By Pratik Goyal:
A survey in 2008 indicated that India is among top 5 countries when it comes to Brand Consciousness. But it hardly represents the entire society outlook when it comes to consumption of products. A country where savings rate is very high (nearly 36%) and where top 10% percent of people hold 53% of the wealth of this nation and lower 20% own about 1%, it is hard to believe that brand consciousness is on the rise.
A brand becomes a brand after how it is perceived by people, the image that it projects and the quality and promise to customers which it upholds. Most of the brand names out there today have become a symbol of a characteristic quality which they have imbibed in them self, a quality which leaves a consumer’s mind wondering after its usage. These brands make an effort to provide a distinctive experience and that is how they attain the status among its consumers.
Now talking about Indian market, it’s a huge market with never ceasing participation of the consumers. It is an emerging market, being a part of a developing economy. And this market where the inequality is evident from the statistics in first paragraph, does not really care about brand — leaving the high class and maybe upper middle class. But still the view remains same. Brand consciousness is on rise because it inherits within itself price consciousness. It is something which the Indian consumers are never going to part themselves from. It relates to a term in economics called price signalling, a higher price indicates the good quality of the product, and more often than not, a very low price does not entice the customer for the same reasons. The consumers now to a certain extent have started differentiating between what every brand of a product has to offer, which tightens the competition because its not only about that little puma on your shirt or the bitten apple on your phone.
Until now the premium brands were catering to the high end consumers and they have carved out their niche in this segment of market, but now they are getting aware of the needs of the other segments of the society specifically the middle class. Being the real savers they are being targeted by the premium brands. These brands are now coming out with the products keeping in mind this segment of market, because let’s face it, if given a choice between a local product and a brand with the brand ranging just a tad higher people are going to loosen their pockets for the latter. Indian middle class believes putting their money where they can get equivalent and possibly more value and if the premium brand can facilitate this then the local producers have a competition. Some of the best examples of such brands are Dell or Adidas.
So summing up the brand consciousness is on rise in Indian market and the premium brand can capitalize it if they can give themselves a certain depth in the market and reach out the middle class of our Indian society.
Image courtesy: http://www.beginningwithi.com/comments/2008/01/21/more-things-to-buy-in-india-the-growth-of-a-consumer-society/