Understanding Consumerism the Indian Way
India’s economic growth has accelerated significantly over the past two decades and average household income has almost doubled. With rising incomes, consumer spending too has changed significantly. Economic growth has also impacted urban demographics, leading to increased per capita household consumption.
According to the ‘India Retail Report 2009’ by IMAGES F&R Research, at the heart of the India’s growth story is its population, the generators of wealth, both as producers and consumers. With the largest young population in the world over 890 million people below 45 years of age India indeed makes an impressive market. And as the economy grows, so does India's 300 million strong (and growing) middle class’ spending power, sufficient to establish India as one of the largest consumer markets of the world.
As a fast-growing, upwardly mobile middle-class comes to dominate urban India, changing attitudes and behavior towards consumption and savings, particularly among the youth, are effecting a shift from need-based spending to discretionary spending. At Future Group, we have adapted our business model to this fast-changing consumption environment and our store formats are a product of this understanding of the real India. Given the complexity of managing a retail business, our best-practices based skill sets have been a critical factor in meeting the challenge.
To bring efficiency in consumption and ensure customer satisfaction across consumer segments, Future Group has a unique community-centric retail strategy. The backbone of this strategy is our in-depth research that drives the creation of innovative products targeting specific community needs.
Our research seeks information across a variety of India-specific attributes including
- Historical/cultural significance of a product
- Product varieties available and consumer preferences
- Consumption trends and market share
- Buying dynamics i.e. type, packaging and quantities preferred by consumers
- Nutritive value and dietary patterns (edible goods)
- Festivals and beliefs connected to the product
- Cross-merchandising opportunities
Based on these variables and the data gathered from across communities, Future Group undertakes deep-domain analysis before developing retail strategies to maximize value for its customers.
Comprehensive data analysis also allows us to plan ahead and make quality contributions to socio-cultural trends. For example:
- Bringing about healthier eating practices by promoting various fruit-based products that appeal to consumers.
- Developing better and more attractive packaging options to ensure that products are well-presented and have a longer shelf life.
- Developing products that appeal to a specific demographic.
By focusing on the interrelationship between the end-product and community needs, Future Group’s retail strategies operate in a unique environment. We are constantly rethinking our retail strategies, innovating and developing ideas while seeking to provide diverse customer groups with a value-for-money shopping experience. These efforts have helped us pioneer better ways to serve the community and provide a fillip to consumption-led growth.