Indians are becoming more materialistic and consumerist. A survey found that nearly half of urban Indians had adopted a "work hard and get rich" mindset by 1996, prioritizing material success. Consumerism is also becoming more of a way of life, as Indians spend heavily on electronics and entertainment rather than solely saving for the future. Additionally, views on foreign goods are changing, as "Made in India" products are gaining trust due to their customization to Indian needs and culture. Foreign companies that established joint ventures succeeded by also customizing their products and services for Indian customers.
Indians are becoming more materialistic and consumerist. A survey found that nearly half of urban Indians had adopted a "work hard and get rich" mindset by 1996, prioritizing material success. Consumerism is also becoming more of a way of life, as Indians spend heavily on electronics and entertainment rather than solely saving for the future. Additionally, views on foreign goods are changing, as "Made in India" products are gaining trust due to their customization to Indian needs and culture. Foreign companies that established joint ventures succeeded by also customizing their products and services for Indian customers.
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reading summary of chapter 16, marketing of services
Indians are becoming more materialistic and consumerist. A survey found that nearly half of urban Indians had adopted a "work hard and get rich" mindset by 1996, prioritizing material success. Consumerism is also becoming more of a way of life, as Indians spend heavily on electronics and entertainment rather than solely saving for the future. Additionally, views on foreign goods are changing, as "Made in India" products are gaining trust due to their customization to Indian needs and culture. Foreign companies that established joint ventures succeeded by also customizing their products and services for Indian customers.
Indians are becoming more materialistic and consumerist. A survey found that nearly half of urban Indians had adopted a "work hard and get rich" mindset by 1996, prioritizing material success. Consumerism is also becoming more of a way of life, as Indians spend heavily on electronics and entertainment rather than solely saving for the future. Additionally, views on foreign goods are changing, as "Made in India" products are gaining trust due to their customization to Indian needs and culture. Foreign companies that established joint ventures succeeded by also customizing their products and services for Indian customers.
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The New Indian Consumers
Target customers of global multinational instantly changed towards India as soon as India opened its economy in 1990s. These MNCs were targeting middleclass groups-200 million people. To target these came huge social, economic and political barriers. Things have changed in recent years. People are shifting towards consumerism. India’s demographic profile shows mostly Young people under the age of 20. To examine the changes in attitudes, Galup organization conducted surveys of respondents to know about hopes, hopes, plans and evolution of Indian consumers. They came up with 3 insights:
Indians are getting more realistic: Indians are often thought of as stereotyped spiritual people who rejected materialistic values. The data opposed this fact. Almost half of the urban population adopted “work hard and get rich” culture by 1996. Indians are highly motivated and they wanted material success. They put in hours to achieve their goals. And it is ranked among the top hard working nations in the world.
Consumerism is becoming a way of life in India: Indians’ saving goals underscores the increase in materialism. Although long term goals were a high priority but life’s pleasure here and now has recently gained importance. People are heavily spending money on electronics and other durable goods rather saving for their children’s education. Travel and entertainment also were popular among Indian consumers. This trend reflected on all age demographics. In each segment a majority of new and potential customers are entering the market for the first time. This shows the market is expanding and there is huge source of potential for earning revenue for multinational companies. Although income is raising but middle and low income individuals are not satisfied with their earnings. In short term income constraints and rising cost may become barriers for low income individual. But as they are materialistic their efforts to make money eventually fuel consumerism in the long run.
Foreign is passé; Indian is paramount: Indians used to believe foreign goods had overall supremacy in quality goods. But things have changed now with Indians succeeding in global economic stage; “Made in India” concept became highly influencing factors for Indian customers. Their trust in domestic companies has grown exponentially. Indians realized that foreign goods are not customized to suit their needs. They want products that are made in India and for Indians. Foreign companies were able to establish in India only because they customized according to Indian needs. Seven of the top MNC came up joint venture to take advantage of both customized products for Indians as well as quality and technology association with international companies. Example- Hero Honda.
India is a diverse country with 23 official languages and more than 1000 dialects. Trying to connect with all the consumers is a difficult task. It has wrapped modernity around its traditional core. The harmonious coexistence of seeming contradictions is one of the most confusing aspect of Indian Psyche- but it also tells that country is open for change. It has the ability to add new dimensions without losing old ones. The companies understand that this complexity will help selling to Indians and get most benefits of scale.
