india now - local matters
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LOCAL MATTERS
LOCAL MATTERS
LOCAL MATTERS
4 INDIA NOW . LOCAL MATTERS
Increasingly our connected world feels
smaller, familiar and more similar.
However, this is an illusion. What people do,
think and feel within their own environment
and culture can be vastly different, often in
surprising ways.
We help our clients build relationships that
really matter to people, wherever they are.
We recognize that digital technology is
transforming the way we all experience
and interact with brands, allowing different
people to experience different things in
different places.
New learnings about how people form
relationships highlight the importance of
understanding cultural and social influences.
We explore beyond individual desires and
needs, to understand cultural context and the
power of social influence. We uncover what
really matters locally. We watch what people
do and delve deeper into what they feel and
think. Only then can we build the most vivid
picture of what matters to people.
India Now explores what matters to the
people of India.
5
WHAT WE SEE is A land of…
1. CHANGING FORTUNES
Rapid growth is creating a new forceful middle class,
along with a youth population larger than any other
country in the world.
2. THE NEW INDIAN DREAM
Everyone now aspires to success. Even people
from the smallest Indian towns now dare to
dream.
6 INDIA NOW . LOCAL MATTERS
3. CULTURAL REMIX
Cultural tensions exist between traditional
and modern, western and eastern and
collective and individual values.
4. NEW FOUND PRIDE
India is reclaiming all things related to
national passions, such as yoga, cricket,
Sufi music and Bollywood.
5. SOCIAL EXPOSURE
Digital transparency is shining a light on
Indian corruption and giving rise to a need
to demonstrate authenticity and integrity.
6. GOING MOBILE
The explosion of mobile access, second
only in numbers to China, is creating a new
virtual population. There is a new surge in
global social media such as facebook and
twitter, alongside home grown properties.7. BRAND FUSION
Brands are looking to navigate these
trends, fusing the traditional with new
modern Indian interpretations.
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CHANGINGFORTUNES
This rapid growth is creating a powerful
new middle class. The growing youth
population also has money to spend.
With two thirds of the total population
below the age of 35 India has the largest
youth population in the world.
This more youthful society is driving a
surge in consumption of non-essential
goods such as liquor, entertainment and
personal grooming products.
Ranked as the third largest economy globally, India is expected
to continue to grow although at a slower, more stable level.
8 INDIA NOW . LOCAL MATTERS
68%
Source: RBI Annual Report, 2011-12.
are below the age of
35 years
Of the total population
And 25% between
20-3525%
years old
LARGEST YOUTH POPULATION IN THE WORLD
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India’s population by income has transformed
from a ‘triangle’ in to a ‘diamond’, with a
large middle-class population.
As in other developing nations, cities provide
a better standard of living. Urban areas
are responsible for 2/3 of the Indian GDP
although less than a third of the population
live in them.
CHANGING FORTUNES
20252010
87
25
98
4
2
50
95
93
33
10Globals
Strivers
Seekers
Aspirers
Deprived
Households by income category
The level of urbanization has shown a gradual
increase as people migrate from rural to
urban areas and small towns to larger cities.
There is also a sharp increase in the number
of towns.
Source: NCAER.
Number of households (in millions) by annual income bracket
10 INDIA NOW . LOCAL MATTERS
Rapid rise in incomes and growing aspirations of the young and middle class is creating huge potential for brands that meet their new emerging needs.
So what?
2011
2001
Number of urban units (cities) increased by
in the last decade
53%
5,161from
7,935to
11
A NEW INDIAN DREAM
Success is now more tangible regardless of
where you were born or what you were born
into e.g. caste/community. The growing
economy is giving everyone the confidence
they can achieve whatever they put their mind
to.
There is a move from an attitude of “working
hard” to “working smart”, generating a new
entrepreneurial ambition. Everyone wants to
be “brokering” deals, making connections, or
having a gig on the side.
Reality shows, such as Indian Idol and
dancing competitions, make small town youth
feel like they have a chance at fame, wealth
and popularity.
Farmland and suburban areas are now
commanding steep prices as India
industrializes. This is creating a class of
uneducated former farmers who are now
millionaires.
12 INDIA NOW . LOCAL MATTERS
Jun 11
17.66 17.6717.63 17.65
18.01
18.38
Dec 11Sep 11 Mar 12 Jun 12 Sep 12 Dec 12
18.87
Consumption growth visible in credit
Credit in million Rs.
Source: http://www.rbi.org.in/scripts/AnnualReportPublications.aspx?Id=1082
A NEW INDIAN DREAM
Indian Wedding industry is worth
$25.5Billion
With a growth rate per year of
20 - 25%
30,000 Couples get married in India every day
$34,000 Average wedding budget for
middle class.
$1millionFor upper middle class
Source: http://www.businessoffashion.com/14 INDIA NOW . LOCAL MATTERS
These newly-rich are looking for conspicuous
announcements of their new wealth, to
validate their new social status, particulary
with luxury cars and mansions.
As more and more people can afford luxury
products, the very wealthy are looking to
exclusivity and over the top experiences to
overtly display their wealth further.
Big Indian weddings are getting even bigger,
with families hosting all-day brunches, private
cricket matches, polo matches, shopping
trips, etc. All to show off their ability to pay
for such extravagances.
However, “value-seeking” is still core for the
Indian consumer, and is still present below
the surface. Essentially, the new rich are
willing to pay for conspicuous consumption,
but still want to save on the things that can’t
be seen.
While the very rich are beginning to
move away from just flaunting to valuing
meaningful experiences.
‘WEALTH PEACOCKS’
Brands are beginning to be tailored for this market, with a focus on enhanced and showy signals and signs of luxury and ostentation.
So what?
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CULTURAL REMIXA new generation is deciding to modernize
in its own way. Young Indians have started
to rediscover India… finding pride in being
Indian.
While arranged marriages are still fairly
common and seen as practical, today’s youth
are now commonly dating their prospective
partner ahead of time, spending a few
months getting to know one another before
committing to the marriage.
Through the use of websites such as
indianmatrimoney.com and shaadi.com, the
courtship process can now be facilitated
through technology.
Meet ups with prospective bride or groom
are set up like blind dates through these
sites and now youth can voice opinions and
preferences. For all that the courtship still
follows a fairly traditional path.
The challenge is in preserving old culture
and tradition, while life and values evolve at
incredible speed.
The result is a selective value adoption
selecting from both the east and the west,
leading to a modernization model that is
uniquely Indian.
Until now, India’s colonial hangover had its
impact and ‘modernization’ was synonymous
with ‘westernization’.
Now, ‘modern’ Indians embrace a blended
mix of values that draw from the advances in
technology and social culture, in a uniquely
Indian context.
16 INDIA NOW . LOCAL MATTERS
PATRIARCHY
AMBIGUITY, ADAPTABILITY
SOCIALLY DEFINED ROLES, DHARMA
PATIENCE, PASSIVITY AND VAIRAGYA
CONTINUING WITH TRADITION
HAPPINESS = SELF HARMONY
RESPECT FOR AGE
A CLEAR INDIAN-WESTERN VALUE DIVIDE
THE INDIAN WAY THE WESTERN WAY
EGALITARIANISM
CLARITY, LINEARITY, ‘CLEAR’ CHOICE
INDIVIDUALLY CHOSEN ROLES
IMPATIENCE
CONSTANTLY SEEKING NOVELTY
HAPPINESS = WEALTH ACCUMULATION
RESPECT FOR YOUTH
Source: “We are like that only” by Rama Bijapurkar
Fusion culture is emerging where youth are defining a new path, smartly carving out a middle ground that is not of overt rebellion.
So what?
Today’s Indian youth have grown up in a time
of plenty, while their parents have witnessed
so much economic change in their lifetime.
Inevitably, youth have a wider world view than
their parents. They are trying to navigate a
new path that both they and their parents can
make sense of together.
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Globally, money is an equalizer in terms of
Indian pride, seen as “I can buy the same
things, so I’m no less than you; my culture is
no less than yours”.
As a result of increasing economic prosperity,
there is now new pride in maintaining Indian
identity.
This pride is now seen everywhere as a
distinct expression of modern India.
NEWFOUND PRIDE IN INDIAN CULTURE
18 INDIA NOW . LOCAL MATTERS
Traditional Indian music is blended with the
pacing and rhythms of rock and party-remixes
and punchy, unconventional lyrics.
Bollywood has long been an Indian expression
of creativity. Even Bollywood films, formally
known as Hindi cinema, are giving way to
movies with a growing presence of English
words, phrases or even sentences (Hinglish).
Even something as traditional as cricket
is going through massive change in India.
Traditional test cricket is giving way to
Twenty20 matches.
The T-20 format, developed in the UK, has
been welcomed by Indian spectators. It is
seen as ‘quick’ fun entertainment.
India’s T20 league has brought a sense
of glamour and commercialization to this
serious game with celebrity tie ins and even
cheer leaders.
Indian music is also making a comeback
but in a new ‘modernized’ form. Indians are
celebrating the heritage of Sufi music through
festivals, documentary films, and Bollywood
movies. They are proud of swinging with Sufi
or Sufi inspired tunes.
Buoyancy of Indian pride is palpable.
Brands need to engage in a way that is uniquely Indian, not impose an external set of codes and western values.
So what?
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India is now one of the fastest growing digital
markets in the world with 41% growth in
online users. Smartphones and tablets are
driving internet usage. Internet access offers
a view to a larger world that they didn’t have
before.
Technological and social access has resulted
in a “virtual middle class”. Many are being
exposed to “middle class” ideas and
expectations.
Small towns and rural areas are especially
isolated, and technology is helping those who
used to be disadvantaged to also gain access
to the broader world.
In fact, the impact of Facebook and social
media is even greater in these small towns
where there is very little other exposure to
the outside world.
SOCIAL EXPOSURE
20 INDIA NOW . LOCAL MATTERS
Brands need to recognize the power of social media and encourage conversation and advocacy. They have an opportunity to link up with social causes to engage in a more meaningful way.
So what?
The spread of technology and social media is
now also being used to shine a spotlight on
social issues.
For example: The Pink Chaddi campaign
(or Pink Underwear Campaign) is a non-
violent protest movement launched in 2009
in response to the escalation of violent
conservatism. Anna Hazare, an Indian
social activist, has a huge social following
behind his efforts to increase government
transparency and investigate official
corruption.
Indian people are embracing this opportunity
to be heard.
A NEW PLATFORM FOR INDIAN VOICES
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GOING MOBILEThe explosion of mobile access is creating a
virtual population and a surge in social media
usage for facebook and twitter, alongside
homegrown properties.
India did not participate in the global landline
boom, but instead has achieved unheard-of
growth in mobile telephones, with 700 million
subscribers in 2012. In fact the latest census
showed there are more mobile phones in
India than toilets.
22 INDIA NOW . LOCAL MATTERS
In rural India it has gone up
Usage of mobile handsets**
(Source Ericsson mobility report, 2012)
* number of phone per 100 people
** % of male respondents
Mobile phones have shown a
remarkable growth and stand
today at
40-50%
India’s tele-density*
2005 2013
1.9%
15%
SMS
Take photo
Listen to music
Play games
66%
65%
49%
61%
Mobile is helping brands reach a wider audience, engaging and interacting in new ways.
So what?
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BRAND FUSIONThe smart brands are beginning to blend
the traditional India with the new, creating
modern interpretations that are a distinct face
of India. Many are using traditional imagery
with a contempory twist. Indians’ love of the
ornate and colourful plays a significant role in
brands seeking to connect.
Indians also respond well to humor and
satire, which have worked as mass media
tools for centuries. These being examples of
how Indian brands engage with consumers
portraying themselves as authentic and
approachable.
24 INDIA NOW . LOCAL MATTERS
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India offers great opportunities to introduce brands to the growing middle class and youth segments.
Access to information is creating new aspirational consumers among the previously less fortunate and small town populations, who are quickly becoming wealthy.
The new wealthy seek to express their standing. They are looking for luxury balanced with value and practicality.
Pride exists in being Indian. Brands need to satisfy India’s sense of pride in Indian culture.
It is vital brands embrace the mix of modernization with traditional values, especially when marketing to youth.
Authenticity, integrity and social consciousness are critical for brands to succeed; a sense of humor also goes a long way.
The mobile revolution and Indian’s desire to be connected through social media is a great opportunity to engage in new ways.
SO WHAT MATTERS FOR BRANDS?
26 INDIA NOW . LOCAL MATTERS
“To a western observer our civilization appears as all metaphysics, as to a deaf
man piano playing appears to be mere movements of
fingers and no music”
Rabindranath Tagore
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