When it comes to Asia,
China is far from the only game in town.
In fact, some say India is the new hub of growth,
and that it’s giving China a run for its money as the place
to do DRTV business.
Talk about market potential. Go grab your world map and stick a big
red pin on top of India. Call it a goal. Call it a strategy. Whatever
you call it, just make sure to mark it down as one heck of a future
market.
Analysts are tapping India as the next new big thing when it comes to
places to sell. That’s because during the past five years, the country has — by
just about any measure — become brilliant at getting its economic house
in order.
Just 20 years ago, 90-plus percent of Indians
got by on less than a dollar a day. But now the
country is transforming itself into a land of middle-class spenders.
New research from the McKinsey Global Institute, the economic research division of business consulting giant McKinsey & Co., expects
that within a couple of decades, India will pass
Germany as the world’s fifth-largest consumer
market.
McKinsey reports that today there are 50
million Indians earning between $4,376 and
$21,882 annually in U.S. dollars (that may
sound paltry, but the cost of living is much
lower in India, so in U.S. terms that range is
$23,000 to $118,000), clearly a middle class
with TVs, mobile phones and yes, disposable
income. Indians are also growing accustomed to
using credit cards — use has quadrupled since
2001.
What’s more, McKinsey predicts India’s shift
to a consumer society will only accelerate as
cell phones, the Internet, TVs and all of the associated advertising flood the country.
Spending Indians
Not surprisingly, more disposable income
is changing India’s habits and attitudes about
shopping. That’s something Hitesh Israni has
witnessed first hand. He heads up TELEBrands
India, a telemarketing, mail order and wholesale company that has grown steadily in the
country during the past 10 years. TELEBrands
reports its sales have increased five times over
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