Point 1: India is not in recession
The Economic Survey predicts GDP growth as high as 7.75% in 2009-10 if the global economy turns up by autumn or a reasonable 6.25% if the global recession drags on.
Point 2: Indian Sentiment is
As per the latest Global Consumer Confidence study conducted in over 48 countries across the world - Consumer confidence in India dipped to 133 in the recent leg of the Confidence Index. This is in line with consumer sentiments worldwide.
Point 3: It's not the ability to spend but desire to do so that has got dampened
The country's recently found predilection to spend has tampered. We see more & more Indians (even the 'carefree' Gen Y) exercising prudence.
Point 4: This is leading to emergence of a new Caution wave
They are cutting back, trading down & making adjustments – chaffing Indulgences from the Necessary and Indulgences and tuning down conspicuous consumption.
Point 5: And a generation of 'stability seekers'
From "A Government Job for me, EEKS !" to "At least a Government job will last" the year is witnessing a reversing of aspirations – top priority is Stability & assurance – rather than tag value or big names
Point 6: Who are aping their frugal predecessors?
Retailers and other service industry insiders are bracing themselves for this waves of consumer frugality varying from 'credit card dieting' to 'no EMI purchase' -- a total lifestyle makeover as opposed to casual guards against excess – is becoming a fixture of household life. Following the recommended 'living within means' & 'saving for rainy day' attitude of the older generation
Point7: A reversal of sentiments that marketers need to cater to
Marketers who brush aside this reversal of sentiments (and its baggage / opportunity it brings along) will do so on their own peril. http://bringtheloveback.com/...enjoy
Point8: A challenge to face in coming festive season
The challenge in this festive season will be to strike the right balance between the festive propensity to spend and the restrained sentiments.
Point9: Solution will be to strike right chord and balance
Striking an emotional chord by giving out relevant messages that reassure the sentiments along with catalyzing the desires
Point10: Messages need to be rooted in core value and festive spirit of giving
Festivals in India are all about bonding and gifting–Rakhi to Chhat, Diwali to Christmas. It is about showing your loved ones you care. So the messages need to be enveloped around those emotions.
Along with strongly dialled up value scores.
Message like "You never own a Patek Philippe, You merely look after it for the next generation" which playon both 'selfless pruchase:-)' and value
Offer beyond VFM – consumers are seeking 'justification' for every purchase, "We're sensing that consumers want to buy something that's enduring," said Robert Chavez, president and CEO of Hermès USA. "We don't consider ourselves a fashion house. We're really a house of craftsmanship and quality. Instead of buying three or four handbags or three or four of something else, customers want the one thing that's going to last a long time"
