essay on buying indian products

Emerging Markets

/ article, ten trends that are altering consumer behavior in india.

By  Nimisha Jain ,  Kanika Sanghi , and  Ankur Jain

Trisha and Samir, a married couple in their early 30s, grew up in typical middle-class Indian households. 1 1 The names of individuals in this article have been changed to preserve their privacy. Notes: 1 The names of individuals in this article have been changed to preserve their privacy. Their circumstances as children were modest, and their families were extremely cautious with spending: the adults’ biggest dream was to move out of the rentals they were living in and buy their own homes. Trisha remembers her mother going to mandi (a fresh-vegetable market) every other day to get the best produce at the cheapest price. Both families’ major indulgence was the occasional getaway to hill stations—higher-elevation towns with cooler temperatures that are popular vacation spots in India.

But attitudes in India are changing as a consequence of rising incomes and of exposure to new ideas and technologies. For Trisha and Samir—and the tens of millions of Indians like them—the interest in spending on traditional things, such as the purchase of a home, has fallen. Increasingly, people are spending more on experiences, customized products, and time-saving services.

These trends are underscored in a new survey by Boston Consulting Group’s Center for Customer Insight (CCI). Seeking to shed light on consumer trends in urban parts of India, CCI surveyed people living in the biggest metro areas, as well as in tier 1, tier 2, and tier 3 cities. (See “A Survey Designed to Uncover Future Consumer Trends.”) The findings have implications for a wide variety of B2C companies that want to succeed in India, where the level of consumer spending is on track to become the world’s third highest within a decade.

A SURVEY DESIGNED TO UNCOVER FUTURE CONSUMER TRENDS

Two types of research formed the basis of this article. The first was a set of focus groups comprising roughly 200 people. These focus groups were used to test certain hypotheses about how consumer attitudes are changing and to generate a short list of trends to investigate more fully.

The second part of the research—which was undertaken shortly after the focus groups—was a quantitative survey of 5,000 urban consumers in cities that ranged in size from Mumbai, with more than 19 million inhabitants, to Panipat, with roughly 300,000. The quantitative surveys were conducted in person and had quotas that allowed analysis by respondents’ age, gender, and income, as well as by size of city.

Shining a Light on India’s Urban Consumers

The study revealed both well-known and less well-known trends. An example of a well-known trend is information-centered shopping , in which consumers search for a great deal of information about a product or service before putting down money; an example of a less well-known trend is a preference for renting over buying. (See Exhibit 1.)

Most surprising, however, is that the ten new trends have quickly taken root in almost all Indian cities and across all demographic segments. The behaviors can be found among men and women of all ages, at every income level, and in every size of city. (See Exhibit 2.) The ubiquity of the behaviors has important implications for companies trying to expand their bases of business in India. Here’s a closer look at these trends.

Information-Centered Shopping. People in Indian cities now treat information gathering as an integral part of the shopping experience. Eighty-five percent of consumers check at least two data points (beyond prices and discounts) when they’re buying something, and roughly 50% do some sort of online research. Among the sorts of information that people look for are product reviews, manufacturing and expiration dates, and how a product compares with alternatives in terms of features. “I need to read the pack before buying,” said a 38-year-old housewife from Gurugram. This is true even for a simple product, such as yogurt, which she noted can come in many varieties. “You need to know what you’re buying.”

Shopping to Stay Trendy. A desire to be in sync with the latest trends is increasingly driving purchases among Indian consumers. More than 60% of respondents said that in the past year, in at least one category, they had purchased something because it was trendy and they felt like upgrading—not necessarily because they needed a replacement.

Not surprisingly, the categories that ranked high for trendiness had products that tended to be those that someone might well see and notice. For instance, in the year leading up to the survey, 58% of people buying gadgets such as tablets and laptop computers, and 53% of consumers buying four-wheel vehicles, purchased their products just to stay up to date with the latest in the market.

Adoption of Time-Saving Products and Services. After signing a lease on a new flat, a young couple in Delhi bought all their furniture online from Urban Ladder, thus avoiding the need to make multiple shopping excursions in the scorching summer heat. A young family in Bhubaneshwar contracted out the refurbishment and painting of their house to an end-to-end provider to avoid the hassle of dealing with multiple contractors.

These people are among the 57% of urban Indians who said that, in the recent past, they have paid for a product or service that saves them time. And they do this even if what they’re buying costs more than the alternative or causes them to underuse an existing resource. A car-owning businessman, for instance, said that he commutes to work in a taxi so he can catch up with phone calls instead of having to fight with traffic and then look for a parking space.

While this trend can be seen everywhere, it is most prevalent among affluent consumers and in metro and tier 1 cities.

A Full-On Embrace of Health and Wellness. Health consciousness has seeped into the national conversation in recent years, and our survey shows that 57% of consumers now spend on health and wellness. This includes 46% of consumers who are spending on services such as health checkups, gym memberships, and diet consultations, and 40% of consumers who are spending on healthier food.

The trend toward health and wellness is also affecting non-health-related industries in some unpredictable ways. For instance, almost half of respondents said that they now occasionally walk to a destination instead of taking a cab, and 40% have cut down on their media and online use to create more time for physical activities.

Interestingly, for a majority of the Indians who spend on fitness activities, the motivation is less to feel healthy than to look healthy. “The biggest motivation is to lose weight and look attractive,” said a 28-year-old working woman from Jaipur. “My friend recently went on a crash diet right before her wedding to look slim in pics.”

The pleasure of being perceived favorably by others was a subtheme throughout the survey. While it was mentioned more frequently by younger consumers, it was a motivation, to one degree or another, for members of every age group in India.

Growing Interest in Customized Products. Mass-produced offerings have long dominated the Indian market. But in certain product categories, there’s also now a belief that what one buys should reflect one’s individual preferences and needs—even if one has to pay extra for the difference: 56% of our survey respondents paid a premium for customization in at least one category in the 12 months prior to the survey.

Customizations were most common in the women’s apparel category: 27% of women said that they had paid for some sort of customization—such as fabric swatches, designs, or colors—beyond fit or basic alterations. Men’s apparel, at 24%, wasn’t far behind. An IT professional told us that he decided to buy a custom-made shirt after noticing that his boss often wore such shirts. “I love the fact that it is made exclusively for me,” the professional said. “The fact that it gives me the perfect fit is an added plus.”

Requests for custom features in two-wheel and four-wheel vehicles are also common: more than 20% of people who buy these products opt for some sort of customization. The payoff is partly the praise that other people shower on the customizer. A 29-year-old from Jamnagar recalled that he had a special music system installed in his car by a local vendor. Since then, whenever he and his friends are planning a road trip, they always choose his car to travel in.

The Rise of the Female Decision Maker. A few years ago, the gender gap in secondary education in India, which had been narrowing for decades, disappeared altogether. On the heels of this change has come another: women now have the final say in the majority of household purchasing decisions (54% of the time).

And that final say isn’t limited to categories traditionally targeted to women. Fifty-one percent of Indian women make the ultimate decision about their families’ leisure travel plans and 44% have the final say about bikes and scooters. Moreover, women shop differently from men. For example, when shopping for gadgets, men will look for a popular brand that they’ve researched online, while women will visit multiple stores and take the time to hear what store associates have to say.

A Preference for Indian Brands over International Ones. It’s no accident that in Indian retail stores, locally produced products have prominent shelf positions: 50% of Indian consumers will bypass international brands in favor of an Indian brand in at least one category.

The trend is strongest in food, including staples and packaged beverages (where the preference for Indian brands is 47% and 37%, respectively). Personal and home care products are other areas where the trend is visible, with about one-third of respondents consciously buying Indian brands instead of international ones. “I only trust Indian cosmetic brands,” is the way one 30-year-old Mumbaikar put it. “They use Indian herbs and Ayurvedic ingredients, which really suit the Indian skin better than the chemicals used by international brands.”

The preference for Indian brands is expressed to about the same degree in apparel, mainly because of the widespread belief that such brands do a better job of considering Indian consumers’ needs and therefore deliver superior results. And it is particularly prevalent among the oldest consumers we surveyed, who were 45 to 59 years old: 58% of these consumers try to buy Indian brands in at least one category.

Valuing Experiences over Products. About four-fifths (77%) of the respondents paid for three or more different types of experience last year. Travel was the most common paid experience, and entertainment—including concerts, plays, and movies—was second.

Most respondents (53%) said that increased household income allows them to pay for the experiences they are having. But higher income isn’t the only enabler of experiences. A surprising proportion of urban Indians—37%—said that they are financing their experiences by trading down in certain product categories, including jewelry, mobile phones, apparel, and home furnishings. The preference for experience over products was best expressed by an interviewee who said, “Whenever I want to pamper myself, I buy a massage instead of clothes.”

For many survey participants, part of what they like about experiences is all the positive attention it brings them on social media. “If you do something crazy like sky diving or scuba diving and don’t update it on Instagram, it’s not the same feeling,” said a 30-year-old who has his own textile business in Jaipur.

Exclusivity Adds Value. The traditional notions of best price and of good quality at a reasonable price continue to hold sway among Indian consumers across the majority of categories. In certain categories, however, exclusivity is now seen as enhancing a product’s value. For example, 37% of urban Indians value exclusivity with regard to eyewear, apparel, and select electronic items. Fourteen percent of female consumers said that an item of apparel they had purchased provided value for the money because it was an exclusive brand that increased their social status. One focus group participant noted the immense pleasure she takes in people’s responses to her limited-edition Titan Raga watch.

Renting over Buying. Presented with a list of products that are traditionally purchased—as varied as kitchen appliances, clothes, and furniture—17% of our survey respondents said that they had rented, rather than purchased, one of the items in the past year, while a quarter said that they would consider renting in the future. In part, this is a function of supply: India has a growing number of high-profile startups that offer rentals in big cities in a variety of categories.

But simply having the option to rent is only part of what’s driving the trend in India. Among lower-income respondents in our survey, the main motivation to rent was affordability. People in the higher-income segments rent for different reasons. One is the flexibility that renting enables: young professionals on temporary assignments, for example, prefer to rent their furniture. Another reason is variety. For example, Rahul, a 35-year-old technophile from Bangalore, found a website from which he can rent a new smartphone every few months. “I hate to be stuck with one phone for years,” he said.

What’s more, the urge to switch things up is not limited to consumers in India’s metropolitan cities. A 39-year-old woman told us that she is waiting for apparel rentals to become widely available in Jamnagar, the tier 1 city where she lives. There are numerous social occasions in “cities like ours,” she said, and “people really talk about what the other person was wearing. No one likes to repeat their clothes.”

The Trends Through a Different Lens

Because the survey questions covered 30 categories, it was possible to do a detailed analysis of the trends across product segments. (See Exhibit 3.) While each of these trends is gaining steam, their current penetration across categories varies. For instance, nascent trends, such as the more favorable views of renting and exclusivity, occur only in certain categories. By contrast, more established trends, such as looking to save time and taking a more information-centric approach to shopping, can be found in any category of product a consumer in India might be considering.

Questions to Ask as India Evolves

For Indian companies and multinationals alike, the right response to the country’s budding consumer trends will depend on the peculiarities of each company’s product segments and how they are changing. Standing pat, however, isn’t an option. Here are the key questions for B2C companies in India:

• Are you actively monitoring the changes in India’s consumer landscape? Given the fast pace of change, it is important for companies to devise mechanisms to continuously track these trends and spot new ones.
• Do you have a clear understanding of the trends that are most relevant to your category? Each of these trends impacts different categories differently. You should understand which trends are most relevant for your categories and determine the nature and degree of their impact.
• Have you thought through the implications of the trends for your business? Some of these trends may offer opportunities for your business; others may pose a serious threat if not proactively thought through and managed. It is critical to be aware of these differences and respond accordingly.
• Are you actively adjusting to the new consumer behaviors, or do you assume that you’ll be able to catch up at a later stage? Taking a wait-and-see approach is a mistake. If you’re not already trying new marketing tactics, you run the risk of obsolescence.

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Indian products vs foreign products

Posted on 25 Jun 2020 18:06 in Shimbi Labs Products by Zainab Sohangpurwala

Today's market is so flooded with products that it is difficult to decide from where to buy. Before purchasing from a famous foreign company do check local Indian alternatives. You will be surprised that they are more cost efficient and of better quality!

Photo by Atharva Tulsi on Unsplash

The market is flooded with Indian as well as foreign products. Various companies and brands make similar products and this has made the consumer very confused. But people prefer to buy foreign products thinking that it is of better quality. Be it fashion, food, hardware or software the consumer feels that foreign products are better.

Maybe the Indian alternative is better than the foreign one but the people buy mostly due to the value of the brand name. This mentality has to change.

The government of India from the past few years has started popularizing and encouraging the use of Indian products.

Are Foreign products really better than Indian alternatives?

I would say that foreign products are of high quality but that doesn't mean that Indian products are not. I ndian product are as good as foreign products. The Indian market is developing and improving day by day.

There are some sectors in which foreign products are better but that is due to the advanced technology used by the developed countries. Their machinery is advanced and more effective. But in India we have ‘Man Power’.

We cannot afford to use expensive machinery as it will lead to a loss of jobs as lesser manpower will be required to run a factory or a company.

Changing consumer behaviour

The consumer behavior is changing day by day. They are now preferring Indian products over foreign commodity. They have also started buying good and services online from websites/stores.

The convenience of online shopping is such that people prefer to buy groceries online too!!

The consumer support given towards Indian brands and companies not only boosts sales of Indian companies but also drives them to do better. They are encouraged to improve as the market supports them.

Many startups and entrepreneurs are also motivated because they know that the market demands home based and indigenously made products.

It boosts the Indian economy

Buying Indian products boosts the economy because here money is transferred from one Indian to another. It does not go in the pockets of a foreign multi-national company.

This regular flow of cash helps Indians grow their business and improves their quality of life. It also helps in the growth of rural and the unmanaged sector of the Indian economy.

Encouraging buying Indian products does not mean that we should boycott foreign products. Foreign investments too help the country grow. The government tries to encourage foreign investment as well as protect Indian goods.

It formulates economic strategies that promote foreign investment at the same time protect the Indian market.

Government Policies

The government in the past few years has initiated various programs to boost Indian products. ‘Make in India’ was one such initiative. It was a type of Swadeshi movement covering over 25 sectors of the Indian economy. It encouraged companies to manufacture their products in India. Hence, invest in manufacturing.

During this pandemic and anti-China mood of all the countries, our government has initiated the ‘Atmanirbhar Bharat Abhyan’ (self-reliant India). This initiative was to reform the economy due to losses and hardship faced by the people because of the Coronavirus lockdown.

Many slogans such as ‘Vocal for Local’ have been popularized. This helps in spreading awareness amongst the people to purchase Indian goods over branded foreign products.

Indian SaaS companies

There are numerous Software-as-a-Service (SaaS) companies flooding the internet. But due to lack of awareness we feel that there are only a few and we tend to buy them even though cheaper and better alternatives are present.

Did you know that 7864 Software-as-a-Service startups were founded in India between the years 2010 and 2019?

They provide various software’s such as CRM, Business Intelligence Platforms, Invoicing software, Video Conferencing Software, Project Management and Expense Management Software, Website and Store builder, Online Backup Software, Accounting software and many more.

But we are unaware of that. We stick to foreign companies such as WordPress, Zoom, Cisco, Southern California Edison, Shopify, Wix and various others.

Rather than blindly purchasing their products you should research on Indian alternatives. One such company is ShimBi Labs. A Pune based SaaS company. It provides 4 software’s which will make your life easier.

Want to send invoice for your service to your company?

Sign up for ShimBi Invoice . It is available for free! It is extremely user friendly and easy to use. In a few clicks your invoice is ready to be sent to your company.

You don’t need to make an invoice in MS Excel now. You can send a profession and proper invoice to your company.

Want to start your own online store?

ShimBi Labs Ninjin is your perfect match. It is an easy to use store builder. No coding knowledge required. You can make several pages, customize it the way you want and make your dreams come true.

Need a Customer Relationship Management Software (CRM)?

Mikan CRM is here for you. It gathers information about your customers hence it facilitates you to identify the hot leads and potential buyers.

It also enhances the customers experience on your website through effective communication and hence converts them to potential buyers and accelerates sales and builds a relationship with them which is beyond just a single transaction. It organizes the information regarding your customers in such a manner that it is easy for you to understand.

Want to start your own website?

In a few clicks you can make it using ShimBi Lab’s BUDO .

BUDO helps you create amazing websites for your blogs or any other purpose within few minutes. It is extremely user friendly and efficient.

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A study on consumer's buying behavior towards dairy products in India

Nowadays the rapidly changing and cut-throat market is the prime factor that leads to the accomplishment of any business is based on how much the business knows its customers and their way of consumption and acknowledging the reasons that put an impact on their decision-making process for coming up with appealing and interesting discounts and offers of products and caring services and having different Integrated Marketing communications tools that would help customers know about company’s different products and services as well will take care the basic and important requirements of the customers at the same time. Understanding consumer behavior is an analysis that involves a huge and powerful range of topics related to marketing awareness and the survey requires a continuous process. This research paper examines milk and different dairy products which are a few of the dailyconsumed food products which are indicated by comparatively more buying frequency. People across India tend to ...

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Presently, profoundly educated, focused and soaked business sector, a key to accomplishment of any business relies on knowing consumer and his utilization designs, and perceiving as well as understanding elements impacting his choice making with the end goal of adding to an appealing of products. Moreover, supporting administrations, correspondence implies and other promoting apparatuses that would fit to client's needs. Investigation of consumer conduct has a place with a gathering of wide and solid subjects of advertising consideration and its examination requires continuous methodology. Milk, as one classification of dairy products, fits with the gathering of essential day by day devoured products described by moderately high demand. The study on consumer conduct is the investigation of how people settle on choice to spend their accessible assets (time and cash) for utilization of related things. It incorporates the investigation of what they purchase, why they purchase it, when they purchase it, where they purchase it, how regularly they purchase it, and how frequently they utilize it. Agreeable dairies needs to comprehend this idea in profound mode as the private players a representing a hardy competition to them.

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In this study we present the evolution of brand preference of milk among customers in Sathuvachari Vellore town. Though the price of all branded milks are at par, the customers prefer a particular brand due to some reason. It may be because of the price, quality, service or advertisement provided by branded milks. The Essence of being in business by any business outfits is to produce for sales and profits. In order to remain in business an organization must generate enough sales from its products to cover operating costs and post reasonable profits. Considering, therefore, the importance of sales on business survival and the connection between customers and sales, it is expedient for organizations to engage in programs that can influence consumer decision to purchase its products. This is where the brand management is relevant.

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Purpose This study aims to identify the major factors influencing the consumers to prefer milk products and also to analyze the awareness level of the Indian consumers. Design/methodology/approach In this study, the data is obtained through a structured questionnaire from Indian consumers considering convenience sampling under the nonprobability sampling technique. The consumer preference is explained using a multiple-regression model followed by analysis of variance (ANOVA), which shed insight on the significant differences between the variables that influence consumer preference for dairy products. Findings Investigation is done to analyze the factors influencing the consumers' buying behavior toward milk and its products. The results showed that quality, health consciousness, price and availability are the most influencing factors to buy milk products. Quantity of milk showed a significant relationship between age, monthly income and family size. Research limitations/implicat...

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The production and consumption of fluid milk has been growing in India with time. Despite the availability of packaged milk products in marketplace, large number of people, including urban population, still prefer to go for loose milk.This paper is a result of research conducted to find out how packaged milk is positioned in consumers' mindset and what can be done to encourage its consumption.The research was conducted in Panipat city of Haryana, India with 50 respondents selected using convenience sampling. Primary data was collected using questionnaire schedule and secondary data was collected from articles in journals and published reports. Analysis of data collected from the survey, using SPSS software, revealed that most of the consumers of packaged milk products are not satisfied with the products available in marketplace and majority of them consider the quality of the packaged milk product as the most important criterion for making purchase decisions. Further, it was found that marital status, age and education influence how a consumer perceives packaged milk product, and health impact, offerings and availability are positively correlated with the perception of packaged milk product.

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imamali sadid

In today's highly informed, competitive and saturated market, a key to success of any business depends on knowing consumer and his consumption patterns and recognizing and understanding factors influencing his decision-making for the purpose of developing an attractive offer of products, supporting services, communication means and other marketing tools that would fit like a glue to customer's needs. Study of consumer behaviour belongs to a group of very wide and strong subjects of marketing attention and its examination requires ongoing approach. Milk, as one category of dairy products, belongs to the group of basic daily-consumed products characterized by relatively high purchase frequency. On the other hand, its production and consumption is experiencing certain negative trend in Slovakia what inevitably calls for a scientific attention and examination in order to reverse this unfavourable development having a negative impact on the milk companies in Slovakia. Therefore, we focus our attention on studying various factors influencing consumers when purchasing this specific product. Our research in this stage resulted in the compilation of literature review on factors influencing consumers when purchasing milk and determination of boundaries and guidelines for our future research activity. 1. Introduction and Theoretical Background The need for through study and examination of consumer behaviour is now becoming more and more topical. Current situation on a market has put a consumer into the position of major decisive and leading element of a market. Therefore, the adoption and success of developed marketing strategies, marketing mix and other marketing programs among consumers strongly depends on the company's ability to correctly understand consumer's needs and expectations as well as to properly detect and identify individual factors and stimuli influencing consumers when purchasing products for the purpose of reaching their satisfaction. Consequently, studying, understanding and knowing consumers and their behaviour should belong to major and most important tasks of marketers. Considering this, within following article, we concentrate our attention on studying consumer behaviour and examining the influence and impact of various factors affecting consumers when purchasing products. Specifically, at the beginning of the article, we introduce some general theoretical knowledge on consumer, consumer behaviour and factors influencing consumer behaviour and then present the review of scientific literature and outcomes of various research articles, papers, reports and studies related to the issue of our chosen scientific attention, namely the issue of factors influencing milk purchase behaviour.

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Consumer behavior is the combination of rational and emotional factors and it is highly impulsive. This paper examines the perception of the consumer towards dairy products in the selected Guntur district of Andhra Pradesh. It examines the factors of consumer motivation towards the purchase of dairy products and it analyze the purchase preferential choices of consumers towards dairy products. The present research study adopts descriptive research design and both primary and secondary data was utilized for drawing the inferences from the study. The sample size was fixed for the study was 140 and multi stage random sampling and convenience sampling techniques were applied to draw the required sample for the study. Statistical tools like mean , standard deviation, Z-test and ANOVA were applied for the verification of the proposed null hypotheses. The study concludes that there exists no significant difference between the gender of the consumers with respect to the factors of motivation...

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