India has been ranked among the top five consumer markets in Asia in the 2017 BMI Research.
According to the research, China, Sri Lanka, Vietnam, India and Indonesia represent five favourite consumer markets in Asia, offering retailers the strongest consumer spending growth over its forecast period to 2021.
The research reveals that consumer spending in India will maintain strong levels of growth through to 2021, almost at an average of about 6.1 percent, as the country’s positive economic outlook continues.
Key Factors for Increase in Consumer Spending
• Increasing access to consumer credit
• Low inflation rate
• More favourable regulatory environment for foreign-owned retailers
The report further stated that India has a booming e-commerce segment and online retail sales are expected to continue growing at double-digit rates over the forecast period.
It added that due to limitations on the activities that can be undertaken by overseas retailers, Indian e-commerce has so far been dominated by homegrown companies such as Flipkart and Snapdeal.
However, the report also highlighted how Amazon is making a real push into the market. In fact, the American e-commerce company recently announced its intention of rolling out USD 500 million worth investments to online food retailing in India.
Bricks-and-mortar retailers are also beginning to enter the e-commerce segment, due to the high mobile penetration in the country.
About BMI Research
• It is a research firm that provides macroeconomic, industry and financial market analysis, covering 24 industries and 200 global markets.
• It was founded in 1984 as Business Monitor International. It has offices all across the world including in London, New York, Singapore, Hong Kong, Dubai, South Africa and Japan.
• It was acquired in 2014 by Fitch Group, which is majorly owned by Hearst, an American mass media and business information conglomerate.
• Through ‘Total Analysis’, the group helps their clients gain unparalleled insight into global markets and industries.