Consumer spending to triple in India, China by 2020: Boston Consulting
03 Oct 2012
A study on consumer behaviour by the Boston Consulting Group has found that consumer spending in India and China is expected to triple by 2020 and would together be worth $10 trillion by that year.
The study, published in a book called The $10 Trillion Prize, was based on a survey of 24,000 consumers and interviews with business leaders. It says that the money spent on consumer goods in China and India will increase by three times the level spent in 2010.
Though both these countries have seen declining growth in recent years, the study has discounted this, observinng that these markets were ''experiencing the inevitable volatility in emerging economies''.
The BCG study stated by 2020, Chinese consumers would spend $6.2 trillion annually on consumer goods, while Indian consumers would spend about $3.6 trillion. It added new affluent groups and middle- and upper-class growth would catalyse the boom in the consumer market.
The study also states that the middle class in these two markets is expected to reach 1 billion by 2020. In India, middle-class population is expected to grow to 45 per cent in a decade from 28 per cent in 2010.
The study has named Kraft, Yum! Brands, PepsiCo, Gucci, LVMH, BMW, and Pernod Ricard as companies that have used successful strategies in these countries.
