This document discusses how consumer motivations in India have shifted from cost to quality and aspiration. It notes that from 2002 onwards, Indian consumers began prioritizing quality and global benchmarks over cost alone. By 2005, consumers viewed aspiration and quality as equally important across all price points. The document provides examples showing that while price may differ for products like phones, cars, watches, and footwear, consumers now expect comparable quality, aesthetics, and experiences regardless of cost.

2. The benefit of this tool This tool can help your R&D, Marketing and Vendor Management teams to work in a system that allows creation of aspiration in your product and service irrespective of its price point.

3. Cost driven pre-liberalized India shifting to aspiration and quality of global benchmark A=Aspiration / Q=Quality / C=Cost

4. New India 2005 onwards Consumer eye has shifted from cost to aspiration Purchase motivation In new India, aspiration and quality go hand in hand at every price point. Cost Quality Aspiration Old India Cost Till 2000 Quality 2002 onwards Aspiration 2004 onwards

7. Wrist Watch Q Average life: 1 – 2 years A High aspiration towards branded look-alike watches C Rs.150- Rs.300

8. Q Average life ranges from 6 months – 1 year A High aspiration towards colourful & trendy footwear C Rs.75 - Rs.200

9. Q Same quality of products as available in urban markets A High aspiration towards owning a personal transport C Rs.18,000 – 40,000

10. Q Average life ranges from 1 – 2 years A High aspiration towards urban style and designs C Rs.75 - Rs.200