Page 104 - Nuvama | IC Report 2023

• MANUFACTURING • NEW ENERGY • URBANISATION • CONSUMPTION PREMIUMISATION • EQUITY SAVINGS CULT

➦ India has always been a structural penetration story; while
penetration is still to run its course, premiumisation of
consumption is gaining pace

➦ An expanding young population in urban areas, rising
incomes and low household indebtedness are catalysing
India’s consumption curve towards premiumisation

➦ Millennials and Gen Z, a cohort that makes up nearly 77%
of India’s population presently, are more confident of their
incomes, more aspirational, better informed and far more
brand conscious than the ‘midnight children’

➦ Premiumisation of consumption is most visible in FMCG
segments and automobiles; for instance, a decade ago,
SUVs accounted for ~15% of total automobile sales, but now
make up nearly 50%

➦ This trend is likely to spread across categories of consumer
goods, and shall give rise to immense opportunities for
businesses over coming decade

1 102
02