Confederation of Indian Industry recently organised the National Retail and FMCG Summit, a flagship event. The theme for the summit held in Mumbai this year was ‘Realizing the Indian Consumption Opportunity: Key Trends Shaping the Evolution”.
“A rising GDP growth over the next decade, will quadruple consumption in this country. This and the demographic dividend where 70% Indians will be of working age in 2025, the flexible younger generation becoming major consumers, increasing media penetration and rising aspiration means that we are in for a great period ahead for retail and FMCG,” said Thomas Varghese, Chairman CII National Committee on Retail 2011-12 & MD & CEO, Aditya Birla Retail Ltd. He however added that, “The current distribution set up is not equipped to take up such a growth and everyone in the ecosystem including the logistic providers, private label providers, those providing warehousing and cold chain etc. will have to work together to truly realize this opportunity.”
While Manu Anand, Chairman, CII National Committee on FMCG 2011-12 & Chairman & CEO, Pepsico - India Region said, “Almost every FMCG company has been riding the waves of growth in the last 20 years and it won’t be any different in the future. The winners however will innovate more complex but significantly insightful models and use technology to create flexible supply chain, innovative products and communication ideas and satisfy even more consumer requirements. Together with this, the government has to create an enabling environment and tackle number of urban issues for the industry to truly reach its potential.”
At this summit new report on consumer patterns was unveiled. The new report ‘The Tiger Roars: An In-Depth Analysis of How a Billion Plus People Consume’ by CII and Boston Consulting Group (BCG), talks about the how the Indians consumers spend their money and how the scenario has changed.
Abheek Singhi, Partner & Director, BCG, talking about India said, “The roar of the Tiger is a fitting metaphor for consumer spending in India. Consumer spending in India will continue to roar, but the companies that try to capture it have to work hard. India is a big and growing consumer market, but not an easy one. Understanding the size and shape of the prize and where it is hidden in the challenging fabric of India are the first steps to capturing it."