Changing Indian Consumer Habits

As Indian’s we hold a lot of value for the ‘old’, maybe it is also culturally driven where we have been asked to respect ‘old’ rather than look for new. Though this is changing very fast especially among the younger generation of consumers, but it will take a lot of time before we actually catch up with our western counter parts. And it is even questionable whether such a transition is a good one. Anyway without getting into consumerism’ debate I will like to look into this aspect in detail from a marketer’s perspective Similarly most housewives collect the used containers of flour, ghee, which she would clean and use it to store cereals , and other items in the kitchen and so on till it is sold to the scrap dealer . 

Companies like Pilot , when they launched their Pilot pens in India, were surprised by the demand from consumers that they wanted a refill for their pens. This was unheard of in the Japaneses market as the pens were designed as ‘use and throw’. The local partner of the company had to produce inks locally which could be used to refill the pens. In a land where blatant display of wealth is largely frowned upon, most Indians today manage to appease their desire to get noticed through the subtle use of branded products. The last decade has seen a tremendous change in the psyche of the Indian consumer who has come a long way from driving a hard bargain to stretching the wallet for a product with more value. The mantra today increasingly seems to be ‘you are what you buy’! Just a quick look at an overloaded shopping cart at a Big Bazaar outlet reveals a lot about the buying patterns of the great Indian middle-class. The embracing of branded products at the commodity level in everyday lives is not an overnight phenomenon. It has taken years of effort, endurance and large dollops of faith to create the much-coveted shelf space and then follow the long-winding journey of the shopping trolley into the end-users’ homes. Here’s some perspective on what has chiefly caused this slow and steady shift:

Brand lovers: Indians have always loved their brands. It’s like a well-guarded secret held close to their hearts at all times. Ask your parents, and their parents and they will tell you a thing or two about Rolex watches or Brylcreem hair product, or a National Panasonic Colour Television set, and what it meant to posses one in their day. What has changed over time is the way Indians interact with a brand – their perception, their awareness of and access to the brand and its competitors, and their ability to make an informed choice between brands. But most of all, what has markedly changed is their confidence in usage, in the ability to easily ‘carry it off’. Yes, the art of looking subtly cool is one that takes practice and Indians have definitely arrived.

The price-value equation: Indians are notorious for their bargaining habits. Jokes abound on how Indians haggle on prices at international departmental stores to the chagrin of the hapless store assistant. They seem to be born with an in-built, emotional price-calculator which throws up a price quote based on benefits, extended usage, appreciation, uniqueness and recognition that the product gives. It’s a deal if the printed price of the product is somewhere close or preferably below this quote. So, it is little wonder that the branding of commodity products took so long to settle into this psyche. There is no justification in spending more on a pack of Tata salt if the regular salt works fine, right? Or is there? It is this tipping point that is crucial from a marketer’s point of view – the ability to convincingly show a benefit that far exceeds its usage. So, if Sony is able to convince you that when your guests see a Sony LCD television set on your living room wall, it is a reflection of who you are – quality conscious, discerning and able to afford something a little pricier – then you will cough up a few more notes from your wallet, even though you will be watching the same reality shows on it as any other TV owner.

This gradual acceptance of brand names and the comfort in flaunting could very well have its humble beginnings in nagging, or in modern day parlance, ‘pester power’. Somewhere down the years, kids have picked up the fine art of negotiation and started fine tuning their demands from generic products to specific brand choices. An impressionable target, this group fast became the target market for most brands to get that foot in the door into millions of households. Based on this, several children’s brands started setting up shop and stepping up their marketing activities to reach out to their target market.

With the advent of international giants in the kid’s space, it was easier to change the shopping habits of the parents, who were already leaving behind the smaller family street shops and moving towards branded shops for toys and kid’s apparels. The initial price resistance was already diluted since parents were spending a little bit more on their kids. Premium brands like Tommy Hilfiger, Reid & Taylor, Pierre Cardin, Swatch, Ray-Ban, and Esprit made the Indian customer re-think their wardrobes and their homes and spend that wee bit extra for the promise of additional perceived value.

Slowly but surely, one’s desire to be seen and heard became part and parcel of the adult’s shopping behavior, resulting in adults experimenting with established and new-age brands in all kinds of products in their everyday lives. Branded merchandise has now truly come of age with around 25-30 premium and luxury brands planning to open their pearly gates in the country every year with the promise of a new hip and comfortably fashionable lifestyle to the global citizens of India.