Indian consumer trends
There are several trends impacting Indian consumer behaviours today:
Aspiration for a better life
As millions of previously economically deprived households move into the lower strata of the middle class segment, they will begin to be able to afford and demand products and services beyond food and clothing.
Increasing penetration of media and infrastructure facilities will expose rural India to an urbanised lifestyle and fuel the latent desire for improved living standards. Together, the ‘aspirants’ from rural and urban areas will push up demand for goods and services at the lower end of the spectrum.
Educated purchasing decisions
Due to a rise in income, increased awareness about products and the proliferation of choices, Indian consumers are becoming pickier about their purchases. Product, positioning and packaging innovation will be the key for companies to attract this new consumer.
For example, as consumers become increasingly health-conscious, they may opt for a food product that not only tastes great but also has health benefits. Companies will have to demonstrate value through innovating and appealing to the needs of different regions and consumer classes.
The Indian consumer market, which is primarily dominated by the younger generation, is becoming increasingly sophisticated and brand-conscious. A typical upper middle class young consumer is beginning to look beyond the utility aspect of a product to seek intangibles like brand and lifestyle statement associated with the product.
This modern consumer wants his purchases to reflect their lifestyle, or at least the one they aspire to.
An explosion in online shopping
eCommerce is growing at a rapid pace, and as a result, online retailers are being drawn towards Indian markets, which are poised to grow in leaps and bounds in the years to come. There were about 120 million online shoppers in India in 2018, and this figure is expected to reach 220 million by 2025.