consumer behaviour in Indians

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

9. PRODUCT-CATEGORY WISE
BEHAVIOURAL PATTERN
9

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