Mr Douglas Baillie, Chief Executive Officer of the Rs.11,953 crore FMCG behemoth, Hindustan Lever requested companies to make their brands socially responsive and innovative as part of their growth strategies. He was speaking on the theme “India opportunity and the role of social innovation” at the IIMA Confluence 2006.
In the next 20 years, India’s pyramidal economy, with 75% of consumers in the bottom rung of a pyramid, will metamorphose into a diamond-shape, with 50% of consumers moving up from lower to middle- and upper-income levels, he said.
While, the top end of the segment of consumers would flaunt spending power and display consumer behaviour as witnessed in Europe, the new consumer would spend on those brands, which would make her express herself.
In the coming years, the current share of modern retailing at 3.9% would increase to 25% . There would be an explosion of choices for the consumer and that represents a huge opportunity for FMCG companies.