La Opala at the tipping point of consumption
Overview
As India steps into a new era of consumer confidence and aspiration, companies like
ours enjoy a unique opportunity and responsibility to serve this evolving nation better.
Not just with more products, but with more purpose. Not just with wider reach, but with
deeper relevance. To serve India better means to understand her better — her hopes,
her households, her everyday dreams. It means designing not only for utility but for
pride, dignity, and delight. In this next chapter of growth, India Served Better is
not just a statement — it is our commitment.
Over the last year, our nation crossed a subtle but significant economic threshold
— one that, in hindsight, may well be seen as the inflection point for India's
consumer story.
India's per capita income crossed the USD 2,500 mark in 2024-25. At first glance, this
may appear as just another statistic. But for those of us who track the rhythm of the
consumer pulse, this number is loaded with implications. It signals the beginning of a
transition — from necessity to aspiration, from access to abundance.
The global consumption history suggests that USD 2,500 per capita income is not just a
milestone; it is a tipping point. In country after country — China in the early
2000s, Vietnam post-2017, Indonesia a decade ago — the crossing of this line
coincided with a structural shift in spending patterns.
Below this income level, the lion's share of household expenditure goes toward
essentials: food, fuel and rent. The wallet is tightly managed, each rupee accounted for,
each purchase deeply considered. But once this threshold is crossed, the consumer journey
begins to change shape.
Households begin to feel secure. Disposable income, once an exception, becomes a small
but growing reality. That is when consumption begins to evolve. Essentials continue, but
non-essentials gain space — an upgraded refrigerator, a two-wheeler for the
household, better personal care products, children's tuition apps, branded clothing, even
leisure and travel. The aspirational engine kicks in. What is remarkable is that this
inflection point is not just about higher income. It is about the psychology of
‘enough'. Enough to invest in better. Enough to look beyond today. Enough to want to
buy not just what is needed — but what reflects identity, dignity, and dreams.
We are seeing early signs of this in India. Tier 2 and Tier 3 towns are showing
stronger growth in categories like skin care, home appliances, packaged foods, and
grooming. Credit penetration has expanded. Online marketplaces are finding enthusiastic
audiences in semi-urban India. Brand preference is shifting from price-led choices to
value-led decisions. It is no longer about the cheapest option — it is about what
makes one feel good, look good, and live better.
This is particularly important for companies like ours — operating in the heart of
the consumer products sector. For years, we competed in markets defined by cost,
distribution, and reach. Today, we must also compete on experience, storytelling, and
meaning. The consumer is not just buying toothpaste or detergent or a beverage — she
is buying into what it says about her, and how it fits into the life she is building. This
demands a new kind of responsiveness from us. It means more innovation, but also more
listening. It means pricing right, but also designing right. It means being relevant not
just in urban metros, but in small-town homes where aspirations are rising faster than
incomes. It means balancing affordability with aspiration — a formula that will
define the winners of the next decade.
But this transformation will not be uniform. India's economic progress remains uneven.
Rural distress lingers. A large section of our population remains below the line of
discretionary consumption. Which is why our strategy will be twofold: to serve those who
have crossed the threshold, and to prepare for the millions who will cross it in the next
five years. I remain optimistic. Our demography is young. Our economy is resilient. Our
digital infrastructure is accelerating. And most importantly, the Indian consumer is
evolving quietly, steadily, purposefully.
At USD 2,500 per capita, a new India begins to emerge one that demands more choice,
greater quality, deeper engagement, and a brand it can trust. At this cusp of
transformation, we are not just witnesses. We are participants, partners and catalysts.
And that, to me, is the greatest privilege of doing what we do.
Sushil Jhunjhunwala |
| Chairman |