‘Digital communication has the potential to minimize the diversity of the Indian market’

Paganelli Bull professor , Stern School of Business, NYU

Professor Durairaj Maheswaran, Paganelli-Bull Professor of Marketing and International Business, Stern School of Business, New York University is the co-author of the book, Understanding Indian Consumers. Published by Oxford University Press, Understanding Indian Consumers is a compilation of case studies and articles written by noted academicians and business practitioners from around the globe. In this interview, Maheswaran talks about various aspects of the book dealing with India. Edited excerpts:

Why do you think a book on ‘Understanding Indian Consumers’ is important at this juncture?

The Indian economy is expected to grow at a faster rate than most other emerging economies. The stable and business friendly environment has made India an attractive destination for investment and for doing business. This economic expansion is driven by the increasing purchasing power of the consumers and their confidence in the future of the economy. The Indian consumers are now spending more and their spending is growing across multiple product categories. Historically, this is a transition point for both the economy and the consumers. To sustain this growth companies need to offer products and incentives that are based on what the Indian consumers want. This book recognizes this transformation and is timely in providing strategies that companies can benefit from.

According to you, understanding Indian consumers is tricky. Why?

Indian consumers are unique because they represent a combination of cultural values that are shaped both by their heritage as well as Western influence over the last 150 years. They express these values in consumption and demand product offering that are more tailored to their tastes rather than standardized Western products. While consumers in most emerging markets seek standardized foreign products, Indian consumers are more likely to want the products to be customized. Luxury brands have to modify their menu to target Indian consumers. It is not optimal for multinational companies to treat India as just another market and transfer products from their home country. The sheer population size and the dramatic growth in the disposable income in India makes it an important market and companies need to pay closer attention to the Indian market.

Your book offers rich insights about different targets such as women, youth, rural markets and luxury consumers. What kind of research went into this book and how long did it take?

This book is based on insights developed from both academic and field research that spans across several decades. The experts who have assembled these insights have several years of experience in each of these segments and are considered leads in their respective field. The academic research insights review the state of the art theoretical findings and transform them to the Indian context. The managers who have shared their insights have studied the consumers across multiple situations over a long period of time and developed conclusions that would translate in to best practice strategies for that segment or industry.

The book also documents the journey of the Indian Woman and how her attitudes, ambitions and product use have changed over the years. Can you take us through this journey briefly?

Traditionally, the Indian woman had her reference point as the family and thought about what her family would want her to do or what her husband would want her to wear etc. However, during the last decade, Indian woman has become more economically empowered and has her own disposable income.

This economic independence that is encouraging consumption that is focused on herself beyond reflecting on the needs of the family. Women travel by themselves or in groups of women. The focus is not only on skin care with traditional herbs, but now on beauty care with cosmetics. Instead of wearing a more expensive saree to work, she is now experimenting with Western dresses and jackets. She is now able to consume without guilt that she is indulging in herself. Women have started creating an ecosystem that is focused on the self that is outside of the family. Despite this separation of the self and the family, the Indian woman continues to value her family and tradition.

How is advertising or digital communication going to adapt to deal with India’s diverse and rapidly changing consumers?

The advertising has to recognize the changing face of the Indian consumers, especially women and youth and portray them in contemporary light. Traditional roles of husband and wife are changing and are converging across many areas. Husbands now cook and take care of the children while wives are at work earning income. The Indian youth want to be like their cohorts around the world, especially the West. In general, advertising agencies are in touch with the dynamic changes in consumer preferences and need to make some adjustments in the visualization of products and their benefits.

Interestingly, digital communication is going to minimize the diversity of the Indian market. Consumers are now aware of what their friends are wearing, what movies they watch etc., and regardless of geographical separation, they would adopt similar products.

If a friend in Bombay posts a picture wearing a new model of Nike shoes, other members of the group are more likely to desire the same product in Nasik or Nagpur. New product information and new styles get disseminated instantaneously on social media and that creates a demand for a product across the country. Digital communication is instrumental in facilitating change. The change is based on Word of Mouth of referent consumers rather than company promotion and hence more trusted. Social media would emerge as an effective communication tool than traditional media like TV or Magazines.