Household Annual Earning Details

 

 

 

 

 

 

 

Sere pee HL EE Sh ee GE Ae
Helis (acailics) Cee eo iguige ct Deine FF
sR ket sty) -50,000 (million)
2009 236 36 15.2% fr 4.7%
2012 | 254 60 23.8% 2 87%
2014 | 267 71 26.5% 27 10.2%
2015 | 274 85 30.9% 36 13.2%
2018 | 295 121 41.2% 86 29.3%
2020* | 310 132 42.5% 95 30.6%

 

 

 

 

 

Source: EIU, *Technopak Estimates
Nuclearisation

The growth in the number of households exceeds population growth, which indicates an increase in nuclearization
in India. According to the 2011 census, 74% of urban households have five or less members, compared to 65% in
2001. It is expected that that smaller households with higher disposable income will lead to a greater expenditure
in, among others, jewellery, fashion, home and living, packaged food and food services.

Reforms: Critical to create Demand Stimulus

Structural reforms are critical to harness dividends of positive demographics and urbanization and there are risks
if they fail to do so. In the last 10 years, Government has pushed towards infrastructure investments in roads,
railways, defense and power; public-private partnerships; smart cities; skill development; widening of domestic
manufacturing base and taxation needs to yield jobs for India’s working population. Many of these interventions
continue to be work in progress and outcome on these initiatives will deliver the advantages of urbanization and
India’s demographic dividend towards sustained growth of private consumption and its positive impact on
discretionary purchases.

Apparel Retail in India
Retail Market in India

Retail Market in India was valued at US$ 796 billion (% 5,970,000 crores) in Fiscal 2020 and is expected to grow
at a CAGR of 6.23% to reach US$ 1,077 billion (% 8,077,500 crores) by Fiscal 2025.

India’s consumption funnel (in US$ billion)

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Private
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IUSS = % 75
Retail Size — Overall and across Key Categories

In Fiscal 2020, India’s retail basket was approximately 48.5% of its private consumption and it is expected to
maintain roughly this share in private consumption for the next five years. The food and grocery (“F&G”) segment
forms the major share of India’s merchandise retail expenditure (approximately 66%), it has jumped to
approximately 73% amid the disruptions caused by COVID-19 in Fiscal 2021. While other sectors in retail have
contracted by 25% to 30% during Fiscal 21 due to the impact of COVID-19, need based categories like food and
grocery and pharma retail have witnessed growth.

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