Prognosis for Indian Consumer demand

'So, if the prognosis is that the middle class and above urban aam janata’s incomes will rise, and that agricultural incomes could rise too, but equally that the things to buy will be more expensive, then we will see very value-conscious spending behaviour happening.

There will be a return of category fights — health insurance because I am feeling vulnerable versus an upgraded laptop and expensive skin creams because they are cheaper than a facial at a beauty parlour, and in any case, my foreign holiday is not happening. Assets will do better than experiences, children’s education will continue to prevail, productivity tools like personal transport and telecom will continue to get used, though not upgraded as often. Some sectors will lose and some will gain, depending on which segment of Consumer India we look at.

The value conscious Indian consumer will be even more value conscious since he has to make choices; however the algorithm in his head of value = benefit minus cost, will process benefit and cost differently from what companies think he would.'

- Rama Bijapurkar; 'Prognosis for consumer demand'.


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