India Now - Local Matters

LOCAL MAT TERS

LOCAL MATTERS

LOCAL MATTERS

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INDIA NOW . LOCAL MATTERS

Increasingly our connected world feels

New learnings about how people form

smaller, familiar and more similar.

relationships highlight the importance of

However, this is an illusion. What people do,

understanding cultural and social influences.

think and feel within their own environment

We explore beyond individual desires and

and culture can be vastly different, often in

needs, to understand cultural context and the

surprising ways.

power of social influence. We uncover what

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

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.

different places.

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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.

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INDIA NOW . LOCAL MATTERS

4. NEW FOUND PRIDE India is reclaiming all things related to 3. CULTURAL REMIX

national passions, such as yoga, cricket,

Cultural tensions exist between traditional

Sufi music and Bollywood.

and modern, western and eastern and collective and individual values.

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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CHANGING FORTUNES Ranked as the third largest economy globally, India is expected to continue to grow although at a slower, more stable level.

This rapid growth is creating a powerful

This more youthful society is driving a

new middle class. The growing youth

surge in consumption of non-essential

population also has money to spend.

goods such as liquor, entertainment and

With two thirds of the total population below the age of 35 India has the largest youth population in the world.

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INDIA NOW . LOCAL MATTERS

personal grooming products.

LARGEST YOUTH POPULATION IN THE WORLD

Of the total population

68

%

are below the age of

35 years

And 25% between

25 20-35 %

years old

Source: RBI Annual Report, 2011-12.

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CHANGING FORTUNES

Households by income category

Globals

2

10

Strivers

4

33

Seekers

25

95

Aspirers

98

93

Deprived

87

50

2010

2025

Number of households (in millions) by annual income bracket Source: NCAER.

India’s population by income has transformed

The level of urbanization has shown a gradual

from a ‘triangle’ in to a ‘diamond’, with a

increase as people migrate from rural to

large middle-class population.

urban areas and small towns to larger cities.

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.

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INDIA NOW . LOCAL MATTERS

There is also a sharp increase in the number of towns.

Number of urban units (cities) increased by

53%

in the last decade

from

5,161

2001

to

7,935

2011

So what?

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.

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A NEW INDIAN DREAM Success is now more tangible regardless of

Reality shows, such as Indian Idol and

where you were born or what you were born

dancing competitions, make small town youth

into e.g. caste/community. The growing

feel like they have a chance at fame, wealth

economy is giving everyone the confidence

and popularity.

they can achieve whatever they put their mind to.

Farmland and suburban areas are now commanding steep prices as India

There is a move from an attitude of “working

industrializes. This is creating a class of

hard” to “working smart”, generating a new

uneducated former farmers who are now

entrepreneurial ambition. Everyone wants to

millionaires.

be “brokering” deals, making connections, or having a gig on the side.

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INDIA NOW . LOCAL MATTERS

Consumption growth visible in credit

18.87 18.38 18.01

17.66

17.63

Jun 11

Sep 11

17.67

Dec 11

17.65

Mar 12

Jun 12

Credit in million Rs. Source: http://www.rbi.org.in/scripts/AnnualReportPublications.aspx?Id=1082

Sep 12

Dec 12

A NEW INDIAN DREAM

Indian Wedding industry is worth

$25.5 Billion

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.

$1million For upper middle class 14

INDIA NOW . LOCAL MATTERS

Source: http://www.businessoffashion.com/

‘WEALTH PEACOCKS’ These newly-rich are looking for conspicuous

However, “value-seeking” is still core for the

announcements of their new wealth, to

Indian consumer, and is still present below

validate their new social status, particulary

the surface. Essentially, the new rich are

with luxury cars and mansions.

willing to pay for conspicuous consumption,

As more and more people can afford luxury products, the very wealthy are looking to

but still want to save on the things that can’t be seen.

exclusivity and over the top experiences to

While the very rich are beginning to

overtly display their wealth further.

move away from just flaunting to valuing

Big Indian weddings are getting even bigger,

meaningful experiences.

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.

So what?

Brands are beginning to be tailored for this market, with a focus on enhanced and showy signals and signs of luxury and ostentation.

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CULTURAL REMIX A new generation is deciding to modernize

preferences. For all that the courtship still

in its own way. Young Indians have started

follows a fairly traditional path.

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

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INDIA NOW . LOCAL MATTERS

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.

A CLEAR INDIAN-WESTERN VALUE DIVIDE

THE INDIAN WAY PATRIARCHY AMBIGUITY, ADAPTABILITY SOCIALLY DEFINED ROLES, DHARMA PATIENCE, PASSIVITY AND VAIRAGYA CONTINUING WITH TRADITION HAPPINESS = SELF HARMONY RESPECT FOR AGE

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

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.

So what?

Fusion culture is emerging where youth are defining a new path, smartly carving out a middle ground that is not of overt rebellion.

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NEWFOUND PRIDE IN INDIAN CULTURE

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.

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INDIA NOW . LOCAL MATTERS

Even something as traditional as cricket

Traditional Indian music is blended with the

is going through massive change in India.

pacing and rhythms of rock and party-remixes

Traditional test cricket is giving way to

and punchy, unconventional lyrics.

Twenty20 matches.

Bollywood has long been an Indian expression

The T-20 format, developed in the UK, has

of creativity. Even Bollywood films, formally

been welcomed by Indian spectators. It is

known as Hindi cinema, are giving way to

seen as ‘quick’ fun entertainment.

movies with a growing presence of English

India’s T20 league has brought a sense

words, phrases or even sentences (Hinglish).

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.

So what?

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.

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SOCIAL EXPOSURE India is now one of the fastest growing digital

Small towns and rural areas are especially

markets in the world with 41% growth in

isolated, and technology is helping those who

online users. Smartphones and tablets are

used to be disadvantaged to also gain access

driving internet usage. Internet access offers

to the broader world.

a view to a larger world that they didn’t have before.

In fact, the impact of Facebook and social media is even greater in these small towns

Technological and social access has resulted

where there is very little other exposure to

in a “virtual middle class”. Many are being

the outside world.

exposed to “middle class” ideas and expectations.

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INDIA NOW . LOCAL MATTERS

A NEW PLATFORM FOR INDIAN VOICES

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 nonviolent 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.

So what?

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.

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GOING MOBILE The 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.

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INDIA NOW . LOCAL MATTERS

India’s tele-density* Mobile phones have shown a remarkable growth and stand today at

40-50%

In rural India it has gone up

15% 1.9% 2005

2013

Usage of mobile handsets**

66% 65%

Listen to music

61%

Play games

49%

Take photo

SMS

So what?

Mobile is helping brands reach a wider audience, engaging and interacting in new ways. * number of phone per 100 people ** % of male respondents (Source Ericsson mobility report, 2012) 23

BRAND FUSION The smart brands are beginning to blend

Indians also respond well to humor and

the traditional India with the new, creating

satire, which have worked as mass media

modern interpretations that are a distinct face

tools for centuries. These being examples of

of India. Many are using traditional imagery

how Indian brands engage with consumers

with a contempory twist. Indians’ love of the

portraying themselves as authentic and

ornate and colourful plays a significant role in

approachable.

brands seeking to connect.

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INDIA NOW . LOCAL MATTERS

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SO WHAT MATTERS FOR BRANDS? 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.

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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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