India’s population is her biggest asset. And the fact that Indian population is growing young day by day adds to the joy. India has a huge number of youths and teenagers. In fact India has about 115.3 million teenagers! This also implies that India has more teenagers than the combined teen population of the G7 countries!
Having a huge teen populace means investment opportunities for companies dealing in fashion, fast foods, soft drinks, clothes, music, electronics, sports goods etc. While the Indian market is flooded with brands like Coca-Cola, Pepsi, Levi’s, Domino’s, Pizza Hut, McDonalds, Nike, Adidas, Reebok, Disney etc. there is scope for a lot more to enter the market. After all, India does have the largest teen population in the world!
To give you an overview of the market and it’s potential:
- 74% urban teens posses cell phones
- 81% urban youth are computer users
- 89% watch TV daily
- 73% listen to the radio
- 91% watch movies regularly
Now with such a market, who wouldn’t want to invest in India?
Having a GDP of 9% and the third largest economy of Asia (after Japan and China) and the twelfth in the world, India, it is assumed, will have the third largest economy (leaving behind Japan!) by 2012. According to a survey by Business Today, Indian youths spend $42 billion per annum!
According to some of the big brand managers, the Indian youth is willing to spend more for a brand name provided they get a rational argument regarding its utility. To add to this, 18% of LVMH sales in India come from teenage customers!
As stated before, the Indian market, unlike its American and European counterparts, is growing young everyday. Hence companies dealing with teen products have to look for markets having considerable teen inhabitants like India. The question is while Starbucks is opening its joint in India, will its foils like Dunkin Donuts, Café Nero and Costa Coffee sit back and watch Indian market being captured by its competitor, or will they too land in India soon?