The Great Indian Market

Results from the NCAERs

Market Information Survey of Households

In association with

Business Standard

August 9, 2005

Key Findings
The rapid rise in incomes will lead to an even faster increase in
demand for consumer durables and expendables

As a result, the ownership of goods will also go up significantly

What will power this is the increased usage in different income

classes

coupled with the rise in the size of the Great Indian Middle Class

Demand of Consumer Durables

(Figures in '000)

1995-96

2001-02

2005-06

2009-10

Cars

276

788

1,560

3,466

Motorcycles

760

2,599

4,663

8,369

CTV Regular

1,785

4,580

6,295

9,957

Refrigerators

1,850

3,006

4,335

6,774

White Goods

3,437

6,024

8,727

13,149

Demand of Consumer Expendables

(Figures in 000 tonnes)

Edible Oil

Shampoos

Washing
Powder

1995-96

2001-02

2005-06

2009-10

4,582

6,977

8,514

10,586

21

33

50

1,190

1,977

2,596

3,364

Penetration of Consumer Durables

(Number of households owning goods per '000 households)

1995-96

2001-02

2005-06

2009-10

Cars

16.1

30.0

50.2

91.4

Motorcycles

29.3

70.8

147.6

282.6

CTV Regular

72.0

145.6

213.0

314.0

Refrigerators

86.1

134.0

160.7

224.9

White Goods

149.4

247.1

319.1

451.7

Penetration of Expendables
(Number of households using consumables per '000 households)

1995-96

2001-02

2005-06

2009-10

Edible Oil

912.7

998.3

999.0

999.6

Shampoos

182.1

391.7

480.7

583.2

Washing
Powder

607.4

693.0

745.6

809.6

Income Groupings and Ownership

(Ownership per household, 2001-02)
Annual Households Two
household (Million) Wheeler
Income
('000)

Deprived
Aspirers
Middle Class
Rich

<90
90-200
200-1,000
> 1,000
Total

135.4
41.3
10.7
0.8
188.2

0.07
0.47
0.70
0.71
0.20

CTV

0.05
0.40
0.73
0.99
0.17

Ref

0.04
0.34
0.62
0.74
0.14

AC

0.00
0.02
0.15
0.43
0.01

Car

0.00
0.04
0.32
0.83
0.03

Growing Prosperity - All India

<90
91-200

1995-96

2001-02

1,31,176

1,35,378

28,901

41,262

<90
91-200

1,32,249

1,14,394

53,276

75,304
22,268

501-1,000

3,212

6,173

546

1,001-2,000

1,122

2,373

63

201

2,001-5,000

454

1037

11

40

5,001-10,000

103

255

20

10,001+

52

141

9034

201-500

501-1,000

651

1712

1,001-2,000

189

2,001-5,000
5,001-10,000
10,001+

2009-10

13,183

3,881

201-500

2005-06

Income figures in 000 per annum at 2001-02 prices, households in 000 numbers

Key Findings
Rural markets will increase in importance

How do middle class consumers in the rural India

differ from their urban counterparts, and how will
this change in the years to come?

Do consumption patterns differ across occupation

groups in urban and rural areas as well?

Rural Demand- Consumer Durables

(% of All India)
1995-96

2001-02

2009-10

Consumer Durables
Scooters

33.1

39.4

39.9

Motorcycles

47.3

39.8

48.3

Mopeds

52.7

58.2

57.7

2.1

8.0

10.9

Automotives

37.9

36.0

37.9

Television

54.0

54.5

44.2

White goods

23.8

23.9

23.7

Fans

50.0

56.9

56.7

Low cost items

58.1

60.1

61.3

Cars/Jeeps

Rural Demand- Expendables

(% of All India)
1995-96

2001-02

2009-10

Consumer Expendables
Edible oil
Health
beverages
Packaged
biscuits

64.3

67.1

62.9

28.6

27.3

28.1

36.0

42.8

30.3

Shampoos

27.2

31.9

33.0

Toilet soaps

49.8

52.5

54.7

Washing cakes
Washing
powder

68.7

71.4

75.6

50.4

50.8

54.9

Urban-Rural Usage Pattern in Middle Income Group

(Per 000 Households)

Consumer Durables

Motorcycle
Television
Car

Urban
Rural
2001-02 2009-10 2001-02 2009-10
134.3
320.7
109.0
250.9
942.8
1258.9
616.3
561.3
31.4
52.2
1.6
3.5

Consumer Expendables

Edible Oil
Shampoos
Washing Powder

Urban
Rural
2001-02 2009-10 2001-02 2009-10
1000.0
1000.0
1000.0
1000.0
827.8
1000.0
354.5
458.4
904.7
1000.0
775.4
946.9

Ownership Pattern across Occupational Groups

(Per 000 Households)

Two Wheelers

Salary Earner
Professionals

Urban
Rural
2001-02 2009-10 2001-02 2009-10
495.0
834.0
286.0
755.0
859.0 1539.0
521.0
1354.0

Televisions

Salary Earner
Professionals

Urban
Rural
2001-02 2009-10 2001-02 2009-10
1080.0 1452.0
744.0
1056.0
1128.0 1759.0
929.0
1201.0

Key Findings
Do consumption patterns differ across towns of different sizes as well
and how is this likely to change over the next few years?

How do consumption patterns vary across the top cities?

How important are the top cities in the demand for major durables
today?

Do more Mumbaikars own cars than Delhi-ites? How does the usage
of durables differ across cities?

Ownership Pattern by Size of Town

(Per 000 Households)

Town Size Two wheeler White goods Television Low cost goods
>50 lakh
382.02
1149.95 1185.49
4150.19
10-50 lakh
627.02
970.91
792.01
4825.13
5-10 lakh
504.19
756.54
845.5
4419.35
< 5 lakh
346.07
427.68
682.53
3837.46

Household Expenditures Across Top Cities

(Proportion of total expenditure in households earning
over Rs 3 lakhs per annum)

Cities
Vijayawada
Indore
Bangalore
Chennai
Delhi
Mumbai
Ahmedabad
Kolkatta

Health Outdoor eating

4.6
7.7
8.2
5.2
6.3
3.3
6.9
4.1

3.3
4.4
3.3
4.9
4.8
3.8
5.1
5.1

Share and Usage Pattern of Top 67 Cities in 2001-02

(Ownership in per 000 households; share of stock in percent)

Durables
Scooter
Motorcycle
CTV Regular
Cars/Jeeps
Refrigerators
Washing Machines

Usage Pattern
Stock
Top 67 Cities All India (% Share)
243.2
138
486.7
145.8
492.5
316.4

78.6
70.8
145.6
30
134
72.4

44
27
47
68
52
61

Usage of Durables in Delhi and Mumbai

(Ownership per '000 household)

Cars
Income Class
(Rs. 000)
<90

Delhi

Washing Machines
Mumbai

Delhi

Mumbai

29.2

29.4

90-135

80.3

67.8

224.8

221.5

135-180

163.2

226.3

503.2

647.9

180-300

272.7

391.6

616.1

703.8

>300

526.8

597.1

822

857.6

Total

301.0

212.1

574.9

422.3

Key Findings
Does it make more sense to target a marketing
plan for refrigerators at two wheeler owners as
compared to those owning TVs or even ACs?

Who buy second hand goods in India and in which

products are they more widely preferred?

Ownership of Refrigerators by those owing other Durable

(Percent of households owing various durable)

Durables
Two wheelers
Cars/Jeeps
Televisions
AC
Cellphones
Credit cards

All India Urban Rural

21.8
83.8
26.3
85.9
64.5
12.9

31.3
89.0
36.7
88.2
80.4
36.1

9.2
17.1
8.7
31.7
35.8
4.0

Share of Second Hand Goods in 2001-02

(% of total purchase)
Urban

Rural

Scooters

11.2

16.3

Motorcycles

4.5

12.5

Color TV

1.8

3.0

Refrigerators

4.0

2.3

Washing Machines

1.4

5.6

Thank You