How China and India differ in the consumer goods market

India’s share in the consumption of consumer goods is expected to double by 2030 and favourable demographics (youth) will soon take it ahead of China in regional market dynamics, according to a report by Credit Suisse.

Interestingly, in India it is the home-grown brands like watchmaker Titan, hosiery company Rupa and another watchmaker Sonata which are gaining the most out of this propensity to spend in India.

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However, India is at a comparative disadvantage vis-a-vis China because of factors like less urbanisation, high concentration of urban pockets and lower enrolments in higher education.

It said in 2015, China had 150 million more people in working age than India, while by 2045, the northern neighbour will have 300 million less people than India in the bracket.

Additionally, China will also have to grapple with ageing related issues by 2045, it said, pointing out that the Communist country will have 350 million people aged over 65 as against 200 million in India.

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It marked out the apparel and meat sectors as the ones with ‘high’ growth potential as the per capital income of the country grows, followed by beverages, cars, cereals, personal computers, smart phones and education with ‘medium’ growth potential, while healthcare, consumer credit and tourism were the ones with ‘low’ potential.

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From a consumption perspective, the Chinese prefer more of travel and entertainment-related options, it is staples that dominate the Indian story, the brokerage said.

India scores over China when it comes to spending intentions, the brokerage said, pointing out that the desire to spend is declining “more broadly” in China.

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Author: Stephen Manallack

Former President, Australia India Business Council, Victoria and Author, You Can Communicate; Riding the Elephant; Soft Skills for a Flat World (published by Tata McGraw-Hill INDIA); Communicating Your Personal Brand. Director, EastWest Academy Pty Ltd and Trainer/Speaker/Mentor in Leadership, Communication and Cross Cultural Communication. Passionate campaigner for closer western relations with India. Stephen Manallack is a specialist on “Doing Business with India” and advisor/trainer on “Cross-Cultural Understanding”. He is a Director of EastWest Academy Pty Ltd which provides strategic advice and counsel regarding business relations with India. A regular speaker in India on leadership and global communication, his most recent speaking tour included a speech to students of the elite Indian university, Amity University, in Noida. He also spoke at a major Federation of Indian Chambers of Commerce and Industry (FICCI) global summit, the PR Consultants Association of India in Delhi, the Symbiosis University in Pune and Cross-Cultural Training for Sundaram Business Services in Chennai. He has visited India on business missions on 10 occasions and led three major trade missions there. He provides cross-cultural training – Asia and the west.

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