The Indian consumer market, driven by increasing disposable incomes and a favourable demographic shift towards a majority working population, is opening up significant opportunities for several mid-sized consumer companies, a report said.
“There has been spectacular growth in this segment (mid-sized consumer companies) in recent years, driven by an upbeat economy and enhanced consumer spending,” the FICCI-PwC report said.
Further, there has been an increase in the response rate of these companies, contributing to their growth. For example, when oil prices dropped, mid-sized companies reacted quickly and passed on the benefit to customers by reducing the prices of products, cutting into the volumes of larger companies, the report added.
However, as these organisations are now at the cusp of their next wave of growth, the report notes that a wellcrafted ‘go to market’ strategy will be critical to compete directly against large multinationals as well as startups and companies with disruptive business models.
“In order to stay relevant and succeed in the market, mid-sized consumer companies need to be prepared to scale up significantly and rapidly with ‘go to market’ as a key lever of growth,” the report said. Among the key trends shaping the consumer space is the expected growth in the rural market, with around 68 per cent of the country’s population living in rural areas.