Marimekko Venture Into India

Primary group of consumers basically will focus on individual monthly incomes above US$ 2,500 which lead to high disposable income and concurrently concerns of their health lifestyle. The power of purchasing is high when the products are their desirable commodities and within their enjoyable prices environment.

My prediction is that GDP will increase steadily in the future. According to econedlink.org, a nation’s maximum or potential GDP or its potential output is the highest level of output that can be maintained over the long term, given any constraints on the nation’s productive resources. And a limit supply of labor, natural resource, service and capital will result in the limit of potential output, which means, the limit of GDP (2015, econedlink). Besides, according to our textbook, the determinants of economic growth to which we can attribute changes in growth rates include four supply factors: changes in the quantity and quality of natural resources, changes in the quantity and quality of human resources, changes in the stock of capital goods, and improvements in technology (2015, McConnell)

be any issues with the product entering the marketplace based on the company’s consumer base.

The forecast for US GDP for the next five years is positive with an average rate of 1.94 percent. From 2016 to 2020, the growth of US GDP as per the forecast will be 2 in 2016, 1.8 in 2017, 1.9 in 2018, 2 in 2019 and 2 percent in 2020 respectively (United States | Economic Forecasts | 2016-2020 Outlook). According to the actual or aggregate forecast for the next five years, US GDP will be $ 18,295 billion in the year 2020. Therefore, the trend is positive, and US GDP will continue to rise gradually.

Before the industrial revolution there were only two social classes, the poor and the upper class. Then, due to the growing urban, machine-driven manufacturing economy the Middle Class emerged. This new class was the biggest section of the population and it included a diverse selection of people including bankers, shop keepers, merchants and manufacturers for “it was in trade and industry that the middle classes excelled” (Potter, 1987: 223).

Looking at the GDP for Y3, which is estimated to be between 98-99, it is evident that the economy is growing at a slow but safe pace but consumer are still hesitate to spend money. Consumer Price Index is estimated to be between 104-112. However, our forecast indicates that both GDP and CPI will grow in Y4 to 99-105 and 112-113, respectively. Both figures are indicators of a strong economy with high consumer expenditure.

To address the previous studies’ shortcomings, Brot-Goldberg et al. address the how by decomposing the consumer spending dynamic into

This economic growth has helped in the rise of the middle class. This is because its economic expansion has also converted the country into a sophisticated hub for high-value commodities, research, and advanced manufacturing (Werz, 2016).

Despite the Indian economy set to becoming the 3rd largest in the world (Khanna ,2013), poverty in India is widespread, with the nation estimated to have a third of the world's poor. and with growth being uneven across social and economic groups. In 2010, the World Bank reported that 32.7% of all people in India fall below the international

In 2008, the money value of GDP expands to $4,500m but during the year, inflation is 3% causing the general index of prices to rise from a 2007 base year value of 100 to 103 in 2008.

From April to June 2005, India’s GDP grew at 8.1 per cent, compared with 7.6 per cent in the same period the year before. More impressively, India is achieving this result with just half of China’s level of domestic investment in new factories and equipment, and only 10 per cent of China’s foreign direct investment…

Marketing of income-sensitive goods has to take into consideration the shifts in personal income and savings habits.

Companies are entering the Indian markets with a vision to invest in India and maximize their industrial base in the country to cater to the domestic market and escalate their exports as well. In the report, I have covered highlights of the opportunities and challenges of this industry as entering a new geographical market mandates a company to ensure that all the required federal policies and incentives are implemented with great attention. Also I have tried to throw some insights on India’s consumer electronics (Television, AirCon, Refrigerators and Washing Machine market. Also,

The spending power of the target market is categorized as Category A, the elites, Category B or the above average spenders, and Category C or the middle class or average spenders.

Indian economy shows a very robust and consistent growth, indicated by the recent 8.4% GDP growth in the second quarter of 2003-2004. Our foreign exchange reserves have crossed the $100 billion mark