This segment has an influence on consumer spending far in excess of its numerical strength. Nine million people in the age group of 12-25 years from the top 35 cities (one million plus population) in India are the ones setting the trends and raising the aspirational value for one-billion-plus Indians, reports MindShare Insights.
Another critical factor is the increasing buying power of this segment. MindShare Insights found that the earning age in India is down by 10 years, and 54% of youngsters are earning while still studying. “Business process outsourcing and other service industries have lowered the average working age. This has made them an immensely desirable target group to marketers,” says Sinha.
These trendsetters are, however, difficult to typecast. The study found the young in India aspire to international style brands, such as Armani, but consider ethnic brand Fabindia to be stylish too. They are comfortable grabbing a bite at McDonald’s, but relish the Indian fare at Haldiram’s as well. They are willing to stand in queue for hours to get their copy of the latest in the Harry Potter series, while buying into the exploits of the animated reincarnation of mythological hero Hanuman. They watch the youth music television channel MTV, but are responsible for an increase in the viewership of religious channels such as Aastha as well.
These contradictory traits are compounded by a more global outlook. Not only are young Indians more curious about the latest international trends thanks to global media such as television and the Internet, they are much better informed too, and are quick to switch loyalties. It is cool to be “constantly on the move”, concludes the MindShare Insights study.
Another distinctive feature of Indian youth, identified by the study, is that they are extremely tech savvy. They are comfortable with the latest gizmos, and are clued into the latest mode the virtual world offers, whether it is social networking, blogs, or online gaming.
Many marketers are aggressively targeting the tech-savvy generation. Consumer durable giant LG Electronics India Pvt. Ltd now plans to direct its advertising spends mostly on “young products” such as laptops and mobile phones to position itself “as a youth-centric brand”. “Our portfolio has changed from a consumer electronics and home appliances company focused primarily on being a family brand, to catering to needs of young independent individuals,” says V. Ramachandran, India director, sales and marketing, LG Electronics.
Another electronics company, Philips Electronics India Ltd, too is on a similar path. It is renaming its consumer electronics and home appliances division its ‘lifestyle’ division to appeal to the needs of young working professionals and nuclear families.
Even realtors are working on pitches to the young. “Today the average age of a homebuyer has reduced to 30-35 years, which was about 45 a decade ago,” said Arvind Parakh, CEO, corporate strategy and finance, Omaxe Ltd, a real estate developer.
“Earlier we would stress on location and townships; today we’re talking about imported fittings and other lifestyle features that attract young buyers,” he adds.