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Indian Consumer

The Indian consumer has undergone a remarkable transformation. Just a decade or two ago, the Indian consumer saved most of his income, purchased the bare necessities, and rarely
indulged himself. Today, armed with a higher income, credit cards, exposure to the shopping culture of the west, and a desire to improve his standard of living, the Indian consumer is spending like never before. Organized retail, with its variety of products and multitude of malls and supermarkets, is fueling his addiction. His new mentality, in turn, is fueling the growth of organized retail in India.

Young Shoppers

India's population is young, very young. Most consumers have grown up with television, the Internet, and have been exposed to the standards of living and consumer culture abroad. This generation is also making money at a younger age and lots of it, thanks to call centers and other avenues of employment opening up, that cater to students in college and schools. As a result, they are ready to spend most, if not all, of their income on apparel, accessories, and electronics.

Higher Incomes

Liberalization of the country's economy has brought a number of employment opportunities. With the entry of a number of multi-nationals and the expansion of domestic corporations, job prospects in the country are looking up. As a result, incomes and consumption are projected to increase rapidly over the next couple of years. This sets the stage for a very exciting and promising retail market in the future.

No Money, No Problem

The finance sector has already seen a huge expansion. Unlike a decade ago, credit cards and short-term loans have become easily accessible and have contributed to the emergence of a consumer culture in India. Credit card rewards schemes, flexible financing options, and all the other common lures are tempting the Indian consumer to shop. With loans for everything from a home to an automobile freely available, the Indian consumer can start spending on big-ticket items that were traditionally within his reach only after years of savings.

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Anuraag Mittal is B.Com. (Hons) & M.Com. (Specialization in Marketing) from Delhi University, PGDBM (Marketing & HRM) & M.Phil. (Management) from Bharati Vidyapeeth. Also done Ph.D. from CCS University, Meerut. He is currently working as Reader in Department of Management, Delhi Institute of Advanced Studies (DIAS). He is the co-author of the book titled, "Case Studies in Management".
Suchi Priya Mittal is B.Com. (Hons) & M.Com. from University of Delhi, and is currently persuing Ph.D. from Faculty of Management Studies (FMS), University of Delhi in the area of "Emotional Intelligence". She is also working as faculty in University of Delhi and is teaching Marketing, Advertising, Management & Economics.