Consumerism and 4 different Indias

Wallet Monitor, a study conducted by Henley Centre and IMRB International has come up with this new hypothesis. According to them, consumer goods market has 4 Indias:

• Global India: An estimated 1.2 million affluent households sit atop the Indian income and consumption pyramid. This is global India — only a third as large as the comparable segment in China but expanding by more than 20% a year. These households buy branded products, vacation abroad, own a number of cars and television sets. They are largely concentrated in the top eight cities.
• Struggling India and Destitute India: At the bottom of the pyramid are the large but poor segments. Struggling India comprises more than 110 million households earning $1,500 to $4,000 a year ($7,500 to $20,000, adjusted for purchasing-power parity) and destitute India comprises 40 million households that are still poorer earning less than $1,500 a year. For the most part, people in these segments are able to afford only basic necessities.
• Aspiring India: Occupying the central section of the pyramid are 40 million middle-income households or the Aspiring India. Often, it is this section that is the growth driver for any consumer goods company as it purchases more than just the basics. In this India, a typical family comprises five people, lives in a city, and has an educated head of household who is an employee or a small-business owner earning $4,000 to $10,000 a year ($20,000 to $45,000 adjusted for purchasing-power parity). Such a family often lives in a small apartment, has a bank account, and owns a television set, a refrigerator, and a motorcycle or a small car. This new consumer group, growing by about 10% a year, is expected to comprise 65 million households by 2010.

Courtesy: Financial Express