Iding the Indian Consumer: IMRB Study

According to the calculations of the Department of Economic Analysis at Goldman Sachs, the five largest economies in the world in 2050 will include the four BRIC countries (Brazil, Russia, India and China) plus the United States. While the GDP growth in the BRICs have slowed in the recent years post-recession, it is still expected that the balance of power in the global economy will change in the near future with the emergence of the new “growth markets”.

Much has been said about India going the global way, how the aspirations and lifestyle of the average Indians increasingly mirror the West and yet on the other hand there are those die hard traditions which are difficult to let go. So where does India fall on the global scale – how does it compare with countries which are developed and countries which are on the same stage of economic development

What defines the Indian consumer and how similar or different is this from others?

PERSONAL APPEARANCE

We like to Stand Out! Fashion is definitely an important aspect of our lives.  The developed countries score less than the BRIC nations and Sri Lanka on these personal appearance parameters. Not just looking good, but looking young is also quite important. This opens up vast opportunities for marketers of apparels, beauty products and other personal grooming products

CAREER AND POWER DISTANCE

With great Power comes great Responsibility but not for us average Indians. We want to be at the top of our respective careers but we would rather be told what to do. Consumers from all other BRIC nations along with Sri Lanka seem to be more responsible. As far as the developed nations are concerned, most people are willing to take up responsibility.

However, this does not make Indians less ambitious. We may shirk responsibility but we are willing to sacrifice our family time to get to the top in our careers. Paradoxically, though Family is important, spending time with them is not. This is less so in developed nations.

In the developed countries, especially Great Britain, people are seen to be less ambitious and more satisfied with their lives. They are not really into the rat race. It’s probably the fall-out of “been there, done that” phenomenon but they are generally more satisfied with their life.                

For most Indians, their job is their career, entrepreneurship still being lower than developed countries. And like fellow BRIC countries we seek safety in numbers preferring to work in teams rather than flying solo According to the Hofstede’s model, India scores a high on the Power Distance parameter with a score of 77. This indicates an appreciation for hierarchy and a top down structure in organisations and society. Acceptance of un equal rights is far more in India as compared to other developed countries like USA and Great Britain which have scores of 40 and 35 respectively.

Though gender inequality has narrowed over the past years and despite being progressive on many fronts, close to half of the urban Indian population like their Russian counterparts still believe that a woman’s place is in the home... a score which is very disparate from the global average. According to the Global Gender Report 2013, released by the non-profit organisation World Economic Forum, India has risen in its rank from 113 in 2011 to 101 in 2013 among 136 countries that were assessed for women empowerment on social, economic and political parameters.

Despite improving its ranking, India is still lagging. The report states, "India remains the lowest-ranked of the BRICS economies, even after gaining four places since last year."