Middle India offers more opportunity than the tip of the wealth pyramid

August 16, 2009

Newsweek highlights India's real wealth opportunity. Forget over inflated, over stretched high-income households, companies and brands should focus on India's middle market.

Written by Ruchir Sharma, head of emerging markets at Morgan Stanley Investment Management, the article provides a concise argument for focusing on India's 100 million middle-income households.

Volume market

Sarma supports his argument by identifying recent trends, increased sales of two-wheelers, small cars and consumer goods; in addition he references the current demand for affordable housing and the segments relatively low levels of debt.

Cost-conscious

A volume market, the challenge for entrants is to get their pricing strategy right for this cost-conscious but growing segment.

Well worth a read.

To read the full article, click here.

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