India's Consumer Market: A Tale of Two Worlds
Thursday, 27 February, 2025135 words2 minutes
India, with its population of 1.4 billion, faces a significant economic divide. According to a recent report, only about 130-140 million people have the financial means to spend on discretionary goods and services. This 'consuming class' is comparable in size to Mexico's entire population.
The report highlights a trend called 'premiumisation', where brands focus on selling expensive, upgraded products to wealthy consumers. This is evident in the booming sales of luxury housing, premium phones, and high-priced concert tickets. Companies catering to this premium market have thrived, while those focusing on mass-market products have struggled.
However, this trend also underscores growing inequality in India. The rich are getting richer, while a large portion of the population lacks purchasing power. This divide has been exacerbated by the COVID-19 pandemic, leading to what economists call a 'K-shaped' recovery.
