Professional Documents
Culture Documents
Consumer
Trends
2011-12
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Backdrop
Change is an integral part of every society and no consumer is spared from the effect of the phenomenon of changing demographics and income levels, which leads to their new and revamped lifestyle. In the recent times, India has been facing a sea of alteration in every sphere. While the family 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 with progress in time since they always tend to seek novelty. Subsequent to which, there has been a drift in their consumption attitude and pattern as 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 trends is inevitable.
Marketers to keep an eye on the changing consumer needs and develop/ design their products & services accordingly
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 the vicious change in changing patterns. Hence, in order to be competitive, marketers need to constantly keep looking for ways to join the dots which 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 to respond to products and services in the coming year. These will further serve as significant cues for the marketers who can better think to innovate, develop and design products accommodating with the varying needs and demands of the consumers.
Editorial Team Saloni Nangia, Senior Vice President I saloni.nangia@technopak.com Pratichee Kapoor, Associate Director I pratichee.kapoor@technopak.com Inderpreet Kaur, Principal Consultant I inderpreet.kaur@technopak.com Aparna Sharma, Associate Consultant I aparna.sharma@technopak.com Design & Development Bharat Kaushik, Design Manager I bharat.kaushik@technopak.com Arvind Sundriyal, Senior Designer I arvind.sundriyal@technopak.com
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innovation and quality. Taking inspiration Bajaj is also coming out with a low-cost car, thus making it possible for the middle class to afford the luxury of a car. Marketers of CDIT products like mobiles, refrigerators, ACs have not failed either to charm the masses by bringing into the market an assortment of products that stand the test of quality and innovation and at the same time are monetarily appealing. Micromax, a mobile phone brand that was launched recently has quickly captured the market share and become the third largest mobile handset seller in the country. This is purely on account of an understanding that Indian consumer has unique preferences with respect to mobile handsets such as long battery life, dual GSM capability, low-cost QWERTY phones, universal remote control and gaming phones. Godrej Groups battery operated refrigerator is a perfect solution for consumers who do not have access to electricity 24x7.Samsung also introduced a phone with a solar charger to address the same issue. The service sector is not far behind. The introduction of airbuses has made air travel for the masses very lucrative and further innovation by the sector will satisfy their aspiration. Telecom sector has leveraged on the trend by bringing attractive plans that appeals to the masses. To unlock the full potential of the Indian middle class as consumers and drivers of growth, the marketers must continue to address issues like limited disposable income. The middle class wants to enjoy a lifestyle that does not burn a hole in their pockets. The marketers need to bear this in mind while designing products and services.
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Indian consumer is now becoming more receptive to the goodwill of the society at large. Consumption is increasingly not just confined to mere personal gratification; but a beginning of sensitive about the social concerns as well. Consequently, giving, sharing and caring in the coming years are expected to be beat taking, leading to a close mingling between empathy with shopping. With increased consciousness, consumers are positively responding to products and services which have a generous component; especially those, portions of which would be donated to a worthy cause. The ecological and social concerns which existed earlier, but were never manifested, would gain momentum. Increased awareness of consumers and at the same time, efforts by retailers, of connecting with consumers, through an element of embedded generosity in their products, would extend an emotional reason to buy. Following which, giving initiatives that make donating painless, if not automatic, will amplify. At the same time, preference for eco friendly products will also enhance. Consumers have now begun to favor ethical and eco friendly products, starting from Ahimsa silk (alternative silk fabric where there is no killing or cruelty to animals involved); vegan (vegetarian) belts and footwear to environment friendly electronic goods such as LED bulbs by Philips etc. Procter & Gamble and UNICEF have joined forces for the fourth year running, in an effort to raise money for tetanus vaccines. Hindustan Unilever Limited has tied up Shiksha (an NGO supporting child education) and through its initiative; it encourages consumers to purchase its products, a portion of its spend is given to the NGO. Body shop, a premium cosmetic brand does its bit to promote generosity through its range of products; earnings of which
With the improving economy the consumer is back on the lookout for better products and services. However after witnessing recession in full swing he/she is now even more value conscious. The mass segment is aspiring for products that their economically higher counterparts have but the only constraint is their limited or restrictive spending power. Tapping into this trend are products and services that are reverse-engineered copies of category leaders but at the same time cheaper. This does not mean that value is the only thing that resonates with the consumer, but the reason why such products are finding way into consumers house is they now promise innovation and quality. Departmental stores and supermarkets are satisfying the urge of the masses to own better products by offering a range of private labels. Private labels werent always taken so seriously; in the past, they were considered cheap, no-name substitutes for real brands -- cheap in terms of price as well as quality. However, now they promise innovation as well as quality and are found across a spectrum of products -from groceries and staples to apparel, consumer electronics and mobile handsets -- they are considered brands in their own right. The fundamental reason for the success of private labels is their price advantage, made possible by their nonexistent or very limited spending on product development and brand promotion. However, private labels are not the only benefiters, brands are also following suit and introducing innovative products that may be cheaper but promise quality and freshness to the segment targeted. Tata nano is a perfect example of a product that satisfies the aspiration of the middle class to own a car but at the same time scores high on
is dedicated to an organization which fights against human trafficking. Puma has launched its range of pink shoes to promote the antibreast cancer initiative. Also, Lifestyle deducts Re.1 on the bill of the consumers who are willing to donate for a cause. A greater inclination is also seen to green products and consumers favor companies they consider green. To shed light on some facts, India has been rated as the most eco friendly nation by the Greendex 2010 Survey conducted by National Geographical Society. Making green choices is a high priority for around 60 per cent of Indian consumers. And 95 per cent of consumers who make green choices claim to do so to protect the environment. Indian consumers attitude towards green practices, products and services is mainly in three categories - energy, retail and transport. Increased awareness and consciousness of consumers encourages them to purchase products which have an eco friendly angle. Subsequently, companies are realizing the importance of environment friendly products on identifying increased preference of consumers towards such products. Wipro and HCL have emerged amongst the top five greenest electronics companies in the world, providing consumers with a wide range of eco sensitive products to choose from (For instance; Greenware range of desktops which are 100% recyclable and toxin free). Dell has introduced two new initiatives designed to promote a green approach towards technology adoption for consumers in India discount coupons and Dell Go Green Challenge. Other CDIT companies such as Samsung, LG and Panasonic have also come up with their range of eco friendly products, addressing to the increasing demands of eco friendly consumer.
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 usage can 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 social/ ecological concern and awareness increasing, the present day time pressed consumers 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 can assist 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 landscape for storytelling; enabling them in making profit while extending donations consecutively.
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The extent to which consumers desire to be different and inimitable and at the same time 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 status symbols 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 accommodate consumers with innovative products and services accordingly. Moreover, their desire to demonstrate what they possess and what they have experienced will transcend beyond their 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 to figure out ways that can help consumers show off their new status symbols in the most impressive way.
Heritage or history is no protection for products and services today, therefore, marketers would 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 to creatively rebrand and repack the old wine in new bottle.
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With escalating crime rates and increased threat of terrorist attacks there is enough reason for the modern day consumer to demand security 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 more vigilant and meticulous consumer now wants to invest liberally in the safety and security of his home, possessions, and most importantly, his loved ones. The transition from extended to nuclear families and womens increased entry into the workplace have begun to redefine the roles of men and women in society and in turn has had substantial effect on family dynamics and existing social support systems. Reduced family support has made home unsafe for children and elders. To address these safety concerns, marketers are coming up with innovative security solutions like- the E-Neighbor system (which consists of wireless sensors programmed to detect unusual activity in a house), breakage alarms, door stop alarms, door and window jammers, motion detecting home security devices, smoke detectors, etc. Kidnap-and-ransom (K&R) insurance policies are also introduced to provide professional negotiation assistance in the event a crime does occur. The new age women are always on the go. However with the increasing number of crimes, their insecurities and fears are only going up. They feel insecure and vulnerable particularly in public places and at night. Companies like ForShe, Priyadarshini Private Cabs, Go For Pink are realizing the enormity of the problem and providing cab services exclusively for women. These cabs have women drivers
and are equipped with panic buttons in case of emergencies. Self defense training institutes that train women in personal safety and defense are also gaining popularity. Telecom sector is not far behind to 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, sports and conference arenas) are also at high risk because of increasing threat of terrorism and cannot be subject to traditional security approaches such as searches and checkpoints. High-tech gadgets that help mitigate terrorist threats are and will be in great demand. Consequently, marketers are developing technology that provides effective vigilance for commercial properties. Professional security agencies are also reaping the benefits of this new trend and are coming 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 for contemporary security devices like burglar alarm, spy camera, fire alarm, CCTV, wireless camera etc. Safety devices like GPS, route tracking system, central locking etc. in personal vehicles are also very popular. These are technologically advanced equipments and are proving their usefulness in every setting, be it home, office or factory. However there is a vast scope for innovation and higher technological precision. Futuristic security options that give the consumer a sense of security will help this niche market grow.
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 increased dramatically over the last decade and will continue to do so with the changing socioeconomic conditions. This will bring an influx of security products and services in the market, however only those that meet to changing needs of the consumer and economy will survive.
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 and services. Anything that delivers on their wants (and at times surprises them with some unexpected benefit) is ought to be appreciated by the consumers. Precisely, anything that instantly supports their needs, apart from merely providing them with the expected functions would definitely please them. Offering additional service has become anonymous with 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 free some capital and giving priority to additional services is not a bad idea!
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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 and services. Anything that delivers on their wants (and at times surprises them with some unexpected benefit) is ought to be appreciated by the consumers. Precisely, anything that instantly supports their needs, apart from merely providing them with the expected functions would definitely please them. Offering additional service has become anonymous with 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 free some capital and giving priority to additional services is not a bad idea!
With the changes in consumers mindset, the traditional media has begun to stagger. And hence, the brands are developing newer communication strategies to reach out to its target consumers. Taking for instance; todays time pressed consumer seeks out for convenience and easy and immediate information. Catering to which, brands can use large digital impressions, detailing the features of products. Moreover, digital kiosks can ease consumers concerns 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 eases out consumers queries and at the same time is attractive enough to delight them, would gain popularity. 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.
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The current day older generation is fast emerging as an exceptional genre with new desires and anticipation and are increasingly showcasing Life begins after retirement attitude. As this generation is 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 of responsibilities and life primarily revolved around tight deadlines at workplace, bringing up their children and various other pressures, they did not miss out on a meticulous plan to save up for a comfortable later life. And now, when they are free from the burden of numerous responsibilities, they look forward for ways to enjoy and LIVE their life without strings. Their considerations have expanded beyond the constraints of familial ties. As they become self reliant both emotionally and economically, they are now confident to face various challenges of old age. The long pending wishes which were close to their heart, but had taken a backseat, gain weight and they want to experience all their unfulfilled desires. Moreover, having saved lifes kitty in a smarter way has helped them to shake off their fear of uncertainties and suspicions about the later life that had somewhat gripped them earlier. Leading a hassle free life, without any worries and at the same time enjoying to the fullest has become their top most priority. This has been possible because of change in their attitude and a strong financial holding. Following which, they can now consider a long desired holiday trip which was postponed for long. Some of the tour and travel operators such as Cox and Kings, Thomas Cook and SOTC have exploited this opportunity to some extent and have tried to plan exclusive holiday tours, keeping in mind the distinct yet indispensable requirements of the senior travelers. Such tours are
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 witness the 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 grow and 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 increased investment would result in an expansion of the alternative entertainment industry in the years to come.
Various brands and retailers need to customize and innovate their products and services catering 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 product or 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.
For further dialogue, please contact: Sr. Vice President, Retail & Consumer Products saloni.nangia@technopak.com T: +91 98185 98626 Vice President, Retail & Consumer Products purnendu.kumar@technopak.com T: +91 98714 44110
Saloni Nangia
Purnendu Kumar
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