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The rise of middle India

The rise of middle India
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First Published: Thu, Dec 15 2011. 10 21 AM IST

Updated: Thu, Dec 15 2011. 10 21 AM IST
India’s economy may be slowing, but for companies such as Hindustan Unilever and the local unit of Procter and Gamble there are new marketing frontiers to seek out in the next decade and a half—Middle India.
That’s the name that Nielsen India has given to about 400 smaller towns with a population of 0.1-1 million where the market for fast-moving consumer goods, or FMCGs (soaps, toothpaste, deodorants, whitening creams and the like), will surge from $5.7 billion now to $20 billion in 2018 and $80 billion by 2026. Why Middle India? Because these towns—Bathinda in Punjab, Anantapur in Andhra Pradesh, Nanded in Maharashtra, Jhansi in Uttar Pradesh—form a bridge between the big metropolitan centres and rural India.
The 400 small towns are currently home to about 100 million people, Nielsen said in its report “Managing the Middle India Gold Rush”.
Middle India has been outpacing the all-India FMCG story for many years now
Strong value growth: recently Middle India is growing at 20% (up 3+ points from 2010)
And consumer confidence is reasonably buoyant…
The consumer confidence index for Middle India,while lower than Pune, is much better compared with many developing and developed markets worldwide.
“Still-to-be-had” opportunity + “medium-term ROI*” scale
Why does Middle India matter?
Spotlight: The smaller 0.1-0.5 mn population towns
Middle India: home to 100 million Indians
15 categories are growing at over 40%. The top eight categories grew in value at an average rate of 70% in 2011 over 2010 and this was two times their all-India growth rates.
Focus on hygiene/ personal grooming and convenience is driving growth in Middle India
Category value growth in 0.1-1 mn towns (MAT* MAY 11) over YA
Graphics by Sandeep Bhatnagar/Mint
Source : Nielsen
Also See | Graphics (PDF)
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First Published: Thu, Dec 15 2011. 10 21 AM IST