India has become a key innovation hub for NielsenIQ, with a growing focus on innovation over cost-cutting. Led by CEO Jim Peck, India's strategic importance has surged, attracting global interest. With multiple innovation centers and a skilled workforce, NielsenIQ sees India as crucial for understanding consumer needs. EY forecasts a rise in GCCs, reflecting India's appeal for global operations. Despite e-commerce growth, traditional retail remains strong. NielsenIQ anticipates 6% consumer spending growth in 2025, positioning India as a vital growth market for the future.
India has solidified its position as the primary global capability centre (GCC) hub for NielsenIQ, the renowned research and analytics giant, according to the company's global chief executive, Jim Peck. In an exclusive interview with ET, Peck highlighted the significant growth in India's strategic importance, boasting of "more brains sitting over here, more architecture and engineers" contributing to the company's success.
Shifting away from traditional perceptions, Peck emphasized that India is now recognized as a hotbed for innovation rather than merely a low-cost center. Factors such as market dynamics, Aadhaar, UPI, and the vibrant startup ecosystem have propelled India to the forefront of pioneering ideas and technologies.
During his visit to India, Peck noted a noticeable shift in the approach towards the country, stating, "Now that dynamic is changing, where you have much more of the innovation coming out of here." With a burgeoning population and a growing number of STEM graduates, India is poised for continued success in fostering innovation for the foreseeable future.
NielsenIQ, which established its first GCC in India in 2021, currently operates transformation and innovation centers in Chennai, Pune, Gurugram, and Vadodara, collectively employing close to 8,000 individuals. Peck highlighted the comprehensive support provided by these centers, underscoring the presence of a global command center that oversees operations worldwide.
Recognizing the immense potential of the Indian market, Peck affirmed that global clients are increasingly interested in understanding Indian consumers. Tailoring products and services to meet the unique needs of Indian consumers has become crucial, signaling the importance of a nuanced understanding of the region's market dynamics.
A report by EY predicts a sharp rise in the number of GCCs in India, expected to reach 2,400 by 2030, employing 4.5 million people. This growth is attributed to a skilled workforce, favorable business environment, and expanding infrastructure, showcasing India's attractiveness as a hub for global operations.
Discussing the evolving landscape of commerce in India post-Covid, Peck highlighted the sustained shift towards online purchasing. While e-commerce is rapidly growing, traditional brick-and-mortar stores continue to play a significant role, especially in India where kirana stores contribute substantially to FMCG sales.
Despite the rise of quick-commerce platforms, the predominant shopping behavior in India remains rooted in physical stores, reflecting diverse consumer preferences. The landscape is evolving, with both traditional and digital retail channels vying for dominance in the market.
Looking ahead, NielsenIQ remains optimistic about the future consumer spending trends, with a focus on intentional consumption patterns. The company's data insights suggest a positive outlook for global consumer spending, with an expected 6% growth in 2025, translating to significant additional spending.
In a rapidly changing economic landscape, India stands out as a beacon of growth and opportunity. With a favorable demographic profile and a conducive business environment, India is primed to emerge as a key growth market for the next two decades, positioning itself as a pivotal player in the global economy.
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