Behavioural pattern of indian consumer
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Indian consumers can be divided into three segments based on spending - those who pay more for more value, those who seek good value at reasonable prices, and those who pay less and expect less. The Indian consumer market is influenced by factors like the growing middle class, changing gender roles, rising aspirations, increased spending on luxury goods, new shopping environments, and greater media exposure. Rapidly growing sectors include IT, automobiles, e-commerce, retail, women's industries, and FMCG. Shopping culture, durable ownership, cosmetics use, beverage and food preferences, and fashion trends vary significantly across income levels and regions in India. Emerging trends show Indian consumers prioritizing value over price, adopting online shopping,
Behavioural pattern of indian consumer
- 1. BEHAVIOURAL PATTERN OF INDIAN CONSUMER DEEPTHI DAS 4TH SEMESTER MHA
- 2. INDIAN CONSUMER MARKET TODAY Indian market is a market with three segments: • The first comprises the top end with the mindset; “I pay more to get more”, where the purchase is driven by the emotional surplus that the consumer experiences. • The second is the mid-level which thinks; “I get good value at a reasonable price”. • The third is at the bottom which says; “I pay less and I get less” and is totally satisfied with that. 2
- 3. PECULIARITIES OF INDIAN CONSUMER INDUSTRY • Burgeoning middle class, its changing values and held back consumer demand. • Changing women’s roles, their labor participation and the changing structure of family. • Rising consumer aspirations and expectations across many segments of the population. • Increased consumer spending on luxury items aided by past savings and introduction of credit system. 3
- 4. Contd... • New types of shopping environments and outlets. • Media sophistication and familiarity with English language among media people and a wide segment of the population. • High degree of consumer awareness. • Strong domestic consumer goods manufacturing sector. • The emergence of rural consumer sector. 4
- 5. INFLUENCING FACTORS Booming economy Changing demographics Smaller households Increasing awareness Westernisation Organised retail stores 5
- 6. INFLUENCING FACTORS • Booming economy Economic reforms initiated by Govt of India in 1991 made India an attractive destination for doing business. This lead to higher GDP and increase in disposable income. • Changing demographics The purchasing power and aspirations to consume of the middle class is ever growing. • Smaller households A significant number of families in the urban India are nuclear type in contrast to the joint families in rural India. 6
- 7. INFLUENCING FACTORS • Increasing awareness Mass media is playing an active role in creating awareness in the minds of consumers. • Westernization In urban India, many people have adopted the Western consumption habits in the sphere of food, clothing, cosmetics, cars and many other externally visible product categories. • Organised retail stores The creation of modern format retail stores or shopping malls, which provides a complete destination experience . 7
- 8. RAPIDLY GROWING SECTORS IN CONSUMER INDIA • Information Technology & Communication industry • Automobile industry • E-Commerce industry • Retail industry • Industries under Women Empowerment • Indian Fast Moving Consumer Goods (FMCG) industry 8
- 10. Shopping culture • Shopping is a family outing for middle-income families. • Window-shopping is common in all classes. • Luxury goods are gaining importance. • Shopping malls are becoming increasingly popular. • Rural fairs are more frequent and prominent. 10
- 11. Ownership of durables • Middle-class families are found to replace old, buy new, or upgrade their many durable products. • A substantial proportion of these purchase is bought on credit cards or through financial arrangements. • The introduction of power bikes enhanced the two-wheeler market. • Increasing affluence boosts personal vehicle market. 11
- 12. Cosmetics and Toiletries • Double income families are the main drivers of demand. • Direct marketers are enjoying success in Indian cities. • Low Unit Packaging or sachet packs have captured a significant portion of market share. • There has been an upsurge in colour cosmetics and hair and skincare products especially among Indian women. 12
- 13. Beverages • Generally, almost 70% of in-home consumption in India is tea. • Coffee consumption is more in South India. • Soft drinks are usually consumed by middle and upper income homes. • Bottled water has become a big business. 13
- 14. Leisure & Entertainment • Magazines and newspapers have a large audience, as there is greater interest in current affairs and high degree of political awareness. • Television viewing is the chief form of home entertainment. • There is a growing demand for self-help books, educational text & competitive exam reference books. • Fiction reading, especially those in English, is on the rise. • Film remain a national pastime. 14
- 15. Travel & Education • With the entry of low-cost airlines, middle-class consumers have started increasingly travel in air. • Inbound and outbound travel by Indians are gradually increasing. • Parents are prepared to pay to get their children admitted to prestigious English- medium private schools. 15
- 16. Fashion • Films dictate the fashion trends of Indians. • The youngsters are increasingly very particular about brands and they judge brands based on perceived quality, value for money and availability of range of apparels. • Upper income urban women are adopting designer ethnic chic and a fusion of Western and Indian styles. • Sari is still the dress of choice. 16
- 17. Consumption pattern • Traditional to modern eating habits. • Eating out is common now. • Fast foods are becoming more popular. • Spending lower proportion of earnings on staple food. • Home deliveries are more popular than takeaway meals. • Street food joints have become popular place for time pass and enjoy a food away from home. 17
- 18. EMERGING TRENDS IN INDIAN CONSUMER BEHAVIOUR • Indian consumers have become value sensitive and are not much price sensitive as was the earlier case. • With the ever increasing penetration of internet and social media, virtual media is becoming the new world. • The Indian consumers of today gives preference to features of a product rather than its brand name. • Constraints of time is leading urban consumers to look for solutions such as home delivery, convenience products etc. 18
- 19. Contd... • The use of credit card for shopping is a new emerging trend in India. • Shopping malls have now become more of a family outing rather than a mere shopping event. • Indian consumers are increasingly becoming aware of the importance of health and hygiene and pick brands which they perceive to be risk-free and healthy. • Consumers are becoming more tech-savvy and information oriented. 19
- 20. SO FAR... • Segments of Indian consumer market • Peculiarities of Indian consumer market • Influencing factors • Rapidly growing sectors in consumer India • Product-wise behavioural pattern • Emerging trends in Indian consumer behaviour 20
- 21. THANK YOU... 21