WHY India: India's Booming Consumer Confidence Defies Global Gloom
02 January 2024, Mumbai
Fueling Aspirational Spending Spree
Indian consumers are buzzing with optimism, defying global economic anxieties and driving a surge in spending, particularly on premium and aspirational products.
This is the picture painted by Deloitte's Financial Well-Being Index (FWBI), which reveals a remarkable score of 109.1 for India in October 2023, far exceeding the global average of 91.9.
Fueling the Fire:
- 77% of Indian consumers are ready to pounce on major purchases, unwilling to wait, with 70% already indulging in the past two months.
- Luxury beckons: Over 50% show interest in premium durables, and 57% are ready to splurge on gourmet groceries. The booming economy propels India's luxury market towards a projected $30 billion by 2030.
- Global brands take notice. Recognizing the opportunity, luxury giants are expanding their Indian presence, capturing domestic spending previously lost to overseas trips.
Beyond the Big Brands:
- Discerning tastes: Affluence breeds selectivity. Consumers seek unique, localized offerings, boosting D2C players and private labels.
- New commerce takes center stage: D2C, social commerce, quick commerce, and live commerce are transforming the shopping experience and are predicted to capture 40% of the e-commerce market by 2030. This compels brands to prioritize customer experience for growth.
Tech-powered Future:
- Generative AI emerges as the game-changer. Personalized conversations, improved communication, and streamlined fulfillment processes powered by AI will propel brands to reinvent and scale effectively.
India's consumer story is one of resilience, ambition, and a growing appetite for the finer things. With a booming population and tech-driven innovation, the country is poised to reshape the global consumer landscape.
GIST
1. Optimism Reigns: Indian consumers defy global pessimism, driving a spending spree on premium products (FWBI score 109.1 > global avg 91.9).
2. Impulse Gratification: 77% ready for immediate major purchases, 70% already splurging.
3. Luxury Boom: Over 50% crave premium durables and gourmet groceries. India's luxury market to hit $30 billion by 2030.
4. Beyond Big Brands: Discerning consumers seek unique, localized offerings, boosting D2C and private labels.
5. Tech-Driven Future: Generative AI personalizes, streamlines, and redefines brand growth.
Bonus Insight: New commerce formats (D2C, social, quick, live) take center stage, capturing 40% of e-commerce by 2030.
Overall: India's resilience, ambition, and tech-powered focus reshape the global consumer landscape.
