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Rise of Middle Class

Rise of Middle Class in Emerging Markets and World

mahisyama
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Rise of Middle Class

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  1. The rise of middle class Satya MAHESH, India 17th April 2012, London

  2. Disclaimer The views expressed in this message are made in an individual capacity and do not necessarily reflect those of Sanofi (the “company”) or any of its affiliates. Neither the company nor any of its affiliates assumes any responsibility or liability of any use which may be made of any views expressed here in.

  3. Change is a Cliché

  4. but ,the Speed of Change is not… 5 Million Years 250 Years 5,000,000 years ago the first modern humans appeared - 500,000 years ago , Homo sapiens 50,000 years ago agriculture started - 5,000 years ago moved into towns and cities. 500 years ago : seeds of Industrial revolution or mass production (Printing Press) 30 years ago Information Age Each era lasted for one tenth of previous era !!!

  5. Future - not a linear extrapolation of the past Trends may show the path Image from FMSI web site (Financial Management solutions Inc)

  6. Increase of population under democracies Increase of population under democracies More hands to earn.. fewer mouths to feed Money begets money Vicious to Virtuous

  7. The Indian ‘Palmystery’ Health Wealth Happiness

  8. A dash of stats… Population Health Hans Rosling Wealth Gapminder

  9. The Emergence of new world order Video Gapminder

  10. Wealth to HealthorVice Versa? Gapminder

  11. Wealth to Health or Vice Versa? Gapminder

  12. State of nations Poor ? Middle ? Rich ? Gapminder

  13. Individually poor – Collectively middle class Individually middle class – Collectively Rich Gapminder

  14. Who are middle class ? Exercises more consumer rights than civil rights Pay cheque to pay cheque Education, family house, Manager or Professional White collar Job

  15. Ask teneconomists , get eleven answers Absolute Relative Earning Consumption Individual Household Define the purpose

  16. Per Capita earning of $2 - $ 13 / Day Ravallion Earning Per capita earning of $10 - $ 20 / Day World Bank Per capita earning of $16 - $80 / Day Goldman sachs includes those earning more than $10 a day, but excludes those in the top 5 percent of the income distribution Birdsall(2010) Consumption $2 and $10 per person per day consumption Banerjee and Duflo (2007) 1/3 of income left for discretionary spendingnDilipK. Das Income interval from 75% to 125% of the median Thurow (1987) $5K - $15K Disposable Income/ YrEuromonitor who could routinely buy items sold at a typical Western-type discount store Miller-McCune ( 2008)

  17. Is this the BRICs Decade ? Gold man Sachs Publication May ,2010

  18. Poor Middle Class Rich Money To be used To be managed To be invested Food Quantity Quality Presentation Time Present Future Traditions and History Education Valued and Revered Crucial Imp for making connections Driving Forces Survival, Relationships & Entertainment Work & Achievement Financial , Political & Social connections Ruby Payne, A Framework for Understanding Poverty, Highlands, TX: aha! Process, Inc.,1996 pp. 42 - 43

  19. Leapfrog the paths Can differentiate cheap.. Economical and premium Guarded…Saving Modern yet ,traditional

  20. Shiftingbrahminical restraint A word on !ndia 3Cs: Cable TV ,Cinema & Cricket More mobiles than toilets (not just mobile..FM,Calc,time) Middle Class Car Tata Nano? Time Cover Photo by Arthur Hochstein. Woman by hill street studios-getty images blend collection

  21. Global Middle Class Middle class Population Middle class Spending

  22. Future : Wave of Consumption The emerging middle class in developing countries : HomiKharas

  23. Medicine and middle class

  24. Disease does not discriminate Awareness and Affordability Individual Income Vs.Family Income

  25. Near dry pipe lines Price pressures even in mature markets Few innovative mols. Vs. Essential drugs

  26. is middle Good enough?

  27. The next 4 Billion : GEM Growing Emerging Middle

  28. Urban - Rural divide of GEMs Middle Class GEM 74% of Population 41% of Population 26% of Population 59 % of Population

  29. Strategic imperatives…. Value Volume Urban Rural Life Style Life

  30. Play across tiers and SE Strata What organizations can do? High Quality – Low Cost Interdependent Socially sustainable Business models Ideal Admixture Many small Vs few Big brands Volumes will bring Values Share Opportunities , costs and profits

  31. Improve Trust • 2012 Edelman trust barometer

  32. Individual and references & Image Credits • My Wife,Syamala and • My collegues M/S Amlesh Ranjan , Venkatesan Subramanian and Parthasarathy • Marcus evans and Sponsors Bio Portfolio • Gapminder • Photographs from various unknown artists, CIA Fact book • Profitable growth strategies for the Global Emerging Middle by PWC • The emerging middle class in developing countries : HomiKharas • 2012 Edelman trust barometer • Many more references books , articles from Google search

  33. ThanQ ksatyamahesh@gmail.com www.LCDing.com +91 9819 62 01 62

  34. Backup

  35. GDP BRICs CIA World Fact Book

  36. Population Dynamics CIA World Fact Book

  37. Healthcare in BRICs CIA World Fact Book

  38. Middle Class Ethos : Brazil Relationships Diverse n Multi ethnic Individual Loyalty Hierarchy

  39. Independent Middle Class Ethos : Russia Russian and Non Russian Intellect Adherence to Order Community over Individual

  40. Knowledge for Money Middle Class Ethos : India Spirituality and Modesty Joint Families and Loyalty Hierarchy Jugad

  41. Family : Valued Middle Class Ethos : China Society over Individual Relationships and Reciprocity Hierarchy : Patriarch Morality in life: Confucius

  42. Brazil : Health and Wealth last 200 Years

  43. Russia : Health and Wealth last 200 Years

  44. India : Health and Wealth last 200 Years

  45. China : Health and Wealth last 200 Years

  46. End of the presentation

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