Indian Consumer Trend 2011-12

8/2/2019 Indian Consumer Trend 2011-12

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Change is an integral part of ever y society and no consumer is spared from the effect of the phenomenon of changing demographics and incomelevels, which leads to their new and revamped lifestyle. In the recent times, India has been facing a sea of alteration in every sphere. While thefamily structure is modifying and shrinking from joint to nuclear, income has heightened, leaving consumers with increased disposable income.Consequently, the wish list and aspirations of consumers is not inert but is ever changing. What they want to use and experience alters withprogress in time since they always tend to seek no velty. Subsequent to which, there has been a drift in their consumption attitude and patternas well as a difference in the way they buy, leading to a wide range of alterations in their standard of living. Thus, change in consumer trendsis inevitable.

In such an altering market condition with changing consumer mindset, mere introduction of newer products and services is not adequate.Marketers need to be alert and watchful of every minuscule movement that sways the consumer dynamics. They need to keep pace with thevicious change in changing patterns. Hence, in order to be competitive, marketers need to constantly keep looking for ways to join the dotswhich lead to alteration in consumer trends.

The following pages detail out some short listed consumer trends which are expected to have an effect on the way consumers are likely torespond to products and services in the coming year. These will further serve as significant cues for the marketers who can better think toinnovate, develop and design products accommodating with the varying needs and demands of the consumers.

Change in Demographics, income, lifestyle

Change in Consumer Aspirations

Change in Consumption pattern and trends

Marketers to keep an eyeon the changing consumer needs and

develop/ design their products & servicesaccordingly

Backdrop

Editorial Team

Saloni Nangia, Senior Vice President I [email protected]

Pratichee Kapoor, Associate Director I prat [email protected]

Inderpreet Kaur, Principal Consultant I [email protected]

Aparna Sharma, Associate Consultant I [email protected]

Design & Development

Bharat Kaushik, Design Manager I [email protected]

Arvind Sundriyal, Senior Designer I [email protected]


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| Indian Consumer Trends 2011-12 Indian Consumer Trends 2011-12 |6 7

With social/ ecological concern and awareness increasing, the present day time pressedconsumers have a preference for an offer which enables them to buy the product and

simultaneously facilitates them in donating a portion for a cause. Hence, companies canassist them with options which ensure they contribute while they shop and get involved

directly in making a change.

This leaves a wide array of innovative thinking for businesses across categories. An

element of generosity, if implemented in a proper way, would provide a rich l andscape forstorytelling; enabling them in making profit while extending donations consecutively.

Indian consumer is now becoming more receptive to the goodwill ofthe society at large. Consumption is increasingly not just confined tomere personal gratification; but a beginning of sensitive about thesocial concerns as well. Consequently, giving, sharing and caring in

the coming years are expected to be beat taking, leading to a closemingling between empathy with shopping.

With increased consciousness, consumers are positively respondingto products and services which have a generous component;especially those, portions of which would be donated to a worthycause. The ecological and social concerns which existed earlier, butwere never manifested, would gain momentum. Increased awarenessof consumers and at the same time, efforts by retailers, of connectingwith consumers, through an element of embedded generosity in theirproducts, would extend an emotional reason to buy. Following which,giving initiatives that make donating painless, if not automatic, willamplify. At the same time, preference for eco friendly products willalso enhance.

Consumers have now begun to favor ethical and eco friendly products,starting from Ahimsa silk (alternative silk fabric where there is nokilling or cruelty to animals involved); vegan (vegetarian) belts andfootwear to environment friendly electronic goods such as LED bulbsby Philips etc. Procter & Gamble and UNICEF have joined forcesfor the fourth year running, in an effort to raise money for tetanusvaccines. Hindustan Unilever Limited has tied up Shiksha (an NGOsupporting child education) and through its initiative; it encouragesconsumers to purchase its products, a portion of its spend is givento the NGO. Body shop, a premium cosmetic brand does its bit topromote generosity through its range of products; earnings of which

is dedicated to an organization which fights against human trafficking.Puma has launched its range of pink shoes to promote the anti-breast cancer initiative. Also, Lifestyle deducts Re.1 on the bill of theconsumers who are willing to donate for a cause.

A greater inclination is also seen to green products and consumersfavor companies they consider green. To shed light on some facts,India has been rated as the most eco friendly nation by the Greendex2010 Survey conducted by National Geographical Society. Makinggreen choices is a high priority for around 60 per cent of Indianconsumers. And 95 per cent of consumers who make green choicesclaim to do so to protect the environment. Indian consumers attitudetowards green practices, products and services is mainly in threecategories - energy, retail and transport.

Increased awareness and consciousness of consumers encouragesthem to purchase products which have an eco friendly angle.Subsequently, companies are realizing the importance of environmentfriendly products on identifying increased preference of consumerstowards such products. Wipro and HCL have emerged amongst thetop five greenest electronics companies in the world, providingconsumers with a wide range of eco sensitive products to choosefrom (For instance; Greenware range of desktops which are 100%recyclable and toxin free). Dell has introduced two new initiativesdesigned to promote a green approach towards technology adoption forconsumers in India discount coupons and Dell Go Green Challenge.Other CDIT companies such as Samsung, LG and Panasonic have alsocome up with their range of eco friendly products, addressing to theincreasing demands of eco friendly consumer.

trend | 02

The mass segment is the catalyst of growth and ignoring this important segment will

cost a lot. Companies by following a strategy focused on innovation, design and usagecan develop products and services at affordable prices. Such products will satisfy the

aspiration for better products and at the same time be cost effective.

With the improving economy the consumer is back on the lookoutfor better products and services. However after witnessing recessionin full swing he/she is now even more value conscious. The masssegment is aspiring for products that their economically higher

counterparts have but the only constraint is their limited or restrictivespending power. Tapping into this trend are products and services thatare reverse-engineered copies of category leaders but at the sametime cheaper. This does not mean that value is the only thing thatresonates with the consumer, but the reason why such products arefinding way into consumers house is they now promise innovationand quality.

Departmental stores and supermarkets are satisfying the urge of themasses to own better products by offering a range of private labels.Private labels werent always taken so seriously; in the past, they wereconsidered cheap, no-name substitutes for real brands -- cheap interms of price as well as quality. However, now they promise innovationas well as quality and are found across a spectrum of products --from groceries and staples to apparel, consumer electronics andmobile handsets -- they are considered brands in their own right.The fundamental reason for the success of private labels is theirprice advantage, made possible by their nonexistent or very limitedspending on product development and brand promotion.

However, private labels are not the only benefiters, brands arealso following suit and introducing innovative products that may becheaper but promise quality and freshness to the segment targeted.Tata nano is a perfect example of a product that satisfies the aspirationof the middle class to own a car but at the same time scores high on

innovation and quality. Taking inspiration Bajaj is also coming outwith a low-cost car, thus making it possible for the middle class toafford the luxury of a car.

Marketers of CDIT products like mobiles, refrigerators, ACs havenot failed either to charm the masses by bringing into the market anassortment of products that stand the test of quality and innovationand at the same time are monetarily appealing. Micromax, a mobilephone brand that was launched recently has quickly captured themarket share and become the third largest mobile handset seller inthe country. This is purely on account of an understanding that Indianconsumer has unique preferences with respect to mobile handsetssuch as long battery life, dual GSM capability, low-cost QWERTYphones, universal remote control and gaming phones. Godrej Groupsbattery operated refrigerator is a perfect solution for consumers whodo not have access to electricity 24x7.Samsung also introduced aphone with a solar charger to address the same issue.

The service sector is not far behind. The introduction of airbuses hasmade air travel for the masses very lucrative and fur ther innovation bythe sector will satisfy their aspiration. Telecom sector has leveragedon the trend by bringing attractive plans that appeals to the masses.

To unlock the full potential of the Indian middle class as consumersand drivers of growth, the marketers must continue to address issueslike limited disposable income. The middle class wants to enjoy alifestyle that does not burn a hole in their pockets. The marketers needto bear this in mind while designing products and services.

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The extent to which consumers desire to be different and inimitable and at the sametime envied after, is boundless. The status symbols might alter with time; however, the

underlying wish to stand out from the crowd, will remain forever. While the statussymbols are destined to change with time, it is crucial for the businesses/ brands to keep

ogling at the changing trends of what constitutes status enhancers and accommodateconsumers with innovative products and services accordingly. Moreover, their desire to

demonstrate what they possess and what they have experienced will transcend beyondtheir closest group. Adding an element that helps build an image of the consumer by

using that product or service would be a good trick for marketers. There is a need tofigure out ways that can help consumers show off their new status symbols in the most

impressive way.

The brands consumer wears, eats, drives, uses or experiences areconnected to his/her status. Consumers are finding increasinglydiverse ways to acquire their status fix. For the consumer who valuesindividuality, owning or experiencing something no one else has, is

the ultimate status fix. Products and symbols which were seen asstatus enhancers previously have taken a back seat. And focus hasnow shifted to experiences and stories.

Catering to the demands of consumers, various brands have triedto offer goods and services that help consumers to alleviate theiranxieties about how they are perceived by others. However, withtime, the way status enhancers are perceived amongst the changingconsumer segments, is altering tremendously.

There has been a gradual drift from owning the most expensive toexperiencing the most unique.. Taking pride in sharing the experienceof something exceptional is socially indulging and hence personallyflattering. Take for instance; trip to a place not ventured by any one (ora few) gives them stories and experiences to share with their peers.Eco tourism is widely appealing to people and they are more likely tobe drawn towards fragile, pristine, and usually protected areas. Theywill increasingly have to tell each other stories to achieve a statusdividend from their experiences.

As consumers slowly get away from an over dose of materialisticconsumerism, importance of generosity has loomed large in therecent times. In such a scenario, contributing for a (social) cause andthen letting everyone know about their donations and contributions(through social media like facebook and twitter etc.) leverages their

respect among their friends. And to add on, while sustainability hasbeen embraced by the society at large, green credentials are anendless source of status. Using products considered as eco friendlyautomatically heightens up their social image. One should also

not negate the fact that unconsumption (the act of consuming less)elevates ones green status since it hardly makes low or no impacton the environment.

Another approach that consumers are adopting to have a cutting edgeover others is mastering knowledge on specific grounds. They tendto attain status by showcasing their skills to an audience who isunaware (or less aware) of the same. One can consider the exampleof an inquisitive teenager cool hunting with the features of mobilephone. And closely associated is, acquiring some unique skills suchas involvement in a distinct sport which also helps them flatter theirexpertise while they are in a social context.

And not to forget the social media, which is truly an endless sourceof new status fixes. Status is associated here with the number ofconnections one has or the level of involvement in the networkingsite. Ultimately, it gives a sense of belongingness, which is personallysatisfying and socially elevating ones status. Ownership of virtualpossessions such as Farmville, Fishville and Caf World or acquiringonline gaming skills on Facebook are definitive sources of bumpingup ones status instantly. The number of retweets on twitter and thenumber of views for a photo on Flickr or a video on YouTube are similarways gaining a status fix. These are all symbols that are associatedwith ones social status and that can be shared instantly and on apotentially large scale in the connectivity realm.

trend | 03

Altering Status Symbols:from Tangible to Intangible Icons

Heritage or history is no protection for products and services today, therefore, marketerswould need to innovatively revamp their product offering. If they have to survive the fierce

competition and cash on the opportunities thrown across by companies, they have tocreatively rebrand and repack the old wine in new bottle.

The present day consumer feels connected to the products andservices that have a contemporary look and feel as it lends a familiarityin the modern environment. But at the same time he values the richheritage of India and the traditional products and services associated

with it. Resolving this conflict, brands are now showcasing a rangeof products that prove their relevance but at the same time lookcontemporary to meet the fresh challenges. This trend has fueled thecomeback of spas, massages, ayurveda, health tourism, yoga, naturalpersonal care products etc. in a new avatar. The comeback is not onlyon account of increased health consciousness; the Indian consumerwas always well informed about the age old benefits of herbal andnatural products, yoga and massages. What has given impetus tothis comeback is the complete contemporary transformation. Therevamped look and feel is now important as the urban consumer hasbecome much more exposed and does not want to compromise onanything that is not alluring or does not comply with the internationalstandards.

Ayurveda and yoga, which were long relegated to the bygone realmof the ascetics are popular again. And a lot of credit for this goes toBaba Ramdev, who has revamped them in such a way that it assuresconsumer attention. Ayurveda is no longer limited to spas and someherbal treatments from Kerala but to a large array of products andservices. Aloevera, Amla and Jojoba are being used in a large varietyof products; from drinks and eatables to cosmetics and medicines.The same holds true for tea, which was always there but is now sellinglike hot cakes. With the rebranding and repackaging of variety of teasthere is a sudden influx of herbal and flavored teas in the market.

Holistic well being products and services are gaining prominenceagain as the consumer is not only extolling their virtues but alsoappreciating their contemporary look and feel. Spas and holisticwellness centers are now revamping the old medicinal remedies and

personal care products and targeting various segments of the society.Tapping into this opportunity are various business groups; HLLsAyush targets the affluent consumers and Cholayil Group throughSanjeevanam targets the emerging middle class. The tourism sectoris also following suit and engaging the urban consumer with variousoptions like wellness retreats, inspired vacations for mind, body andspirit, yoga retreats, spiritual vacations and so on and so forth.

Looking at Indias upbeat economy and sensing this shift, themarketers are proactively altering their offer. They are working closelyon packaging, ingredients and publicity to try to make them morerelevant today. The formulation of these products hasnt changed buttheir positioning has changed considerably. The new look complieswith premium, international standards of packaging breaking theclutter with better range and increased product shelf life. In short,brands of yore are working on a comeback. They are dusting thecobwebs off their brands, revamping their content and packaging tomake them contemporary, and sending them back into the market forconsumer rupees.

Embracing the cultural and lifestyle changes will help marketers tocombine the concept of modernity and tradition together. The presentday consumer values culture and traditions but is not tied to it andthus the marketers have to constantly tantalize the consumer withnew offerings, whether it is through packaging or publicity.

trend | 04

Old Wine in New Bottle


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Drift from Conventional toBold and Expressive

In their fast paced lifestyle, consumers have now begun to look beyond the given and

functional benefits of a product and wish to look for more extended applications andservices. Anything that delivers on their wants (and at times surprises them with some

unexpected benefit) is ought to be appreciated by the consumers. Precisely, anythingthat instantly supports their needs, apart from merely providing them with the expected

functions would definitely please them. Offering additional service has become anonymouswith selling. Hence, offering relevant services to consumers is a win-win situation in any

business. Cutting down on a number of traditional advertizing/ marketing activities to freesome capital and giving priority to additional services is not a bad idea!

The old order is changing and yielding place to new .The change isfast and for all to see. The new age liberal consumer in emergingeconomies like India is also positively responding to the change.Charmed by modernity in all its gritty and glory, todays hyper

consumer welcomes innovation, creativity and unconventionality.He is moving away from traditional, social and familial structuresand feels that now its time to loosen up. The more experienced andoutspoken consumer is appreciating brands that are enterprising,candid and even a bit more risqu.

The broad spread of more liberal attitudes and increasing urbanizationhas given birth to savvy streetwise consumers who do not hesitate intrying products that push the boundaries. Consumption for them isa means of reflecting their personality and changing belief system.The very affluent urban consumer is increasingly looking for productsand services which can give him the thrill and a sense of eccentricity.No wonder any product or service that reflects change to societyscultural foundations and established rules, is catching the fancyof new age urbane consumer. Subsequently, brands are givingimportance to innovative, bold and unusual ideas and concepts andbranding their products accordingly. There has never been a biggermarket for demanding, bold and unconventional offerings before.

A growing number of brands have spotted this changing trend andare tapping it with great success. Reebok has grabbed womensattention by promising asstounding booty-shaping results withits new EasyTone shoes. Levis has launched Curve ID, a line ofjeans with three different cuts designed to address different bodyshapes of women. Kraken Opus, a luxury publishing company hassensationalized the publishing of the 800-page Tendulkar Opus

by mixing a pint of Tendulkars blood with the paper pulp. BaristaLavazza has also successfully leveraged on the same and hasintroduced liqueur coffees and desserts. Thus, brands are comingup with unconventional products that grab attention of the inquisitive

consumer within seconds.

The service sector is also following suit and engaging the newliberal and conscious consumer. The new age woman, who reflectsthe emerging independence and liberal outlook, has been the targetof tour operators. With fancy packages, a travel company, Womenon Wanderlust has succeeded in roping women groups to exoticdestinations.

In the process of loosening up, brands like Dell are targeting gay,lesbian, bisexual and transgendered (GLBT) customers by buildinga number of new communication channels. Dell is one of the firstbrands in the country that has tried to capture this important marketsegment by working with various GLBT organizations and businesses- to advance important causes, purchase components or products,and attract good job candidates. Following the same are Indjapink,Indias first dedicated online gay travel boutique and Queer-INK, ane-store catering to the gay community.

Therefore this ongoing collapse of the established beliefs, ritualsand laws that society held close for years, is seen bringing intothe market, products that are practical, expressive, cool, bold,unconventional and even naughty. Products are now in tune withthe very dynamic culture and promise passion and excitement to theglobal consumer.

trend | 06

The array of security challenges -- some of them longstanding, some of them emerging now coalescing have a deep impact on the products and services provided by

marketers. The demand for well-connected security products and services has increaseddramatically over the last decade and will continue to do so with the changing socio-

economic conditions. This will bring an influx of security products and services in themarket, however only those that meet to changing needs of the consumer and economy

will survive.

With escalating crime rates and increased threat of terrorist attacksthere is enough reason for the modern day consumer to demandsecurity services and products that are effective and comprehensive.One that leaves him feeling secure at all times and makes his house

and external environment completely safe and secure. The far morevigilant and meticulous consumer now wants to invest liberally in thesafety and security of his home, possessions, and most importantly,his loved ones.

The transition from extended to nuclear families and womensincreased entry into the workplace have begun to redefine theroles of men and women in society and in turn has had substantialeffect on family dynamics and existing social support systems.Reduced family support has made home unsafe for children andelders. To address these safety concerns, marketers are comingup with innovative security solutions like- the E-Neighbor system(which consists of wireless sensors programmed to detect unusualactivity in a house), breakage alarms, door stop alarms, door andwindow jammers, motion detecting home security devices, smokedetectors, etc. Kidnap-and-ransom (K&R) insurance policies are alsointroduced to provide professional negotiation assistance in the eventa crime does occur.

The new age women are always on the go. However with the increasingnumber of crimes, their insecurities and fears are only going up.They feel insecure and vulnerable particularly in public places andat night. Companies like ForShe, Priyadarshini Private Cabs, Go ForPink are realizing the enormity of the problem and providing cabservices exclusively for women. These cabs have women drivers

and are equipped with panic buttons in case of emergencies. Selfdefense training institutes that train women in personal safety anddefense are also gaining popularity. Telecom sector is not far behindto address the issue and Idea has launched the zero balance schemes

to facilitate communication in case of an emergency.

Security issues are not restricted to people, crowded public places(e.g. shopping areas, office complexes, transport systems, sportsand conference arenas) are also at high risk because of increasingthreat of terrorism and cannot be subject to traditional securityapproaches such as searches and checkpoints. High-tech gadgetsthat help mitigate terrorist threats are and will be in great demand.Consequently, marketers are developing technology that provideseffective vigilance for commercial properties. Professional securityagencies are also reaping the benefits of this new trend and arecoming up with a service mix to cater various requirements.

Consumers now feel that It is better to play safe, than be sorry.They are upgrading the traditional options of security and opting forcontemporary security devices like burglar alarm, spy camera, firealarm, CCTV, wireless camera etc. Safety devices like GPS, routetracking system, central locking etc. in personal vehicles are alsovery popular. These are technologically advanced equipments and areproving their usefulness in every setting, be it home, office or factory.However there is a vast scope for innovation and higher technologicalprecision. Futuristic security options that give the consumer a senseof security will help this niche market grow.

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With the changes in consumers mindset, the traditional media has begun to stagger. Andhence, the brands are developing newer communication strategies to reach out to its targetconsumers. Taking for instance; todays time pressed consumer seeks out for convenienceand easy and immediate information. Catering to which, brands can use large digital

impressions, detailing the features of products. Moreover, digital kiosks can ease consumersconcerns of seeking details of a product.

Design thinking will continue to play a key role as a differentiator. Anything unique and distinct

will capture greater audience and would prove to be more effective. Any medium that easesout consumers queries and at the same time is attractive enough to delight them, would gainpopularity. It is important for the brands to keep an eye on consumers altering demands and

revamp their communication strategy in line with consumers changing aspirations.

Presently, consumers are flooded with a variety of communicationchannels from various brands. This is one area where brands havebeen more than active in coming up with a range of creative andinnovative mediums of connecting with their consumers. However,

it is seen that consumers have a temporary association with thecommunication models and they always fetch for newer, innovativeand more appealing mediums. Moreover, with their fast changingattitude and lifestyle, consumers tend to look for channels ofcommunications which are direct, engaging and easy to comprehend.Hence, after a point of time it will be noticed that with an overdose ofmedia engagement, the current channels/ mediums might becomeobsolete and uninteresting to them; which would lead them to huntfor more novel mediums.

Consumers have become more demanding and assertive and at thesame time want to be more empowered. Every consumer nowthinks that he is a role model and companies having understood thisfact, are looking for ways to bond with the consumer and make themfeel empowered. For instance; Frito-Lays campaign for Lays -Give Us Your Delicious Flavor gave consumers an opportunity toco-create the flavor they like for Lays. Similarly, the public votingsystem on the reality TV shows gives a sense of involvement to itsviewers and helps to capture their interest in a greater way. Also,as the consumers become socially and ecologically conscious, thebrands try out mediums which engage them in a cause and make themfeel responsible and hence empowered. One can refer to Save ourtigers initiative of Aircel and Save the trees advertisement by ideahere.

Brands are also adopting distinct and unique ways to attract andappeal its consumers. Vodafone tried an innovative way of pleasing

its consumers by creating a sense of humor through its Zoozooads, which offers a variety of short bites and crisp and directcommercials. Yet another distinct technique was recently usedby the German automobile company, Volkswagen with a talking

advertisement in a mainstream newspaper during launch of its newVento sedan.

With consumers spending more time outside their homes andreducing their usage of traditional media, the larger than lifeimpression and contextual nature of the digital out of home medium,allows advertisers the ability to trap themselves into the environmentof their target audiences with effective ease. Through digital OOHmedia, advertisers are now better able to engage consumers incaptive locations (such as theaters, retail, offices, entertainmenthubs, transit, universities, road side) during their daily routinesthrough video advertising networks, digital billboards and ambientad platforms. The larger than life, swanky looking digital billboarddefinitely catches attention and leaves a long lasting impression onthe on looker. Another distinctive form of outdoor initiative was bySubway where it used Subway graphics on the sides of radio cabs.Such medium was adopted to trigger consumers over an extendedperiod of time and region.

Given the short span/ temporary attachment of the ever changingconsumer, PopUptailing as a media concept is gradually gainingimportance. Mobile retail displays, pop up art studios and shippingcontainer bars; banking on exclusivity and surprise, are the latest waysto generate buzz and quickly place product in new markets. Moreover,the time pressed consumers now look out for more immediateengagements, since these are easy to comprehend and have a directimpact on them. Subsequent to which, the ongoing shift from wordsto pictures is expected to accelerate.

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Eager to Experience AppealingMedia

Desire for Fringe Benefits

In their fast paced lifestyle, consumers have now begun to look beyond the given andfunctional benefits of a product and wish to look for more extended applications and

services. Anything that delivers on their wants (and at times surprises them with someunexpected benefit) is ought to be appreciated by the consumers. Precisely, anything

that instantly supports their needs, apart from merely providing them with the expectedfunctions would definitely please them. Offering additional service has become anonymous

with selling. Hence, offering relevant services to consumers is a win-win situation in anybusiness. Cutting down on a number of traditional advertizing/ marketing activities to free

some capital and giving priority to additional services is not a bad idea!

For consumers, time, convenience, control and independence arethe new currencies. As the consumers become more pragmatic,more convenience seeking, as well as time pressed; they wouldrequire instant access to an ever-growing number of support services

(both online and offline). While the modern day consumers jugglebetween their multiple and diverse roles, they seek out for productsand services which could assist them in making things easier andconvenient.

They actively look out for products and services which provide themwith on the plate benefits. Hence, any bit of information/ servicethat serves as an instant assistance to the consumers and help themto make the most of their daily lives, would pleasantly surprise themand consequently, is slated to be popular.

Finding information on the catalogues, manuals, and brochures orfrom such similar sources is a thing of the past. The current mobileonline revolution is shifting consumer expectations further into thealways-on, instant gratification online arena. Consumers are nowincreasingly seeking an avalanche of relevant and timely informationthat is handy and could be accessed immediately anytime andanywhere, even while they are on the move.

Information about major attractions of the city, hospitals, hotels andrestaurants, pubs, nightlife, and entertainment options etc on theirmobile phone are an instant source of customer delight. Anotherexample is of Mastercards ATM hunter on iphone which allows usersto find their nearest ATMs by entering their location or using built-in

GPS functionality. To cite another example; Google has developed afeature which uses Google Maps to offer a variety of walking toursin cities around the world. Moreover, the web check in facility onthe websites of various airways such as Jet airways and Kingfisher

etc. is a sigh of relief for the travelers who wish to save on time andeffort, which is otherwise wasted on long queues while collectingtheir boarding passes. The movie ticket vending machine whichPVR and other cineplexes offer is another such example. Weatherforecasts, cricket scores, bar code reader etc on mobile phone aresome additional examples.

Almost every mobile phone brand has realized the emerging desireof the consumers to socialize while they are on the move and hasfacilitated them with an array of applications such as facebook, orkutand twitter on the mobile phone. At the same time, the more awareand cautious consumers yearn for a degree of transparency from theproducts and service providers. The example of Dominos pizza trackerin the US could be referred here. This service allows US customersto follow the progress of their pizza order from preparation to deliveryvia a web interface.

Consumers are always on the lookout for spaces and amenities whichassist them in their search for comfort and problem-solving. One canlook at the offline examples such as pop up mobile phone storeswhich help the consumers in getting an instant service like mobileand laptop kiosks at places such as malls/ airports/ office complexes,offering free internet access, charging facilities etc.

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Various brands and retailers need to customize and innovate their products and servicescatering to the emerging needs of this category of consumers. More responsive mediums

of providing door step conveniences such as diagnostics and pathological solutions

as well as collection of mobile/ internet bills would be of great help to them. Any productor service which makes their life easier, gives away a sense of independence to them or

elevates their delight (and makes them feel special) is a sure shot win in the market.

The current day older generation is fast emerging as an exceptionalgenre with new desires and anticipation and are increasinglyshowcasing Life begins after retirement attitude. As this generationis becoming more economically stable and largely self reliant,

traditional retirement has gradually become a thing of the past.Even though the earlier phase of their life was rushed with bundle ofresponsibilities and life primarily revolved around tight deadlines atworkplace, bringing up their children and various other pressures, theydid not miss out on a meticulous plan to save up for a comfortablelater life.

And now, when they are free from the burden of numerousresponsibilities, they look forward for ways to enjo y and LIVE theirlife without strings. Their considerations have expanded beyondthe constraints of familial ties. As they become self reliant bothemotionally and economically, they are now confident to face variouschallenges of old age. The long pending wishes which were closeto their heart, but had taken a backseat, gain weight and they wantto experience all their unfulfilled desires. Moreover, having savedlifes kitty in a smarter way has helped them to shake off their fear ofuncertainties and suspicions about the later life that had somewhatgripped them earlier.

Leading a hassle free life, without any worries and at the same timeenjoying to the fullest has become their top most priority. Thishas been possible because of change in their attitude and a strongfinancial holding. Following which, they can now consider a longdesired holiday trip which was postponed for long. Some of thetour and travel operators such as Cox and Kings, Thomas Cook andSOTC have exploited this opportunity to some extent and have triedto plan exclusive holiday tours, keeping in mind the distinct yetindispensable requirements of the senior travelers. Such tours are

carefully scheduled, addressing the safety and health concerns ofolder travelers.

With a lot of alteration in the family structure, there has been a

gradual drift from joint to nucleus arrangement. And their childrenhaving shifted to other cities (or abroad), an increasing number ofsenior citizens have to live by themselves. Considering this, variouslifestyle options have emerged to facilitate them with all comfortand convenience. For instance; senior citizens lifestyle apartmentsare cropping up in several cities, which have incorporated a host ofsafety and convenience features for them; ranging from wheel-chairfriendly rooms to anti-skid floors to grab bars in bathrooms, andpanic alarm buttons to wider passages. Moreover, such apartmentsare well equipped with grocery and departmental stores, an ATM anda chemist shop in close vicinity.

And how can one overlook the health related concerns of thiscategory of consumers! Health and medication is one area where theytend to spend the maximum and majority of their expense goes intodiagnosis, prevention and cure of ailments. Consequently, a lot ofbrands have given a thought towards making their life easier, simplerand healthier. For instance; Dr. Scholls, uses podiatric medicine andresearch to design comfortable shoes and footwear for joints painrelief.

With much alternation in their desires, they are showing lot ofenthusiasm towards enjoying their life to the fullest and lookingforward to a secured, comfortable and healthy lifestyle. Theireconomic independence along with the attitude of self reliance hasfurther helped them in taking up the challenges of old age moreconfidently.

trend | 10

Alternative Entertainmentand Leisure Options

There is a large gap in the market place for engaging entertainment and leisure options,with eating out, amusement parks and multiplexes being the primary options. Though as

a result of growing demand, the entertainment and leisure sector has begun to witnessthe advent of a broader set of offerings which are aimed for specific segments but there

is still a huge potential for innovation.

Overall the entertainment industry is steaming ahead. The industry has the mettle to growand diversify. However, the ability of the industry to exploit the opportunities with right

business model will be critical to its success. Thus, higher demand and an increasedinvestment would result in an expansion of the alternative entertainment industry in the

years to come.

With changing external environment consumer behavior is alsochanging. The attention span of the new age consumer is reducingand he is always on the lookout for change. Consequently, the desirefor alternate entertainment and leisure options has also become

stronger. Consumer has moved beyond the conventional sourcesof entertainment to more involving channels as he now has theinclination as well as the ability to pay for innovative options. As aresult the marketers are finding it difficult to satisfy them and capturea share of their time and money.

What catches the fancy of modern day consumer are entertainmentoptions that offer an exciting, creative way to spend leisure time withfamily and friends and at the same time bond with them. Cashing onthis new trend is Colour Factory, a chain of paint your own potterystores. Adventure sports like rafting, paragliding, skiing, and abseilingprovide the exhilaration and excitements the consumer is looking forand are quite a craze. Sports are becoming the passion of many as ithelps them to getaway from the hectic life.

While erstwhile options like Multiplexes have mushrooming at everynook and corner they are realizing the increasing penchant for otherleisure options. Cashing on this trend are restaurants, multiplexesand bars that host live screening of matches. Entertainment optionslike theatre, concerts and exhibitions are also catching up. Severalmultiplexes stage plays nowadays.

Big players are now coming up with world-class lifestyle entertainmentconcepts to bridge the gap of higher aspirations vis--vis lack oforganized entertainment experience. Multiplex operator PVR Cinemasrecently launched a bowling alley called Blu-O, with a promise to

bring fashion bowling to Indian consumers, who have long aspiredfor lifestyle entertainment. Wizcraft International Entertainment Pvt.Ltd. and Apra Group of Companies together as GNIC have openedKingdom of dreams, to serve the consumer a blend of Indias art,culture, heritage, craft, cuisine and performing art.

Time deprived consumer is appreciating options that are convenientand allow him to spend fun time with friends and family. This hasmade in-house entertainment options equally popular. The scope ofin-house entertainment now goes beyond gadgets such as televisionand personal computers. The search is for grander options, not onesthat fit into a corner of the room and enjoyed alone but those thatadd freshness to the hectic life and enjoyed together with friends.Play stations, home theatre systems and virtual games are becomingtrendy as they serve the purpose.

Entertainment activities that refresh and rejuvenate, work as magicand thus the consumers appetite for leisure and entertainment isgalloping. Marketers are closely following the trend and coming up withinnovative options to satisfy the consumer. Competition for innovativeoptions will prove to be an impetus for increased efficiencies and willforce the more conventional formats to rethink their strategies.

trend | 09

Retired

YetnotRetired!


9/9

www.technopak.com

Technopak Advisors Pvt. Ltd.

4th Floor, Tower A, Building 8, DLF Cyber City, Phase II,

Gurgaon 122 002,

(National Capital Region of Delhi)

(India)

T: +91-124-454 1111

F: +91-124-454 1199

Saloni NangiaSr. Vice President, Retail & Consumer Products

[email protected]

T: +91 98185 98626

Purnendu KumarVice President, Retail & Consumer Products

[email protected]

T: +91 98714 44110

For further dialogue, please contact:

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Indian Consumer Trend 2011-12

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