Tuesday, August 14, 2007

Pyramid-The Indian Perspective

I would like to give the Indian perspective to what Paul has talked about

With the rapid expansion and globalization of India's markets the consumer purchasing patterns and product preferences have seen a change.

The rich class is only 0.8 millions as opposed to 135.4 million households of poor and 41.3 millions households of aspirers. In the last decade there has been increasing focus on the rising Indian middle class but the deprived and aspirers are left out .Here we can see the huge potential at the bottom due to sheer size.

The above figure shows the shift in the pyramid over a span of 5 years. It clearly shows that the deprived class will decrease and there will be an increase in aspirers, middle class and rich class. This is due to increase in the income levels and development. Clearly this shows increase in the consumption market. A simple logic deduction is that instead of companies fighting with each other to get a piece of market pie, it seems sensible enough to invest in the development of the bottom of the pyramid so that the market pie itself increase and there is enough demand to be tapped .This exactly is where fortune really lies – at the bottom of the pyramid

1 comment:

Arthur said...

This "bottom-of-the-pyramid" approach is essential in my country too. South Africa's "Black Economic Empowerment" policies are good are paper and in principle are essential to redress the inequities of our apartheid past.
The reality though has been the rise of a black elite and growing middle class while the huge majority of black South Africans still live in poverty.

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