The Dynamics of Consumption Marketing White book After economy crisis 2008 and Euro crisis 2010, the

e world economy is in unstable. The global scenario, therefore, has changed and paid attention for emerging market. The biggest phenomenal economy is China, which recently became the second largest economy in the world and is one of the largest contributor to global growth 1.3% in period of 2000-2010 (Source: The Conference Board). Other interesting emerging market is India, which also contributed 0.3% to global growth in period of 2000 2010. India has an average gross domestic product (GDP) growth of 7.6% over the past decade and assumed that it will increase to 8.3% over the period 2010-2015. These figures can prove that Indian economy is playing an important role in the global economy. Indias growth is predominantly driven by domestic consumption. Household consumption is a major part contribution to domestic consumption, forms an integral part of GDP. Understand about household consumption in India can help you to make forecast for your business. Analyst normally used collected data from NCAER (National Survey of Household Income and Expenditure) to classify Indian households. The data is categorized on the basis of annual household income. We can see the details as the following table: No Categories Annual Household Income Rich Greater than INR 1,700,000 1 Middle Class Between INR 340,000 to INR 1,700,000 2 Aspirers Between INR 150,000 to INR 340,000 3 Deprived Lesser than INR 150,000 4 Note: Data from NCAER incomes are at 2009-2010 prices

Following the year, Indian economy will witness an increasing in middle class income and consumption. The middle class will account for the largest contribution to household consumption in India. The harbinger of change in Indian economy brings chance for growth size of middle class. There are nearly 49% of all cars are owned by the middle class, compared to just 7% by the rich; 53% of all air conditioners are owned by middle class homes; and nearly 46% of all credit cards are found in middle class households [Marketing Whitebook 2012-2013, pg, 56].

Besides household income, we also look at the consumption patterns which will change the way of finding business in India recently. Indian is witnessing rising urbanization and there are big changes in portion of consuming food and non-food items. Indian rural market is attracting many companies to do business there as there are huge numbers of potential consumers. As the data from NSSO (National Sample Survey Organisation) durable goods steadily increase in both rural and urban in India. There are many positive signals to look at doing business in India. However, companies should a great blueprint to tap this market, either products or business model both should match to Indian consumer behavior and Indian culture as well.