Sunday, November 25, 2007

How India shops

A special report was published by Mckinsey Quarterly on the retail climate in emerging economies (Brazil, India and China). An article here talks about the apparel buying behaviour in India. I probably already mentioned before that more than 95% of the Indian retail sector is unorganized. Apparel however has a slightly larger component in the organized sector. Some of the key findings from the report,
  • "nearly 40 percent of the mass-market Indian shoppers surveyed said that their most important shopping occasions revolved around special events, such as weddings and annual religious festivals—a figure dramatically higher than the one for shoppers in the other emerging markets"
  • "greater extent than elsewhere, shopping is a family activity in India: nearly 70 percent of its shoppers always go to stores with family, and 74 percent—more than twice the average of Brazil, China, and Russia—view shopping as the best way to spend time with family." - this I think is unique. In most developed economies, shopping during annual holidays is seen more of a stressful activity while in India it seems like an activity for family fun.
  • And this one is the most unusual - "India is unusual in that the market for men’s apparel is larger than the women’s market, where traditional Indian apparel still dominates". Somehow growing up in India I never noticed this. I always thought the women in the household has many more clothes/accessories. I would definitely like to see the numbers around this.

One interesting thing about the report is that they have surveyed only women to study the purchasing habits citing that - "women in many markets not only decide what clothes to buy for themselves but also influence clothing purchases for their children and husbands". I wonder what the basis for that assumption is but on a lighter note I was reminded of this ad from childhood while I was growing up in India. It centers around this quintessentially Indian family woman who is justifying why she chooses a specific detergent for her family. Its in Hindi and unfortunately without sub-titles but was one of the early TV ads on detergents and the ad agency looks like had the same idea in mind - that women make the key buying decisions in an Indian household.

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