Consumers in Emerging Economies

Abstract

Abstract Emerging economies are nations with social or business activities in the process of rapid growth and industrialization, experiencing much higher growth than their developed counterparts. Emerging economies generally refer to the BRIC countries, comprising Brazil, Russia, India, and China. This entry discusses the growth in the size of the markets of these economies with a focus on the Indian consumer market, projected to grow to INR70 trillion by 2025 ( US $1 = INR65 approx.). Consumption in emerging economies is largely influenced by the socioeconomic status of the consumers, which is explained through the consumer categories in the Indian markets and the growth projected in each consumer category. The entry also discusses the “Bottom‐of‐Pyramid” ( BoP ) consumers, who account for US $5 trillion in the global market, and their characteristics, along with an example of an innovative project, Shakti, aimed toward developing and penetrating the BoP markets in India.