Recently, the inclination of Indian consumers towards international brands has become pertinent. After liberalization, as the economy opened up to the international market, imported goods gradually gained traction among Indian buyers. The repercussion is, today the market is almost flooded with goods from international market. Together with foreign origin brands, Indian brands ran through significant improvement becoming successful to pose a stiff competition against their foreign counterparts. In terms of quality, technology, performance and efficacy, both Indian and foreign brands are catching up the market lately.
Foreign brands on the other hand, are becoming more popular amongst Indian buyers gradually turning as cofactors to mould their preferences, buying habits and thereby lifestyle. Following the trends of international markets, Indian consumers are transforming as global buyers preferring foreign origin goods. In the market landscape of India, International brands are successful to become significant contributors.
These goods are successful to position themselves as strategic elements in certain product categories in terms of quality and usefulness. For instance, in lifestyle product segment such as beauty accessories and ointments, international goods surpass country made products. A lackadaisical nature of both manufacturing techniques and availability of raw materials is the primary reason of incompetence of Indian brands in certain categories.
Despite higher prices, International brands are successful a gaining popularity because they can lure the high income section of Indian consumers. It is notable that this section of buyers is on par with global buyers who have adequate purchasing power to buy goods from the most expensive markets of the world. Consumer lifestyle in India has been through a massive transformation. This transition in the country is influenced by socio cultural factor, geo demographics, psychographics, preferences, norms and behavior of consumers.
Indian consumers now prefer a deluxe life full of luxury and comfort. The buying preferences of the burgeoning Indian middle class have been influencing the consumer culture of the country. The reason is; fast growth of services sector per capita income of the populace has increased. Apart from this, rise of disposable income continues to drive increase spending on consumer goods from foreign market. It is a notable point that goods from foreign markets tend to follow a competitive pricing model in contrast to Indian products.
This factor leads further impetus on popularity of International brands as they become more affordable with competitive prices against Indian products. Leaving aside the cost factor, the drive of spending among Indian consumers is on high tides. This, on the other hand, has been generating huge demand of new goods and services irrespective of foreign or national market. At this point, goods from foreign markets are successful to achieve greater rate sales due to their quality as well as due to the inclination of average Indians towards foreign goods. Consumption patterns depend on liberalization of economic policies and buying habits of the upcoming generation and availability of goods. Also the economic condition of the populace plays a pivotal role. In India, the new generation is gaining economic independence at younger age. This has lead to greater thrust on consumer goods of a typical foreign nature. Furthermore increase in number of nuclear families is also the reasons of prominence of foreign brands in Indian market. The current generation, care less about paying an extra for better quality, facility and ambiance. Mass media, internet and communication have been the factors driving awareness about international lifestyle and culture amongst Indian buyers. This awareness leads to further want of goods and services as Indian consumers tend to follow international lifestyle. Therefore, consumer culture has been reinforcing a globalized lifestyle within Indian buyers. International brands are coming up as the mediator or this globalized living.
The Mckinsey & Co report in 2007 suggested that India will grow to the fifth largest consumer market in the world by 2025. The credit culture in India has been a major driver of increasing proliferation of foreign goods. The credit system has assisted Indians to buy expensive goods on installments. The amenities provided by credit cards have put a primary thrust on consumerism in India. Credit culture will help to materialize this situation.
This will further induce a huge thrust to International brands and assist them to gain better market in the country. Indian consumers value and admire global brands as a status symbol. The emergence of international e marketers in the Indian business has lead to a growth of foreign brands. On the other hand busy lifestyle of Indians has become a common place trait. Fitness and style accessories being related to modern lifestyle have become ingrained with consumer behavior. Globalization has lead the entire world to become a single market. It is now a global village and the process of globalization immensely aided exchange of goods and services. Furthermore, global competition has made companies to cater the local needs of diverse geographies