, every major brand took notice and decided to attract this huge pool of consumers eager to buy anything that grabbed their fancy. And even today, more BPO’s are coming up in the country and all the brands are reaping the benefits.

# The Empowerment of the Indian Middle-Class

India is a country with one of the highest middle-class population in the world. There was a time when the middle-class in India was reluctant to spend money and was keener on saving. But thanks to the coming in of the multi-national companies and increased income, today, the middle-class in on a shopping-spree. It’s not as if they have stopped caring about saving money, as a matter of fact, Indian’s are way more cautious than their western counterparts when it comes to spending a dime.

But, it’s just that they are now open to the idea of a Saturday night shopping spree with their families, and they have started spending more money on shopping and eating out, than they have done in the last 10 years or so.

# The Growing Brand Consciousness

The average Indian has become more brand conscious than ever, and today, they want to wear the best brands available out there and eat at the best restaurant in town. Even the school kids in the country have been stung by the ‘Brand Bug’ and peer pressure is to blame for it. Also, with mostly both the parents working, the time that they used to devote to their children has decreased significantly, and that has been addressed by the parents by increasing the monthly allowance of the kids.

And of course, when you got more money to spend, you shop more. This trend in increased pocket money has been rising steadily through the years. Even in colleges and offices, people are seen wearing expensive brands. The mindset has changed a lot in the country, and it has become more like “If you are not wearing branded stuff, you are not the in-thing in town”.

All the above factors have been instrumental in the expansion of the Indian retail market, today; the consumer has more money to spend and brands have more to offer. It’s not a secret anymore that the Indian retail market is one of the fastest growing markets in the world, and when the pie is so huge, I believe it’s not wrong if brands are trying to get a piece of it and trying to outwit each other to go in for the kill.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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