MASTER OF BUSINESS ADMINISTRATION

2020-22

Term – IV
2021-2022

Consumer Behavior

Course Instructor

Prof. Prantosh Banerjee

Reading Summary

Submitted by: Group 10

Section: B

INDIAN INSTITUTE OF MANAGEMENT UDAIPUR

 Reading: The New Indian Consumer

In 1990s, India opened its market for corporations all over the world to do business in the
country. India has huge number i.e., approximately 200 million of middle-class people living,
that makes a whole lot of consumer segment, but Indians were not easy target for
international companies at first since we have our own political and social norms. Although
norms were changing with time, people acted positively towards materialism even though
that was not expected from Indians who are typical stereotyped as religious and not
materialistic, it could also be because of high number of youths below 20. But over the
decade 1996 to 2006 it became evident with change in consumer pattern, which also led to
consistent GDP growth. Also, Indians became more ambitious and thus we were among the
list of hard-working nations.

Indians of age 15-55 are spending on electronics and durables which shows that more focus
on saving money is now shifting and that too not only for youths, and that talks about Indian
consumerism. Technology is becoming more relevant to the society and Indians spending on
it shows that they are getting tech savvy. With all the hype around, new customers are getting
into the market and becoming potential customers, ever increasing market size is good for
marketers.

Over the last decade there have been increment in income for all, but still there are
unsatisfied lower- and middle-class people and that is acceptable as the market has also
grown, and that too more in comparison with the incomes of middle and lower groups. But in
case of higher income group there is no dissatisfaction, things are good. But for others, they
are motivated to earn more money because the way of living is moving upwards and
therefore people are working hard towards it. Also, Indians now are looking more for what
they want and breaking the constraints of income for better, no more only fulfilling needs.

Since India has grown into a global economic market, Indian products are no more just
domestic but of high importance, and no more only international product demand which even
were late coming for Indian consumers. But now with all the respect for foreign companies
and their products, we Indians have utmost faith and confidence in domestic companies
which have shown dedication and have grown over the time whether it is in the business of
technology or may it be durable goods, production and even manufacturing. Indian market
has become global and is considered among the good ones. All of it backed by data, from 34
percentage of people during 1996 believed in Indian companies has increased to 56
percentage of people believing in Indian companies. People in our country realize that not all
the foreign goods are suited for them but also, they require Indian domestic products, which
are made in India.

After surveying all over India top 20 companies in India were named and it showed that from
those 20 companies 40% were Indian that is 8 out of 20 were Indians like Godrej, Tata and
Bajaj. It tells that Indian companies have made their name in global market and are only
expanding further. Among those 20, 5 are new foreign brands and it resulted so because these
new brands have customized their product and technology as per the need of an Indian
consumer and their demand. Out of them Nokia, Samsung and Hutch have particularly done
well. Example such Nokia introduced flashlight into one of its mobile phones, for consumer
to fulfil an extra need of managing in low light area with the help of mobile phone, given that
the prices were manageable for an average lower- and middle-class Indian consumer. Other
remaining 7 of the top 20 companies in India are top multinational brand companies. Now
they are the companies which either are having joint ventures giving them the advantage over
others as multinationals provides customized products as per the demand of Indians and with
that maintaining the international standards with the high level of technology and quality
products. Among them they have Phillips and Hero Honda to name two of seven.

India is a nation of diversity everywhere from north to south and from east to west there are
different types and mentality of people around with different behaviours. Not only that India
is one of the oldest civilizations and have many kind traditions which are followed by
different people in different area. Overall, it is understood that it can be said that India is
diversified. But even with all the tradition India have grown into modernization along with
traditional base. As now women are getting proper studies compared to previous era, as well
as they are pursuing studies for their future and self-dependency.

The world outside India, sees India as country with all types of people, those adapting to the
changes and those keeping up with the old standards but getting there at their speed. Thus, the
contradictory scenarios all over but even though it shows that Indians are adapting the
changes as the market is growing and we are no more backward instead open to all kinds of
things which could make things better, but with that Indian does not changes its tradition and
do not forgets his/her base. Companies who can understand that will have success in
penetrating Indian market and attracting Indian consumers, which are far greater in numbers
than most of other nations.