Due to the emergence of industrial giants like BPL and Videocon consumer behaviour in india after 1990 has undergone a sea change. In what ways?
It is not possible to give a meaningful answer to the question in its present form because of some implicit assumptions which are not valid. BPL and Videocon are big companies, but they do not qualify as industrial giants of India. Also, it is not right to assume that changes in consumer behavior in India after 1990 is due to emergence of handful of companies like BPL and Videocon. So I will restrict my answer to to describing changes in consumer behavior in India since 1990, without ascribing the changes to actions of any particular set of companies.
Yes, major changes have occurred since 1990 in behavior of consumer in India. These changes have taken due to variety of factors such as.
- Increasing income levels and purchasing power of consumer.
- Greater availability of a variety of products. This is in part due to liberalization in economic policies. Local as well as foreign companies find it easier to manufacture and sell new products in India.
- Greater exposure of Indian consumers to the global environment and products. This is a part of the trend of globalization world wide.
- Many old traditional companies in India adopting aggressive modern marketing methods. For example, Dabur, a very successful FMCG company operating in India for more than 125 years, had a range of very popular product, but it had maintained very low profile till about 25 years back.
- Significant growth of organized retail trade in India.
Some significant aspect of changing consumer behavior include the following.
- Traditionally Indian consumer have been very price conscious, seeking value for money. In recent years there has been marked shift towards buying goods without much careful evaluation of value delivered.
- Customers have become much more prestige conscious. The desire to "keep up with the Joneses" or even surpass them is stronger.
- Customer seek variety much more then in past. There is greater propensity to buy things for their newness and variety even if they are needed.
- Spread usage of cell phones has been really phenomenal. This kind of spread of usage of cellphone was almost unimaginable in 1990.
- Ownership of automobiles - both cars and two wheelers has also grown very fast.
- Use of ready to eat packaged foods has also increased greatly. Particularly growth sale of bottled drinking water in India has surprised all experts and analysts.
- Incidence of joint families in India has reduced substantially. Also the average number of children in a family has reduced considerable. This has major impact on lifestyle of consumers.
- Similarly women doing jobs has increased significantly. This also has impact on lifestyle, It has also increased demand for certain type of goods and services.