Moreover, across all kinds of categories, Indian consumers are exhibiting increased curiosity and excitement over exploring local roots.
Higher spending levels in big cities are not the result of greater product penetration, as penetration for a given income segment is generally similar across cities. We expect emerging cities to see the highest growth in the number of elite and affluent households through The best opportunities in major metropolitan areas may be concentrated in a small set of micromarkets, depending on the consumer segment that a company wants to reach.
Today, however, there are large-scale markets across all price tiers for most consumer categories. Quality and luxury used to be the purview of imports. The impact of penetration, frequency, and spending per purchase varies across categories.
Rising affluence is the biggest driver of increasing consumption. While digital influence is growing across all income classes, locations, and age groups, the impact in rural areas is especially dramatic.
Companies need to consider three aspects of rising digital penetration and its increasing influence on consumption patterns. Many consumers use apps for browsing in their free time, and often this browsing leads to purchases induced by an attractive offer. Inthe discussion with Abhishek and Radhika covered a wide range of brands for apparel and footwear that they had considered, or bought, for the entire family and not just for their children.
The composition of the user base is also changing. Indeed, rural consumers may leapfrog their urban counterparts and adopt digital behaviors much more quickly.
For example, immediate gratification is becoming more important than asset creation. Several forces—including new electoral rules, better health care, and greater media focus—are behind this change.
Consumers in emerging cities behave differently from the big-city consumers. The evolution in consumer behaviors is playing out largely as we predicted four years ago, but, inevitably, new developments, as well as twists and turns, are affecting consumer attitudes and consumption.
This is true for basic categories such as laundry detergent powder and biscuits and for more discretionary categories such as eating out and the mobile internet.
All that said, different categories will evolve differently. Abhishek was working as a manager in a pharmaceutical company; Radhika was a housewife.
Today, many more of these consumers want to take international vacations. Eight of ten urban e-commerce transactions take place by phone—across categories, income segments, and regions.
The migration to urban centers is not concentrated in a few cities as it is in countries such as Indonesia or Thailand; nor is urbanization in India occurring as quickly as in China. Young women have bridged the gap in higher education too: People want to fit in with their peers. It would be a mistake to approach consumers in these cities as a homogeneous group.
The study revealed five broad categories of correlations between rising income levels and expenditures. These shifts have the potential to fundamentally alter how Indian consumers spend.
By contrast, in fast-moving consumer goods, almost all transactions are completed either entirely offline or entirely online.
Find the opportunities at every price point. Consumption takes off at a certain income level. The categories reflect the following consumption-income relationships: Abhishek and Radhika hope to visit exotic locations for vacations; they especially want to visit Switzerland in the coming years.
In the past three years, the number of online buyers has increased sevenfold to 80 million to 90 million. Companies operating under old notions should keep their eyes and ears focused on the changing reality.
The dominance of mobile commerce spans consumer segments as well as product categories, including high-ticket purchases. We have found that the classic S-curve growth pattern does not always hold true and that different categories exhibit very different growth trajectories.
The difference is mostly a matter of higher spending per purchase; differences in product penetration and purchase frequency are not significant. Discounts are another popular feature for more than half of online shoppers especially lighter online shoppersand availability and assortment of merchandise are important to more than one-third.
Shabahat and Nishat Fatima.How the buying behaviour of consumer differs: Buying behaviour of the consumers differs a lot as it is the mixture of their beliefs, tastes, attitudes and the lifestyles.
So, probably behaviour will differ of the different customers even in India and UK. A study of the shopping habits of different types of consumer.
It turned out that the Indian consumer was a tough one to figure out and win [ ] 2 / 3 Free Articles left Remaining Register for more | Subscribe + Save! MENU. Jan 09, · Indian consumer’s buying behavior is influenced by freebies, discounts, one – on – free, 40% discount, etc.
Freebies are consumer products given free of charge as gifts to purchases of. Impact of culture and habit on Indian consumer behaviour. Print Reference this it is an area of interest of the author as he wants to examine the theory of consumer’s perception with reference to UK and India which is very relevant fact in the growing retail market.
The current urban middle and upper class Indian consumer buying.Download