By AltG Research On Behalf Of Poornima Vardhan And Taponeel Mukherjee
Apple's First Store In India is the start of the next phase of the Indian consumer boom. If 1991-2021 was the "Zero To One", the next 3 decades are the "One To Hundred". The Key Takeaways: 1. Why the interest? Growth and Market Size - As over 500 million Indians move into the middle class, credit availability massively improves, and aspirations rise, Indian consumer markets can deliver the growth needed in an otherwise relatively slow-growth world. To put that in perspective, Apple's global revenues declined in the Dec 2022 quarter, but Apple India's revenues grew by double digits. Apple had grown YOY revenues in the previous financial year at 45%. These are numbers unheard of in other markets. 2. What are the implications for other consumer businesses? For investors and businesses, Tim Cook's personal visit for store launches in BKC and Saket shows that either you're winning in India's consumer markets in the 21st Century or you're getting left behind. This is a "China in 2000" moment. Businesses across food, QSR, Luxury, and retail must tap into Indian markets and create business models that can succeed here. If Bernard Arnault is the richest man in the world today, it's because he rapidly expanded and grew his business in China starting in 2000. Who's going to be doing that in India? 3. Incremental GDP matters more; India is a massive opportunity: Indian Real GDP growth rate of 6-8% is an additional USD 240 Bio of GDP added per year. In comparison, the US, with about a 2% real GDP growth rate, is adding USD 460 Bio of GDP. So, while the US economy might be 8 times that of India, "Incremental GDP" is much closer - The opportunity India provides in the next 20 years is once in a lifetime.