E – Commerce

India’s consumer confidence continues to remain highest globally and showed improvement in the fourth quarter of calendar year 2014 (Q4), riding on positive economic environment and lower inflation. Nielsen’s findings reveal that the consumer confidence of urban India increased by three points in Q4 from the preceding quarter. With a score of 129 in Q4, urban India’s consumer confidence is up by 14 points from the corresponding period of the previous year (Q4 of 2013) when it stood at 115. The current score helps India stay on top of the global consumer confidence index for the quarter and is followed by Indonesia and Philippines, each of which have a score of 120.
The ensuing optimism among consumers and the slowdown in China have combined to help India unseat China at the top of Credit Suisse Research Institute’s Emerging Consumer Survey study released recently. The survey conducted across nine emerging economies has seen India jump four ranks. Average household incomes increased 10 per cent in India in 2014 after remaining nearly the same for two years, the study claimed. This revival in consumer sentiment has primarily been driven by urban India.
India’s market is consumer driven, with spending anticipated to more than double by 2025. The Indian consumer segment is broadly segregated into urban and rural markets, and is attracting marketers from across the world.
Global corporations view India as a vital market for the future. India has a young demographic and a middle class with rising disposable income. If the country can sustain its current pace of growth for some time – and that is likely – average household incomes will triple over the next 20 years and India will become the fifth largest consumer economy in the world by 2025, as per a study by the McKinsey Global Institute (MGI).
The Government of India has also played a major role in the growth of this segment. It has enacted policies that have attracted foreign direct INVESTMENT (FDI) and as a result boosted economic growth.

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