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Middle Class Accounts for Bulk of Urban Spending
The bottom of the pyramid is the buzzword that has captured the hearts and minds of academics and marketeers alike. Though large in numbers, the consumer spend by this segment is quite low. What we find is that it is the middle bulge of expenditure by the middle class that accounts for the bulk of India’s urban consumer expenditure. About 61% of total urban income comes from households that can be classified as middle class—earning be-tween Rs75,000 and Rs5 lakh a year.
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- South Asia
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Striking a Balance Between Profit and Philanthropy
Bangalore: In December 2005, when Anant Kumar set up a hospital offering maternity and childcare services in Hyderabad targeting low-income customers by pricing services at about a quarter of what other hospitals charged, it was an instant success. Set up as a pilot 25-bed facility by a trust run by India’s largest condom maker, Hindustan Latex Ltd, the facility addressed a need that is felt all over India: affordable mother and child healthcare. But when Kumar decided to expand t...
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- South Asia
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Design is Not Only for the Elite
When Pradyumna Vyas took over the charge from Akhil Succena as director of National Institute of Design (NID), he had already set a roadmap for taking the design institute to a global platform. Armed with a masters in design from the Indian Institute of Technology (IIT) Bombay, Vyas has an experience of 25 years in the field of design and has been the principal designer at NID before taking over as its head. In an exclusive interview with Vinay Umarji and Chitra Unnithan, Vyas shares his futu...
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- South Asia
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Lessons from a frugal innovator
ENTER the main cardiac operating-room at Bangalore’s Wockhardt hospital on a typical morning, and you will find a patient on the operating table with a screen hanging between his head and chest. On a recent visit the table was occupied by a middle-aged Indian man whose serene look suggested that he was ready for the operation to come. Asked how he was, he smiled and answered in Kannada that he felt fine. Only when you stand on a stool to look over the screen do you realise that his ches...
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- South Asia
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Third-World Stove Soot Is Target in Climate Fight
KOHLUA, India — “It’s hard to believe that this is what’s melting the glaciers,” said Dr. Veerabhadran Ramanathan, one of the world’s leading climate scientists, as he weaved through a warren of mud brick huts, each containing a mud cookstove pouring soot into the atmosphere. As women in ragged saris of a thousand hues bake bread and stew lentils in the early evening over fires fueled by twigs and dung, children cough from the dense smoke that fi...
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- South Asia
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India still most attractive destination for global retailers
Organised retail market in India is expected to reach $50 billion mark by 2011. Number of shopping malls is expected to increase at a CAGR of more than 18.9% from 2007 to 2015. Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50%. Organised retailing of mobile handset and accessories is expected to reach close to Rs 5000 crore by 2010. Driven by the expanding retail market, third party logistic market is f...
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- South Asia
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A shrinking fortune at the bottom of the pyramid?
Small may be beautiful, but not always. Fast moving consumer goods companies (FMCG), which depend heavily on the bottom of the pyramid market are in trouble as far as their small pack sales are concerned. And this is despite the fact that no price increases took place in this segment, even though FMCG companies raised prices roughly 17 per cent for soaps and 24 per cent for detergents. Sample this: According to the latest Nielsen data for the 11-month period from March 2008 to Febr...
- Region
- South Asia
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Rural India Promises Growth for Retail
There may be a slowdown in urban retail, but `Bharat’ is still shining for retailers. The next phase of growth is expected to come from rural markets with rural India accounting for almost half of the domestic retail market, which is valued over $300 billion. Rural India is set to witness an economic boom, with per capita income having grown by 50% over the last 10 years, mainly on account of rising commodity prices andimproved productivity. Development of basic infrastructure,...
- Region
- South Asia