New Delhi: About 58% of India’s youth, upper and middle class and over 65% teenagers’ expenses on cosmetics, apparel and mobile phones exceed Rs 2500 per month against their average expenditure of less than Rs 1000 a year in the year 2000 This was attributed largely to an increasing number of women joining employment. With greater awareness, thanks to publicity campaigns that manufacturers mounted, this is likely to grow further.
In a countrywide survey undertaken by Assocham over 5000 users of cosmetics, apparel and mobile phones were interviewed. Men and women exhibited different choices and spending patterns
*65% teenagers confirmed that their consumption of branded cosmetics had gone up by 30% in the last seven years
*58% youth said their expenses on cosmetic application had risen by 25% as against 57% amongst upper middle age group, claiming they spend nearly 22% in buying cosmetics to maintain their exterior self
*On an average majority felt they were spending by far lesser (around Rs1000)on cosmetics during the year 2000. This had gone up to Rs2500 per month in 2007. This increase was attributed to women’s earning power going up and their increasing aspiration to look younger
*Flooding of print and electronic messages/ endorsements/ advertisements influenced customers in this segment
*Men have developed a special craze for cosmetics and their monthly expense have risen by about 18-20% during the period. They are spending Rs300-500 a month on hair care, deodorants, razors and blades.
*75% male consumers frequently changed their mobile handset twice or thrice a month, pushing their expenditure on mobile phones at much higher levels than females
*About 68% spend Rs150-300 on cosmetics, Rs400-700 on apparel, Rs 600-7000 for mobile on yearly. Rest of the respondents spent in the range of Rs301-500, Rs250-500 & Rs1500-4000 respectively
*Quarter each of housewives and executives spent more than Rs1500-2000 per month on cosmetics and apparel; 32% were students who spent Rs700-1000 per month; 35% were teachers; 25% were businessmen, 23% were govt. employees who spent Rs2000-3000.
* Preference for quality was linked with earning power.
Reflection of trends and attitudes
“Rising hygiene and beauty consciousness due to changing demographics and lifestyles, deeper consumer pockets, higher media exposure, greater product choice, growth in retail segment and wider availability of products were reasons for sharp rising demand of cosmetics, apparel and mobile telephony amongst Indian consumers” summed up Venugopal Dhoot, President, Assocham.
68% respondents in the 15-19 year age group and 73% respondents in the 20-25 year age group felt that “Everybody around them had a mobile”. In the 25-29 years age category, be it a salaried or businessmen, a mobile phone is a “work pre-requisite”.
60% respondents reported that the primary usage of mobile is to keep in touch with friends and to call up their residence whenever they are out. The proportion of business calls is relatively low at 24%. Gender-wise analysis shows that the tendency to call home is more in females than in males, while the habit of calling friends is more common amongst men, essentially teenagers in the age group 15-19 years.
Gender analysis revealed that the awareness level was much higher in boys than in girls. They kept track of market trends and were much more clued up than the girls.