The consumer is one of the most chased in the retail industry and brands have been studying them like feds to map their shifts according to time. With the camouflage trait of time in retail, consumption is the show stopper in the global context. The relation of a consumer and consumption is based on the brand’s merit, equity, value, and share. As researchers are scratching their scalps by conducting a first-five, then a decade, and then a century analysis to study consumers. Scientific and technological advancements had played their role and that too was a major one. Analysts conclude the consumer as the juggernaut and the front bone of every industry.
Understanding consumption paths through different eyeballs, hence creating perspectives that are trailblazed according to the gaps. The first perspective includes the income rise and tiers in that pyramid. Peeping in between, the consuming class moves from “into” to “within”. The movement “within” is a larger driver in the consumption growth than “into”. The second perspective includes the cities as the key-wheel in consumption growth with promising opportunities in digitalized GenZ cultured footprints. Asian consumption is not to be missed with expectations as the projection is of having one of every two (upper) middle-income households in Asia.INCOME MATTERS
But it’s contrary also. In terms of different geographic boundaries, consumers with different income groups possess a gap on which the brand can act. On the same road, consumption growth depends on subsequent “tiers” of consumers from entry-level to established to higher ones. For an instance, a consumer spending ‘x’ amount on a good in the Asian region will be equal to the consumer spending ‘2x’ amount on the same good in the South Korean region, with two different economies and cultural differences. If to take out a crux from the income brackets - as a nation moves towards developing phases, the consumer within starts getting shift from ‘goods-dominant’ categories to ‘service-dominant categories. From that point, brand-building experiences start popping out with retail agencies being the pilot on all fronts.CONSUMER SHIFT
From the last few lines of the ‘Income Matters’ postulate, we have witnessed the shift of consumers from goods to service-dominant categories (in developing nations). Besides income (tho’ it’s the flag bearer), many other apostrophes contribute their bit in consumer’s shift. Keep the eye below for the jotted one’s -
● CITIES STILL HAVE IT -
Urbanization has contributed to digitalization like 40 percent in the top layer. Consumption has also been witnessed ‘MORE’ than sub-urban to rural. The factors can be awareness, literacy, and being WOKE. consumer in a city has a lifestyle that is fast-paced with plans oriented and are always short of time. Their forte demands that speed and most of the life gets in accomplishing it. While in rural, consumers’ needs are not extravagant with simplicity in lifestyle and therefore it’s not that pace up. Income ratios may vary in both cities and rural but urban peripheries got an upper hand because of the facilities, ease-in-daily’s, and accessibility. The current bridging between urban and rural radii in terms of growth and accessibility is merging many different things like psyche’s, comfort, lifestyles, etc. but in dark sides - acceptability of both are creating frictions resulting in increased human sacrifices.
● COLLISIONS -
In terms of social, demographic, and technology (disruptions). Diversification in consumer behavior is rising (prolly economically, socially, and culturally) with paced up technological advancements. New behaviors and future customers are being eyed with millennials maturing. They (millennials) are also influencing their up bringers to purchase the brand that’s trending and is more ‘IN’ (the lang they speak). Brands on the other hand are focusing on engagements based on the virtual world. The socials are tricky though as they keep revising their algorithms and pose challenges before the brands to make a new strategy outta marketeers they are paying off. Being region-specific is also a parameter that cannot be overlooked in no blinks.
● THE SHRINKAGE -
For the past 20 years, most of the countries have witnessed in shrinkage average size of households. And the shrinkage can be felt mostly in suburban, rural, and semi-urban because a sole-earning member is shouldering responsibilities of about 8 to 10 beloved family members. Brands find it (somehow) difficult to penetrate that bracket because of the survival approach of the consumers in those areas. But digital advancements and pocket-friendly internet boom have made them pop out from that bracket with brands eyeing them as future consumers. Branding activation plays a vital role in creating that awareness among them with conversion rates to increase gradually.
● SENIORITY –
Breaking conventionally, the seniors are taking up the technology and leveraging it to the fullest. Individuals ages over 60 are taking up the digital interventions will probably grow many-many folds by 2030. Brands are also appreciating this shift as their online consumption will be beneficial for the brand’s targeted and opportunistic audiences. The juggernaut in most recent times is seen as the pandemic because isolating homemade digital adoption faster. Brands are also moving with this shift and started pitching these apostrophes to lead the growing market. In every sector from fashion to housing to healthcare to retail, every industry is enjoying the bop (of the shift) and scaling its strategies to the sky.
● DIGITAL NATIVES –
The millennials are deep-rooted with technology and are future consumers of brands. Penetrating deep through BTL activities these brands are scoping them in their radar. The interaction and engagement time they share with online content makes them significant users and opportunistic. As most of them are in their high schools and are concerned about their future, brands grab the opportunity to place their range of products suitable for them. The Indian subcontinent is well known for its young population with the majority of them being under 30 are in their late 30s. Proper mining and placements can lead to fruitful results for the brands (even though many of them are enjoying it). Therefore, this shift is also optimistic for brands as well.BEYOND
Thinking and getting beyond are two parallel verticals. The anecdote here is the market-specific consumption that’s emerging and raising the brows. As the income grows across different geographies, goods and services penetration gets followed, and the curve is not a straight line (and that’s not from hypothetic neurons). Emerging business models, innovated supply chain management, and most importantly digitization have made goods and services more accessible. The barriers to consumption have made income-driven curves` mutate. For eg, when there’s a sharp increase in private vehicle mobility, then the country is reaching sufficient high incomes.
Brands penetration here is independent of income as consumers who can’t afford a car are having access to private vehicle mobility – and it’s an ultimate sign that the price is no longer a barrier.