Contrasting consumer shifts in India

Some consumer shifts that we are now witnessing in India are studies in contrast.

Consider automobiles. The inflationary-rising prices scenario has slowed down sales of mid-segment cars. Mid segment consumers, always watchful of prices are adopting a wait and watch policy. Not so premium consumers. Luxury cars in India are on a roll, unveiling new models and logging in even better sales as compared to the past. BMW, Porsche, Mercedes and Audi have lined up new models for the Indian market. While Audi is launching A4, Porsche will launch 911 Carrera (generation 2), BMW the new-look 5 series and Mercedes the new E class.

Contrast this with the Hospitality industry. Mid-segment hotels have never had it better. In a bid to curtail costs, most Business firms are asking their executives to abandon 5-star hotels and to check into budget/4 & 3 star hotels. Occupancies in the hospitality sector dipping by 8-11% in the quarter ended June. Demand has in fact shifted to mid-market and budget hotels besides guest houses as well as service apartments. The mid market hotel segment is operating at nearly 20% higher occupancies this season. A large chunk of it is coming from corporate travellers.


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