Before understanding the concept of avocado startups, let’s first understand a little about avocados first. Avocado is a fruit of the rich. It grows on trees and there is a huge supply-demand mismatch, due to which the prices rise and only the wealthiest can afford it.
The fruit looks big, but it is mostly seed inside, with very little pulp to eat. Avocado Startups Avocado startups are those whose customers lie in the upper-middle to upper-class income bracket, with access to the latest technology and resources. In India, most startups that emerge on an everyday basis are avocado startups, as their market is only generally limited to the people with high disposable incomes who can afford to spend on products not falling in the basket of necessities.
Dividing India Into Different Tiers If we collect 100 Indians, their income distribution will be as follows: Three Indians make up 30% of the total wealth, making more than Rs 25 lakh annually. Subsequent 30 Indians make 30% of the total, with each earning around Rs 5-25 lacs per annum. Then, 52 Indians will receive 30% of the total, earning Rs 1.
25 – 5 lacs per annum. The bottom of the pyramid has 1 5 Indians, each earning 10% of the total income at less than Rs 1.25 lacs rupees per annum.
In other words, we reside in three countries : India One By combining the top two categories, it is evident that the top 15% of Indians (150-180 million people) earn an average of Rs 50,000 per month, which leaves them with disposable incom.