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consumer a quarterly report by technopak FEBRUARY’ 08 / VOLUME 2 Top Ten India Consumer Trends 2008 .
their consumption We at MindScape have termed this phenomenon as the 'India Boom'. Each of the above factors (and many more supporting factors) has far-reaching implications for marketers and investors interested in India. These are large scale.has interacted with consumers across the country. the metros and Class 1 towns. the growth in nuclear families and a selfconfidence rarely seen in the so-called developing nations. Our focus in this document is urban India. Several reasons drive this intense speculation and interest in India . rapid urbanisation. The Knowledge Company (TKC) . analysed data generated by its various consumer studies. Technopak's BOK and from other reputed sources to compile these trends for you. greater affluence. sustained and measurable influences that shape people's behaviour and attitudes and ultimately. The TKC consumer studies analysed include India Luxury Trends.a rapidly growing economy propelled by a de-ageing demographic profile. India Consumer Trends and The Social Values Monitor.Technopak's consumer and market intelligence division . This document uses our extensive Body-Of-Knowledge on this vibrant economy along with some recent and rigorous analysis of the micro changes that we see impacting the future of consumerism in the country to provide you with some indicators of what you will doubtless see unfolding over the next decade in this diverse and unique country. .Overview India is at an exciting tipping point in its socio-economic progress that makes it the cynosure of global investor’s eyes.
TREND 7 Mobile World 07 TREND 8 ‘Consumer Outlook’.contents TREND 1 Blurring Socio-Economic differences 01 TREND 2 Rural India gets a Makeover 02 TREND 3 The Rise of the Boy-Genius 03 TREND 4 Multi-faceted 04 TREND 5 Giving Sphere 05 TREND 6 Renting Ownership 06 consumer © Technopak Advisors Pvt. During the course of this year we will be publishing reports on various aspects of the industry with a specific focus on the diverse opportunities for investment. Ltd. With this report we have attempted to provide insight into the trends and opportunities the changing Indian consumer offers. a quarterly feature is an effort by the MindScape Team to explore the multifarious changes in the Indian consumer’s mindset. Expert Kids 08 TREND 9 Shades of Green in Cinema 09 TREND 10 Preserving the Past 10 .
and all of them sought different ways in which to make more. B and C all owned cars or 2 wheelers. The changing income demographics. In such a consumer scenario. B and C. in order to harness the huge opportunity that today is largely untapped. was that all the families felt the pinch in terms of money. it is difficult to justify the typical definition of the target consumer as SEC A only.. if they themselves have managed to have such a good life. All the families had 21 inch colour televisions. D and E.Blurring Socio-Economic differences Trend 1 As India grows economically. SEC A.. They all believe in the power of education and also believe that girls should be educated as well as boys. 25000 a year. a number of forces are coming together to make the needs and desires and aspirations of its people more convergent. They all believe that the future is very bright for their children. They all owned 165 litre refrigerators. They believe that education is necessary for women. The categories of products they spend on and the percentages of income they spend on is more or less similar across SEC A. Technopak’s India Urban Consumer Trends Report for 2006 – 07 covered SECs A. The only grouse. What would make it easier for these consumers to fulfill their aspirations is to include them by design in the target audience definition from the start and then develop the products or marketing programs. branded shampoos and detergents. SEC B is not far behind and SEC C too is aspirationally ready to subscribe to the same products and lifestyles. B. While Sec A provides easy wins. We recently concluded a small series of interviews and photo-sessions with 15 families in Delhi and Bangalore from SEC A. and that too a common one across all five SECs. as they should have the capacity to be economically independent if needed. Marketers need to move beyond SEC A to SEC B and C not only in terms of targeting but also in basic product development. . What is amazing is the convergence of aspirations and beliefs. The difference between SEC A and Sec B spends is just Rs. C. Families across SECs are using branded soaps and powders. age profile and macro environment are visible in the growth in consumption of products. B and C. MindScape Viewpoint.
with an average population of 1. A new prosperity is sprouting in rural India. Today. The number of people owning motorcycles or scooters recorded a 300% jump during the 11-year period. while taxi and autorickshaw expenditure has more than doubled (119. an urbanite made $82 more. the difference has dropped to $56. Sai Seva Business Solutions has opened a BPO unit in partnership with HDFC Bank. That is no longer the case. Improving lifestyle patterns are becoming visible in rural India.Rural India gets a Makeover Trend 2 The chasm between India's flourishing cities and bleak rural hinterland is narrowing.100. Changes in consumption.. for every $100 earned by an Indian villager. with the per capita expenditure registering phenomenal growth rate compared with urban areas. Giving an 11-year data span. while there has been an improvement from 25 per cent to 63 per cent in the urban areas.2 per cent) in rural areas and risen by around 78 per cent in urban areas during this period The number of households owning cars.. perception and attitude among the rural mass is on the cards with rising disposable incomes. motorcycles and television sets has been increasing significantly in recent years. Life in rural India is also experiencing a new beginning with BPOs opening up in the interior parts of the country. In 1990. something to drive past on the way to somewhere else. villagers were long imagined by city dwellers as primitive. MindScape Viewpoint. the report shows that the number of rural households possessing cars or jeeps has grown by 400% between 1993-94 and 2004-05. Spread across 650. with tens of millions entering the pressure-cooker-and-television-owning class and tens of thousands becoming sippers of Scotch. owners of premium tractors and drivers of multiple sedans. In a village in Karnataka. According to the 61st National Sample Survey Organisation (NSSO) report (July 2004-June 2005) the proportion of rural households incurring expenditure on telephones has jumped from 5 per cent to 32 per cent. Rural petrol expenditure has doubled (100. 02 . impoverished and irrelevant. This initiative is bound to pave the way for lifestyle and aspiration metamorphosis in rural areas. which provides opportunities for people to lead a life where they can balance their family business and professional chores.4 per cent). Rural India is witnessing a significant increase in expenditure across categories ranging from telephone calls per person to tuition and education fees. petrol expenses.000 villages. taxi and auto rickshaw expenses and what not. The dependence on private tutors and coaching centres has also seen a dramatic rise.
everything is happening with the audience with forever young mindset. Video games. with such people more likely to change jobs. etc As Indian marketers would say it’s not about youth but about youthfulness!!! MindScape Viewpoint. It’s not a fad but a phenomenon that looks to be permanent. this is coupled with short attention span. act.Parents as friends. more importantly. Social roles have become less fixed in modern society. Garnier and L’Oreal have long identified the Peter Pan within us by creating and selling anti-ageing creams. maybe forever. frenetic novelty seeking and an emotional & spiritual search for roots!! Since modern cultures favor cognitive flexibility. and dress like people who are 22 years old. friends from all ages. the need for geographic mobility and the requirement to make new social networks. and Xbox are tapping into this trend with much success.e. casual wear. and have set the tone of contemporary life: the greatest praise of an elderly person is to state that they retain the characteristics of youth. Apple. understand how to satisfy this ‘pursuit of novelty’ as people stay younger longer. P&G. hair-colors. talk..The Rise of the Boy-Genius Trend 3 It’s the freeze-face generation. A childlike flexibility helps in navigating the modern world. a society that wants to look forever young and good. ‘immature’ people tend to thrive and succeed. 40-year-old men and women who look. We are expected to adapt to change throughout our lives. And. It is all about persistence of youthful behavior into adulthood i.. wrinkle-removal pastes. and immaturity is especially helpful in making the best out of enforced job changes. learn new skills. Puma. Companies such as Unilever. Brands like Lay’s. facials. comics. both in our personal relationships and in our careers. hello kitty. and move to new places. Marketers and communication experts need to take note of psychological neoteny. But. Alpenliebe is one brand which has successfully leveraged and showcased the child in the consumer. . cartoons for all ages.
04 . The ability to follow two topics more or less simultaneously requires a fairly advanced level of cognitive and memory coordination.. radio.Multi-faceted Trend 4 There was a time when children and adults believed in the concept of ‘Focus’ and doing one thing at a time but excelling in it. Today the situation has turned around to one in which most people are engaged in multiple activities at the same time. Children have always been able to engage in other activities like playing with friends. This is built around other activities like playing games and hanging out with their friends. that people are more receptive and take in more information when it is delivered rapidly and in short sentences. To a generation born in an age of multiple activities. teens report more accompaniments to their media usage than younger children. The makers of the television series West Wing found. these particular gender differences may not apply since they are all creating more connections from the start. As a result of multi-tasking. which is good news for employers. In countries where all the choices are readily available. for instance. The technologies available today give them more ways to do it (including the ability to do two things at once on the same technology. adults should be better able to multi-task than teens. Neuroscience tells us that men have traditionally been good at focus while women excel in multitasking because of their superior verbal ability which also creates more connections within the brain. computer and books) a day. cognitive patterns are changing. while they are using media. eating. MindScape Viewpoint. Multitasking would have a very interesting effect on the human brain. Multi-tasking is not a new phenomenon. And certainly. It is therefore not surprising that. television. like internet and IM). and so on. All communication media need to re-look at changing cognitive patterns and tailor their communication to the new ways in which the human brain is processing information. in the US.. That accounts for the somewhat breathless pace at which dialogues were delivered and events occurred in that television show. children use between four to six media (for example. doing homework.
from being first time moms to recommending home remedies for successful cure of colds. Wi-Fi.. and hundreds of Indian mommy bloggers share everything. Sharing is definitely in and so are the varied platforms being utilized for the same right from iTunes. Marketers can leverage social networks to build brand awareness. MindScape Viewpoint. it's exemplified by such developments as the barnraising methodology of Wikipedia. including desktop PCs and portable gadgets. giving is the new taking. group efforts like tagging. eBay. and dozens of other dots that are being connected to fulfill the original promise of sharing. A growing number of people are sharing digital music on MP3 players and other music devices using freely available software and internet services. their music and other aspects of their multitasking lifestyle and shares it as an open source with their brand partners. whether it's giving away your riches. agencies and the industry at large so that everyone can learn together. just one such initiative in this direction. old economy firms are yet to find any meaningful way to make use of the phenomenon. RSS. While web-based companies like Google and Yahoo are cashing in on this trend. Indian mothers are not left far behind in the race of sharing their experiences. The enthusiasts are borrowing heavily from another personal broadcasting phenomenon called podcasting. Sharing has also enabled consumers to receive movies and music bypassing all channels of distribution and has also enabled them to buy piecemeal. the spontaneous connectivity of Apple's Rendezvous. SlideShare. their media.Giving Sphere Trend 5 Find us one high-profile billionaire who's not deeply into 'giving' right now. in which digital recordings are posted on a web site for download to a variety of music players. It has been witnessing one of the highest numbers of clicks on the web. open source systems. in large part by leveraging the word-of-mouth impact of the network. Powered by the bottom-up nature of sharing and collective action. or sharing your (content) creations with total strangers. In fact.. open API's in ecommerce sites like Amazon. Emerging products and brands provide the opportunity to exploit the “novelty” factor motivating viral marketing. . your time. You Tube and blogs to you name it. and Google. MTV invests millions of Dollars a year on research about youth. is the world's largest community for sharing presentations on the web.
Fractional Ownership is an equitable business model that allows a number of people to co-own a luxury boat without any of the hassles of maintenance and management. The growing tendency among Indians to buy second homes. is further boosting the concept of condo hotels. In a condo hotel model. RCI is one such company which is already in talks with Indian builders and hoteliers to introduce this concept in India. The wealth and lifestyle preferences of the affluent is a significant factor in this increased demand. India’s affair with rented frills is soon going to go beyond yachts and condo hotels!!! MindScape Viewpoint.Renting Ownership Trend 6 The Renting Ownership concept has undergone a great degree of transformation in recent times compared with its origins a few decades ago. 06 .. individual owners can use their holiday home for certain duration and for the rest of the year place their unit in organized rental programmes run by the developer/operator of the condominium complex. it’s time to satisfy the craving for luxurious products of both the haves and the have nots. Marketers need to be cognizant of the fact that renting books and movies is now history. Condo hotel is another trend in renting ownership. Increased demand for leisure travel. often in places of tourist interest. You don’t have to put up with the burdensome costs associated with ownership like maintenance. real estate ownership and unique lifestyle experiences have fueled the development of a variety of new renting ownership offerings. The club’s innovative business model gets you access to a fully crewed and maintained luxury yacht and the lifestyle that comes with it for a fraction of the traditional cost.. Club Privada has come up with a unique timeshare scheme which offers members timeshare yacht ownership through their gold and platinum memberships. The developer/operator takes charge of the maintenance and coordinates the renting out of the apartment to travelers. Buying a holiday home throws up issues of maintenance and return on investment for the owners. Club Privada also offers a range of Fractional Ownership programmes. berthing and insurance and it definitely is a better alternative to unreasonably expensive boat charter.
mobiles represent a media channel that is growingup with the next generation of primary consumers. When it comes to Asia. The mobile phone and community sites are already being used. This presents an opportunity for the two tools to merge. Herbal Essence and ICICI Lombard have been successfully using mobile phones to their advantage but now even multiplexes and cineplexes have joined the race. The trend is a Pan-Asian phenomenon with phone straps in Bangkok to designer phones in Malaysia. The mobile phone is set to become a complementary extension of online community platforms. but their individuality and tribe membership. resulting in the dominance of mobiles over online. using their phones to communicate .. we were the only market to be blessed with mobiles before the internet. separately.A the internet boom came much before the mobile phones hence you find online taking centre stage over mobile phones. Multiplexes once thrived on viewing experiences but are now talking about viewing conveniences as well.not just calls and text. significant numbers of young people across Asia invest money and time to personalize their devices. Marketers need to rethink their strategies and move from an Online strategy to an ‘Mline’ strategy. . phone cover jackets in Japan and ring back tones in China. In our opinion the classic 3 region theory aptly fits here i.. as tools for youth to organize among themselves.Mobile World Trend 7 With mobile phones users cutting across geographies and socio-economic classes. This has resulted in India adding 5 Million subscribers every month to its kitty. Brands like Dove. resulting in the mobile phone subscriber base crossing the 200 Million mark in October 2007 itself and expected to reach 400 million+ by the year 2011. Mobile service providers want to cash in on this rising subscriber base and have indeed added the local touch by getting into regional language messaging and simplified rentals. in the case of Europe both internet and mobile mushroomed together resulting in similar usage and growth patterns.S. in the case of U.e. MindScape Viewpoint. Any guesses on what is going to be a hit with Indians? The mobile phone is set to become a complementary extension of online community platforms. With our lives revolving around mobile phones.
Marketers need to keep kids at the centre stage when crafting their strategies for both conventional and non-conventional categories. They are emerging as an important target segment in non-conventional categories like holidays. making them more savvy and better informed. Kids are perceived to have insignificant influence on purchase decisions in non-conventional categories. mobile phones etc. Kids have moved from pester power wielders to Influencers to emerge as Consultants with most children having expertise across categories. media explosion. resulting in credibility being built for them in the eyes of their parents..Expert Kids Trend 8 Kids as a consumer segment have not been tapped to their full potential by media and the marketing fraternity. 08 . rising affluent levels and increasing interaction with technology are all resulting in kids being much more informed than their adult counterparts. Most kids turn to the television to meet their information needs and to word of mouth and their interaction with peers. MindScape Viewpoint. Better education levels. However. Parents are giving their kids advice due credit when it comes to selecting holiday destinations. What is interesting to observe is the evolving role of kids in the Indian household. Pester Power Influencers Consultants Parents are also cognizant of the fact that their kid’s advice is informed and not ad hoc. buying household durables or mobile phones and cars for the family. the reality is kids today are exposed to global media.from a time when these children use to pester their parents in order to fulfill their desires they have now donned the role of consultants acting as encyclopedias or ready reckoners with information readily available at their finger tips on anything under the sun. hence the desire to act on the same instantly or at least includes it in the consideration set when going out to shop..
a feature film documentary created. released in 2007. home accessories like cushion covers. The movie capital of the world has discovered that the environment sells.. pen stands and other decorative items is taking centre stage in lives of Indian consumers.. MindScape Viewpoint. and produced by Leonardo Dicaprio on the state of the environment. receiving both critical acclaim and mainstream popularity. Movies in the Hollywood have taken on themes of environmental concerns. sandals. Even leading fashion designers are giving messages through their shows to conserve mother earth. the glamorous fashion fraternity seems all set to protect the planet. right from banning use of polythene bags to using recycled products for manufacturing slippers. Interest and concern for environment has resulted in directors like Mike Pandey taking the initiative of providing this offbeat genre of movies to Indian audiences. tablemats. Hollywood has gone green.Shades of Green in Cinema Trend 9 It's official. Marketers need to invest in cause marketing to leverage the relationships consumers have with causes into increased purchases and brand loyalty. which also happened to win Green Oscar for the same. Green stories bring in big green bucks. Indian consumers are increasingly becoming environment conscious and their interest in preserving the environment is visible at a pan India level. • An Inconvenient Truth • Happy Feet • Ice Age 2: The Meltdown (Most profitable movie released worldwide in 2006) • March of the Penguins The most recent is The 11th Hour. What’s interesting to note is that shades of green have gained mainstream acceptance within Hollywood but only continue to excite a niche section in India. These shades of green in the cinema are and will be major factors in pushing forward the green movement in Asia. .Vanishing Giants is one such film shot all over India to capture the plight of Asian elephants. rolling out eco-friendly clothing lines and creating bags made out of recycled plastic. narrated.
Indian hotels and restaurants are not left far behind in leveraging the rising consumer interest in heritage.be it the Awaadh food festival in the Maurya Sheraton or the Lucknowi cuisine in The Taj or Mughalai in The Hyatt.com and iloveindia. Associating with the roots as a concept cuts across age groups and classes. NDTV’s channel 9X is airing a new version of Ramayan. Consumers are starting to blog and create websites to keep themselves and other people in touch with their roots. made by the same producer who made the DD version. 10 ..Preserving the Past Trend 10 An interest in the history. something which marketers should leverage. Krishna etc. the search for roots is combined with the rising growth of technology and an increasingly self-focused world. A recent book by an NRI Tamilian author actually details out the story and the rituals associated with each festival in the Hindu calendar and has proved to be wildly popular. Consumers have been digging back to discover how things started. MindScape Viewpoint.boutique restaurants with historical and classic themes are the in thing. which combine the excitement and fun of cartoons with the traditional stories of India. and this is one of the few programs that is doing well in the face of the K soaps and reality shows on television. On the one hand we have websites like indian-heritage.. heritage and roots of modern concepts has fueled music. Interestingly.org constantly keeping us tied with our roots and on the other hand we have websites like Indiatravelite.com keeping us informed of our age old traditions. it’s all happening here right now. Bollywood couldn’t be far behind in leveraging this trend as evident from recent box office hits like Hanuman and Bal Ganesh. fashion and design trends so far this decade.
In order to learn more about MindScape and how we can add value to your business. F: +91-124-454 1199 Bangalore 11A.prabhakar@technopak. what they will want tomorrow and how best to translate this ‘buyer desire’ into business wins. Canberra Block. 2nd Floor. Sunjana Tower. Luis Wadi. MindScape was set up to cater to the growing business need for foresight into how consumers and shoppers are likely to evolve. to constantly add to MindScape’s Body of Knowledge. in partnership with Foley Designs o Market and Consumer Insights MindScape has an in-house intelligence wing.com Vandana Maithani vandana. MindScape offers a bouquet of innovative services: o Shopper Insights. The Knowledge Company.narendra@technopak. F: +91-80-4034 8699 Mumbai 101-105. that conducts its own studies to understand and analyse consumer behaviour. Building 8.balasubramaniam@technopak. 11th Floor. Bangalore 560 001 T: +91-80-4034 8600. (National Capital Region of Delhi) T: +91-124-454 1111. Tower A. Phase II. U B City 24. DLF Cyber City. Sun Magnetica Service Road. Indian and global markets.maithani@technopak. Vittal Mallya Road.com Tara Prabhakar tara. F: +91-22-2583 8408 consumer . please contact: Preeti Reddy preeti.com Priyadarshini Narendra priyadarshini. in partnership with Envirosell o Trend forecasting o Design and Product Insights. Thane West.com Head Office 4th Floor. MindScape’s mission: To catalyse business growth through consumer insight. retail environments. Mumbai 400 602 T: +91-22-2583 2222.reddy@technopak. Gurgaon 122 002.MindScape is the strategic consumer insights division of Technopak Advisors.com Sushmita Balasubramaniam sushmita. Drawing from Technopak’s unmatched understanding of industry. MindScape is uniquely placed to integrate present and future business strategy with best practices in consumer insights.
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