Bye, bye cheap; buy, buy pricey

Rajesh Shukla
Feb 21, 2024 | 13:32 IST

Middle-class households are already driving premiumisation. By 2031, there will be 75 million more of them. Including in developed rural areas. But here’s why marketers can’t take them for granted

We are almost a quarter of the way into the 21st century. What’s driving the Indian economy at this checkpoint? A multitude of demographic and economic factors. These are already reshaping consumption patterns in remarkable ways.

Income effect

* Until recently (2022-23) rich households – which constitute merely 5% of total households – have driven nearly one-third of all discretionary spending in India.
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