India’s urban transformation is accelerating, with brands eyeing a burgeoning consumer market poised for dramatic growth. By 2030, 600 million Indians—40% of the population—are expected to live in urban areas, marking one of the fastest urbanisation rates globally. This shift is not just altering the country’s physical skyline but fundamentally reshaping consumer behaviours, preferences, and market dynamics.
Urban India’s evolving consumer preferences increasingly lean toward premium, health-centric, and sustainable products. Rising incomes and lifestyle changes push urban consumers to prioritise convenience, quality, and value alignment in purchasing decisions. For brands aiming to capture this growing consumer base, understanding the nuanced patterns of urban consumption is crucial for future success.
Cities will be central to India’s economic future.
India’s urbanisation is sparking a consumer revolution, reshaping purchasing power and market dynamics. From sprawling megacities to tier-2 hubs, urban India offers critical growth battlegrounds for brands. Urban consumers increasingly demand products that match their changing lifestyles—convenient, high-quality, and sustainable products.
According to the Deloitte-FICCI report, there is a significant shift toward value-based consumption, with urban buyers favouring health-centric options and brands that align with their values, such as sustainability and ethical sourcing.
Brands must adapt to these changes by reimagining product offerings, emphasising premium quality, convenience, and sustainability. Understanding the desires of the urban consumer—regional flavours or health-conscious products—is essential for building a meaningful connection in these evolving markets.
Quick Commerce Boom in India
Quick commerce is revolutionising urban India’s FMCG and retail sectors, driven by rising demand for speed and convenience. Data reveals over one-third of urban consumers favour quick commerce for groceries, beverages, and urgent essentials.
The rise of quick commerce also supports the trend of impulse buying among urban consumers. The ability to deliver items quickly has significantly influenced buying behaviours, creating an important channel for brands wanting to engage with this fast-paced urban market.
Case Study: Blinkit’s Rapid Expansion in India’s Quick Commerce Sector
Image Source; Product Monk
Background
Blinkit, formerly known as Grofers, is a prominent player in India’s quick commerce industry. It specialises in ultra-fast delivery of groceries and daily essentials. In 2022, Zomato acquired Blinkit for $568 million, marking a significant consolidation in the quick commerce space.
Approach
To meet the growing demand for rapid deliveries, Blinkit established a network of dark stores—small fulfilment centres strategically located within urban areas. This setup allowed Blinkit to offer 10-20 minute deliveries, fulfilling urban India’s demand for speed and convenience. The company also leveraged data analytics to optimise inventory management and predict consumer demand patterns, ensuring the high availability of products.
Outcome
Blinkit’s focus on speed and convenience led to a significant increase in customer loyalty among urban consumers. In 2024, Blinkit held a 46% market share in India’s ₹23,000 crore quick commerce industry, making it the leader in this sector. The company’s revenue surpassed ₹2,300 crore, highlighting its successful adaptation to the evolving preferences of urban consumers.
Affluent vs. Less Affluent Divergence
A critical trend in urban India is the divergence in purchasing behaviours between affluent and less affluent households. Affluent urban consumers increasingly opt for premium products and larger pack sizes, reflecting their growing spending capacity and desire for enhanced quality. This shift is particularly evident in sectors like FMCG, where increased disposable incomes drive a preference for branded and premium goods.
Conversely, less affluent Urban households opt for smaller pack sizes or unbranded alternatives to manage their budgets. This divergence has created a two-speed market where brands must adopt distinct strategies to cater to both segments. Premium brands like Nestlé target affluent consumers by emphasising health and quality, while value-driven brands expand their offerings to capture the price-sensitive segment. Brands must recognise these disparities and develop tailored approaches—investing in premiumisation while maintaining affordability for budget-conscious consumers.
Case Study: BigBasket’s Success with Private Labels
Image Credit: Oyelabs
Background
BigBasket, India’s leading online grocery platform, has effectively used private labels to cater to urban demand for quality and affordability.
Approach
BigBasket developed private label products, such as “Fresho” and “BB Royal,” offering quality similar to branded goods at a 25-40% lower price point. These products appeal to urban middle-class consumers seeking value for money.
Outcome
This strategy contributed significantly to BigBasket’s growth, with private labels accounting for approximately 35% of its overall sales. The focus on quality and affordability has helped BigBasket capture a loyal customer base in urban areas, where price sensitivity remains crucial.
The Shift Toward Health and Sustainability
Urban consumers in India increasingly prioritise health and sustainability in purchasing decisions, creating fresh opportunities for brands to align with these preferences.
Health Consciousness
Urban consumers are increasingly drawn to products that promote health and well-being, driven by greater awareness of lifestyle-related diseases and increased disposable income. Modern Indian consumers are willing to pay a premium for food and beverages that offer health benefits, such as probiotics, fortified snacks, and organic produce.
Brands are responding by expanding their health-focused products, emphasising natural ingredients, reduced sugar content, and enhanced nutritional profiles. Tata Consumer Products, for instance, has launched a line of healthy snacks designed for urban consumers seeking convenience without compromising health. For brands, focusing on health-enhancing products offers an opportunity to build trust and loyalty among urban consumers who are increasingly selective about their consumption habits.
Sustainability as a Driver
Sustainability has become a major consideration for urban consumers, particularly among younger demographics who are environmentally conscious. Awareness of climate change, plastic pollution, and ethical sourcing has led consumers to seek brands that reflect their values and commitment to sustainability.
Brands like Hindustan Unilever have responded with initiatives such as eco-friendly packaging, ethically sourced ingredients, and clean-label products containing minimal artificial additives. Clean-label product launches in India are growing, highlighting the increasing demand for transparency. Brands prioritising sustainability align with consumer values and position themselves for long-term success in an increasingly eco-conscious marketplace.
Future Trends to Watch in Urban Consumption
India’s urban consumer landscape is rapidly evolving, and brands must stay informed of emerging trends to stay competitive. Here are three key trends shaping urban consumption in the coming years:
Digital Transformation and Personalisation Urban consumers increasingly seek frictionless, personalised experiences through e-commerce, digital payment solutions, and connected devices. Brands must leverage data-driven insights, AI, and IoT technologies to provide tailored offerings and seamless interactions, ensuring they stay ahead of consumer expectations.
Growth of Premiumisation Urban India is experiencing a trend toward premium products driven by rising incomes and a desire for convenience and quality. Brands that offer high-quality, value-added products will attract urban consumers willing to pay more for premium experiences.
Government-Brand Collaboration Strategic partnerships between the government and private sector are critical for sustaining growth in urban areas. Targeted reforms in urban infrastructure, ease of doing business, and fostering innovation are essential to support urban markets. Brands should explore proactive collaboration opportunities that align with urban development initiatives.
Final Thoughts
India’s urban future isn’t just a story of population growth—it’s a blueprint for the next wave of consumer evolution. In the coming decade, cities will define where we live and how we consume, connect, and prioritise values. Brands that ignore this transformation risk irrelevance; those that embrace it will help shape a new era of commerce.
The urban consumer is no longer content with basic offerings—they demand solutions that integrate convenience, sustainability, and personal relevance. As technology accelerates and values shift, brands can innovate in ways that don’t just serve consumers but anticipate their aspirations.
In a market as dynamic and layered as India, the path forward isn’t about following trends—it’s about defining them. The brands that succeed will see urbanisation not as a challenge but as a canvas for reinvention.
Contact us to learn how we can help you navigate the complexities of India’s urban consumer market and develop strategies to capture this growing opportunity.
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Western theories often fail to capture India’s intricate cultural and market dynamics. With its vast diversity and unique consumer demands, India requires localised strategies that balance cultural sensitivity with global scalability.
With over a billion people spanning countless regional, linguistic, and traditional boundaries, understanding Indian consumers demands a localised approach. Immersive consumer research, known as fieldwork, provides the precision and depth needed to decode these complexities, helping brands align authentically with local contexts.
McDonald’s broke new ground in India with the McAloo Tikki Burger, a vegetarian option tailored to the nation’s dietary preferences. This departure from its global menu tapped local tastes, cementing the brand’s foothold. Similarly, Daikin reengineered its air conditioners to endure India’s sweltering summers while addressing the rising demand for energy efficiency—a top priority for Indian households. These examples illustrate how brands leveraging fieldwork to inform localised strategies can achieve lasting success.
Fieldwork’s Role in Understanding Indian Consumers
Fieldwork delves deeper than observation, uncovering the motivations, habits, and emotions driving consumer behaviour. Fieldwork provides brands with unparalleled insights in a country like India, where buying decisions often intertwine with tradition and familial structures. This approach bridges the gap between global strategies and local realities, revealing not just what consumers want but why they choose certain products.
For instance, India’s festival seasons—a cornerstone of its consumer economy—highlight how cultural rituals drive purchasing behaviours. Brands that align with gifting traditions during Diwali or tailor offerings for Makar Sankranti’s regional flavours often gain a decisive edge in their markets.
Understanding daily life in urban and rural settings can reveal important insights into consumption patterns. For instance, urban households often prioritise convenience to accommodate their busy schedules, while rural families tend to favour bulk purchases that align with seasonal income cycles.
Overcoming Challenges in Indian Fieldwork
Challenge
Description
Linguistic Diversity
India’s 22 official languages and hundreds of dialects demand skilled local interpreters for accurate data collection.
Urban-Rural Divide
Consumer preferences shift dramatically; urban consumers lean toward global trends, while rural audiences value affordability and tradition.
Cultural Sensitivities
Conducting research requires respect for customs, especially gender roles and privacy boundaries.
Building Trust
Ethical practices and genuine engagement are essential to foster trust in communities with skepticism toward external interactions.
When planned meticulously and conducted with cultural empathy, fieldwork enables brands to navigate these complexities effectively. Addressing these challenges requires anticipating practical barriers such as logistical constraints, regional infrastructure limitations, and participant accessibility.
Strategies for Effective Fieldwork in India
To truly harness the power of fieldwork in India, brands need a strategic, locally informed approach:
Partner with Local Experts: Regional collaborators bring invaluable cultural knowledge, ensuring relevant and authentic research.
Embrace Hybrid Methods: Combine traditional on-ground interactions with digital tools, such as mobile diaries, to capture diverse consumer perspectives.
Segment Regionally: Tailor research to India’s regional differences, such as contrasting culinary preferences between North and South India. For example, while mustard oil dominates cooking in the east, coconut oil is a staple in the south.
Prioritise Immersion: Researchers should engage deeply with communities—participating in local events or observing daily routines—to gain richer, more actionable insights.
Adapt Research to Socioeconomic Layers: Fieldwork should account for varying consumer priorities across income groups, from premium buyers in metros to budget-conscious rural shoppers.
Incorporate Behavioral Observations: Observing purchasing behaviours in markets or Kirana stores (small neighbourhood grocers) can reveal subtle preferences surveys might overlook.
Examples of Brands Acing Localisation in India
Paper Boat’s Revival of Traditional Beverages: Fieldwork revealed an untapped nostalgia among Indian consumers for traditional drinks like aam panna and jaljeera. By reviving these flavours and packaging them in modern, convenient formats, Paper Boat struck a chord with urban millennials and rural buyers.
Image Credit: Paper Boat
Godrej’s Good Knight Fast Card: Rural consumers’ reliance on open-air living spaces inspired the creation of an affordable, portable mosquito repellent. Designed to meet specific regional needs, this innovation rapidly gained popularity in semi-urban and rural markets.
Image Credit: Indian Television
Cavinkare’s Sachet Revolutionfor Middle India: Cavinkare pioneered the shampoo sachet, priced at just Rs. 1, to address the dual challenges of price sensitivity and distribution in rural India. Rural consumers often prioritised affordability, and Cavinkare’s sachets met this need while being lightweight and easy to transport. This strategy not only made personal care accessible but overcame logistical hurdles by allowing distribution in small, remote shops. The innovation reshaped India’s FMCG sector, with multiple brands adopting the sachet model to cater to cost-sensitive markets.
Image Credit: The Print
Technology’s Impact on Fieldwork
Digital tools have transformed fieldwork, expanding its reach and efficiency:
Mobile Diaries: Consumers document their daily lives through apps, offering real-time insights into behaviours and preferences.
Social Listening: By analyzing conversations on digital platforms, brands identify emerging trends and pain points. For instance, social media chatter around eco-friendly packaging has spurred many brands to adopt sustainable practices.
AI-Driven Analysis: Advanced algorithms streamline the interpretation of qualitative data, unveiling patterns that might otherwise be missed. AI can help identify commonalities in regional tastes, enabling faster product localisation.
Geospatial Analytics: Mapping consumer behaviours geographically helps brands focus their efforts where they’re needed most. This is particularly useful for understanding rural adoption rates versus urban saturation.
These technologies complement traditional methods, creating a holistic view of Indian consumer behaviour.
The Road Ahead for Fieldwork in India
As India evolves, fieldwork must adapt to keep pace with shifting consumer dynamics. Key areas of focus include:
Sustainability Trends: With growing environmental awareness, brands must explore how eco-conscious values influence purchasing decisions. For example, consumers are increasingly opting for refillable products over single-use plastics.
Tier 2 and 3 Cities: These markets are experiencing rapid growth, presenting opportunities for tailored innovations. A surge in e-commerce adoption in these regions highlights the need for online-offline hybrid strategies.
Immersive Technologies: Tools like VR and AR could revolutionise consumer research, offering simulated environments to observe behaviours. Brands could test retail layouts or product placement virtually, reducing real-world trial costs.
Consumer-Centric Design: Indian consumers, particularly younger generations, expect brands to address their specific needs—from affordability to ethical sourcing. Fieldwork must pivot to include participatory design sessions where consumers co-create solutions with brands.
By staying agile and investing in culturally grounded strategies, brands can ensure continued success in India’s vibrant and complex market.
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India has crossed 800 million internet users, establishing itself as one of the largest online markets globally. This rapid digital growth can be primarily attributed to the Digital India initiative launched in 2015 by the Government of India. The initiative aims to propel India into a digitally empowered society and knowledge economy by enhancing online infrastructure and expanding internet connectivity.
Understanding this new digital India is crucial for brands looking to tap into this vast market. With a significant portion of the population now online, companies must adapt their strategies to engage tech-savvy consumers effectively. This demographic is not just confined to the urban elite; it spans various age groups, income levels, and regions, including rural areas where internet penetration is steadily increasing.
The Digital Transformation of India
Growth of Internet and Smartphone Penetration in India
The growth of internet and smartphone penetration in India has been phenomenal. This rapid expansion can be attributed to the widespread availability of affordable smartphones and data plans. According to the Telecom Regulatory Authority of India (TRAI), broadband subscribers reached approximately 825 million by the end of 2023, a testament to the growing demand for digital connectivity.
Smartphone penetration has also seen a remarkable rise. Counterpoint Research reports that smartphone shipments in India crossed 150 million units in 2022, driven by increasing affordability and a diverse range of options catering to various consumer segments. This growth is not limited to urban centres; rural areas have also witnessed substantial increases in smartphone adoption, contributing to a more connected and digitally aware population.
Impact of Government Initiatives like Digital India and BharatNet
The Digital India initiative aims to ensure that government services are made available to citizens electronically by improving online infrastructure and increasing internet connectivity. One of the significant components of this initiative is BharatNet, a project aimed at connecting all of India’s gram panchayats (village councils) through high-speed fiber-optic networks.
As of 2023, BharatNet had successfully laid over 500,000 kilometres of optical fibre, connecting over 250,000-gram panchayats. This initiative has significantly improved internet accessibility in rural areas, allowing millions of rural residents to access digital services, from healthcare and education to banking and e-governance. The success of these initiatives underscores the government’s commitment to bridging the digital divide and ensuring inclusive growth.
Role of Technology in Everyday Life: From Urban to Rural Areas
Technology has become an integral part of daily life for Indians across the socio-economic spectrum. In urban areas, tech-savvy consumers rely on digital platforms for shopping, entertainment, communication, and more. E-commerce giants like Amazon and Flipkart have seen tremendous growth, with India’s e-commerce market projected to reach $188 billion by 2025, according to a report by IBEF. Streaming services like Netflix, Amazon Prime Video, and Disney+ Hotstar are also seeing increased subscriptions, catering to the diverse entertainment needs of the urban population.
In rural areas, the impact of technology is equally profound. Mobile phones and internet access have empowered farmers with information on weather forecasts, crop prices, and best agricultural practices. Digital payment systems like UPI (Unified Payments Interface) have revolutionised transactions, making it easier for rural residents to participate in the digital economy. Educational apps and online learning platforms have made quality education accessible to students in remote areas, bridging the gap between urban and rural education standards.
The pervasive role of technology in India’s daily life highlights the importance of digital inclusion and the potential for brands to engage a diverse and tech-savvy consumer base. Understanding these dynamics is essential for crafting effective engagement strategies tailored to the unique needs and preferences of Indian consumers.
Understanding the Tech-Savvy Indian Consumer
Demographic Analysis: Age, Location, Income Levels
Age: The tech-savvy Indian consumer spans various age groups. The largest segment is the 18-35 age group, which makes up about 60% of the internet user base. This segment is highly active online, engaging in social media, e-commerce, and digital entertainment.
Location: While urban areas like Delhi, Mumbai, and Bangalore are hubs of digital activity, rural areas are increasingly catching up. As of 2023, rural India accounted for approximately 45% of the country’s internet users, driven by government initiatives and affordable smartphones.
Income Levels: The middle class forms the bulk of the digital consumer base, with increasing disposable income and a propensity to spend on technology and digital services. However, the digital economy also includes lower-income segments, particularly rural ones, who use mobile internet for essential services like banking and education.
Behavioural Patterns: Online Shopping, Social Media Usage, Content Consumption
Online Shopping:
E-commerce has seen exponential growth. According to IBEF, India’s e-commerce market is projected to reach $188 billion by 2025.
Consumers prefer platforms like Amazon and Flipkart and niche players like Nykaa (beauty products) and BigBasket (groceries).
A significant trend is the rise of mobile commerce, with over 70% of e-commerce traffic coming from mobile devices.
Social Media Usage:
India is one of the largest markets for social media platforms, with over 500 million active users.
Popular platforms include Facebook, WhatsApp, Instagram, and X. Emerging platforms like ShareChat and Moj cater specifically to regional language users.
With a high user engagement rate, social media is a crucial avenue for news consumption, brand interaction, and socialising.
Content Consumption:
Video streaming is hugely popular, with platforms like YouTube, Netflix, Amazon Prime Video, and Disney+ Hotstar leading the market.
Short-form video content attracts a large mobile-first audience.
Online gaming is another significant trend, with a growing number of mobile gamers and the increasing popularity of games like PUBG Mobile, Free Fire, and Call of Duty Mobile.
Preferences and Expectations from Digital Services and Products
Personalisation: Consumers expect personalised experiences based on their preferences and behaviour. This includes tailored recommendations on e-commerce sites, customised content on streaming platforms, and targeted advertisements.
Convenience: There is a high demand for seamless and convenient services. This includes easy navigation, quick load times, and hassle-free payment options. The popularity of digital payment platforms like UPI reflects this trend.
Affordability: Cost is a crucial factor. Consumers prefer services and products that offer value for money. Affordable data plans and budget smartphones have significantly driven internet penetration.
Localisation: Content and services tailored to local languages and cultural contexts are highly valued. Platforms offering regional language options see higher engagement as they cater to India’s diverse linguistic landscape.
Trust and Security: Consumers are concerned about data privacy and security with increasing digital transactions. They expect robust security measures and transparency from service providers.
Innovation: The tech-savvy Indian consumer is open to new and innovative solutions, whether in the form of new apps, tech gadgets, or digital services. Early adopters of technology are keen to try the latest trends and products.
Key Findings on Consumer Behavior and Preferences
Preference for Mobile Commerce:
Over 70% of e-commerce traffic in India comes from mobile devices, highlighting the importance of a mobile-first strategy.
Consumers prefer shopping apps that offer a seamless and fast user experience.
Growth in Digital Payments:
Digital payment methods, particularly UPI, have seen widespread adoption. In 2023, NPCI reported over 4 billion UPI transactions per month.
Consumers expect secure and hassle-free payment options across online platforms.
Demand for Localised Content:
A report by KPMG indicated that 90% of internet users prefer content in their local language.
There is a high demand for content in regional languages. Platforms offering multi-language support see higher engagement. Video content, especially short-form videos, is popular across demographics.
Importance of Personalisation:
According to a survey by Accenture, 75% of consumers are more likely to buy from a retailer that recognises them by name, recommends options based on past purchases, or knows their purchase history.
Personalised recommendations and targeted marketing campaigns resonate well with consumers. Consumers are more likely to engage with brands that offer tailored experiences based on their preferences and past behaviour.
Emphasis on Value for Money:
A PwC report highlights that 59% of Indian consumers are driven by promotions and discounts.
Price sensitivity remains a critical factor. Consumers seek products and services that offer the best value for their money. Discount offers, loyalty programs, and value-added services effectively attract and retain customers.
Examples of Successful Digital Marketing Campaigns in India
Amazon India – The Great Indian Festival
Image credit: Amazon India
Amazon’s annual Great Indian Festival is one of India’s most anticipated shopping events. The 2022 edition saw record-breaking sales, with over $4.5 billion in revenue.
The success of this campaign can be attributed to the extensive use of personalised marketing, regional language support, and attractive discount offers.
Amazon utilised data analytics to predict consumer demand, optimise inventory, and offer personalised product recommendations.
Swiggy – #WhatsInAName Campaign:
Image Credit: Ads of the world
Swiggy, a leading food delivery platform, launched the #WhatsInAName campaign to engage users on social media. The campaign encouraged users to share the funniest names they have been called by their friends.
This user-generated content campaign went viral, leading to a 30% increase in social media engagement and a significant boost in app downloads.
Swiggy effectively leveraged humour and relatability to connect with its audience, driving brand recall and customer engagement.
Cadbury – Not Just A Cadbury Ad:
Image Credit: YouTube
During Diwali 2020, Cadbury launched a unique campaign supporting local businesses affected by the pandemic. The campaign featured personalised ads highlighting small businesses in the viewer’s vicinity.
Cadbury created over 1,800 versions of the ad using AI and geo-targeting, making it a hyper-localised campaign.
This innovative approach resulted in a 32% increase in Cadbury’s sales and significant goodwill among consumers, showcasing the brand’s commitment to community support.
Myntra – End of Reason Sale:
Image Credit: India Desire
Myntra’s End of Reason Sale is another successful digital marketing campaign that drives massive traffic and sales. The 2022 edition saw over 5 million orders in four days.
Myntra used influencer marketing, personalised app notifications, and gamified shopping experiences to engage users.
The campaign’s success highlights the effectiveness of combining data-driven personalisation with engaging content and strategic influencer partnerships.
Strategies to Engage Tech-Savvy Consumers
Personalised Marketing: Leveraging Data to Create Targeted Campaigns
Strategy: Personalised marketing uses data analytics to understand consumer preferences and behaviours, creating tailored marketing messages and offers.
Example: Flipkart
Flipkart, one of India’s leading e-commerce platforms, extensively uses data analytics to personalise its users’ shopping experiences.
By analyzing browsing history, purchase patterns, and search behaviour, Flipkart provides personalised product recommendations, customised discounts, and targeted advertisements.
During their Big Billion Days sale, Flipkart employs AI to personalise deals and product suggestions, increasing customer satisfaction and higher conversion rates.
Content Marketing: Producing Relevant and Engaging Content
Strategy: Content marketing involves creating and distributing valuable, relevant, consistent content to attract and engage a clearly defined audience.
Example: Zomato
Zomato, a popular food delivery and restaurant discovery platform, excels in content marketing with its witty and engaging social media content.
Zomato connects with its audience through humour, relatable posts, and trending topics. Their content often goes viral, increasing brand visibility and engagement.
The brand’s blog and social media channels feature food-related content, including recipes, food trends, and restaurant reviews, keeping its audience engaged and coming back for more.
Social Media Strategies: Platforms to Focus on and Effective Content Types
Strategy: Effective social media strategies involve using the right platforms to reach the target audience and creating content that resonates with them.
Example: Swiggy
Swiggy, a leading food delivery app, has a robust social media presence across platforms like Instagram, Twitter, and Facebook.
Swiggy engages with its audience using user-generated content, interactive polls, contests, and humour.
During the lockdown, Swiggy launched the “#SwiggyFromHome” campaign, encouraging users to share their home-cooked meals and win vouchers. This campaign increased engagement and brand loyalty.
Mobile-First Approach: Optimising User Experience for Mobile Devices
Strategy: A mobile-first approach focuses on designing and optimising websites and apps for mobile devices to ensure a seamless user experience.
Example: Paytm
Paytm, a leading digital wallet and financial services platform in India, has a mobile-first strategy that has been instrumental in its success.
The Paytm app is designed to be user-friendly, with quick load times, easy navigation, and secure payment options.
It continuously updates its mobile app with new features, such as Paytm Postpaid and Paytm First, enhancing the user experience and retaining customers.
Strategy: Integrating seamless shopping experiences involves providing a smooth, convenient, and enjoyable shopping journey across all touchpoints.
Example: Nykaa
Nykaa, an online beauty and wellness retailer, has mastered the art of seamless shopping experiences.
Nykaa’s app and website are designed to be intuitive and easy to navigate. They offer features like virtual try-ons, personalised recommendations, and a robust customer review system.
During sales events like the “Pink Friday Sale,” Nykaa ensures a smooth checkout process, fast delivery, and excellent customer service, leading to high customer satisfaction and repeat purchases.
Challenges in Reaching Diverse Demographics
Diverse Linguistic Landscape:
Challenge: India has 22 officially recognised languages and hundreds of dialects, making it difficult for brands to communicate effectively with all potential consumers.
Opportunity: Offering multi-language support on digital platforms can significantly enhance user engagement. Brands like Google and Facebook have already implemented regional language options to cater to a broader audience.
Socio-Economic Diversity:
Challenge: The wide range of income levels affects purchasing power and access to digital technologies. Strategies effective for urban, high-income groups may not work in rural, lower-income segments.
Opportunity: Affordable pricing models and tailored marketing strategies can bridge this gap. For instance, Xiaomi’s success in India is largely due to its budget-friendly smartphones, which cater to lower—and middle-income groups.
Varied Digital Literacy Levels:
Challenge: There is significant variation in digital literacy across different regions and age groups, which affects how people interact with technology and digital services.
Opportunity: Investing in digital literacy programs and creating user-friendly interfaces can help. For example, Reliance Jio’s efforts to provide affordable internet and educational content have increased digital literacy in rural areas.
Privacy and Data Security Concerns
Data Privacy Regulations:
Challenge: Complying with stringent data privacy laws, such as the Personal Data Protection Bill in India, requires significant changes to data handling practices.
Opportunity: Ensuring compliance and transparency can build consumer trust. Brands prioritising data privacy, like Apple, have gained a competitive advantage by being perceived as trustworthy.
Cybersecurity Threats:
Challenge: The rise in cyber-attacks and data breaches poses significant risks to companies and consumers.
Opportunity: Investing in robust cybersecurity measures and educating consumers about safe online practices can mitigate these risks. For instance, Paytm has implemented advanced security protocols to protect user data and transactions.
Consumer Skepticism:
Challenge: Increasing awareness of data misuse has led to growing consumer scepticism and reluctance to share personal information online.
Opportunity: Transparent data usage policies and clear opt-in/opt-out options can alleviate consumer concerns. Brands like WhatsApp have tried communicating their data privacy policies more clearly to users.
Opportunities in Emerging Technologies: AI, AR/VR, IoT
Artificial Intelligence (AI):
Opportunity: AI can enhance personalisation, improve customer service, and optimise business operations.
Example: HDFC Bank uses AI-powered chatbots to provide 24/7 customer support, improving user experience and operational efficiency. Netflix also uses AI algorithms to recommend content based on user preferences, leading to higher engagement and retention rates.
Augmented Reality/Virtual Reality (AR/VR):
Opportunity: AR/VR technologies can offer immersive experiences that enhance product visualisation and customer engagement.
Example: Lenskart uses AR to allow customers to try on glasses virtually, improving the online shopping experience. IKEA’s AR app, IKEA Place, enables users to visualise furniture in their homes, leading to more informed purchase decisions and higher customer satisfaction.
Internet of Things (IoT):
Opportunity: IoT can revolutionise smart homes, healthcare, and agriculture by providing real-time data and automation.
Example: Smart home devices like Amazon Echo and Google Home are becoming increasingly popular in urban households. Tata Communications’ IoT solutions for agriculture help farmers monitor crop conditions and optimise irrigation, enhancing productivity and sustainability.
Future Trends
Predictions for the Future of Digital Engagement in India
Increased Internet Penetration:
Prediction: With ongoing government initiatives like Digital India and BharatNet, internet penetration is expected to reach over 900 million users by 2025.
Impact: Greater internet access will lead to increased digital engagement across urban and rural areas, offering brands a larger audience to target.
Growth in Mobile Commerce:
Prediction: Mobile commerce will dominate the e-commerce space, with smartphones becoming the primary mode of online shopping.
Impact: Brands must optimise their mobile platforms to ensure seamless user experiences and leverage mobile payment solutions to cater to this growing trend.
Rise of Regional Content:
Prediction: As more non-English-speaking users come online, demand for content in regional languages will surge.
Impact: Content creators and platforms will increasingly produce and support regional language content to engage a wider audience.
Enhanced Personalisation:
Prediction: Advanced data analytics and AI will enable even more personalised user experiences, from product recommendations to targeted advertising.
Impact: Companies leveraging AI effectively for personalisation will see higher engagement and conversion rates.
Increased adoption of digital payments, financial inclusion initiatives, and innovative banking solutions.
Paytm and PhonePe lead in digital payments, while neobanks like Niyo gain traction with digital-first banking solutions.
Projected to reach $150 billion by 2025. Innovations in blockchain, digital lending, and insurtech will drive further growth.
Edtech
The shift to online learning, increasing internet access, and the need for skill-based education.
BYJU’S has become a global leader in online education, while platforms like Unacademy and Vedantu are rapidly expanding their offerings.
Projected to reach $10.4 billion by 2025. Personalised learning, AI-driven tutoring, and immersive learning technologies like AR/VR will shape the future of education.
Healthtech
Growing awareness of digital health solutions, increased investment in healthcare technology, and a focus on preventive care.
Practo offers telemedicine services and digital health records, while startups like Cure.fit combine fitness, nutrition, and mental well-being services.
Projected to grow to $50 billion by 2025. Innovations in telemedicine, wearable health devices, and AI-driven diagnostics will be crucial in this growth.
How Companies Can Stay Ahead of the Curve
Embrace Innovation:
Strategy: Continuously invest in R&D to innovate and stay ahead of market trends. Brands must explore emerging technologies like AI, AR/VR, and IoT to enhance their offerings.
Example: Tata Consultancy Services (TCS) invests heavily in innovation hubs and collaborates with startups to drive technological advancements.
Focus on Customer Experience:
Strategy: Prioritise user experience by offering personalised, seamless, and intuitive digital interactions. Regularly gather feedback and use data analytics to refine and improve services.
Example: Amazon India’s focus on customer-centric innovations, such as same-day delivery and personalised recommendations, has helped maintain its market leadership.
Localise Offerings:
Strategy: Adapt products and services to local languages, cultures, and preferences to cater to diverse consumer segments. Localisation should go beyond language to include cultural nuances and regional needs.
Example: Netflix offers a vast library of regional content in multiple languages, catering to India’s diverse audience and increasing its subscriber base.
Build Strategic Partnerships:
Strategy: Collaborate with local businesses, technology partners, and startups to leverage new technologies and expand market reach. Partnerships can provide access to new markets and innovative solutions.
Example: Flipkart’s partnerships with local sellers and global technology firms have enhanced its product range and technological capabilities.
Prioritise Data Security:
Strategy: To build consumer trust, invest in robust cybersecurity measures, and ensure compliance with data protection regulations. Transparency in data usage and transparent privacy policies are essential.
Example: Paytm’s focus on advanced security protocols and compliance with regulatory standards has helped it maintain user trust in a competitive fintech market.
Final Thoughts on the Future of Digital Engagement in India
Driven by increasing internet penetration, widespread smartphone adoption, and a massively growing tech-savvy population, India’s digital landscape is poised for unprecedented growth. As more people come online, the opportunities for brands to engage with consumers in innovative and meaningful ways are immense. As India continues its digital transformation, brands must remain agile and responsive to evolving market conditions. Understanding and adapting to local nuances while leveraging global best practices will be crucial for success. The future of digital engagement in India promises to be exciting and full of opportunities for those ready to take on the challenge.
We are an international market research agency with deep expertise and local knowledge of both Western and Asian markets. With a dedicated office in India, we are uniquely positioned to help brands navigate the complexities of this dynamic market. Whether you need insights into consumer behaviour, competitive analysis, or strategic guidance, our comprehensive market research services are designed to connect the dots and empower you to make better decisions. Contact us to learn how we can help your company reach your audience and grow.
The world is changing rapidly, and India is no exception. With its diverse consumer base, booming economy, and increasing digital penetration, the Indian market presents unique challenges and opportunities for market research. The traditional methods of gathering and analysing data are not enough anymore, especially with the massive amount of online information. This is where Artificial Intelligence comes into play —a game-changer that can help researchers tackle these challenges and uncover more profound insights into consumer behaviour and market trends.
AI’s ability to process vast amounts of data at lightning speeds is the answer to the prayers of market researchers, and it’s here to stay.
AI’s Role in Processing and Analysing Unstructured Data
About 59% of IT professionals in large organisations have already deployed AI, with an additional 27% exploring its applications, showcasing a robust adoption rate that places India among the leading nations in AI integration.
AI has advanced algorithms and machine learning capabilities to efficiently process and make sense of unstructured data. It excels in identifying patterns, trends, and insights humans cannot discern. For instance, AI-powered sentiment analysis tools can quickly sift through thousands of social media posts to determine the overall sentiment toward a brand or product. This capability is particularly relevant in the diverse and multilingual Indian market, where consumer opinions are expressed across multiple languages and dialects.
AI can also analyse online reviews and customer feedback to identify improvement areas, track consumer and brand sentiment changes, and predict future buying behaviours based on historical data. In customer service, AI algorithms can analyse transcripts of customer interactions to identify common issues, measure customer satisfaction, and inform training programs for customer service representatives.
Several Indian companies are at the forefront of integrating AI to navigate the complexities of unstructured data. For example, India’s largest e-commerce platforms utilise AI for sentiment analysis and customer feedback to enhance their product offerings and customer service. By analysing customer reviews and feedback across its platform, it can quickly identify and address consumer grievances, adjust its inventory based on consumer preferences, and tailor its marketing strategies to match the evolving needs of the Indian consumer.
Another example is how India’s leading food delivery services leverage AI to analyse restaurant customer reviews and ratings. This helps consumers make informed choices and enables these apps to maintain quality control over the restaurants listed on their platform and offer personalised recommendations to their users.
Startups like Staqu and Mad Street Den are showcasing the power of AI in retail and fashion, helping brands understand consumer trends and preferences through advanced image recognition and analytics technologies. These companies are revolutionising how brands interpret visual data, from social media trends to in-store customer behaviour, providing actionable insights that drive sales and improve customer experiences.
AI’s Role in Enhancing Retail Visibility and Revolutionising Retail Audits
AI is transforming retail by leveraging advanced image and photo scanning tools, particularly in retail audits. These AI-driven technologies enable brands to automate and enhance the accuracy of in-store audits, a critical component for maintaining product visibility and compliance with retail standards.
Traditionally, retail audits have been manual, time-consuming, and prone to human error, involving tasks such as checking product placements, stock levels, and the visibility of promotional materials. However, AI algorithms can now replicate and analyse images of shop shelves with remarkable accuracy, offering a more efficient and reliable approach. These tools can recognise products, brand logos, and promotional displays from in-store photographs, enabling real-time analysis of shelf organisation, stock availability, and compliance with retail layout plans or planograms.
This technological advancement allows for frequent and consistent audits, providing retailers and manufacturers with actionable insights to optimise shelf space, ensure product availability, and enhance in-store marketing strategies. It also supports dynamic pricing strategies and inventory management by identifying stock gaps and forecasting replenishment needs based on real-time data.
Several Indian companies are pioneering the use of AI in retail visibility and analysis to stay competitive in the fast-paced retail market.
Reliance Retail, one of India’s largest retail chains, is leveraging AI technologies to enhance its in-store experience and operations. Reliance Retail can use image recognition and scanning tools to monitor shelf arrangements, track inventory levels, and ensure that promotions are correctly displayed across its vast network of stores. This not only improves operational efficiency but also enhances the shopping experience for customers by ensuring product availability and visibility.
Future Group, another major player in the Indian retail sector, employs AI-driven technologies for similar purposes. The group has initiated projects using AI to analyse in-store camera feeds to understand consumer behaviour, manage stock levels, and optimise store layouts. This includes ensuring that products are correctly placed and that promotional materials are effectively drawing consumer attention, thereby directly influencing sales performance.
AI’s Role in Predictive Modelling
AI has become a cornerstone in predictive modelling, offering brands unprecedented capabilities to forecast market trends and consumer behaviour. By analysing historical data and identifying patterns, AI-based solutions can predict future outcomes accurately. This predictive power is crucial for companies looking to stay ahead, allowing them to make informed decisions about product development, marketing strategies, and inventory management.
AI algorithms can sift through vast datasets — from sales figures and customer interactions to external factors like economic indicators and social media sentiment — to identify trends that human analysts might overlook. These insights enable brands to anticipate market demands, tailor their offerings to meet customer needs and optimise operations for future trends. Predictive modelling also plays a crucial role in risk management by forecasting potential market shifts and allowing companies to devise strategies to mitigate these risks.
Indian Sectors and Companies Leveraging Predictive Modelling
Banking and Finance: The banking sector in India has been a pioneer in adopting AI for predictive modelling. HDFC Bank, one of the largest private banks in India, utilises AI to improve its credit risk assessment and fraud detection systems. By analysing transaction data and customer behaviour patterns, HDFC can predict potential loan defaults and identify suspicious activities, thereby reducing financial risks and enhancing customer security.
E-commerce: Flipkart, a leading e-commerce platform in India, employs predictive modelling to forecast demand for products, optimise inventory levels, and personalise shopping experiences for its customers. By analysing past purchase data and browsing behaviours, Flipkart can predict which products will be in high demand, ensuring they are adequately stocked and marketed to the right audience.
Telecommunications: The fast-paced evolution of technology has significantly impacted the telecommunications industry in India, with AI leading the charge. Recognising the transformative potential of AI, major mobile phone companies like Reliance Jio, Bharti Airtel, and Vodafone Idea are pioneering its use to enhance customer experience and service delivery.
Specifically, these telecom giants are deploying AI strategies to reduce subscriber churn, a critical challenge in the highly competitive telecom sector.
Airtel is a great example of a brand that is utilising AI. To further enhance its AI capabilities, the telecommunications company has partnered with Nvidia, a leader in AI-driven computing. This collaboration aims to develop sophisticated solutions that leverage Nvidia’s advanced computing technology to address various challenges within the telecom sector. By integrating Nvidia’s cutting-edge AI technologies, the telco seeks to innovate and improve its services, transforming customer service, network optimisation, and predictive analytics to reduce subscriber churn and enhance overall customer satisfaction. This partnership marks a significant step toward harnessing the power of AI to drive technological advancements and operational efficiencies in the telecom industry.
Agriculture: AgTech companies like CropIn leverage AI-driven predictive modelling to provide actionable insights to farmers and agribusinesses. By analysing satellite imagery, weather data, and soil health information, CropIn’s solutions can forecast crop yields, predict pest outbreaks, and recommend optimal planting and harvesting times, significantly impacting decision-making in the agricultural sector.
AI’s Role in Sentiment Analysis and Emotional Intelligence
Utilising NLP and Emotional Scanning/Facial Recognition
Have you ever wondered how brands and products can gauge your emotions and sentiments toward them? Thanks to the incredible advancements in Natural Language Processing (NLP) and emotional scanning, including facial recognition technologies, it’s now possible to analyse text data from social media, customer reviews, and other digital communications to understand how people feel. NLP helps machines interpret human language, making it easier to identify not just the topics of conversation but also the underlying emotions, whether positive, negative, or neutral. It’s amazing how technology has opened new avenues for understanding consumer emotions and sentiments toward brands and products.
Emotional scanning and facial recognition technologies further analyse visual data to understand consumer reactions. These technologies can interpret facial expressions in response to products, advertisements, or brand interactions, providing a deeper insight into consumers’ emotional engagement. By combining data from NLP and emotional scanning, brands can comprehensively understand their audience’s sentiments and emotional responses.
Helping Indian Brands Tailor Marketing Strategies and Product Offerings
In the Indian market, these technologies have become invaluable tools for brands to connect more effectively with their diverse customers. By leveraging sentiment analysis and emotional intelligence, brands in the Indian market can tailor their strategies and product offerings to better align with consumer emotions and preferences.
For example, a leading Indian consumer goods company might use sentiment analysis to monitor social media reactions to a new product launch. If the sentiment is predominantly positive but highlights concerns about environmental impact, the company could respond by emphasising its commitment to sustainability in its marketing communications.
Similarly, emotional scanning technology could be employed in market research to test consumer reactions to advertisements or product packaging. A positive emotional response to certain elements, like colours or images, can inform more emotionally engaging marketing materials.
Telecom and Entertainment: Companies in the telecom and entertainment sectors, such as Reliance Jio and Hotstar, use sentiment analysis to tailor content recommendations and marketing messages. By understanding viewer sentiments toward shows, movies, and services, these platforms personalise user experiences, leading to higher engagement and customer satisfaction.
E-commerce: E-commerce giants like Amazon India and Flipkart use sentiment analysis to improve product recommendations and customer service. Analysing customer reviews and feedback helps these platforms identify popular products and potential issues, enabling them to proactively adjust their offerings and address concerns.
Banking and Financial Services: Banks and financial institutions, such as HDFC and ICICI Bank, leverage these technologies to enhance customer service and product design. Sentiment analysis of customer interactions and feedback informs improvements in service delivery and the development of financial products that meet customers’ emotional and financial needs.
Chatbots and Voice Analysis: Enhancing Customer Interactions
Application in Qualitative Research and Customer Service
In India, where digital adoption is rapidly increasing across diverse consumer segments, chatbots and voice/speech analysis tools are revolutionising customer service and qualitative research. Powered by AI and natural language processing (NLP), chatbots enable brands to offer 24/7 customer support, handle inquiries, and even conduct transactions or bookings without human intervention. These virtual assistants can manage many queries simultaneously, ensuring efficient and personalised customer service.
Voice and speech analysis tools, on the other hand, are transforming qualitative research by providing deeper insights into customer sentiments, preferences, and behaviour. By analysing tone, pitch, and speech patterns, these tools can gauge emotions and intent, offering a richer understanding of customer feedback beyond the textual content.
This capability is particularly valuable in a multilingual country like India, where the tone and context of speech can significantly vary across languages and dialects.
Innovative Uses in India
State Bank of India (SBI): India’s largest public sector bank has introduced a chatbot named SBI Intelligent Assistant (SIA) to enhance customer service. SIA can handle inquiries related to a range of banking services, providing quick and accurate responses, significantly improving the customer experience, and reducing the workload of human customer service representatives.
ICICI Bank: Another leading bank in India, ICICI Bank, launched a chatbot named iPal, which assists customers with banking transactions and bill payments and provides information on the bank’s products and services. iPal has significantly improved customer engagement by offering a convenient and efficient way to interact with the bank.
Tata Sky: India’s direct broadcast satellite television provider has leveraged speech recognition technology to enhance customer service. Subscribers can speak into their remote to search for movies, change channels, or access different services, making the user experience more interactive and enjoyable.
Zomato: The food delivery and restaurant discovery platform uses chatbots for customer support and order tracking. The chatbot efficiently handles common queries regarding order status, delivery issues, and restaurant recommendations, ensuring a smooth and satisfying customer experience.
HDFC Bank: EVA is a virtual assistant developed by HDFC Bank to help customers find relevant products and services.
Axis Bank: Axis Bank has introduced a conversational AI chatbot called Uttar, which quickly responds to employee queries.
AI’s Impact on Client Strategies: Personalisation and Targeting
Employing AI-driven Insights for Ad Targeting and Personalisation
AI-powered advertising strategies help companies in India engage with customers better. By analysing customer data, AI algorithms identify preferences, target specific groups, and deliver personalised content and offers. With more efficient marketing campaigns, brands can engage with their customers more effectively and deliver the right message at the right time.
Benefits of Customer Engagement and ROI
Personalised Customer Experiences: By delivering content and offers tailored to individual preferences, brands can significantly enhance the customer experience. Personalisation makes customers feel understood and valued, which not only increases engagement but also strengthens brand loyalty. For example, Hotstar, India’s leading streaming platform, uses AI to personalise content recommendations, ensuring viewers find content that matches their interests. This personalisation enhances user engagement and increases the time spent on the platform.
Increased Conversion Rates: Personalised marketing messages and offers are more likely to convert prospects into customers. AI-driven personalisation ensures that the marketing messages are relevant to the recipients, which increases the chances of engagement and purchase. Myntra, an Indian fashion e-commerce company, utilises AI to personalise the shopping experience for its users, leading to higher conversion rates and repeat purchases.
Optimised Marketing Spend: AI-driven targeting and personalisation help brands allocate their marketing budgets more effectively. By focusing resources on segments most likely to respond positively, companies can achieve a higher return on investment (ROI). This efficiency is crucial in competitive markets like India, where cost-effectiveness can be a significant advantage. HDFC Bank leverages AI for personalised marketing, offering customers customised banking and financial solutions. By analysing transaction data and customer interactions, HDFC can tailor its communications and offers to meet each customer’s unique needs, thereby improving customer satisfaction and loyalty.
Improved Customer Insights: Using AI in personalisation and targeting gives companies deeper insights into customer behaviour and preferences. These insights can inform product development, customer service strategies, and future marketing campaigns, creating a virtuous cycle of improvement and innovation.
Challenges and Blind Spots of AI in Market Research
While AI has transformed market research with its ability to process vast amounts of data and uncover insights at unprecedented speeds, it has limitations and challenges. Key among these are data privacy concerns, algorithm bias, and the need for human oversight.
Data privacy concerns: As AI systems require access to large datasets to learn and make predictions, they often handle sensitive personal information. This raises significant privacy concerns, especially when data is collected, stored, or used without explicit consent from individuals. Mismanagement or breaches of this data can lead to severe privacy violations and undermine public trust.
Algorithm bias: AI algorithms can inadvertently perpetuate or even amplify biases present in the training data. Since these systems learn from historical data, any inherent biases in that data—whether related to gender, race, income, or other factors—can be reflected in the AI’s decision-making processes. This can lead to unfair or discriminatory outcomes in targeting, personalisation, and other applications.
Need for human oversight: Despite their advanced capabilities, AI systems lack the human capacity for ethical judgment and contextual understanding. This necessitates continuous human oversight to interpret AI findings correctly, ensure ethical use, and make judgment calls in complex or ambiguous situations.
AI challenges in the Indian context
In India, these challenges are magnified by the country’s vast cultural and linguistic diversity and evolving regulatory framework regarding data protection and privacy.
Cultural and linguistic diversity: India’s diversity means AI systems need to understand and process data in multiple languages and dialects, which increases the complexity of avoiding bias and ensuring accurate analysis. On top of this, diverse cultural nuances can significantly impact consumer behaviour and sentiment, challenging AI systems to interpret and predict these subtleties without human intervention accurately.
Regulatory factors: India is strengthening its data protection and privacy laws, with the Personal Data Protection Bill being a significant step in this direction. Companies in India using AI in market research must navigate this changing regulatory landscape, ensuring compliance with data protection guidelines and ethical standards. This includes obtaining consent for data collection, ensuring data anonymisation, and implementing robust data security measures.
The Future of AI in Market Research in India
Evolution and Impact of AI Technology
AI technology in India’s market research sector is poised for significant evolution and growth. The integration of AI is expected to become deeper and more sophisticated, driven by advancements in machine learning algorithms, natural language processing, and data analytics technologies. This evolution will further enhance the ability of businesses to understand complex consumer behaviours, predict market trends with greater accuracy, and deliver personalised customer experiences at scale.
One key area of growth is the potential for AI to integrate with emerging technologies such as blockchain for secure data sharing, augmented reality (AR) for immersive consumer research, and Internet of Things (IoT) devices for real-time data collection. These integrations can provide a more comprehensive view of the consumer, spanning online and offline behaviours, thereby enabling more nuanced insights and innovative market research methodologies.
As the digital infrastructure in India continues to expand, including the proliferation of internet access and digital literacy across diverse demographic segments, the volume and variety of data available for analysis will increase. This expansion will allow market researchers to gain insights into previously underrepresented segments of the Indian population, leading to more inclusive and representative market research outcomes.
The Importance of Continuous Innovation, Ethical AI Use, and Human-AI Balance
Continuous innovation is essential to fully realising AI’s potential in market research. This includes technological advancements and methodological innovations in applying AI to market research problems. Companies that stay at the forefront of AI research and development and are open to experimenting with new approaches will likely lead the way in generating actionable market insights.
Ethical considerations must be at the heart of AI’s future development, especially regarding data privacy, consent, and algorithmic transparency. Indian companies and regulatory bodies must collaborate closely to establish standards and practices that protect individual rights while enabling the productive use of AI. This ethical framework will be crucial for maintaining public trust in AI applications and ensuring that market research contributes positively to society.
Finally, the balance between human intuition and AI capabilities will remain a critical factor in the success of market research endeavours. While AI can process and analyse data at scales and speeds beyond human ability, human researchers provide essential context, ethical judgment, and creative insight.
The future of market research in India will likely be characterised by a synergistic relationship between AI and human researchers, leveraging the strengths to achieve deeper insights and more innovative solutions.
There is a unique opportunity for market researchers, technology developers, and business leaders across sectors to collaborate to harness AI’s full potential. By working together, we can ensure that AI not only propels the market research industry forward in terms of innovation and efficiency but also does so in a responsible, inclusive, and beneficial way to all stakeholders involved.
The Indian Premier League (IPL) is the biggest cricket league in the world, and it draws diverse audiences from every caste, creed, and religion. It is a mini festival, not just a cricketing event. It is also a big platform for brands to connect with audiences on a massive scale.
With its huge viewership, diverse fan base, and extensive media limelight, it presents an excellent opportunity for brands to:
Amplify their reach
Create a distinct image and
Engage with consumers in meaningful ways
In 2023, the IPL’s initial ten matches on Star Sports accumulated a staggering 6230 crore (62.3 billion) minutes of viewing time, marking a 23% increase from the prior season and reaching 30.7 crore (307 million) viewers. JioCinema’s debut week achieved 5.5 billion unique video views, while the Chennai Super Kings vs. Rajasthan Royals match on April 12, 2023, set a new record with 22 million concurrent viewers.
Brands utilise popular platforms to shape consumer perception.
IPL empowers brands to shape consumer perception and boost dealer confidence in endorsing their offerings while also providing abundant opportunities for crafting:
Effective marketing strategies, and
Engaging with the audience
Additionally, the IPL’s extended format spanning several weeks ensures prolonged brand exposure, facilitating the establishment of a lasting presence in consumers’ minds.
Engaging with Audiences
Opportunity to engage with diverse demographics, regionally and globally, through strategic campaigns and optimal platform utilisation.
Leveraging major streaming platforms helps brands:
Attract younger audiences and
Enhance brand visibility and engagement
Optimising Commercial Breaks
Commercial breaks allow brands to promote themselves effectively – with viewers waiting for the next ball or the over.
Brands can reach the audience with:
Compelling marketing strategies or storytelling to leave a lasting impression.
Partnerships within the IPL (Indian Premier League)
It is an excellent leverage for brands, offering a platform to access a broad and varied audience across multiple channels, including television, digital platforms, and in-stadium promotions
Marketing Strategy and Interaction
Advertisers prioritise promoting and engaging their advertising efforts by organising:
Contests
Offering exclusive experiences or
Creating relevant content (tapping into the emotional connection Indians share while watching matches with loved ones) to connect with the IPL’s passionate fan base
By targeting these moments, brands showcase their ads effectively. Additionally, using humor through social media posts, engaging reels, and timely IPL-related memes enhances brand values and drives maximum consumer engagement.
Lastly, the IPL’s global appeal and widespread media coverage offer brands a platform to expand their reach – beyond national borders.
Associating with the IPL allows brands to expand into:
International markets,
Target new consumer segments and
Establish themselves as global industry leaders
The Indian Premier League is a robust platform for brands to connect with vast audiences, enhance brand recognition and loyalty, and fuel business growth through strategic marketing and creative campaigns.
The Indian market, projected to become the world’s third-largest consumer market by 2030, is witnessing transformative shifts across its demographic landscape. According to a report by the World Economic Forum, India’s consumer market grew from $1.5 trillion in 2021 to a staggering $6 trillion by 2030, driven by a burgeoning middle class and digital transformation. This growth is a testament to the dynamic changes in consumer behaviour and spending patterns, making India a goldmine for brands.
Five distinct consumer segments are at the heart of this evolution, each offering a unique blend of cultural, economic, and technological traits. Understanding these segments – the Aspiring Middle Class, Young Professionals, Rural Consumers, Health & Wellness Enthusiasts, and Luxury Shoppers – is crucial for businesses aiming to make informed, data-driven decisions in this complex market.
Segment 1: Aspiring Middle Class
The Aspiring Middle Class in India, a segment characterised by its burgeoning numbers and increasing economic clout, is rapidly reshaping the country’s consumer landscape. Accounting for a substantial portion of India’s population, this group is projected to encompass over 580 million people by 2025.
This demographic shift represents not just a significant market opportunity but a window into the evolving aspirations of a nation.
Economically, this segment is marked by a growing disposable income, with the average annual household income expected to grow at 5.5% from 2020 to 2030, as per a report by Bain & Company. This rise in disposable income is fuelling aspirations for a better lifestyle, leading to an increased focus on education, health, and affordable luxury – areas previously considered beyond reach for the average middle-class consumer.
Education is experiencing a discernible shift toward private and digital learning platforms. According to Statista, India’s online education market is expected to reach $4.73 billion by 2023 and reach a user base of around 244 million users by 2027. This trend signifies the middle class’s commitment to education as a pathway to upward mobility.
Healthcare, too, is witnessing a transformation. Reports indicate that private expenditure on health among Indian households has increased significantly, with the middle class leading this change.
Affordable luxury, once an oxymoron, is now a reality for the aspiring middle class. Consumers are increasingly gravitating towards brands that offer a sense of premium-ness without the hefty price tag. As per a report by Deloitte, the luxury market in India is expected to grow to $30 billion by 2025, with a considerable contribution from affordable luxury segments.
For marketers, this segment offers fertile ground for growth. To effectively appeal to the aspiring middle class, strategies must be nuanced and empathetic towards their evolving needs. Brands that can provide quality and value while resonating with the aspirations of this demographic are likely to see long-term loyalty. This involves understanding their propensity for digital engagement, their pursuit of educational advancement, and their desire for healthcare and affordable luxury. Tailoring marketing strategies with a blend of aspirational messaging and value-driven propositions could be key to winning over this critical segment of Indian consumers.
The Aspiring Middle Class in India is not just a demographic segment; it’s a powerful force driving the country’s consumer economy. By tapping into their aspirations and aligning with their evolving preferences, businesses can unlock immense potential in this vibrant market segment.
Segment 2: Young Professionals
The Young Professional segment in India, a dynamic and influential group, is a driving force in shaping contemporary market trends. This segment, predominantly comprising millennials and Gen Z, is characterised by its tech-savvy nature, progressive outlook, and high engagement with digital platforms. According to a report by Morgan Stanley, millennials in India are set to become the largest demographic by 2027, representing a significant portion of the workforce and consumer base.
This tech affinity is evident in their consumption patterns. More than 85% of Indian millennials own a smartphone, a number that is steadily rising. Their lives are deeply intertwined with technology, influencing not just communication but also shopping, entertainment, and information consumption.
In terms of spending habits, young professionals in India show a distinct inclination towards electronics, fashion, and online services. The Indian e-commerce market, as reported by IBEF, is expected to reach $200 billion by 2026, with electronics and apparel being the most significant contributors. This trend highlights the importance of online shopping platforms in the daily lives of young professionals.
Fashion is another domain where this segment exerts considerable influence. India’s apparel market is worth $96.47 billion in 2023, making it the sixth-largest globally. With their evolving fashion sense and increasing brand consciousness, young professionals are pivotal to this growth.
When it comes to marketing strategies, understanding and leveraging their digital nature is key. Brands should create engaging online experiences, leverage social media, and utilise influencer marketing. A report by Google underscores the importance of digital influence in purchase decisions, stating that 70% of Indian consumers are influenced by digital channels early in their buying journey.
Furthermore, this demographic values authenticity and social responsibility. Brands that can align their marketing efforts with these values, creating content that resonates with the aspirations and ethical standpoints of young professionals, are likely to build strong, lasting relationships.
To effectively engage with young professionals in India, marketers must adopt an omnichannel strategy combining digital innovation with meaningful content. By doing so, they can tap into this segment’s enormous potential, characterised by its tech-savvy nature, evolving preferences, and considerable spending power.
Segment 3: Rural Consumers
The Rural Consumer segment in India, often underrepresented in mainstream market analyses, is undergoing a significant transformation fueled by economic growth and digital penetration. Representing approximately 66% of the country’s population, as per the World Bank, this segment is pivotal to understanding the broader Indian consumer market.
Economic growth in rural India has been notable.
According to a report by NITI Aayog, the rural economy is growing at a robust pace, with agricultural reforms and increased government spending acting as key drivers. This growth has translated into increased purchasing power. The Rural Consumption Per Capita has witnessed a steady increase, outpacing urban consumption in recent years, as indicated by a CRISIL report.
When it comes to consumer needs, rural India displays a unique pattern. Basic amenities, mobile technology, and affordable consumer goods are at the forefront of their demands. The Telecom Regulatory Authority of India (TRAI) reports a significant rise in mobile phone penetration in rural areas, highlighting a shift towards digital inclusion. This is further corroborated by a study from the Internet and Mobile Association of India (IAMAI), which found that internet users in rural India are growing at an unprecedented rate, underlining the increasing importance of mobile technology in these regions.
Affordable consumer goods also see high demand, with rural consumers seeking value for money. As per a report by Boston Consulting Group, rural India accounts for more than half of the country’s FMCG consumption. This shift indicates the rural consumer’s rising aspirations and enhanced purchasing capacity.
Reaching and engaging rural consumers requires a nuanced approach. Due to their widespread reach, traditional mass media like television and radio continue to be effective. However, the burgeoning digital literacy presents an opportunity for digital engagement strategies. Companies like HUL and ITC have successfully leveraged initiatives like ‘Project Shakti’ and ‘e-Choupal’ to deepen rural penetration, demonstrating the effectiveness of tailored, community-centric approaches.
Another effective strategy involves the localisation of products and messaging. Understanding regional preferences and cultural nuances is critical in crafting offerings that resonate with rural consumers. Creating robust distribution networks that overcome logistical challenges can also significantly enhance market presence in these areas.
Rural India offers a vast and growing market for discerning marketers. By understanding their unique needs, leveraging both traditional and digital channels, and localising offerings, brands can effectively engage with this dynamic segment.
Segment 4: Health & Wellness Enthusiasts
India’s Health & Wellness Enthusiasts segment is a rapidly growing demographic reflective of a global rise in health consciousness and wellness trends. This segment, increasingly prevalent in urban and semi-urban areas, is driven by a holistic approach to health, incorporating both modern and traditional practices.
India’s wellness market is experiencing robust growth. The wellness industry in India is estimated to reach $200 billion by 2025. This surge is attributed to an enhanced focus on health and well-being, especially after the global health crisis, which has heightened awareness about the importance of maintaining good health.
The interests of this segment are diverse, ranging from organic products to fitness regimes and traditional wellness practices. The organic food market in India, as reported by Ernst & Young, is projected to reach $2.5 billion by 2025. This growth indicates a significant shift towards natural and chemical-free food products, resonating with the health-conscious consumer.
Fitness, too, is a key area of interest. India’s fitness industry is growing at an annual rate of 8-10%. The rise in gym memberships and the popularity of fitness apps underscore a growing dedication to physical well-being.
Traditional wellness practices, rooted in Ayurveda, Yoga, and Naturopathy, are also experiencing a renaissance. An average Indian millennial now spends INR 4,000 per month ($48) on fitness and wellness.
Marketing to this segment demands a nuanced approach that aligns with their values and lifestyle choices. When positioning their products, brands should focus on authenticity, quality, and sustainability. Natural, eco-friendly ingredients and transparent labelling can appeal significantly to this demographic.
Educational marketing, through workshops, webinars, and content marketing, can also be effective. Providing valuable information about health and wellness and how their products or services contribute to it can help build trust and establish brand credibility.
Influencer partnerships, particularly with fitness experts and wellness gurus, can also be a potent tool. As per a survey by Collective Bias, 30% of consumers are more likely to buy a product endorsed by a non-celebrity blogger than a celebrity. Influencers who embody health and wellness values can authentically connect with this segment, influencing their purchase decisions.
The Health & Wellness Enthusiast segment in India offers ample opportunities for brands that effectively align with their ethos. By focusing on authenticity, quality, and informative marketing, brands can successfully engage with this health-conscious demographic.
Segment 5: Luxury Shoppers
The Luxury Shoppers segment in India represents a niche but highly influential part of the consumer market. Characterised by high disposable incomes and a penchant for premium brands, this segment is an essential target for luxury marketers.
The profile of luxury shoppers in India is diverse, but a common thread is their high-income levels and a taste for exclusivity. According to a report by Bain & Company, India’s luxury market is poised to grow to $8.5 billion by 2025. This growth trajectory is underpinned by an expanding base of affluent consumers, including new-age entrepreneurs, high-net-worth individuals (HNWIs), and the well-traveled urban elite.
Preferences within this segment are markedly towards luxury brands, high-end automobiles, and premium services. For instance, the luxury car market has seen consistent growth, with a report by the Society of Indian Automobile Manufacturers (SIAM) indicating a year-on-year growth rate of 10% in the luxury car segment. This inclination towards luxury automobiles is not just a symbol of status but also an appreciation for high-quality craftsmanship and advanced technology.
In fashion and accessories, luxury brands find a lucrative market in India. A study reveals that Indian consumers are increasingly brand-conscious and are willing to pay a premium for international luxury brands, which are perceived as symbols of status and success.
For marketers aiming to appeal to luxury shoppers, brand positioning is key. It involves crafting an aura of exclusivity and prestige around the brand. Limited-edition products, exclusive previews, and by-invitation-only events can enhance this perception of exclusivity.
The experience offered to luxury shoppers is equally important. Personalised services, high standards of customer care, and a deep understanding of consumer preferences can set a luxury brand apart. As per a Deloitte study, personalised customer experiences are a critical factor in winning the loyalty of luxury consumers.
Leveraging digital platforms to create an omnichannel experience is also vital. While the traditional in-store experience remains essential, integrating digital channels can amplify the luxury shopping experience. Affluent Indian consumers increasingly research online before making high-end purchases, indicating the importance of a strong digital presence for luxury brands.
The Luxury Shoppers segment in India presents significant opportunities for brands that can skillfully navigate its nuances. By emphasising exclusivity, delivering personalised experiences, and integrating digital touchpoints, luxury marketers can effectively engage and captivate this affluent demographic.
Leveraging Cross-Segment Trends in India’s Diverse Consumer Market
While each of the five consumer segments in India has its distinct characteristics, there are notable overlapping interests and trends that savvy marketers can leverage. Understanding these cross-segment trends broadens the market reach and enables brands to create more inclusive and appealing marketing strategies.
Digital Integration: A Common Thread
One significant overlap across segments is the increasing reliance on digital platforms. From the tech-savvy young professionals to the rural consumers embracing mobile technology, digital integration is a unifying trend. Brands that effectively leverage digital channels can appeal to a broad spectrum of consumers. For instance, Reliance Jio revolutionised access to digital services in rural and urban India, making high-speed internet accessible and affordable. This strategy expanded their consumer base and established Jio as a household name across diverse consumer segments.
Sustainability and Quality: Universal Appeals
Another overlapping interest is the growing consciousness about sustainability and product quality. While prominent among Health & Wellness Enthusiasts, this trend resonates with the Aspiring Middle Class and Luxury Shoppers. Brands like Tata Motors have capitalised on this by introducing electric vehicles catering to environmental concerns while appealing to the luxury and aspirational segments with their high-quality and innovative designs.
Personalisation: Bridging Consumer Gaps
Personalisation is a trend that cuts across various consumer segments. Whether it’s customised health and wellness products or personalised luxury experiences, consumers across segments appreciate a tailored approach. An example is Nykaa, a beauty and wellness e-commerce platform that offers personalised product recommendations. This strategy has enabled Nykaa to cater to a wide range of consumers, from young professionals seeking the latest beauty trends to health enthusiasts looking for organic products.
Indian Brands Navigating Cross-Segment Trends
Flipkart: Bridging Urban and Rural Divide
Flipkart, India’s leading e-commerce platform, has successfully tapped into both urban and rural markets. By offering a wide range of products, from affordable goods appealing to rural consumers to premium brands for urban shoppers, Flipkart has become a one-stop shop for diverse consumer needs.
Patanjali: Blending Tradition with Modernity
Patanjali Ayurved has effectively catered to Health & Wellness Enthusiasts and the Aspiring Middle Class by offering affordable organic and Ayurvedic products. Their marketing strategies, rooted in traditional values but presented with a modern twist, resonate across these segments.
Ola Electric: Revolutionising Urban Mobility
Ola Electric’s focus on eco-friendly transportation solutions appeals to environmentally conscious consumers across segments. Their electric scooters and cars attract young professionals, health enthusiasts, and even luxury shoppers looking for sustainable mobility options.
Brands that recognise and leverage these cross-segment trends can create more inclusive and effective marketing strategies. By focusing on digital integration, sustainability, quality, and personalisation, businesses can appeal to a broader range of consumers, thus maximising their market potential in India’s diverse consumer landscape.
Forging the Future: Embracing India’s Consumer Kaleidoscope
As we conclude this exploration of India’s dynamic consumer segments, the importance of segment-specific strategies becomes undeniably evident. India’s consumer market is not a monolith but a vibrant mosaic of needs, aspirations, and behaviours. Marketers and market research professionals must recognise the uniqueness of each segment to craft strategies that resonate deeply and effectively.
Adaptability and innovation are the keys to thriving in India’s diverse market. As consumer behaviours evolve, so must the strategies employed to engage them. This calls for a blend of data-driven insights and creative thinking. Marketers must be agile and ready to pivot their strategy in response to new trends and consumer insights. The agility to adapt, coupled with the ability to innovate, will distinguish successful brands in this competitive landscape.
The landscape of Indian consumerism is in constant flux, influenced by technological advancements, economic shifts, and cultural changes. This evolving landscape presents both challenges and opportunities. Marketers and businesses that stay attuned to these changes and proactively respond will be ahead of the curve. It’s not just about responding to current trends but anticipating future shifts and preparing for them.
The Road Ahead
As we look towards the future, the Indian market promises many opportunities for those willing to invest time and resources in understanding its complexity. The segmentation discussed in this article is just the tip of the iceberg. Each segment has layers of nuances waiting to be explored and leveraged.
The Indian consumer market, with its rich diversity and rapid changes, offers a fertile ground for innovation and growth. Marketers and market research professionals should view this not as a challenge but as an exciting opportunity to craft impactful, resonant, and sustainable strategies. The key to success lies in a deep understanding of these segments, a willingness to adapt, and the courage to innovate. Let’s embrace the kaleidoscopic nature of Indian consumerism and forge ahead into a future brimming with possibilities.
Kadence: Your Expert Guide
At Kadence, we bring a wealth of experience and a deep understanding of India’s multifaceted market. With multiple offices across India, our team is uniquely positioned to provide insights that are both local in relevance and global in scope. We specialise in dissecting complex market dynamics and translating them into actionable strategies for your brand.
Partner with us to navigate India’s consumer segments with confidence. Whether you aim to connect with the Aspiring Middle Class, the Tech-Savvy Young Professionals, the Emerging Rural Consumers, the Health & Wellness Enthusiasts, or the Luxury Shoppers, Kadence is equipped to guide you.
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In the bustling heart of Mumbai, a revolutionary, old-world system thrives, mirroring the precision of today’s top technological giants like Uber. Yet, it operates without an ounce of digital intervention. This marvel is the Mumbai Dabbawalas, an intricate network of lunchbox delivery men.
For over 125 years, these dabbawalas have flawlessly delivered home-cooked meals to Mumbai’s office-goers. Daily, they manage around 200,000 lunch deliveries with a near-impossible error rate – an achievement that’s caught global attention, especially those in Six Sigma and management.
The Mumbai Dabbawalas not only showcase an unparalleled service but have also earned their stripes in the global standards of operational efficiency by achieving Six Sigma certification, which translates to an error ratio of just 1 in 16 million – or, put another way, a single mistake in 1,60,00,000 lunch boxes.
This perfection and reliability were recognised by Forbes Global magazine in 1998, which, after conducting a thorough quality assurance study of their operations, awarded the Dabbawalas a Six Sigma efficiency rating of 99.999999%.
The Mumbai Dabbawala’s commitment to excellence is evident in their methodology. They’ve devised an intelligent coding system and use a combination of bicycles, hand-pulled carts, and local trains to ensure timely and efficient deliveries. This incredible journey and dedication towards time management align perfectly with the Six Sigma quality service standards. Their track record boasts a performance rate of 99.9999% and complete customer satisfaction, affirming that their margin of error is an almost negligible figure of less than 0.1%.
So, what makes this system so painstakingly accurate? How has a semi-literate, decentralised, grassroots organisation like the dabbawalas become a symbol of operational perfection, paralleling the principles of Six Sigma?
How does the Dabbawalla system work?
The Mumbai Dabbawala system is an intricate, century-old network primarily aimed at delivering freshly cooked meals from homes to offices throughout Mumbai.
Here’s a breakdown of how this fascinating system functions:
Collection: A dabbawala collects the lunchboxes with freshly prepared meals from customers’ homes or lunch places in the morning.
Sorting: These lunchboxes are then taken to a sorting place, where they are sorted based on their destination. Each lunchbox has a distinct code, a combination of alphabets and numbers. This code indicates the destination and the recipient.
Transportation: Once sorted, the lunchboxes are transported using a mix of bicycles, trains, and on foot. Given Mumbai’s complex railway system and dense urban setting, these modes of transport ensure speed and efficiency.
Delivery: After reaching the respective areas, the lunchboxes are again sorted based on the specific building and floor number. Another set of dabbawalas then delivers the lunchboxes to the appropriate individuals.
Return: Post-lunch, the process is reversed. The empty lunchboxes are collected and sent back to the respective households.
A few notable aspects of this system include:
Coding System: One of the most remarkable features of the dabbawala system is its coding method. It’s a mix of colours, numbers, and alphabets that denote various aspects like source and destination, ensuring each tiffin reaches its rightful owner.
Human-powered: The entire process is manually powered. There’s no use of modern technology, apps, or even written addresses, yet it matches and sometimes surpasses the efficiency of contemporary tech-driven delivery systems.
Teamwork: The dabbawalas operate in teams and are stakeholders, ensuring each member’s accountability and commitment to the service.
The success of this system, besides its operational efficiency, is also due to the values the dabbawalas hold dear: trustworthiness, consistency, and a strong sense of community service. Their incredible efficiency, resilience, and dedication have made them the subject of numerous case studies and a model for businesses worldwide.
Six Sigma, Mumbai Dabbawalas, and the Power of Market Research: An In-Depth Look
Understanding customer needs and preferences is crucial for any brand.
The Six Sigma model, renowned for its meticulous approach to quality management, pairs exceptionally well with market research to pinpoint and fulfil these needs.
To exemplify this synergy, let’s explore the fascinating world of Mumbai’s dabbawalas, who have virtually mastered the Six Sigma principles in everyday operations.
Breaking Down Six Sigma
The Six Sigma methodology is divided into six key stages for streamlining processes and reducing errors:
Define: Recognise the problem and understand customer requirements.
Measure: Collect data on current processes and determine where errors or defects occur.
Analyse: Scrutinise the data to determine the root causes of errors or defects.
Improve: Implement changes to eradicate the root causes identified.
Control: Maintain ongoing oversight to ensure the implemented changes are effective and sustained.
Verify: Confirm that the refined process aligns with customer needs and is free from defects.
The Mumbai Dabbawallas represent a grassroots approach to Six Sigma principles at work. Here’s how they integrate the Six Sigma principles into their meal delivery service.
Define: The dabbawalas clearly understand their task—to deliver home-cooked meals to offices, with the stipulation that the delivery is prompt, the food is at the right temperature, and the content is as ordered.
Measure: Performance metrics include the total number of lunches successfully delivered versus the number of errors or mix-ups that occur.
Analyse: When mistakes happen, such as delivering to the wrong person, the dabbawalas carry out a root cause analysis to avoid future occurrences.
Improve: They are committed to a cycle of continuous improvement to nullify the errors discovered.
Control: A unique coding system controls the process, ensuring each lunchbox reaches its rightful owner.
Verify: The dabbawalas meticulously manage delivery times and the freshness of food, covering distances of 60-70 km daily within six hours, thereby confirming the high quality of their service.
How market research can be a catalyst for Six Sigma excellence.
Integrating market research into the Six Sigma model offers a potent combination. Through market research, brands can gain in-depth insights into customer needs and preferences, which, in turn, can refine each of the Six Sigma steps.
For instance, by conducting customer surveys, a company can discern customer preferences for food types, packaging, and delivery times. Such insights can be directly fed into the Six Sigma process for optimisation. If a survey reveals a growing preference for vegetarian meals, the dabbawalas could adapt by including more vegetarian options, enhancing customer satisfaction and process efficiency.
Market research isn’t just a standalone tool; when integrated with methodologies like Six Sigma, as evidenced by the dabbawalas of Mumbai, it becomes a powerful lever for business excellence. By deeply understanding customer needs and continually refining processes, companies can achieve a level of service that is nothing short of exceptional.
The Mumbai Dabbawalas’ story, much like the Six Sigma narrative, is one of relentless pursuit of perfection. It’s a testament to human capability, reminding us that with dedication, even a traditional system can achieve global standards of excellence, making it difficult to distinguish between the precision of Six Sigma and the brilliance of the Dabbawalas.
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In September 2022, Kadence partnered with tSurvey, an Indonesian online panel firm, to examine how individuals reacted to digital and non-digital ads. The participants came from 10 big cities in Indonesia, with Jakarta holding the biggest percentage of this study at 44 percent.
According to the findings, 45% of the respondents watched ads on their social media accounts. Among the 88% of people who had Instagram accounts, 40% didn’t skip the ads on the platform. Likewise, from the 62% of respondents with YouTube accounts, 28% didn’t skip the ads. Yet, the number decreased to 21% for the 40% of the respondents with Facebook accounts.
By age, the 26-30-year-olds had the highest viewership percentage of ads on their social media compared to other age groups.
Respondents highlighted the following three reasons why they watched the ads: they planned to buy the product (58%), they found the visuals captivating (55%), and the duration was short (40%).
Lastly, the most watched product category was automotive advertising, with 57% viewership, followed by body care (56%) and face care (50%).
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From the heart of the capital, we conduct market research across the Indonesian archipelago as well as the international area supported by our global offices throughout Asia, Europe, and the US – all tailored to meet your needs.
The market research industry in India is thriving, but it is not without its’ own challenges and complexities.
Size of the Market Research industry in India
According to Statista, the size of the market research industry globally is around US$74 billion, with more than half (US$47 billion) coming from within the U.S. At roughly Rs.1500 crore or US$15 billion (2017-18), the Market Research industry in India may be smaller in comparison. Still, it is the fastest-growing market globally, growing by an average of 10 per cent per year, compared to the industry’s global growth of just over 2 per cent in recent years. Most of India’s market research comes from overseas brands.
What makes India a favourable outsourcing destination for Market Research firms?
The overseas demand is mainly due to the enormous cost advantages of conducting market research in India. The processing of data is about 50% cheaper in India than in developed nations. Therefore, the outsourcing business is doubling in value every year.
The rising middle class comprises young people who are very familiar with U.S. brands. India has the second-largest population of English speakers globally, coupled with a relatively stable political backdrop. These factors make India an attractive country for international companies.
India has also developed a pool of trained market research professionals who can provide companies with superior study methodologies, data processing, analysis, and reporting, making India an attractive outsourcing destination.
What are the high-growth sectors in Market Research in India?
India is evolving into a ‘Service Economy’ with telecom, retail, and financial services as the high-growth market research sectors. Marketing research in India has been focused more on fast-moving consumer goods (FMCG). Besides these, India’s most significant growth area for the market research industry is the media measurement business, followed by the auto, telecom, healthcare sectors, durable goods industries, and the public sector. Market research is mainly focused on customer insights and satisfaction in all industry sectors.
What are the challenges of conducting Market Research in India?
India faces unique, complex challenges because it can be viewed more as a continent than a country. This is because of many diverse cultures, customs, behaviour, languages, and even regional dialects.
In India, one size does not fit all. Researchers need to understand the cultural nuances peculiar to different parts of the country when designing surveys and studies and selecting local markets.
To obtain data for nationwide studies, market research firms in India have to target multiple cities, each with its language and cultural nuances. While Indian market researchers understand and know how to work within the complexities, it becomes challenging to warrant the high costs of conducting national studies to clients.
On the plus side, this has helped Indian researchers attain higher standards of conducting studies. However, it is also true that it is difficult to attract high-quality research talent in India due to relatively lower salaries. While Indian companies understand the importance of Market Research and use it effectively, they are amongst the most demanding but lowest paying countries for market research.
One of the biggest challenges is the size of the country. In the past, with fewer households having access to phones, it was challenging to conduct market research. In 1997, less than one percent of the population had access to a telephone, and with low literacy rates, telephone and mail surveys were non-existent. However, in recent years, technology has lifted many barriers to market research in India.
India’s digital journey has been remarkable. The number of internet users grew from 0.62 million in 2010 to 843.06 million in 2021 (the second-largest in the world). Estimates suggest that this figure would reach over 1.5 billion by 2040, and Smartphone usage far surpasses desktop and laptop usage. Today, smartphones are present in 84% of households. (Source: Statista)
These developments are a massive advantage in a country the size of India because the cost savings from using the internet or phone over face-to-face interactions are enormous. The rise in social media usage has also immensely helped the growth of market research in India.
Face-to-face research was dominant before the pandemic; however, the first wave of COVID-19 pandemic and the lockdown helped speed up digitization, making it easier to use technology and social media for research studies.
What is the state of market research in Rural India?
Nearly 70% of India’s population lives in rural areas, and the rural market has been growing five times as much as the urban market. However, doing market research in the rural areas of India remains cost-prohibitive due to the size of the country and its hugely diverse population. Additionally, largely rural population groups have not seen the technological breakthroughs and are beyond reach in many ways.
During the pandemic, there has been an upsurge in digitizing rural India. The government has been pushing the adoption of digital technology in rural areas for many years now, but during the lockdown, it gained momentum.
During the first pandemic wave, many jobless migrant workers had to go back to their villages from the cities, which triggered a rise in rural digitization.
Still, market research firms face many challenges when it comes to the evolving, post-pandemic rural population. Furthermore, the complexities of hyper localization in languages, dialects, and traditions are even more pronounced in rural areas than urban centres.
How did the sudden spike in mobile internet penetration further help the growth of the market research industry in India?
The availability of cheap smartphones in India since 2010 laid the foundation for digital literacy and adoption. Furthermore, the Indian government understood the importance of investments in its telecommunications sector and further deregulated the industry.
In 2016, Reliance Jio disrupted the Indian telecommunications market by offering cheap 4G, high-speed data plans with free voice calling. This competitive data pricing pushed other telecom providers to drive down their pricing and led to a cumulative growth in affordable mobile internet accessibility amongst the Indian masses.
What challenges do Indian Market Research companies (in particular) face?
In India, market research firms deal with the most demanding but lowest-paying clients in the industry. This makes it very difficult to attract top talent of market research professionals as the salaries are relatively lower. Industry attrition in Indian market research firms is high at about 30%, and people leave due to low salaries.
The Future of Market Research In India
The growth of Market Research in India is clearly on the rise and shows no signs of stopping, despite the challenges. The market research industry in India is over three decades old. In recent years, there has been a rapid rise in the number of Indian Market Research firms and the interest of U.S. and European firms in outsourcing market research work to India. Companies in developed nations have 40-60% cost savings when they outsource market research to India.
Telecommunication disruptions, technological developments, the rising middle class, a young country familiar with International brands, and lower research costs in India have led to growth in the market research industry.
Market research is critical to building a robust business plan, and while many companies understand this, it is costly and time-consuming to undertake market research. Market research firms are more pressed than ever to deliver accurate insights and solutions to help companies make the right decisions while keeping turnaround times shorter and costs lower.
Artificial Intelligence (AI), machine learning, and big data are changing how Market Research is carried out.
Organizations use many traditional market research techniques to learn more about their customers. Traditionally, these include interviews, surveys, focus groups, and market reports, which are costly and time-consuming. The Market Research industry in India now has access to and is adopting new technologies to collect, analyze, and present data faster yet accurately.
Indian market researchers are using social media, advanced analytics, and data collection.
New developments like Artificial Intelligence, machine learning, and ‘big data‘ offer a viable solution. This also means expanding the skill set of the researchers so they can effectively employ these market research methodologies for streamlining and automating data collection and analysis. AI can also scan market data in any language, which can be invaluable in a multilingual country like India.
The rapid rise in the number of Indian Market Research firms and the growing demand from international agencies in outsourcing to India show promising potential for the future growth of Market Research in India.
Although many challenges lay ahead, there will always be a need for high-quality, flexible market researchers. While technology and automation may be invading the market researcher’s territory, you still need people to uncover data and insights. The best market research teams of the future will combine techies and problem solvers, who will use technology to streamline and speed up their studies. A good quality, accurate, fast, and lower-cost research workforce will ensure India’s future growth as a market research provider to the western world.
With the growing global demand for cost-effective and high-quality market research, the rising trust in Indian researchers, and the value of the Indian market, the future of market research in India looks promising.
Selecting an Indian Market Research Agency
With many providers to choose from, appointing an agency for your next market research project that understands your unique research needs is crucial. If you are looking to conduct market research, selecting an agency with national expertise is a must.
At Kadence International, we have offices in 10 countries, including India. Our office in India is recognized as one of the leading market research companies in the country.
With a Head Office in New Delhi, our diverse team has hundreds of years of collective market research expertise and speaks 12 different dialects.
We would welcome the chance to discuss your next market research project. Learn more about our Indian Office here or submit your market research project here.
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Global manufacturing leaders are carefully considering the pros and cons of both.
China still leads the world in manufacturing, with close to 30% of the country’s economic output coming from this sector. Many industry experts and leading economists believe that China will no longer be the manufacturing powerhouse it once was within the next five years.
How the pandemic changed the manufacturing industry
The global pandemic caused a notable decrease in manufacturing production in 2020 due to containment strategies in economic and social lockdowns. Both had a significant impact on both supply and demand.
Consumer demand declined overall due to uncertainties triggered by travel restrictions, remote working, business cessations, and job losses. At the same time, the production of many goods came to a halt worldwide for many months.
A shift away from Made in China
For some major manufacturing companies, the pandemic spurred a sea-change in where they manufactured their product. The American Chamber of Commerce in Shenzhen, China, surveyed its manufacturing membership and learned that over 30 per cent were in the process of moving some of its manufacturing out of China.
In July 2020, Apple announced it was shifting the assembly of its iPhone 11, the most advanced model in its product line, from China to India.
A couple of weeks later, Samsung and several other Apple suppliers applied for the Indian government’s incentive program targeted towards large-scale manufacturers of electronic products, which would see a significant part of these companies’ manufacturing transferred to India.
In recent years, China has attempted to replace the term “Made in China” with “Engineered in China”: the country would no longer be known as the world’s factory, a cheap place for countries to outsource manufacturing. Chinese manufacturers have increased automation and switched to using robots instead. In these instances, up to 80 per cent of workers were sent home and replaced with specialized production line workers — typically experts in machine maintenance and machine learning. Mechanised factories boast much higher output with fewer errors and accidents, and a higher dependence on technology and automation meant wage costs were no longer critical.
With these changes, China is slowly losing its foothold in the global manufacturing sector for reasons with nothing to do with costs and output.
Other factors affecting this shift also include; trade tensions between China and the US (along with its western allies), the realization by global manufacturers during the pandemic of the flaw in the supply chain delivery due to over-reliance on one country for production, increased costs, and tariffs, and consumer sentiment of products made in China.
Even so, manufacturing in China is expected to recover in 2021, growing by 9 per cent.
The growth in manufacturing in India
By comparison, India is expected to grow by 10 per cent, recovering from significant economic strain during the pandemic.
The average age of a citizen in India is 28 years versus 38 years in China. This country has a massive population, and the demand for technology is high. Manufacturing overseas is not always about importing; it is also about global supply. If you have a product that appeals to 20 somethings or 30 somethings, manufacturing locally in India makes sense.
India is a lot less controversial geopolitically, and the Indian government is poised to capitalize on that notion.
The government of India has launched several policies over the past few years to create a favourable environment and attract investment in manufacturing, with a focus on electronics manufacturing, including mobile phones, industrial electronics, consumer electronics, electronic components, computer hardware, and LED products.
Due to these commercially favourable initiatives, India’s electronics production has more than doubled in the last five years (2015-2020). According to the Indian Ministry of Electronics and Information technology, India’s electronics market is expected to reach US$132 billion by the end of 2021.
In China, manufacturing labour wages by location (in USD per hour) is $3.80 compared to India’s 0.70. Even with China’s focus on automation and robotics, labour in India is five times less than in China.
While the shift from solely or wholly manufacturing in China has seemingly begun, China will still be a global manufacturing hub.
Perception of manufacturing locale
Supply is synonymous with manufacturing. In economics, the rule of supply and demand states that if all other factors remain equal, the higher the price of a good, the fewer people will demand that good. For most, regardless of generation, price and availability are essential, if not the most important, in buying decisions.
However, in economics, “movements” and “shifts” represent different market phenomena concerning supply and demand.
In the past, companies chose to manufacture from an outside country due to price. Now other factors could negatively affect demand and brand perception.
Price, or cost of goods sold, is an easy measurement to evaluate in manufacturing. However, more and more companies see that consumer sentiment is a factor contributing to growth and demand.
Consumer sentiment is becoming an essential factor in manufacturing. After all, it does not matter how cheaply you can manufacture a product, whether that is in China or India, if the demand is not there or if consumers will choose a different, competitively priced product based on the manufacturer’s location.
A key question a company should ask is whether consumers would feel differently and ultimately decide to buy a product based on a “Made in India” label versus “Made in China.”
For Gen Z and millennials, these two generations are much more brand conscious. In one study, 62% of millennials surveyed said buying from brands that support their own political and social beliefs is essential. In another study, Gen Z consumers are more likely to switch brands that meet specific values like sustainability.
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The role of research in manufacturing
Moving the manufacture of parts or components to multiple countries is a huge undertaking. Deciding to enter a new market, along with evaluating manufacturers, can be incredibly daunting if “on the ground” knowledge is limited or non-existent. Commissioning a research agency to find out where to direct your attention is a crucial first step. Selecting a research company with direct market knowledge can save time and capital investment.
Understanding how your target audience perceives where your product is manufactured, alongside any impacts on demand, should be researched and evaluated.
Read case studies from the Manufacturing sector here
We’ve been working with Kadence on a couple of strategic projects, which influenced our product roadmap roll-out within the region. Their work has been exceptional in providing me the insights that I need.
Senior Marketing Executive Arla Foods
Kadence’s reports give us the insight, conclusion and recommended execution needed to give us a different perspective, which provided us with an opportunity to relook at our go to market strategy in a different direction which we are now reaping the benefits from.
Sales & Marketing Bridgestone
Kadence helped us not only conduct a thorough and insightful piece of research, its interpretation of the data provided many useful and unexpected good-news stories that we were able to use in our communications and interactions with government bodies.
General Manager PR -Internal Communications & Government Affairs Mitsubishi
Kadence team is more like a partner to us. We have run a number of projects together and … the pro-activeness, out of the box thinking and delivering in spite of tight deadlines are some of the key reasons we always reach out to them.
Vital Strategies
Kadence were an excellent partner on this project; they took time to really understand our business challenges, and developed a research approach that would tackle the exam question from all directions. The impact of the work is still being felt now, several years later.
Customer Intelligence Director Wall Street Journal
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