The last year was a tough one for consumer marketers in India. The party spoilers were spiralling inflation, rising input costs and reluctant buyers plagued with twin uncertainties from having less money in their pockets and weak market sentiments. This year, though, promises to be different with various global consumer surveys indicating that the Indian consumer remains one of the most confident across the world as far as his/her future personal finances are concerned. Many of these surveys also point out that the Indian consumer intends to increase spending activities across consumer categories this year. But what is the average Indian consumer thinking? Will he buy more? why will he buy and from whom will he buy? 4Ps B&M and ICMR team up to crack the life and buying style of the urban Indian consumer in 2012 and beyond.
Henry Ford had once remarked, “If I asked my customers what they want, they simply would have said ‘a faster horse’”. He meant to say that consumers simply do not know what they want.
But that was almost a century ago. Consumers, markets and marketers have acquired a different life since then. Geographic boundaries have blurred and information is now available on a click. Like the global consumer, the Indian consumer has not only become king over the two decades since liberalisation, but has gotten very vocal about it too. Ask him to describe his needs today and he will wax eloquent for hours about what he likes, what he doesn’t like, what makes him happy and what doesn’t, what he is wishing for and even what he feels he should have wished for. So now when consumers talk, marketers listen. And listen very carefully at that.
It is this listening to the voices of consumers that has given marketers bestseller ideas for the Indian market – be it fairness creams for men, dust-free keypads for mobile phones, vegetarian pizzas, agricultural tips on SMS or the ‘cash on delivery’ model devised by e-commerce websites to address the traditional Indian paranoia over virtual buying.
Today, more marketers – both Indian and global – want a generous pie of India’s domestic consumption base of $827.9 billion, which translated into 49% of the nation’s total GDP of $1.7 trillion at the end of 2011 (even ahead in percentage terms of China’s 32% consumption share out of a total GDP of $6,476.2 billion). India is a top priority market in the future plans of almost every global company. But getting to know the heterogeneous and diverse Indian consumer is no mean feat, especially in a dynamic socio-economic environment, where what was a novelty until yesterday is quickly consigned to the dustbins of history the next day.
The annual 4Ps B&M and ICMR Consumer Compendium is our effort towards understanding the Indian consumer’s mindset, figuring out his buying motives and also getting a handle on what he is contemplating next and why. Our cover lead over the next few pages attempts to collate and communicate the big takeaways on consumer attitudes and behaviour from our survey spanning key product categories including consumer durables, electronics, automobiles, banking & finance, and online buying. Our series this year attempts to unravel the intricate mysteries of the urban, educated consumer’s mind and mindsets.
For now, as marketers get ready to launch their marketing blitzkriegs into 2012, we urge them to keep the results of the 4Ps B&M and ICMR Annual Consumer Compendium handy. Who knows, which consumer insight may help conjure up that path-breaking strategy that will help you get closer to your individual marketing goals.
They love comparing apples to apples
Here’s a nugget for marketers of consumer electronics like laptops, tablets and camcorders – the front-end experience at the store plays a vital role in your brand’s popularity. Nearly three-fourth of our survey’s respondents said that the front-end experience at showrooms was very important as they prefer that the staff answers their queries regarding tech-purchases properly.
A majority (almost 59%) also said that they prefer buying electronic items from multi-brand outlets and other channels rather than eponymous brand stores, as it gives them the option to compare available brands and prices under the same roof. Subrata Dutta, MD, Samsonite India, is not a technology buff and is therefore more comfortable buying from a multi-brand outlet. “I prefer buying from the multi-brand outlets as I can compare and get to touch and feel the other options available at the same price points. In many situations, the salesmen at the counter and the info they give play a role in what I eventually buy,” he told 4Ps B&M. Guess it’s time to dish out more resources towards educating the ubiquitous store salesmen then.
Here’s another interesting takeaway for electronics marketers. Consumers really do not care whether you have a swashbuckling Sachin Tendulkar or a pouting Kareena Kapoor endorsing your technology-savvy products. A majority of respondents surveyed (52%) said that they buy electronics items because they have a need and they choose particular brands because of ‘features’ that the product boasts of.
As opposed to the multi-million dollar marketing budgets of consumer electronics companies, only about 11% of respondents said that advertisements played any influence over their purchase decisions. Instead, about 27% respondents said that they relied on the Internet when it comes to gaining credible information about electronics that they intend to purchase. For another 15% respondents, friends were a vital source of information on electronic purchases.
The writing on the wall is clear. Instead of pushing a bulk of your marketing spends on buying TV spots and getting celebs on board, there is a need to expand the digital presence of your brand to keep alive the ever-wandering consumer interest in your brand.
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2012
Henry Ford had once remarked, “If I asked my customers what they want, they simply would have said ‘a faster horse’”. He meant to say that consumers simply do not know what they want.
But that was almost a century ago. Consumers, markets and marketers have acquired a different life since then. Geographic boundaries have blurred and information is now available on a click. Like the global consumer, the Indian consumer has not only become king over the two decades since liberalisation, but has gotten very vocal about it too. Ask him to describe his needs today and he will wax eloquent for hours about what he likes, what he doesn’t like, what makes him happy and what doesn’t, what he is wishing for and even what he feels he should have wished for. So now when consumers talk, marketers listen. And listen very carefully at that.
It is this listening to the voices of consumers that has given marketers bestseller ideas for the Indian market – be it fairness creams for men, dust-free keypads for mobile phones, vegetarian pizzas, agricultural tips on SMS or the ‘cash on delivery’ model devised by e-commerce websites to address the traditional Indian paranoia over virtual buying.
Today, more marketers – both Indian and global – want a generous pie of India’s domestic consumption base of $827.9 billion, which translated into 49% of the nation’s total GDP of $1.7 trillion at the end of 2011 (even ahead in percentage terms of China’s 32% consumption share out of a total GDP of $6,476.2 billion). India is a top priority market in the future plans of almost every global company. But getting to know the heterogeneous and diverse Indian consumer is no mean feat, especially in a dynamic socio-economic environment, where what was a novelty until yesterday is quickly consigned to the dustbins of history the next day.
The annual 4Ps B&M and ICMR Consumer Compendium is our effort towards understanding the Indian consumer’s mindset, figuring out his buying motives and also getting a handle on what he is contemplating next and why. Our cover lead over the next few pages attempts to collate and communicate the big takeaways on consumer attitudes and behaviour from our survey spanning key product categories including consumer durables, electronics, automobiles, banking & finance, and online buying. Our series this year attempts to unravel the intricate mysteries of the urban, educated consumer’s mind and mindsets.
For now, as marketers get ready to launch their marketing blitzkriegs into 2012, we urge them to keep the results of the 4Ps B&M and ICMR Annual Consumer Compendium handy. Who knows, which consumer insight may help conjure up that path-breaking strategy that will help you get closer to your individual marketing goals.
They love comparing apples to apples
Here’s a nugget for marketers of consumer electronics like laptops, tablets and camcorders – the front-end experience at the store plays a vital role in your brand’s popularity. Nearly three-fourth of our survey’s respondents said that the front-end experience at showrooms was very important as they prefer that the staff answers their queries regarding tech-purchases properly.
A majority (almost 59%) also said that they prefer buying electronic items from multi-brand outlets and other channels rather than eponymous brand stores, as it gives them the option to compare available brands and prices under the same roof. Subrata Dutta, MD, Samsonite India, is not a technology buff and is therefore more comfortable buying from a multi-brand outlet. “I prefer buying from the multi-brand outlets as I can compare and get to touch and feel the other options available at the same price points. In many situations, the salesmen at the counter and the info they give play a role in what I eventually buy,” he told 4Ps B&M. Guess it’s time to dish out more resources towards educating the ubiquitous store salesmen then.
Here’s another interesting takeaway for electronics marketers. Consumers really do not care whether you have a swashbuckling Sachin Tendulkar or a pouting Kareena Kapoor endorsing your technology-savvy products. A majority of respondents surveyed (52%) said that they buy electronics items because they have a need and they choose particular brands because of ‘features’ that the product boasts of.
As opposed to the multi-million dollar marketing budgets of consumer electronics companies, only about 11% of respondents said that advertisements played any influence over their purchase decisions. Instead, about 27% respondents said that they relied on the Internet when it comes to gaining credible information about electronics that they intend to purchase. For another 15% respondents, friends were a vital source of information on electronic purchases.
The writing on the wall is clear. Instead of pushing a bulk of your marketing spends on buying TV spots and getting celebs on board, there is a need to expand the digital presence of your brand to keep alive the ever-wandering consumer interest in your brand.
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2012
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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