Consumable goods – What lies ahead for them??

The financial Tsunami is far from over, every passing day we are bombarded with news and analysis on the future outcome of the slowdown. The ripples are being felt worldwide and claims of economies being immune are now things of the past. I still remember the advice given to me by one of the professors in college “Curb your desire for consumer goods as their value starts depreciating the moment you take them out of the showroom (shop or outlet)”. He now seems to be correct as globally it is the reduced demand of consumer goods that is playing the culprit. The cheap money policy gave way to easy credit which in turn resulted in creation of artificial demand for property, goods and other items. So what happens to all those fancy, materialistic desires of our life? Does it mean to curb our spending habits especially for consumables?

Now Let us have a look at the flip side of consumer goods industry. One of the key drivers for growth in these developed countries was the huge consumer base. This created huge demand for consumer goods and lead to the growth of both the industry and the economy (of course along with the growth in financial services, technology etc). Now what happens to India? The answer lies in our demographics. More than 50% of our population currently falls in the age group of 18-45 and by 2020 we are going to be the youngest country in the world. This is huge human resource compared to the fact that other countries are soon ageing out. Soon we would have the largest cost effective workforce available and that too across most areas. It is this resource which has the potential to thrust our economy to unsustainable heights. This is where the consumer goods industry fits in by catering to the needs of the huge consumer base we have created (pretty much similar to what had happened to developed countries). We will be able to attain a growth similar what the ‘baby boomers’ had done during 1980s and ‘90s for US and other European countries. To curb our desires by not giving in to consumer goods does not lead us anywhere. The answer is to equip and empower yourself to achieve what you had always desired in life. Get the best of those Lamborghini’s, Merc’s, Gizmo’s, Gadgets, the best of home appliances but just keep in mind one thing “earn it and get”. So irrespective of whatever effect this Tsunami has on us one thing is for sure, that in long run we are headed in right direction. Just be prepared and never let the desire in you die.