The Hindu Business Line : `Consumers more ready than manufacturers, retailers'

TODAY'S consumers have moved far ahead of manufacturers and retailers in their readiness to embrace new products. However, as marketing consultant Ms Rama Bijapurkar points out, it's not that consumers don't want to buy, but the roadblock is that most producers of goods are yet to discover the price-value equation that drives them to buy.

Speaking at a workshop for marketers and retailers at the 6th KSA Technopak Retail Summit 2004, held concurrently with the Images Fashion Forum here, Ms Bijapurkar said that as a collective body, "we haven't done enough to understand consumer behaviour." Nobody, she insisted, spent enough time on consumer research of the right kind. Research is needed to understand the cultural context of consumer behaviour. She stressed that marketers can gain competitive advantage by anticipating changes in consumer buying behaviour. She explained that today's multi-dimensional consumer shops in different ways, based on a range of considerations that trigger store choice and purchase decisions.

A huge opportunity exists for those marketers who can come up with "value-right" products. She cited the example of idli batter being sold fresh by enterprising people. It may be cheap, but people saw value in it for their lifestyles and were lapping it up. Drawing an analogy, Ms Bijapurkar said a lot of people consuming a little could all add up to a lot and that would mean coming up with the right products to appeal to the mass segment. Some of the big trends that she said marketers could exploit were the rise of "womanism", rise of the self-employed, liberalisation's children coming of age and the huge "child-centricity" in consumer behaviour.

Mr Arvind Singhal, Chairman, KSA Technopak

Mr Arvind Singhal, Chairman, KSA Technopak, speaking on the changing consumer, said one of the most significant changes has been the transformation of households into dual- and even triple-income ones. With young people in new professions in the services and BPO industries, beginning to work at an early age, spending habits have changed. There has also been the influence of media and travel on consumer spending habits, not to mention connectivity and communication. Demographics too will influence consumer behaviour. Half of the Indian population is below 20 years of age. So, as Mr Singhal pointed out, youth marketing is in essence "mass marketing".

The fourth Images Fashion Forum, which is being hosted concurrently, showcased current fashion and retail trends. Mr B. S. Nagesh, CEO & MD, Shoppers' Stop, reiterated the need to restore ethical practices in retail, increase services and manpower, for a joint approach with the Government to introduce legislation and the need for retailers who can deliver services and merchandise as per the needs of the customers. He also talked about the need for Indian retailing to go global so that Indian consumers shop more in India, rather than being the "largest spenders in Australia or Singapore".

Mr Ajit Mantagani, President (Denim), Raymond Apparel, dwelt on the fact that Indian fabrics have a long history - they have gone from basic handloom to qualities and innovation comparable to the best in the world. The challenge, according to him, was bigger for the industry, where there is a need for complete global-standard supply chain management.

According to Mr Bhaskar Bhat, Managing Director, Titan Industries, the role of retailing can either be a marketing strategy (Titan) or as a business strategy (Tanishq). He encapsulated the challenges for the Titan retail chain in terms of managing brand and retailing objectives as well as channel conflict within the industry, making the business a profitable proposition for the company and its franchisees, and building up a viable growth model with retailing as a core capability.

Talking of `changing with the times', Mr Darshan Mehta, President, Arvind Brands, spoke of two classic business paradigms - the cohesion between "mind to market" and "time to market". This, Mr Mehta said, can make all the difference in an industry where change lies at the very core. He went on to explain these fundamentals in terms of the apparel industry.