Consumer Issues
India tops in Credit Suisse emerging consumer scorecard 2015

In India, more people believe this is a good time for making big ticket purchases as the average household income increased by around 10% in 2014, Credit Suisse says in its Emerging Consumer Scorecard

 

Consumer optimism in India has seen a sharp turnaround and the country has been ranked first among nine nations surveyed by Credit Suisse, thanks to a stable Government and easing inflationary pressures.
 
According to the Credit Suisse Emerging Consumer Scorecard 2015, India topped the chart, moving up from fourth in last year’s list. India was followed by Brazil and Indonesia.
 
“Consumer optimism has seen a sharp turnaround in 2014. The formation of a strong Government at the Centre has triggered a major revival in consumer sentiment,” said the survey that covered Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa and Turkey.
 
In India, more people believe this is a good time for making big-ticket purchases as the average household income increased by around 10% in 2014 after being relatively steady in the two previous years.
 
Moreover, there was a sharp increase in the proportion of respondents who expect both salary to increase and the state of their personal finances to improve in 2015 and fewer people are expecting inflation to increase.
 
As for other rankings, Saudi Arabia was at the fourth place, followed by China (fifth), Turkey (sixth), Mexico (seventh), Russia (eighth) and South Africa (ninth).
 
According to the report, India, Turkey and China are less directly exposed to the current commodity and currency volatility versus Russia, Latin America and South Africa.
 
“The survey shows the contrasting impact of the oil price collapse on emerging markets. Consumer sentiment in Russia and key Latin American economies is under pressure, in contrast to India where the consumer looks robust, helped by reforms,” Credit Suisse’s Global Head of Research for Private Banking and Wealth Management Giles Keating said.
 
The survey further noted that the long-term structural growth potential of India remains intact as it has one of the lowest penetration rates across categories in the nine emerging markets surveyed.
 
With the exception of selected countries such as Indonesia, most other emerging markets are well ahead of India in terms of market maturity. India is one of the countries with the lowest consumption of items such as beer, spirits, meat, cigarettes and the lowest ownership of cars as well as the lowest access to Internet.
 
The outlook for e-commerce looks bullish across the nine countries and particularly in India.
 
The share of respondents in India that have used the Internet for online shopping increased to 32% from 20% in 2013. Besides, those likely to use the Internet for online shopping in the future is now higher than that of China, the report added.
 

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COMMENTS

Sudhir Bhargava

3 years ago

Credit to Modi govt that India stands at top in consumer confidence and average household could increase income by 10% during last one year.

Air Kerala more keen to switch to Gulf flights at first opportunity
Air Kerala is likely to obtain all clearances and launch its operations in the middle of April 2015. The carrier will start as a regional carrier, only to switch to Gulf flights at the first opportunity, when the rules are changed!
 
Air Kerala, a proposed regional carrier, is likely to obtain the clearances and may launch operations in the middle of April.
 
The domestic air traffic is controlled upto 80% extent by IndiGo, Jet Airways, SpiceJet and GoAir as members of the Federation of Indian Airlines (FIA), with Air India have left them a couple of months ago.  FIA are lobbying against the withdrawal or amendment to the 5/20 Rule that the Civil Aviation Ministry may introduce as this will give an unfair advantage to both Vistara and Air Asia India. 
 
It is a question of time before this change is brought about.  In addition to Vistara and Air Asia India, a strong contender to support this move would come from Air Kerala when it begins its operation.  Practically, every single family in Kerala has at least one member of the family working in the Middle East and the expatriate population of Keralites is the largest segment of Indians in the region.  Air India will therefore face toughest competition from this new airline, which will start as a regional carrier, only to switch to Gulf flights at the first opportunity, when the rules are changed!
 
As was expected by the air travellers, the Tata-SIA partnered Vistara began its maiden flight on 9th January with its brand new A 320-200s with 148 passengers. It has three aircraft, which will expand to six by April.  Presently the flights are from Mumbai, Ahmedabad and New Delhi.
Because of the wintry conditions in the next few weeks Vistara has plans to start its flight schedules to cover new destinations like Goa, Hyderabad, Bengaluru, Pune and Guwahati.  It may be remembered that Vistara is the only domestic airline that has 3 separate classes to meet the exacting needs of its customers.
 
IndiGo, India's biggest airline by market share with a 36.1% share of the domestic passenger market, plans to lease more planes to face serious competition from both Vistara and Air Asia India.  It has a current fleet of 88 airbus A 320 aircraft and is doing all it can to reach the magic figure of 100 planes by this summer! It may be remembered that Jet Airways holds the second slot with 23.3% market share.  In the meantime, despite the losses incurred and heavy in debt, other carriers like GoAir, SpiceJet, Air India and Jet Airways continue to slash down fares for 90 days advance booking due to the lean season ahead.  Not to be outsmarted, IndiGo also followed suit by cutting fares for travels between 16th January and 30th April.
 
Press reports indicate that Ajay Singh, a co-founder of Spice Jet way back in 2010, is now returning to take control of the carrier and is expected to take full ownership and management of the company, once the required formalities are completed.  It appears that the existing promoters (Marans) do hold warrants that convert into equity in April 2015 and 2016 and the full details are with the Ministry of Civil Aviation.  Further announcements in this regard are expected in due course.
 
In the long run, it would be the survival of the fittest who can serve the air traveller in the country.  It is gratifying to note that Tatas who pioneered the airline business in the country are now back in the field and it is hoped, before long, they would show the way to others.
 
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)

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COMMENTS

Pratibha

3 years ago

Air Kerala will be another entrant into the deadly field of Indian civil aviation which has left many bleeding. The potential is there, the profitability is missing.

Is Mumbai’s bottled water high in toxin content?

A BARC study says that there were carcinogenic chemicals in bottled water samples in Mumbai

 

A Bhabha Atomic Research Centre (BARC) study observed that there were carcinogenic chemicals in bottled water samples in Mumbai. It recommends higher standards for disinfection by-products in the bottled water.  The Bureau of Indian Standards has stringent limits on presence of chemicals and radioactive substances in bottled water. These however, do not include disinfection by-products like bromates and chromates. Hence, in the present system the bromates found in bottled water do not violate any Indian standard for drinking water, says a report.
 
The World Health Organisation (WHO) has limits of 10 micrograms per litre for bromates in drinking water. According to the BARC study, only five samples of the bottled water in Mumbai showed bromates exceeding this limit.
 
The International Agency for Research on Cancer (IARC) classifies bromates as Group 2B carcinogens that could possibly cause cancer in human beings.
 
Thus disinfecting processes used in bottled water may not themselves be safe for consumption. Tap water does not have these problems but could have a higher level of infection.
 

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