Oct 18, 2011

The Indian desire to own and experience western brands is strong and developing at pace. Vast numbers have both the appetite and the rupees to tap into these brands, creating a booming consumer market in a number of product and service categories. India’s unique age profile plays a key role in fuelling this demand.

Many numbers are thrown around as to the size of the Indian “middle classes”. Although it is difficult to accurately assess, general consensus has this today at around 300 million people - that’s individuals who have sufficient income to allow daily choices as to their discretionary spend. With India’s young demographic profile, rapid urbanization together with increasing female employment and empowerment this number is growing at an extraordinary pace with some estimates predicting 600 million within 5 years. This represents an unimaginable increase in spending power.

What influence is India’s youthful population having on consumer trends?

With 50% of the country under the age of 25, it will come as no surprise to anyone that this group is playing a key role across all consumer markets. It is this group that has grown up in modern India and who is driving this shift in spending patterns. These young consumers are exposed to a western lifestyle every day through TV, international magazines and numerous new media channels. It is a global world we now live in and the Indian consumer is very much part of it. Young Indians are drawn to the perceived status that many brands offer and they desire them, just like the rest of us. Eating out, clothes, fashion accessories, health and beauty are all experiencing rapid growth as lifestyle offerings struggle to keep up with this pent up demand.

India’s youth will be the architects of tomorrow’s vast, yet competitive, consumer landscape. Entrants to the Indian market looking to succeed over the medium term should embrace brand association and customer loyalty at the earliest opportunity. Building relationships with today’s new consumers will be critical to long term success in this highly complex marketplace.

So the window of opportunity is now – before international competitors and local businesses capture your market.  And bearing in mind how long it can take to get properly established, time is very much of the essence.