This White Paper from Confederation of Indian Industry (CII) and Nielsen India, titled Emerging Consumer Demand: Rise of the Small Town Indian (2012) takes a closer look at how the smaller Indian towns are leading the demand surge and shopping like metros. I believe, one of the inherent strength of the Indian economy – private consumption expenditure, will continue to remain the strongest pillar of the Indian growth story. Sustaining this consumption story is the rise of the small town consumer.
The Indian consumption landscape in the small towns is dramatically changing – higher disposable income, demographic dividend of a younger generation, heightened aspirations, increasing urbanization resulting in a growing number of nuclear families – all important and key factors leading this development.
Eight thousand towns, 630,000 villages, over eight million stores and 1.2 billion people! In such a diverse consumer universe, how do you measure demand, where is it strongest? North vs. South, the metros vs. Rural – the choices are endless. Nielsen has found that despite current inflationary environment, tier II and tier III towns are showing strong momentum with an improved demand appetite.