Over the next few years, brands big and small in India are set to revamp their marketing strategies to align with evolving consumer behavior. The focus is likely to shift to localized marketing, consumer segmentation by age, including Gen Z, Alpha and Millennials, and infusing brands with a clear sense of purpose, according to researcher Kantar's report. .
This shift in policy is in response to new consumer trends, including a growing preference for premium products, a surge in online shopping, and a shift towards gender-sensitive advertising.
Additionally, the rise of a diverse consumer base is forcing brands to tailor their marketing to appeal specifically to young people. India has around 116 million shoppers and almost 40% of urban consumers between the ages of 15 and 55 belong to Generation Z, and these young people are re-engaging with social media. They define their values and clearly assert their values, which center on family and identity.
But the diversity of these consumer groups requires nuanced marketing strategies, Kanter said.
“Gen Z and Millennials are estimated to make up almost half of India’s population by 2030. Are such large groups really homogenous? “This means that we are potentially neglecting the increasingly affluent and actively consuming target group of older people,” the researchers said.
Additionally, the aspirations and aspirations of young Indians living in small towns and those living in metropolitan areas are very different, so “targeting them in the same way and with the same offer has no chance of convincing them.” “It's low,” he added.
The report comes as brands and marketers seek innovative ways to connect with consumers. Beyond traditional advertising, the shift towards e-commerce and digital marketing is accelerating among large companies such as Nestlé India, Hindustan Unilever Ltd (HUL) and Godrej Consumer Products Ltd, leading to product innovation. and increasing focus on faster online solutions. commerce.
Kanter highlighted that rising affluence is driving up consumer spending, especially on luxury goods, and driving demand for new categories such as on-trend cosmetics and skin care products. According to Kantar WorldPanel, consumer demand for big-ticket items is at an all-time high.
“Indians have more money than ever before and the desire to spend it, but values still remain and value is more than price. 'Value for money' does not mean cheap or cheap, but rather that consumers get value for money for what they buy,” said Sowmya Mohanty, Managing Director and Chief Customer Officer at Kantar. Stated.
In this evolving market, brands are recalibrating their consumer engagement strategies to align with the changing codes of consumer engagement.
In an interview with mint, Herman Dhillon, who has been appointed executive director of beauty and wellbeing at HUL, said that as Indians become more affluent and consumer needs diversify, different marketing models are emerging. said. This is especially true in categories like beauty and personal care, where social media has a huge impact on shopper behavior.
As a result, companies like HUL are spending more on digital media activations, at least in such categories.
Mohanty pointed out that advertising narratives are also moving away from traditional stereotypes of men and women towards more balanced gender representations.
Meanwhile, according to Kantar WorldPanel, urban India is seeing a significant rise in omnichannel shopping, with connected commerce and hybrid shopping experiences becoming the norm, allowing consumers to explore, compare and purchase products across multiple platforms. It shows the future.
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Published: March 12, 2024, 5:43 PM IST
