The expansion and improvement of electricity grids and internet networks is putting greater spending power into the hands of Indian people living in rural communities.
This trend has also been accelerated by “growing penetration of consumer goods, strong income growth within agriculture volume and pricing, and meaningful Indian government support”, said Sean Debow, chief executive and chief investment officer of Eurizon Capital (HK).
Speaking at the Sohn Investment Leaders Conference, Debow added: “Following on this growth, rural consumers are pivoting to healthy products, most notably with Ayurvedic products.”
Health comes first
India overtook Brazil earlier this week to become the country home to the second-largest number of confirmed cases in the world.
This is, of course, mostly a reflection of its status as the second most populous country on Earth, compared with Brazil which ranks fifth with a population roughly a sixth of the size of India.
The pandemic has put considerable focus on health, which Debow believes will drive “increasing attention in home care, consumer health and personal wellness”.
“Cleanliness and preventative health products have gained a priority in order to protect the families and communities of the rural consumer from the threat of the covid-19 virus.”
He continued: “Considering these structural changes in the rural Indian consumer, I believe that Indian consumer companies, particularly the ones with high exposure to natural and ayurvedic products, will see accelerated growth in their business in the coming months and years.”