Monday, January 31, 2011

Getting caught up with the Indian customer of 2011

What is so special about 2011, you may ask. It just so happens I have seen this customer for real; in the 80s, in the 90s, and through first decade of the new millennium, which puts me in a position to speak with conviction about him in the present. How each of *him* has changed over time is a complex topic to delve into, considering the eclectic mix of social strata, geographical distribution, etc. So I will categorically focus on type that most of you will relate with – the average Indian middle-class consumer. From Doordarshan to the omnipresent Nokia mobile phone to hosting Commonwealth Games, India has a come a long way. That the lattermost is known (or notorious) for the wrong reasons is a different story altogether. Thomas Cook India reported earlier last month that they are seeing a trend that Indians are no longer enamoured by the idea of shopping abroad. This is highly possible due to the Louis Vuittons, the BMWs and the Vertus now being available in Indian stores. Of course rich desis always existed, but the bigger insight is the increase in the number of desis with such disposable income.

When I earlier lived in Hyderabad, India, I remember my brother and I making frequent trips to the *factory outlets* every once in a while to find branded clothing for a fraction of the retail price. But I would think today’s bold and the bountiful youngster doesn’t care as much about finding stuff for cheap, at least ones born with a silver spoon in their mouth. It’s common knowledge that fashionistas don’t necessarily drive brands to a country; it’s the money pool that primarily does (once saleability is guaranteed), and does in hordes. It is the age old theory of competition driving competition, and no, the syndrome is not new to India. India as a country was lambasted always for driving up population figures. The naysayers didn't know then this was to become a strong-point for the nation. Don't appear perplexed, India's youth population percentage is among one of the highest in the world and the predominance is expected to last another four decades at least. Given this fact, burgeoning Taco Bell outlets and increasing iPad sales is no surprise. On a related note, experimentation of new product introductions now offers lesser risk simply because the youngster of today wants to try. Spa salons, parlours and nutrition-related services now have bigger presence. So much so that a pal of mine has also ventured into an Asian stir-fry restaurant business in Hyderabad, much like a Mongolian buffet that is much more popular in western nations , while ironically Mongolia is much closer to India. Entertainment is slowly spreading outside stronghold of cinema with concerts, shows and sporting competitions (read CWG, Asian Games, etc). The country is probably not ready for a Cirque du Soleil, but considering it already has a “Zangoora: The Gypsy Prince”, it sure is getting there.

The Indian mademoiselle, what about her? Sure! From Sati Savitri to Pratibha Patil and women CEOs, she’s really come a long way! With a potential to earn the same big bucks, guess who’s happy? The market, to have found more wallets! So here’s a significant chunk of people with money to spend on services, new products, and what have you. Thanks to Wikileaks and Swiss Banks, we know there could potentially be more money stashed away somewhere, that could help the Indian economy otherwise. While India grew, so did China, and the potential of many other nations. The super powers never stopped growing either, and although an exaggeration, India has eventually become everyone’s market place. It’s a noticeable fact that India makes things for cheap, but the bigger thing is India is open to purchasing stuff that is not necessarily cheap, irrespective of source.

In this game of many:many relationships, where the Indian buyer has significant number of options to choose from , what are some challenges the advertising industry faces? Marketing gimmicks always existed, but given the Diaspora of buyers grouped by parameters like age, culture, tastes, just to name a few, companies/sellers have to pick and choose their battles given their resource-based constraints and optimize who to pitch their offerings to. Newspapers, television ads, hoardings, SMSs, social media, e-commerce are already out there fighting for buyer’s attention, but what is their true potential? Where is all this heading, locally and globally? In my next..

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