India is seen as big potential market. Customer acquisition through extra spends has become a buzz word for establishing business & to ensure ‘future earnings’. The biggest asset India has its demographic advantage of ~50% of 1.3 billion people being below 25 years and above 65% below 35 years of age. Estimate is that by 2020 average age of an Indian shall be 29 years (source Wikipedia thru google).
No doubt that we are in rapid transit to a consumer economy, a change from earlier mind set of ‘saving’ for future & spending once saved. Prior generations first saved and then spent for fulfilment of their aspirations e.g. own house at around retirement age. Today we pledge future earnings to fulfill aspirations for instant gratification e.g. own house immediately after or even before marriage.
Generally an individual’s economy, now a days, is based on ‘pledged future income’ for current consumption by way of home loans, personal loans, car loans, consumer finance and education loans etc. leading to reduced spending power at hand. Want to spend more or go for vacations, take more loan and keep servicing these loans. This consumption economy cycle has inbuilt stress on middle class becoming a debt class. Stress leads to more spends on health, all types of health & life insurances come into play with very heavy premiums.
No doubt that World economies see us as potential market for their next growth but it is under debt already. So wonder, why doll out extra spends for customer acquisition even at the cost of profits? Profit is religion of a business. Question to be answered is, if today a business is not making profit for profit in future, would it ever make it? Would customers thus acquired, shall pay more in future for same services or product & why?
It is so very important to remain an attractive/ potential market to attract investments, newer technologies, better knowledge & skills, latest management & operational practices etc. Which means that at individual level, there has to be income surplus vs expenditure, continuous growing income to increase spending power & income for longer time even beyond current retirement age.
To achieve this, the challenges which needs emergent attention of thinkers, elite, affluent, industrialists, business leaders & policy makers, to mention a few are –
A largely ‘average talent pool’.
Skill & competency development not yet aligned to industry’s present & future needs.
Deficit in work opportunities and work force.
Longer life span means more money requirement, means longer working years thus creation of opportunities suitable to said age group & their skills & competencies.
It’s time that we have a strategy and action plan at hand for above challenges if we really want to be a developed & prosperous Nation.
Good part in Indian economy is that all product or service segments have ‘a buyer’ and all buyers have ‘product and services which they can afford’. We have affordable entertainment available for all classes, we have food joints for all classes, can travel with least resources & have GOD to blame for all our miseries and pray with faith and hope to keep us moving in search of a better tomorrow. The secret of economic growth lies in this vast economic diversity, strengthening each class and segment with a continued & growing income.
#Economy#business opportunity#expansion#demography
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