Identifying Indian youth as engine for growth of retail sector, global professional services firm Ernst & Young said on Friday they offered a huge consuming audience for lifestyle and luxury products.
"By targeting the youth population in India, retailers will be investing in the future as they will be able to influence and create loyalty from the start," Ernst & Young Director Retail Industry Ashok Rajgopal said while releasing a report 'YouSumerism, Youth In India-Opportunity Knocks'.
The high growth in the retail sector in India is primarily driven by the impact of rising incomes, increasing urbanisation, greater brand competition and most importantly, a youth-driven culture, he added.
Analysing the potential of Indian youth market for retailers Rajgopal said: "Retailing in India is well past the stage
Favourable demographic and psychographic changes in India's youth, its rising affluence levels and international exposure have fuelled the demand for luxury & lifestyle products, the report said.
"The Indian youth is more aware today than ever before, they are brand conscious and demand good product experiences," Rajgopal added.
The report classified Indian youth into three segments Dabblers (13-21 years), Aspirers (22-28 years) and Thrivers (29 -35 years) and said India with the world's largest youth population is indeed a resplendent market and a priority market for international retailers.
Rajgopal said availability of quality retail spaces and brand communication were also inviting investments from retailers in Europe and the US.
