– By Saurabh Arora
Few countries have digitalized as rapidly and to as great an extent as India over the past five years. The vision of ‘Digital India’ has been achieved on several important fronts and is gaining momentum on many others, aided by a strong government push; private sector participation; rising disposable incomes; widespread, affordable wireless connectivity; and enthusiastic public response. In fact, when it comes to smartphone usage and infotainment, it would be fair to say that we are seeing a ‘digital-first India’. It is important to understand the behaviours, preferences, and considerations of Indian consumers in this digital age, for it is the basis on which consumer-facing companies and brands must design their products and execute their marketing strategies. There are some broad trends that I believe are significant in this context.
The growing percentage of millennial and Gen Z consumers
India is currently among the youngest countries in the world, in terms of the average age of its citizens. A large and growing percentage of active shoppers today are from the millennial and Gen Z cohorts, who are both interested and fluent in the use of mainstream technologies and connected devices.
Growing aspirations for a better lifestyle and premium products
Indian consumers, by and large, aspire for comfortable, convenient, contemporary lifestyles and seek out best-in-class products and services that will enable it for them, even if they are priced at a premium than what is comfortably affordable. This shift is evident not just in metros and tier-1 cities but also in smaller cities and towns. Many of the so-called divides between urban and rural consumers are getting thinner.
Digital discovery of products and information-based purchases
Social and online media are having a huge influence on how consumers approach their purchase decisions. Platforms such as YouTube, Instagram, Facebook, and Reddit facilitate product discovery and offer user reviews that help buyers in their decision-making. Globally, search engines and retailer websites are the top sources of pre-purchase information. India bucks the trend, with e-commerce companies emerging as the go-to source of product information for almost 60% of Indian consumers. Search engines come next, with 50% Indian consumers looking up a product on a search engine before buying it.
Tech eagerness
Studies reveal that around 31% of Indian consumers want the latest technology as soon as it becomes available, and 32% others are eager to try it out before others do.1 This eagerness presents exciting opportunities for technology brands. The metaverse is yet another promising frontier for marketers. Studies suggest that Indian consumers are more upbeat about the metaverse than their global counterparts.
Rapid 5G adoption
Since its launch in October 2022, 5G in India has already witnessed over 180 million subscribers, and the number is projected to climb to 840 million by 2029 – or almost two-thirds of all mobile subscriptions – according to a report by Ericsson. On average, Indian 5G users spend more video, gaming, and AR content as compared to users from other countries. Furthermore, they are willing to pay a premium for innovative 5G services.
Focus on sustainability and ethics
Indian consumers have traditionally been price-conscious; however, an increasing number of them are now also showing a preference for brands that champion sustainability and strong ethics. A survey indicated that 19% of Indian consumers were willing to pay up to 20% more for products by companies that had a reputation for ethical practices.
The demand for personalization
We are at the cusp of an era of hyper personalization, where brands can leverage AI and data analytics to predict future purchase behaviors, design individually tailored experience, and provide hyper-personalized recommendations based on data from past interactions across multiple platforms. This opportunity, however, comes with a huge challenge – data protection and data privacy.
The need to protect data and privacy
Many of the services and features that consumers expect from their brand experiences today are based on data – often their very own data. As much it is their individual responsibility to be careful about what they share and why, the onus is equally on brands to ensure the privacy and ethical use of all consumer data. With widespread and growing concerns around data privacy, brands must be transparent in how collect and use data, in compliance with local (Digital Personal Data Protection Act 2023 in India) and global (General Data Protection Regulation in the EU) regulations.
In the coming years, we will see increasing integration of AI, the Internet of Things (IoT), Quantum Computing, and other new technologies into marketing approaches. Brands must keep abreast of the evolving consumer landscape and make the most of the opportunities that present themselves in ways that are relatable, sustainable, and ethical. Understanding consumers has never been more challenging, or more necessary.
(Saurabh Arora, Business Development, Qualcomm India Pvt Ltd.)
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