Vijay Govindarajan’s Analysis of Indian Consumers

 

According to Vijay Govidarajan, India can be classified into three sections:–

Developed India: Those who live in 15 major cities with a population of 100 million.These are targeted by the companies as their consumers.

Developing India: These people live in 6000 small towns with a population of 300 million.

Under-developed India: This is the bottom of the pyramid.It is a population of 700 million living in 6 lac villages.

Almost a billion people in India in developing and under-developing sections remain non-consumers. Their needs and problems are the same as those of the consumers. The question is that of affordability. If we have to tap them, we have to innovate in such a way that the innovations become affordable.

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