THE CONFERENCE PROCEEDINGS - IFEAT

ChallengesWith the growth drivers in place, there are many issues and challenges the sector grapples with.The key challenges faced by FMCG sector players in India are:• Tax structure - complicated tax structure, high indirect tax, lack of uniformity, entry tax andchanging tax policies.• Infrastructural bottlenecks - Agriculture infrastructure, power cost, transportationinfrastructure and cost of infrastructure.New Indian ConsumerThe Youth FactorThe Indian consumer market is drawingglobal attention not just because of itspromise of sheer volumes, but also becauseof the tectonic shift happening in the natureof demand. Increasing urbanization,increasing incomes and rising aspirations fora better life, especially among the lowereconomic strata, are some of the factorsreshaping the Indian consumer market. Theresult of this flux is a new Indian consumerwho is more discerning than ever, ready toplace his money on brand, quality andconvenience, and eager to explore theorganised retail market.The Indian consumer market, which is primarily dominated by the young generation, is becomingincreasingly sophisticated and brand-conscious. A typical upper middle class young consumer isbeginning to look beyond the utility aspect of a product to seek intangibles such as brand and lifestylestatements associated with the product.33