The transformation of consumer behavior, driven by the increasing participation of women in the workforce, is shaping the next big business opportunities, according to Rashi Talwar Bhatia, Partner & Portfolio Manager at Ashmore Investment Management. Market experts including Bhatia were speaking at Moneycontrol’s Global Wealth Summit as a part of the panel titled: “Finding the next multi-billion-dollar titans: The growth-valuation conundrum”
Bhatia noted, "More women working means more women earning and spending on themselves. That changes consumption patterns significantly. Women traditionally managed household finances, but their spending behavior is different when they earn their own money." According to Bhatia, convenience is a key factor in this shift, influencing markets like quick commerce, e-commerce, and home gadgets. "It's about making life easier at home, whether through electronic gadgets, personal mobility solutions like scooters and compact cars, or personal well-being products," she said.
She pointed out that fashion and beauty alone form a $110 billion market, with beauty products accounting for just $20 billion but projected to reach $90 billion by 2027. "We have seen these trends take off in markets like South Korea and the U.S., and they are now taking hold in India. These are major shifts, and a lot of investment opportunities will emerge from this space," Bhatia added.
Managements rather than themes would be a better focus area, according to Utpal Sheth, Senior Partner and CEO, Rare Enterprises. "Instead of looking at themes, consider teams that can pivot and navigate volatility with a strong competitive edge. We are looking for compounders rather than short-term multibaggers," he noted.
As consumption patterns continue to evolve and new opportunities emerge, investors will need to balance enthusiasm with diligence, ensuring that they back the right trends with solid fundamentals.
Prashant Jain, Founder and CIO of 3P Investment Managers noted that industrial growth is an overlooked opportunity. "Industrial apex remains an area where the market might be underpricing potential. After a few years of slow growth, we may see strong expansion, particularly after budgetary shifts that favor consumption," he said.
On the topic of Public Sector Undertakings (PSUs), Jain said: "It’s wrong to lump all PSUs together. Some have performed exceptionally well in the market, while others have struggled. At this stage, I don’t see significant mispricing, as many PSU stocks have already surged 5x to 15x." But Jain also noted that he was skeptical about following market narratives blindly. "These are not necessarily powerful markets. In the past, we've seen narratives that don’t hold up in terms of value. While some trends seem promising, we must be cautious and avoid overhyped sectors where the actual market potential may be limited," Jain said.
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