Robin: Can you give me a perspective as to why our retailers and brands ought to be looking at India more closely now?
Darshan: There are three ways to answer that question. To speak on their behalf, they should be looking at India just because the U.S. is a saturated and mature market with an aging population, so the headroom for growth can only happen by robbing from someone else’s plate. Fundamentally, starting with the Baby Boomer generation, the 40 to 50 years of unmitigated retail and consumer boom that the U.S. went through is in some forms – in many forms – tapering off. So they need to discover unconquered territories.
Logically I had suspected that space should have been Europe. I suspect now that it comes to the third-tier larger markets, in terms of land mass, population, and GDP. It brings one to markets like Brazil, Russia, India and China. From our viewpoint, it is a fallacious approach to bring up India and China in the same breath. Depending on what you base it on, we are seven to 10 years behind China. Although geographically we are neighbors, China is better off spoken in the same breath as the USA. [Read more...]