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An individual who buys products or services for personal use and not for manufacture or resale . A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Indian Consumers are of two types: Traditional consumers Modern consumers

Single income Less disposable income Less available options Lack of awareness Prefer to save Family shopping Functional Traditional meals

Dual income More disposable income Plenty of options Sound knowledge Prefer to spend Individual or with friends Lifestyle Indianized Mc Donald's

Consumers of this type are slowly reducing

Consumers of this type are fast increasing

RICH (annual income > US$ 4,700) * Own cars, PCs CONSUMING (US$ 1000-4700) * bulk of banded consumer goods, 70% of 2-wheelers, refrigerators, washing machines

3 million households

2005-06 6 million households 75 million

55 million

CLIMBERS (US$500-1000) 65 million * Have atleast one major durable (mixer, sewing machine/tv) ASPIRANTS (US$350-500) 32 million * Have bicycles, radios and fans

78 million

33 million

Traditionally Indian people used to invest their money in savings. But now the trend is shifting from saving to spending.
Availability of lifestyle spending options is increasing

for Indian consumers and that inducing higher spends on "status acquisition".

Traditionally, Indian consumer is cautious about debts.

In recent past, this attitude has changed radically and in recent year's credit is no more a feared entity.

Indian consumer buying behavior to a large extent has a western influence.

Foreign brands like Lee have gained wide consumer acceptance in India and they are much more open for experimentation. Beauty parlors in cities, eateries, designer wear, watches, hi-tech products are a few instances which reflect these changes. Indian market is largest potential market in the world. According to Ernst & Young report, 'The Great Indian Retail Story, 2006', the emergence of a larger middle and upper middle classes and the substantial increase in their disposable income has changed the nature of shopping in India from need based to lifestyle dictated.

CHANGE IN THE PROFILE OF THE INDIAN CONSUMER: Indian consumers are shifting from price cautious To brand cautions. Consumers of branded products are growing day-today. Indian consumers are not hesitating to take loans on their credit cards to buy branded products. Sales of auto-mobiles and mobile phones have increased substantially.


Social transition like education,urbanization,women empowerment, nuclear family. Influence of TV(cable or satellite): lifestyle awareness aspirations Increase in young income group because of IT industry. International companies like wal-mart have entered Indian markets.

CONCLUSION: Profile of the Indian consumer is changing and it will change further because of increasing western influence on people .