The Hindu Business Line : ‘Consumer spending pattern shifts to discretionary buys’

Chennnai, Nov. 5 The new age consumer is spending all through the year, and the spending pattern too is changing with the time, says Mr Bijou Kurien, President and Chief Executive (Lifestyle), Reliance Retail.

Citing examples such as how the mobile telephony market has grown up to be as big as the textile industry in less than a decade in India, he said, “Consumer behaviour is changing very fast. His spending pattern is now shifting from basic to discretionary purchases.”

According to him, consumer spending on food and grocery has come down in percentage terms to 36 per cent in 2008 from 40 per cent in 2003. Going by this trend, it will come down further in the years to come and discretionary purchases will go up further, he says.

Focus on basics

Addressing a gathering at Insight’09 – a 2-day symposium on ‘Riding the new Wave: Emergence of new Business Models’, organised here by the Loyola Institute of Business Administration, he said the euphoria of growth should not let any business lose focus on the basics. “Do not lose focus on the basics, set your business model right, de-risk it and monitor continuously to be successful,” he said.

Earlier, setting the context for the symposium, Mr C.K. Ranganathan, Chairman and Managing Director of CavinKare, said innovation, simplicity and humility will certainly give a clear edge to any business. One must look for what the consumer wants, what are the features that make him settle down for a particular brand or a product and what are the values that could be added to them to make the consumer happier, to be successful in the market place. “Any business unit must have the willingness to change, to survive cycles,” he said.