Price sensitive brand aspirations

What’s paradoxical about the Indian consumer is his desire for brands coupled by his unwillingness to pay the premium price that brands command. In fact his disdain for a brands’ premium price is shown by a ‘switching’ attitude when a promo opportunity is posed by a competing brand. This is especially true for the Indian Middle class consumer. He in fact shows no qualms in switching from one brand to another, guided by 'increased value perception' that a discounted brand offers.

Most foreign players in the Indian market have now understood how important it is to be both an aspirational brand, and also to be able to satisfy the Indian consumer’s need for lower prices. Take for example, the latest entrant into the ‘Used Car’ bandwagon, Toyota. Priced at levels that have kept it out of the reach of the middle class, this move will make it accessible to the upper middle class at lower prices.

Smart idea.

Now, will this move dent the image of the brand and turn away the higher end customer segment? I doubt it, as even at a lower price it would still be costly for the middle/lower middle class to afford buying a used Toyota car. That should be welcomed by the higher end customer segment as it will ensure that every second car on Indian streets will still not be a Toyota.