This is a question that has been asked before and a lot of people and companies are striving to get the answer to this. India is a big country with varying socio economic sectors, each with a different requirement than the other. However the numbers is each sector would dictate what sector is the best sector for the maximum market reach or most profit. Here are my views on where is the real market for an aspiring service or company in India.
First things first, to categorize India into sectors is very difficult. There are many factors and many conditions that dictate what the consumers need and where is the best place to work. But, largely based on the socio economic front there can be 5 distinct sectors in India.
- The Very Rich
- The Consuming Class
- The Climbers
- The Aspirants
- The Survivors
The first and second sectors are the ones that expect the products and services the same as that of the developed countries. For the most part, the rest of the sectors are only aspiring to achieve any sort of service that can be there. This is the real market for an aspiring new company. The majority of enterprises in the Climbers or aspirant sectors have ten or fewer employees, and are the main contributors of employment for the poor. Hence micro-entrepreneurs form the backbone of economies in these regions, and their development is crucial for socioeconomic improvement in a country like India.
The climbers / Aspirants and Survivors form the largest sector of the country. In India these sectors represent the sleeping tiger, which is the part of the country which has the most potential but still have to deal with infrastructural requirements that plague the country. There are great markets that can be worked on considering the sharp downfall of the government to provide these services to people:
POWER : For instance, for many it still is a daily struggle to get enough electricity to go about their daily lives. Those living in rural areas or in urban slums simply don’t have electricity. This could be addressed by integrating new battery technology, solar recharging, low-power technologies, or via devices that automatically utilize other ways of charging or saving power that are still being explored.
LITERACY : The UN estimates that nearly 20% of the world population is illiterate – with the vastmajority residing in developing nations. Before even basic information services like SMS can be used, more effort needs to be made into creating new user interfaces for those who can’t read, and more effort into finding the best ways of teaching literacy with mobile devices.
COMMUNITY : Rapid technological change in the world is going to inevitably create friction, as well as great opportunities. Finding ways to integrate technologies into traditional social structures in a positive way could play a huge role in community enhancement. Micro payments, encouragement for Entrepreneurship, Venture Capitalism are all venues where we could approach the community issues.
There have been certain products that have come around in the past few months to cater to these sectors. Good examples to these have been Mitti Cool, the Refrigerator aimed at the villages without electricity and made entirely of clay, and other innovations. You can check more of these inventions at http://www.jugaadu.com/
Though it is tempting to simply assume that eventually growing economies will need many of the same things that developed nations already have, innovation and new services to help the poor and uneducated can’t stop because some parts of these sectors have crossed into what can be called “lower middle class.” For the vast majority, there are still many problems with accessing just the most basic requirements of human beings. The opportunities to improve the lives of millions of people with new services aimed at growing economies are incredible. As time goes by and new technologies become cheaper and accessible by more people, the possibilities for even greater services that truly improve the quality of life are enormous.