Premiumization, omnichannel trends, diversity to shape marketing in India: Kantar report
- This shift, alongside an increase in digital marketing and e-commerce, reflects the diverse preferences of a youthful demographic and an affluent, value-conscious consumer base
Indian brands, both small and large, are looking to overhaul marketing strategies to match the evolving behaviour of consumers. A report by researcher Kantar indicated a shift towards localized marketing practices, targeting specific age groups such as Gen Z, Gen Alpha and millennials.
The transition seeks to address emerging trends, including a growing preference for premium products and online shopping, as well as a shift towards gender-inclusive advertising. The diverse consumer demographics are also driving brands to fine-tune their marketing strategies, specifically to resonate with the younger generation, who are redefining social media engagement and are boldly expressing their values on family and identity, given that India boasts around 116 million shoppers, with Gen Z accounting for 40% of urban consumers aged 15-55 years.
Yet, the diversity within the consumer groups calls for nuanced marketing strategies, Kantar said. “GenZ and Millennials are estimated to comprise nearly half of India’s population by 2030. Are such large cohorts really that homogenous? However, the obsession with younger cohorts means that brands are potentially ignoring an increasingly affluent and willing to spend older target group,” it added.
The aspirations and desires of the youth from small towns and metropolitan areas vary significantly, and, thus, “targeting them with similar offers and in the same way is unlikely to win them over,” Kantar said.
The report mirrors the evolving landscape, with brands and marketers exploring innovative methods to connect with consumers, marking a departure from traditional advertising, following a growing emphasis on e-commerce and digital marketing among major players such as Nestle India Ltd, Hindustan Unilever Ltd (HUL) and Godrej Consumer Products Ltd, underscoring the focus on product innovation.
According to Kantar, rising affluence is fuelling higher consumer spending, especially on luxury items, leading to growing demand in emerging categories such as trending cosmetics and skincare products.
Consumer demand for big-ticket items is at an all-time high, it added. “Indians have more money than ever and desire to spend it, but value consciousness remains, and value is more than price. Contrary to the popular perception, ‘value for money’ is not equal to inexpensive or cheap, but about the price worthiness of what the consumer buys," said Soumya Mohanty, managing director and chief client officer, Kantar.
In this dynamic market, brands are adjusting their consumer engagement strategies to align with evolving patterns of consumer engagement.
In an interview, Harman Dhillon, executive director designate, beauty and wellbeing, HUL, said a different marketing model is emerging as Indians become more affluent and consumer needs diversify. This is especially true for categories such as beauty and personal care where social media is driving great influence on shopper behaviour.
As a result, companies are spending more on digital media activations, at least for such categories. Mohanty said advertising narratives are also shifting towards more balanced gender representations, and moving away from traditional stereotypes for men and women.
Meanwhile, as per Kantar Worldpanel, omnichannel shopping has seen a significant increase in urban India, indicating a future where connected commerce along with a hybrid shopping experience will become the norm, allowing consumers to explore, compare and purchase products across multiple platforms.
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsIndustryPremiumization, omnichannel trends, diversity to shape marketing in India: Kantar report
First Published:12 Mar 2024, 05:43 PM IST
- Top Gainers
- Top Losers
- 52 Week High