Chapter 9_ Small is Big - Consumer India_ Inside the Indian Mind and Wallet

35
14/02/2015 Chapter 9: Small is Big Consumer India: Inside the Indian Mind and Wallet https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 1/35 CHAPTER 9 SMALL IS BIG THE GROWTH OF THE SMALLTOWN AND RURAL MARKETS Charged with Potential “India lives in its villages”—so said Mahatma Gandhi. It is now well known in the marketing and business communities that the potential of India lies beyond its top metropolitan areas and those at the top of the income pyramid. Smalltown and rural India are emerging as the next fertile ground not only for consumption but also for talent. Much of the growth across several categories in the Indian economy is coming from these regions. It’s certainly not on the strength of the urban areas alone that India posted a GDP growth rate of 5.8 percent in the PREV Chapter 8: SeamleNEXT Chapter 10: Three Consumer India: Inside the Indian Mind and Wallet Recent Topics Highlights Settings Feedback Sign Out Settings 10 days left in your trial. Subscribe. Feedback Sign Out

description

/m

Transcript of Chapter 9_ Small is Big - Consumer India_ Inside the Indian Mind and Wallet

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 1/35

    CHAPTER 9

    SMALL IS BIG

    THEGROWTHOFTHESMALLTOWNANDRURALMARKETS

    ChargedwithPotential

    IndialivesinitsvillagessosaidMahatmaGandhi.ItisnowwellknowninthemarketingandbusinesscommunitiesthatthepotentialofIndialiesbeyonditstopmetropolitanareasandthoseatthetopoftheincomepyramid.SmalltownandruralIndiaareemergingasthenextfertilegroundnotonlyforconsumptionbutalsofortalent.MuchofthegrowthacrossseveralcategoriesintheIndianeconomyiscomingfromtheseregions.ItscertainlynotonthestrengthoftheurbanareasalonethatIndiapostedaGDPgrowthrateof5.8percentinthe

    PREVChapter 8: Seamle

    NEXTChapter 10: Three

    Consumer India: Inside the Indian Mind and Wallet Recent

    Topics

    Highlights

    Settings

    Feedback

    Sign Out

    Settings

    10 days left in your trial. Subscribe.

    Feedback

    Sign Out

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 2/35

    lastquarterofthefiscalyear20082009,comparedwithexpectationsofalessthan5percentgrowthrate.ThesavioroftheIndianeconomyinrecenttimesofglobaldepressionhasbeenitsdomesticeconomy,poweredtoalargeextentbyagriculture,whichgrew2.7percentduringthelastquarterofthefiscalyear20082009whilemanufacturinggrowth

    turnednegativeat1.4percent. 1

    Theincreaseinruralpurchasingpowerisreflectedinruralgrowthinanumberofcategories.Forexample,forthefiscalyear2009(April2008throughMarch2009),ruralvolumegrowthforfastmovingconsumergoods(FMCG)wasestimatedtobe5to12percenthigherthanurbangrowthin

    manyothercategories. 2

    Already,Indiastelecomsectorislookingtotheseareasforitssustainedgrowth.Bytheendofthefirstquarterof2009,thenumberofmobilesubscribersfromruralIndiahadsurgedpastthe100millionmark.AccordingtotheTelecomRegulatoryAuthorityofIndia(TRAI),thistranslatesintoagrowthof18percentoverthelastquarterof

    2008. 3 Industryestimatessay

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 3/35

    that70percentofallnewsubscribersofmobiletelephony

    willcomefromruralareas. 4

    AllindicatorsofincomeandconsumptionsuggestthattheruralandsmalltownregionsofIndiaarepoisedtopoweraneweconomicboom.Withanestimated72percentofthetotalhouseholdsinIndia,theruralmarketcomprisesroughly720millioncustomers.Thesizeismeaningfulbecauseitsbackedbyincome.ThetotalincomeinruralIndiaisexpectedtogrowataCAGRof12percent,fromaround$220billionin20042005to$425billionby20102011.Thenumberofruralhouseholdsusingbankingservicesandcreditcardsabout42millionactuallyoutnumberstheir27millionurbancounterparts.Similarly,ruralIndiahassome41millionKisancreditcardholders,comparedwith22millioncardusersin

    urbanmarkets. 5 Intermsoftheirpotential,manysmalltownsarehigherontheHouseholdPotentialIndex(HPI)thantheirmetrocounterparts.BasedonthedataofIndianReadershipSurvey(IRS),HPIindicatestheamountofdisposableincomeand

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 4/35

    purchasingpowerofahousehold.Themeanindexfortownswithpopulationsoffewerthan500,000instatessuchasGoa,Punjab,HimachalPradesh,andKeralastandsat24points,higherthantheallIndiaaverage

    of22. 6

    Take,forexampleTitan,thewatchmanufacturingventureoftheTataGroup.Fiftypercentofitssalescomesfromthetop10townswhile35percentcomesfromtownsrankedeleventhto

    onehundredth. 7 TitanhaslaunchedanewlineofplasticwatchescalledSuperFiberasapartoftheirmassmarketbrandSonata.Notsurprisinglyforaproductaimedatthenewcustomersegment,theentireSuperFiberlineispricedbelow$10.ThecompanyexpectsittoplayakeyroleindoublingSonatassalesfrom5millionwatchesayearatpresentto10millionwatchesperyear,over

    thenextthreeyears. 8

    TitanisnottheonlybrandinnovatingforthismarketITChasdoneanextensiveexperimentwitheChoupal,anITenabledplatformforagriculturalinformationandbuyingandsellingof

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 5/35

    agriculturalproduce.NokiahaslaunchedNokiaLifeTools,arangeofagriculture,education,andentertainmentservicesdesignedespeciallyforconsumersinsmalltownsandruralareas.Therearemanyotherexamplesofinnovationsandinitiativesespeciallydesignedtotaptheruralmarkets.Godrejlauncheditssoapsinsmaller50grampacks,CocaColasuppliedlowcosticeboxestomakeupforthelackofthereliableelectricsupplyrequiredforrefrigerators,andPhilipsinnovatedwithalowcostsmokelessstoveintheirpursuitofthehinterlandmarket.Clearly,theruralandsmalltownIndianmarketissimmeringwithpotential.

    Marketersarewellawareoftheneedtoinnovatetheirproductsandservicestocapturetheattentionandmeettheneedsofruralmarkets.ButIndiaA(theurbanaffluentIndia),whichmarketstoIndiaB(theruralhighpotentialIndia),unfortunatelyhasastereotypicalunderstandingofthisworld.ThequintessentialruraladdonebymarketersinMumbaishowsaturbanedfarmersittingonatractor,withhiswifeinayellowtopandbluesalwaar(loose

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 6/35

    pajamaliketrousers),amidgreenricepaddyfieldsthetypicalMumbaiconceptionofruralIndia.MumbaihasremainedtoofarfromMidnapur(asmalltowninWestBengal),notjustphysicallybutalsomentally.ButtheforcesofchangethathaveaffectedourlivesinurbanIndiahaveaffectedruralIndiaaswell.SoitscriticaltounderstandhowtheworldofsmalltownandruralIndiaistransforming.Itseasytoassumethattheseconsumersarechanginginmuchthesamewayasurbanconsumerseasy,butnotnecessarilyaccurate.

    TheNewSmallTownIndia

    ChakDe!India(GoForIt,India!),releasedin2007,toldthestoryof16smalltownIndiangirls,eachofthemastatehockeychampion,comingtogethertowintheworldhockeychampionship.Thecoach,KabirKhan(playedbyShahrukhKhan),steeredhisteamof16statechampions,eachwithherownidiosyncrasiesandtypicalsmalltownrawness,towintheworldchampionship.AstheIndiannationalhockeyteamtriumphedintheworldchampionship,theIndian

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 7/35

    audiencecheeredandclapped,seeingalittlebitoftheirownselvesintheunderdogsturnedvictors.TheChakDe!IndiastoryisindeedthestoryofsmalltownIndiaanditsambitionsandtalentswinningontheworldstage.

    Closertoreality,MahendraSinghDhoni,theposterboyofIndiancricket,isthefirstcaptainwhodoesnotcomefromanyofthemajormetropolitanareas.DhonicomesfromRanchiinJharkhand.ThisisnotjustDhonisstorymorethanhalfoftheIndiancricketteamtodayispoweredbysmalltownperformerssuchasR.P.Singh,VirenderSehwag,andIrfanPathan.ItsespeciallyinterestingbecausecricketwasadoptedbyIndiansasthegameoftheburrasahibs(theBritishcolonizers).LongafterIndiagainedindependence,cricketcontinuedtobedominatedbyclubsandoldboysnetworksfromthesamecollegesbelongingtocitiessuchasBombay,Madras,andDelhi.TheinfiltrationintothiselitegamebytherawtalentfromthehinterlandsisatellingstoryofhowsmalltownIndiaishittingthebigtime.

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 8/35

    Thesmalltowninvasionisnotlimitedtotheworldofcricket.The2008BeijingOlympicssawatrioofIndianboxersVijenderSingh,AkhilKumar,andJitenderKumarreachingthequarterfinals.VijenderSinghwentontomakehistorybywinningabronzemedalthefirsteverOlympicmedalawardedtoanIndianboxer.AlthoughIndiasathleteswinningmedalsatOlympicsiscertainlybignewsinitself,thebiggernewsisthatallthreeoftheseboxerscomefromBhiwani,asleepytowninIndiasnorthernHaryanastate,some150kilometersnorthwestofDelhi.

    Realityshows,likeIndianIdol,arealsoattractingsmalltownperformersalargenumberofitsfinalistscomingfromTier2cities.Infact,thewinnersofthe2008and2009seasonsofIndianIdolhavebeenfromsmalltowns.PrashantTamang,whowonthethirdseason,andSourabheeDebbarma,whowonthefourthseason,arefromDarjeelingandAgartalarespectively.ThesceneinBollywoodissimilar.Itsreigningheroine,PriyankaChopra,comesfromBareilly,asmalltowninUttarPradeshthe

    Enjoy Safari? Subscribe Today

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 9/35

    upandcomingactressKanganaRanautcomesfromChandigarhinPunjab.IndiantalentopportunitiesintelevisionandcinemaarebeingcapturedbysmalltownIndia.

    ItissaidthatsmalltownIndianyoutharehungriertomakeasuccessofwhattheyhavesetouttoachieve.ShishirHattangadi,aformercricketer,saidonCNNIBNsFacetheNationprogramonsmalltownIndians,Ifyouseeyoungstersinmetros,theyalwayshaveanalternative.Iftheythinkacertainprofessionisnotworkingforthem,theywillchooseanalternative.However,smalltownersdonothavethatluxury.Theychooseoneprofessionandtheyknowthatthisistheiraimandfocusand

    thattheyhavetogoandgetit. 9

    Now,finally,thissmalltownambitionisfindinganoutlet.WhetheritsintheformofrealitytalentshowsoranMBAdegreeorajobintheaviationsectorasanairhostesssmalltownIndiatodayisfindingitsownescaperoute,ratherthanbeingcondemnedtoalifeofstruggle.

    ThePowerShift:FromIndiaShiningtoBharatNirman

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 10/35

    ThepowershifttothesmalltownsandruralareasofIndiaisnotonlyforitsbusinessandtalentpotentialbutalsoforitselectoralclout.TheBhartiyaJantaparty(BJP),whichranthenationalgovernmentfrom1999to2004,approachedthe2004electionsonthepropositionofIndiaShining.IndiaShiningcelebratedtheboomandprogressthattheIndianeconomywasthengoingthrough.Itgotthevotesoftheurbanaudience,buttheBJPsufferedahugedefeatatthehandsoftheopposingCongressparty,whichwentintotheelectionsasthechampionoftheaamaadmi(thecommonman).Lookingback,theoutcomewaspredictable.Inthegeneralfeelgoodatmosphereofoveralleconomicprogress,someoneforgottocheckhowtheotherIndiawasfeelingaboutitall.TheBJPscampaignofIndiaShiningwassaltinthewoundsofthosewhohadexperiencednotangiblebenefitsfromthegrowthandtheelectionresultsborethisout.

    Congress,whichbenefitedfromtheBJPsblindnesstothegreaterIndiaoutthereandfailuretomakethemfeelincluded,hasclearlylearnedthe

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 11/35

    lessons.Throughoutitssubsequentfiveyeartermandintoitssecondtermafterwinningamajorityinthe2009elections,theCongressfollowedapolicyofinclusivegrowth.CongressgovernmentslatestinitiativeisBharatNirman(BuildingIndia),intendedasafouryearbusinessplanforruralinfrastructure.Asstatedonitswebsite(http://www.bharatnirman.gov.in/(http://www.bharatnirman.gov.in/)),

    BharatNirmanaimstounlockpotential,equalizeopportunity,andmakeruralIndiathenewgrowthopportunity.

    ForsometimenowtheruralareasandsmalltownsofIndiahavelivedwithasenseofangst,ofbeingignoredanddeniedtheopportunitiesthaturbanIndiahashadaccessto.Ifonlytheyhadaccesstotheseopportunities,ruralresidentsfeel,theycouldtransformtheirlivesaswell.Theyarewellaware,throughthemedia,oftheseductivenewpossibilitiesofconsumptionandopportunitiesforearningalivelihood.Buttheyhavefoundnorealaccesstothesehighpayingjobsandalluringconsumergoods.Thusthereisafeelingofdenialandunfairtreatmentatthehandsofasystemrunbytheprivileged.

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 12/35

    Regionalpoliticalpartieshavecapitalizedontheseinjuredfeelingsinabigway,steppinguptochampionthecauseoftheseignoredmasses.

    TheBahujanSamajparty(BSP),ledbyitsPresidentMayawati,vowstofightfortherightsofthemajority(bahujan).TheirviewisthatthemajorityinIndia,whichcomprisesthelowercastes,havebeenthevictimsofthesystemrunbytheuppercasteHindus.Inthe2007UttarPradeshstateassemblyelections,BSPbecamethefirstpartysince1991togainaclearmajority.Supportedbytheunderprivilegedclasses,MayawatihasbeenthechiefministerofUttarPradeshforfourtermsasofthiswriting.

    Similarly,MamtaBanerjeeoftheTrinamoolCongress(grassrootsCongress)partyisknownforheroppositiontoSpecialEconomicZonesandIndustrializationinWestBengal,whichshecontendsaredetrimentaltoagriculturalistsandlaborers.Herparty,whichsinglehandedlyforcedtheTataGroupsNanoprojectoutofWestBengal,performedextremelywellinthe2009parliamentaryelections,gaining

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 13/35

    19seats.WestBengalhastraditionallybeenthestrongholdoftheCommunistparty.TrinamoolCongresss2009performanceisconsideredthebestperformancebyanyoppositionpartyinthestatesincethebeginningoftheCommunistregime.

    Theirideologiescanbedebated,butthegrowingsuccessoftheBahujanSamajandTrinamoolCongresspartieshighlightsthefeelingofexclusioninthesmalltownsandruralIndia.ThesepartieshavecometopowerbecausetheypromisedtostandupforthelargerIndiawhofeltnobodycaredforthem.ThedesireofthoseinthissegmentofIndiansocietytobeheard,tobetalkedabout,andtobeapartofthelargerplanisevidentintheriseoftheseregionalforces.TheIndianswhoalwayscamesecondandweretreatedmuchlikethelessersibling,aresuddenlyfindingpowerofallkindsturningintheirfavoreconomicandpoliticalaswellaspersonal.Iftheirdisplayofimmensetalentonvariousfrontsisnotevidenceenough,thentheirincreasingsocialcloutcertainlyis.

    UrbanversusSmallTown

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 14/35

    versusRural

    Thelinesdifferentiatingthedemographicsbetweenurban,smalltownandruralIndiaarequitefixed.Butintermsofmindset,therereallyisanurbanmindsetandaruralandsmalltownmindset.ThisisnottosuggestthattherearenodifferencesbetweenwhatconstitutesthesmalltownIndiaandwhatconstitutesruralIndiathetruthisthatamongthesmalltownsarevarioustiercitiesthatdifferquitemarkedlyfromeachother.Overall,however,themindsetsoftheruralareasandthesmalltownshavefarmoreincommonandaredistinctfromtheurbanmetromindset.

    ItspossibletostudysmalltownIndiaandruralIndiaasonecontinuumthedifferencesemergeonlyattheendsofthecontinuum,withagreatercommonareainbetween.Ouranalysisofbothasawholeisappropriateatanaggregatelevel.ThebillionairesofsmalltownssuchasCoimbatoreandtheMercedesbuyersofsmalltownPunjabarecertainlyinteresting,buttheyareanomalousdatapoints,notmainstreamphenomenathat

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 15/35

    canexplainalargermindsetorculturalshift.

    AchievementDrivenYouth

    ThestoryofsmalltownIndiagoingoutandwinningonthenationalstageisanimpressiveone.Thereare,however,significantchangesgoingonbackhome,inthelifeofthesmalltownsandruralareas.ThoughthechangessoevidentintheurbanareashavetouchedthispartofIndia,suchchangeismorestronglytemperedwithcontinuityoftraditioninruralIndiathanitisintheurbanIndia.Thepervasivenatureofthisfinebalancebetweenchangesinaspirationsandcontinuityoftraditionisevidentasarunningthemeinmostofthemoviesmadeforthisaudience.

    TheachievementandambitionthatcharacterizetheoverallmoodofIndiatodayarealsothekeypreoccupationofruralIndianyouth.Desireishigh,especiallyamongtheyoungerones,tostandoutandbeseenaschangingwiththetimes.Theyareworriedaboutbeingbrandedasgaonwalla(ruralandhenceuncivilized).Mostofthemthereforeaspiretofind

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 16/35

    nonagriculturaloccupationsandarekeenonacquiringvocationalskills.Thedesireforachievementisinterwovenwiththequestforsocialrecognition.Jobsinthearmyandwiththegovernmentareseenasbringingrespectabilityalongwithlongtermsafetyandstability.

    Giventheirhistoryofoppressionbythepowerfulinthesystem,thesepeopleputapremiumonjobsthatconferpower.ThusjobssuchasthosewiththeIndianAdministrativeServices(IAS),whichurbanyouthnolongerfavorastheyoncedid,arestillattractivetoruralIndia.Inthe2006civilserviceexam,forinstance,moststudentsinthetop20werefromruralUP,Bihar,andSouthIndia.ThequintessentialherooftheBhojpuricinema(aregionallanguagecinemainpartsofnorthcentralandeasternIndia),forinstance,isapoliceofficer.Thepoliceuniformisthesymbolofhavingarrivedintheworld.InthefilmDarogaBabu(PoliceInspector),theprotagonistisgoingbacktothevillagetomeethisfolks.ButheisalldressedupinhisofficialuniformanddrivinghispoliceJeep.Whenaskedbyhisloveinterest,heconfessesthatgoing

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 17/35

    backtothevillagelikethiswillmakehisfamilyandfriendsproud.

    ThedesireforachievementandprogressiswellunderscoredinthecinemacreatedforruralIndia.InGanga,amoviestarringRaviKishan(aBhojpuriactor),theretailersfromthetowncomeouttogivehimacontractforsupplying4,000litersofmilkeverydayandevenpayhimanadvancesohecanacquirethebuffaloes.Elsewhereinthefilm,thecouplemakesabusinessofsellinglitti(alocaldishofBihar)inLondon.AsdepictedinBhojpuricinema,amixofnativeingenuityandnewopportunitiesiscreatinganewspiritofoptimismintheruralworld.

    Unlikeearliertimes,though,opportunitiesarenotonlypresentedforthoseleavingthevillage.Theyarealsocomingtothevillage,albeitinsmallerdoses.ManyvillagesinIndiahavebenefittedfromtheboominurbanretailingandthedevelopingmarketforagriculturalbasedproducts.McCainFoods,theworldslargestproducerofFrenchfriesandotherpotatoproducts,hasundertakencontractfarmingof

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 18/35

    potatoesonaround1,000acresinareassuchasDeesa,Vijapur,Palanpur,Himmatnagar,andAnand,tothebenefitofsome400farmersinnorthandcentral

    Gujarat.10Reliance,whichhasalreadyrolledout177RelianceFreshstoresacrossmajortownsin11states,hasdrawnupplansforapresencein6,000mandi(wholesalemarket)towns,with1,600ruralbusinesshubsto

    servicethem.11Addtothistheeffortsbymanyotherfoodandretailplayers,includingthemuchdiscussedeChoupalinitiativeofITC,anditsclearthatthebenefitsofaprosperingeconomyarebeginningtotrickledowntotheIndianfarmer,whoissuddenlyinagreaterdemand.

    PrideinRoots

    ThenewgenerationofruralIndiaisdesperatetoembracemodernityandtothem,modernityseemstocomeintheguiseofurbanness.Toachievethis,itsessentialthattheyshedthevillagerimageandlookunrural.Theyaredeterminedtodefyallnegativeassociationswitharurallife,suchasdisheveledhair,anunshavenface,anuntuckedshirt,andsoon.Onspecialoccasions,theymakeitapointtousepersonal

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 19/35

    enhancementproductssuchasperfumes.Friendsfromthecityandmoviesarethekeysourcesfromwhichruralyouthlearnaboutfashionfads.TheyfeelthatspeakinginEnglishmakesthemlookcool,sotheytrytospeakwhatlittleEnglishtheyknow.

    ThedesiretodonurbanclothesandbehaviordoesntinanywaymeanthatthesmalltownsandruralareasofIndiaarewillingtoletgooftheirroots.Infact,theyfeelstronglythattheyaretherealkeepersoftradition.RootednessisacriticalpartoftheirsenseofidentityperhapstheonlythingthatsetsthemapartfromtheirprivilegedcounterpartsofurbanIndia.Acrosstherangeofregionallanguagemovies,situationsaresetuptovalidatethegoodnessofeverythingthatsruralandrooted.InDarogaBabu,forinstance,theprotagonistfavorslittichokha(thelocalspecialty)overburgersandpizza.InonesequenceinthefilmSasooraBadaPaisawalla(MyRichFatherInLaw),acitygirlabusesacoolieinEnglishfordroppingherbags.Ourheroconfrontsthegirl,askinghernottotreatotherpeopleasinsectsjustbecauseshehashadalittle

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 20/35

    education.Thesetupdeliberatelycontraststhegoodnessofruralcharacterwithurbaninsensitivity.

    ThevillagesimpletonversusthecityslickerisalongstandingsetpieceinIndiancinema.Whetherrealityormyth,thestereotypeofwarmhearted,selflessruralpeoplestillseemstowarmtheheartsofruralIndia.InthemovieVivah,AmritaRaoplaysayounggirlfromasmalltownMadhupur.Anorphan,mistreatedbyheraunt,shealwaysrespondstoherwithkindness.Similarly,inDarogaBabutheherorefusestoacceptabribeinGanga,theprotagonistdefendstheuntouchables.Thesethemesofinherentgoodnessstillhavetheircharmfortheruralaudience,thoughtheyhavevanishedfromthemoviesmadefortheurbanaudience.Theurbanscenedepictedtodayismoreaboutmanipulation,meanness,andfindingyourwaynomatterwhat.

    Onasimilarnote,thefamilyinruralIndiaisstillconsideredsomethingtosacrificefor,atleastinprinciple.Respectforeldersandtheirresponsibilityisavirtuehighlyeulogized.All

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 21/35

    successesandachievementsarecelebratedbytouchingthefeetofelders,theritualforseekingblessings.InthemovieGanga,theprotagonisttakesresponsibilityforhismotherevenwhenhehimselfisindirecircumstances.ThesanctityofthefamilyunitisoneoftheforemostvaluesthatruralIndiawantstoholdontointimesofchange.Inthispartofthecountry,theindividualisstilllessimportantthanthecollective.

    IndividualityFindsExpression

    ForsometimenowmarketershaveproceededontheassumptionthatallpurchasesinruralIndiaarehouseholdpurchases.Thispattern,however,ischanging.Individualchoicesinpersonalcareproductsareemerginginthismarket.Itsnotunusualtofinddifferentbrandsofthesamecategoryunderoneroof,likeColgatetoothpastefortheyoungandDaburLalDantManjan[toothpowder]fortheparents.Consumersarebecomingfamiliarwithvariousproductsandcandistinguishamongvariouskindswhiteningtoothpasteforshine,herbal

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 22/35

    toothpasteforprotection,andsoon.Theirpreferences,too,arebecomingcleartheywilltellyouconfidentlythatthistoothpowderisroughandthatparticularoilistoostrong.

    Mediaexposureandabrushwiththeoutsideworldbywayofschoolsandcolleges,whicharegenerallyinnearbycities,arebringingasenseofindividualitytoruralIndia.Thepreferenceforpersonalcareproductsisinfluencedbywhattheyhaveseenincityshops.Theirselectionofpersonalcareproductsisexpandingtoincludemorespecificofferings,withageneralmovementfromsay,basicmoisturizingcreamssuchasHans(acommonbrandinruralIndia)tospecialpurposecreamssuchasNoMarksandFair&Lovely.Mentooarebecomingappearanceconscious:fairnessbrandssuchasFair&Handsomehavefoundasignificantfollowingamongtheseconsumers.

    Standingoutfromtherestandbeingrecognizedisacriticalmotivation,especiallyfortheyoung.SunitaGogoi,anAssameseparticipantinthedancerealityshowDanceIndiaDanceonZeetelevision,

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 23/35

    confessedthatherbiggestmotivationwastoprovetotheskepticsbackhomethatitwasworthherwhiletoputtimeandeffortintoperfectingherdance.Evenintheremotevillagestoday,peoplefeeltheneedtostandoutandbenoticed.Muchofthis,however,islimitedtodressingdifferentlyandexercisingindividualchoiceinpersonalcareproducts.

    RuralWomen:TransformationWithinBoundaries

    TheirnewfoundaccesstothesamebrandsandproductsusedbytheirurbancounterpartsisallowingruralIndianwomentofeelonaparwiththem.Todaytheynotonlyseethelatestconsumerchoicesontelevisionbutalsohaveaccesstoalargerrangeofthoseproductsthaneverbefore.Whentheyvisittheirrelativesinthecity,theyfindthemusingthesamebrandsofshampooortoothpastethattheyuseinthevillage.Althoughtheystillfearbeingperceivedasbackwardintheiroutlook,incidentslikethesemakethemfeelthattheytooarekeepingup.HindustanUnilever,Dabur,CavinKare,Godrej,andothersuchbrandsseemtobeenabling

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 24/35

    thisbridgingofthegapbetweenthetwoworlds,evenifonlythroughthemeansofconsumergoods.

    TheotherbigchangefortheruralIndianwomanisthattodayheropinioninhouseholdmatterscounts.Whetheritsaboutthefutureofthechildren,theupkeepofthehouse,orevenherownchoiceinpersonalcareproducts,thewomanoftheruralIndianowisentitledtohavehersay.Sheisproudthatshehasahigherdegreeofengagementinhouseholdaffairs.Withherhusband,too,herroleismoreoneofapartnerthanjustasubordinate.Sheprovidestheemotionalstrengthintherelationshipadvisinghimtoleavetheworkworriesoutside,puttinghimatease.Thehusbandinturnisnotshyofdoinghissharetoanunprecedenteddegreeforexample,gettingthechildrenreadyfordinnerwhilesheiscookingthemeal.

    Theyounger,unmarriedruralwomenhaveamoreconfidentandboldattitude.Theirtalkisunselfconsciousandnotselfcensoredateverystepforfearofconsequences.Atthisstageintheirlives,careerchoicessuch

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 25/35

    asbecomingadoctororanengineerarewideopensoistheprospectofmovingtothecityforhighereducation.Oncetheymarry,however,thatboldnessisreinedin.Nowtheymustthinkmorecarefullyaboutwhattheysayanddo.Theirdesiretodosomethingoutsidethehouseholdrolelingers,butthoseyouthfuldreamsofbecomingadoctororengineerarereplacedbymoremodestonesofbecomingateacherorabeautician.Thesewomenhaveastrongdesiretohoneandnurturetheirtalentstheyarenothappyjusttobegreatcooksathomeorgoodhomemakers.Theymaywishtolearnkathak,theclassicalIndiandanceformoriginatedinnorthernIndia,orplaythedholak(thedoubleheadedhanddrum),ortakeuppainting.Evenknowinghowtoapplymakeupskillfullyandpracticegoodgroomingisconsideredaskill.

    Theruralwomanmayhavetofitheraspirationswithintheboundariesofthesocietyandherrelationships,butshestillwantstoexercisecreativitywithintheseboundaries.Herentrepreneurialstreakiscommendableinitselfandisencouragedbythehusbandand

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 26/35

    thefamilyelders.Sheiseagertodosomethingonherown,frombeingaseamstressoraneighborhoodbeautician,tocontributingtocottageindustryinitiativessuchasmakingpapad(athincrispyflatbread).Shetakesprideinherabilitytomakemoreoutofherlimitedmeans.ThisisatruerenditionofthetraditionalideaoftheIndianwoman,whoisreferredtoasAnnapurna,whichliterallymeansfulloffood.InHinduism,Annapurnaisagoddessoffertilityandstandsforbountifulness.TraditionallythewomanoftheIndiaissupposedtobringbountytothehouseholdherabilitytomakemorefromofthescarceresourcesathandisseenasherkeyasset.TheruralwomanoftodaysIndiaisnolessthanamodernAnnapurana.

    TheNeedtoShine

    Conventionalmarketingwisdomhasdictatedthatlessevolvedmarketsbeplayedmoreonfunctionalityandproblemsolvingplatforms.Manytraditionalbrandstargetingsuchmarketshavethereforetakenthesepositions.However,consumersinthesemarketsareevolving.Theyarebeingexposed

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 27/35

    tonewstimuli,notonlythroughmediabutalsothroughinteractionswiththeoutsideworld.Inthepersonalcarecategory,forinstance,theruralconsumersexpectationisshiftingfrombasicproblemsolvingbenefits(suchasacureforbleedingingums)toagreateremphasisonvisibleappearancebenefits(suchasshinyteeth).Promisesofincreasedselfconfidenceandcomplimentsinasocialcontextthataconsumergainsfromvisiblebenefits,suchasshinyteethandglowingskin,arenolongerthesolepreserveofurbanconsumersruralIndiawantsthemtoo.

    SmalltownandruralIndiatodaynolongerhavemodestdesires.Quitethecontrary:theseareconsumersacutelyawareoftheirhandicaps.Hencetheyfightthatmuchharder.Theyknowthatthattheyhaveinnerselfesteembutlackthepolishoftheirurbancounterparts.Theyscorehighonability,butfallshortinmattersofpersonalcomportment.Theyfeelvulnerabletolosingoutonthebrinkofopportunityforasimplelackofpolish.Commonly,inthesmalltownsandruralareasthosewhoaspire

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 28/35

    topassthecovetedcivilservicesexaminationultimatelymovetoabiggercityforinterviewcoaching.TheIndiancivilserviceentrancetestputsastrongemphasisonthepersonalityinterview,whichinevitablytiltstheoddsinfavorofthemorepolishedurbandwellers.Smalltownandruralaspirantsthereforeworkhardertocompensateforthislackthroughextracoaching.Thecolloquialsayingisthatwhateverbethebrandofshoes,thepolishhastobeCherryBlossom.Thisistosaythatyourbasicsmaybereallysound,butyoustillneedapolishtotakeyoutherestoftheway.

    Allofthismakestheneedforlookgoodbenefitsahighpriorityfortheseconsumers.Theyneedpropstohelpthemshinewithconfidence.Intheirbrandsandproductstheyseeksupportforescapingtheruralbadgeandfindingurbansuccess.Theyarelookingforsuchsupportinjustabouteveryaspectoftheirlives.Mostbrandshaverealized,consciouslyorotherwise,thatruralIndianstodayaspiretosucceedandtodosowithflair.Acrosscategories,therefore,propositionsforthebrands

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 29/35

    targetedatthissegmenthavemovedtothespaceofeitherappreciationorachievement.WhetheritsFair&LovelyorChickshampooorPondsDreamflowertalcumpowder,allareplayingupbenefitsintheareaoflookinggoodmorethanjustdoinggood.

    Take,forexample,DaburLalDantManjan,ahistoricalbrandofredtoothpowdernotjustforDaburbutalsoforanyIndianwhowasaroundduringtheDoordarshanera(theperioddominatedbythegovernmentruntelevisionchannel).Raju,tumhaaredaanttohmotiyonjaisechamakrahehain(Raju,yourteethareshininglikepearls)isawellrememberedadvertisingslogan.Overtheyears,DaburLalDantManjangotcreditfromitsconsumersforitsabilitytokeeptheirteethproblemfree.Consumersconsidereditarooted,sonofthesoilbrand,ensuringbothphysicallystrongteethand,byinference,thesolidityoftheruralIndian.Butthatwasthen.Asconsumersbeganupgradingtomodernproductssuchastoothpastesandgels,thetoothpowdercategorystagnatedandsodidthebrand.

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 30/35

    Inanattempttobringthebrandinlinewiththechangingdesiresofruralconsumers,DaburLalDantManjanhasattemptedtorepositionitselftostraddleitsdoinggoodbenefitswithsomelookinggoodbenefits.Thetelevisioncommercialiswovenaroundacharacterwhoisacademicallybrilliantandwouldpassallwrittentestswithflyingcolors.Butwhenitcomestointerviews,heinvariablygetsrejectedbecauseofpoororalhygiene.DaburLalDantManjanisshownasthewaytoteeththatshinewiththeglowofhealthandtherebyhelphimattainthegoodthingsinlifenotjusttheinterviewbutalsothegirl.Bydepictingsuccessonastageoutsidetheruralsetting,thebrandhasbrokenoutofitssonofthesoilstereotype.DaburLalDantManjan,initsattemptatreinventiononmodernterms,underscoresthechangingaspirationsofIndianconsumersandanincreasingneedtosellappearancebenefitsinruralIndia.

    ATrajectoryofItsOwn

    LifeinruralIndiaiscertainlychanging.Itscriticaltounderstand,however,whatexactlyhaschangedandhow

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 31/35

    much.Wegenerallyaremorecomfortableattributingchangesliketheriseofambitionandindividualitytourbanconsumersthantotheruralones.Itsnoteasytoacceptthatmuchofthesechangesareactuallypercolatingdowntowhatsbeenpopularlycalledthebottomofthepyramid.However,ifwerefusetorecognizetherealityofthesechanges,wewillcontinuetooperatebasedonourentrenchedstereotypes.

    OneofthestereotypicalportrayalsofruralIndiaisthesonofthesoilcharacterization.Foralongtime,brandstryingtoappealtothisaudiencehavetakenthisroute,withdirectreferencestothesolidityofruralroots.Butthesonofthesoilhasbeentransformed.Todayheismoderninoutlook,thoughrootedinvalues.Thearchetypeofaruralguyloadedwithnavetandgoodnessisfastfadingfromreality.Therealpersonoutthereistryinghardnottogetlabeledasagaonwallatheuncivilizedruralinhabitant.Weneedtogetcomfortablewiththefactthatruralconsumerscanbeprogressivetoo.

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 32/35

    Intheruralcontext,theideaofstrengthhasalwaysbeeninterpretedasphysical.Sothedefaultpracticewithmostruralbrandshasbeentousecelebritieswithapopularimageasactionheroes,suchasSunnyDeolandSunilShetty.Take,forexample,theoralcarecategoryintheruralcontext,whichisstuckinthephysicalityofstrength.Moststorylinesareaboutbeingabletoopenthecolddrinkbottleorbeingabletobiteintoahardfruitasademonstrationofstrongteeth.However,evenintheruralcontexttheideaofstrengthhasmovedonfromphysicaltomentalstrength.Todayitsaboutbeingsmartinyouractionsandresilientinyourthinking,aboutusingbrainsandnotjustbrawn.

    Theuniversalassumptionthattheruralworldisinaweoftheurbanworldandwantstobecomeexactlylikethemissimplistic.FormostofruralIndia,theoldaweoftheoutsideworldhasbeenvanquishedbyaccesstoit.Thecityisnotthatfarawayanymore.Itsaplacetheyvisiteverynowandthenforstudying,working,andevenshopping.Theideaofgoingoutandmakingyourmarkinthe

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 33/35

    urbantheatertooisquiteprobabletoday.Moreover,itsnotonlyaboutgoingoutopportunitiesarecominghometosmalltownsandruralareas.Imagesofanurbanlifeappearontelevisioneveryday,renderingthemcommonplace.Also,accesstobrandsandproductsinpersonalcare,mobiletelephones,andmanyothercategorieshavemadethetworealms,oncesofarapart,lookrathersimilar.RuralIndiathusnolongerlivesinaweofurbanIndiatheseconsumerssimplywanttomaximizeallthenewopportunitiesthattheynowhaveaccessto.

    RuralandsmalltownIndiahavetheirowntrajectoryofgrowththeyarenotfollowingtheurbanidea.Inreality,ruralIndiaisgrowingonitsownpath,expandingitsareaofplayinitsownuniqueway.LifeinruralIndiaisnotfullystuckinyesterday,norhasitcrossedovertoacompletelynewwayoflife.Itsaworldwithrealindividualmotivations,notallofwhicharereplicasofthoseintheurbanworld.

    PREVChapter 8: Seamle

    NEXTChapter 10: Three

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 34/35

    People who finished this also enjoyed:

    Chapter 3: KeepingYour Familys Foodand Drink Local,Sustainable, andHealthy

    from: Happy-Go-Local by Linsly DonnellyReleased: February 201037 MINSPersonal & Professional Development

    BOOK SECTION

    Chapter 9 ProgramCommunicationManagementfrom: Fundamentals ofEffective ProgramManagement by Paul

    SangheraReleased: October 200831 MINSBusiness Communication /Project Management

    BOOK SECTION

    Benchmarkingsupplierpartnerships forbest practicefrom: Benchmarking forBest Practice by

    Mohamed ZairiReleased: June 201392 MINSBusiness / Business Communication

    BOOK SECTION

    For FurtherReadingfrom: Career Moves (2ndEdition) by CaitlinWilliams...

    Released: August 200610 MINSPersonal & Professional Development

    BOOK SECTION

    Culture andGovernance: TheRole of the Boardin SupportingCorporate Culturefrom: Culture Connection

    by Marty ParkerReleased: October 20119 MINSBig Data / Business

    BOOK SECTION

    Chapter 1: GettingStartedfrom: China Entrepreneur:Voices of Experience from40 International BusinessPioneers by Laurie

    Underwood...Released: February 200946 MINSBusiness

    BOOK SECTION

    CHAPTER 3 -Hippity-Hop in theGarrison of theImmortalsfrom: TOPGUN on Wall

    Street: Why the United States MilitaryShould Run Corporate America byPatrick Robinson...Released: May 201247 MINSBusiness

    BOOK SECTION

    Whatdifferentiates orbitshifters?from: Orbit-ShiftingInnovation by DevikaDevaiah...

    Released: January 201455 MINSBusiness / Business Communication /Innovation

    BOOK SECTION

    Security andintelligencefrom: InvestigativeReporting by David SparkReleased: November 20127 MINS

    Personal & Professional Development

    BOOK SECTION

    Chapter 10: TheSpecial Case ofSexual Offendersfrom: BackgroundScreening andInvestigations by W. Barry

    Nixon...Released: March 200863 MINSBig Data / Business

    BOOK SECTION

    Chapter 8: Seamle Chapter 10: Three

  • 14/02/2015 Chapter9:SmallisBigConsumerIndia:InsidetheIndianMindandWallet

    https://www.safaribooksonline.com/library/view/consumerindiainside/9780470826324/xhtml/Chapter09.html 35/35

    Recommended / Queue / Recent / Topics / Settings / Blog(http://blog.safaribooksonline.com) /Support(http://msupport.safaribooksonline.com/?prod=flow) / Feedback / Sign Out 2015 Safari(http://www.safaribooksonline.com/). Terms of Service / Privacy Policy