Consumer 2.0 | Volume no. 2, Issue 23, August 2010 |
| News and Insights The makeover show JLR revenue jumped 10.5 per cent quarter-on-quarter while Ebitda jumped 50 per cent in the same period. This was much better than the standalone results of Tata Motors. JLR also turned free-cash flow positive after accounting for capital expenditure and product development expenses of around Rs 2,000 crore........ Star CJ Network India has launched a 24-hour home shopping channel The consumers will be offered what all the top-notch manufacturers are offering these days such as LCD TVs, mobile phones, washing machines, electronic goods, jewellery and cosmetics. A team of show hosts will inform the viewers about the various features of the products to help them make an intelligent choice........ China Consumer Confidence Rises in Second QuarterChina's consumer confidence index rose in the April-June period for the fifth quarter in a row, boosted by a growing willingness in the countryside to spend as incomes rise, the National Bureau of Statistics said….. Your GuideTo Consumer Confidence The consumer's power is often taken for granted. Moreover, we tend to underestimate the financial IQ of consumers by lumping them into an anonymous demographic and overblowing their irrational emotions regarding the future state of the economy.However, if we can better understand the forces and indications of consumer confidence, we can benefit from the next several months of consumption patterns........ Consumer Confidence Is Weak But Americans Will Splurge on "Little ... Consumer Confidence Is Weak But Americans Will Splurge on "Little Luxuries," Says Gary Shilling. Posted Aug 13, 2010 10:24am EDT by Keegan Bales in .... Inside China's Consumer Culture - China Tracker In order to understand the future trajectory of China's domestic consumer market, it's important to gain an understanding of the historical context of consumerism in China. Karl Gerth is a professor at the University of Oxford who ... The Disconnect Between Consumer Confidence and Retail Sales Are consumer sentiment surveys like this one and others, including the polls published by the Conference Board and Gallup, painting an unrealistically dire picture of where things stand? Or are the "official" statistics on consumer spending giving us an artificially inflated reading on the consumer's pulse? Top retailers seek 51 per cent FDI in multi-brand retail Two of the world's top retailers, Walmart and Carrefour, vying for a cut in India'sorganised retail pie, have asked the government to allow up .. Future Retail to open 60 stores in next 18 months Retail major Future Value Retail India Ltd is looking at opening 60 more stores in all its three segments, in the next 18 months and taking the total number of retail outlets to 249 in the country Segment B2 corresponds to the typical urban family shown in advertisements: well educated, upper-middle class couples with one or two young children. The majority, 55% of these households, have four members, in line with the hum-do-hamare-do image; just 9% of the households in this segment have more than two children. While most of them live in nuclear families,15% of the households do have senior citizens as well. Most of them (86%) live in apartments and a larger proportion of households in this segment own their houses-26%, compared with the 17% in the younger segment of B1. Having moved up the life stage, they have also procured all the basic assets-all households own television sets, almost half own cars. Almost a quarter have acquired assets such as air conditioners. While air conditioners are a luxury for most Indians, these are, in fact, slowly becoming a necessity for well-to-do houses that can afford to have controlled temperatures indoors and keep out the city noise and pollution. The A2 segment is much more affluent than others, and a much smaller one as well. With nearly 400,000 households, it stands 25th in size but has the sixth highest income among all 33 in this series. These are households where the chief wage earners are second- or third-generation urban residents. With good access to education, more than three-quarters have completed graduate degrees while 12% of the chief wage earners have moved on to earn postgraduate qualifications. As all the chief wage earners in this category are self-employed, the sectors of employment are quite diverse-wholesale and retail trade, manufacturing and construction each account for more than 20% of the sectoral employment. While the first two have traditionally been sectors where entrepreneurs have struck out into after graduation, the third-construction and real estate-has attracted larger numbers in the past decade. The insatiable demand in cities spans a range of opportunities-apartment complexes, row houses, townships, office complexes, farmhouses for the high net-worth individuals, etc. Being a “builder” or a real estate developer is a career move that has attracted those with the inclination to work independently and the capacity to move through the maze of regulations in local urban bodies. Access to finance is relatively easier than before, and not just from financial institutions. With soaring real estate prices, funding is also available from relatives and friends with money to spare for what is seen to be an opportunity to make a quick buck. There are some in this segment who may have been hit the hardest by the 2008 crisis, being over-extended on their projects. But this still hasn't taken away from the essential demand-supply dynamics of urban real estate; this is still a profitable sector for those with business instinct. Know about Indicus Products here Insights from Indicus Continued Tightening of Interest Rates may keep Economic Expansion below 8.5% India Health Report 2010 - Indicus Analytics and Business Standard publication HOMOGENOUS ONLY TO A CERTAIN POINT The Indian consumer market has two features that make it attractive and at the same time challenging for marketeers-it is large and it is complex Richest segment in urban India A4 is a small segment with large families, households whose chief wage earners are graduates or postgraduates working as professionals, managers or businessmen. The A3 segment is formed by households whose chief wage earners have children above the age of 12 living with them Another hike by RBI unlikely soon It appears the RBI wants to send out a signal of being pro-active and in control right before a delayed monsoon and energy price rise. The A2 segment is much more affluent than the ones seen in the past few weeks, and a much smaller one as well. |