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The industrial landscape of our nation has progressed extraordinarily over the last few decades due to the ever-evolving behavior of consumers.
Fortifying relations with foreign businesses, adapting to new technologies, and trying to understand the pulse of the markets in diverse geographies are certain factors that have resulted in this growth.
However, the true enabler of this progression remains the ever-evolving behavior of consumers. Research shows that 60 per cent of the millennials look for a brand that allows them distinct recognition amongst peers.
Furthermore, millennials will constitute approximately 64 per cent of the Indian workforce by 2021. Combine these numbers and we have a phenomenon on our hands — the ‘urban millennials’.
The Indian automobile sector has been impacted significantly due to the upward mobility of urban millennials. Cars have now become aspirational products that offer choices in exterior styling, size, and utility preferences beyond simple transport.
SUV love
A vital trend that represents this change in perception tells us that millennials are more inclined towards purchasing compact SUVs and SUVs. Tata Motors experienced this first-hand when Hexa buyers proved to be younger than those opting for the smaller cars, despite the SUV carrying a heavier price tag.
Additionally, for the inclination towards the compact SUV, Nexon rallies this trend where nearly 50 per cent enquiries for the vehicle have come from a customer base that is less than 34 years of age.
This demographic of spirited young buyers seeks looks, convenience, technological integration, safety, and chic aesthetics when buying a car. Increasing focus on an impactful appeal factor has made design one the most important factors driving vehicle purchase.
Additionally, technologies like multi-drive modes, AMT powertrains, large screen infotainment systems, and phone connectivity apps such as Apple CarPlay and Android Auto are now recognised as standard features across all car models.
Further, the increasing awareness of safety measures has resulted in the introduction of features like airbags, car crumple zones, geo-navigation, and automatic sensors.
It has been noticed that the millennials aspire for these offerings to conveniently get through the daily ordeal of bumper-to-bumper traffic, especially in metros and Tier 1 cities.
Every brand in the industry is adopting aggressive, yet smart marketing tactics in order to stay on the top of the minds of younger buyers. These include extensive influencer programmes, digital media, and a robust integrated marketing mix.
Collectively, these strategies help brands in grabbing the attention of young consumers at various touchpoints of their daily routine.
Brands are constantly introducing agile customer service models, dry wash, mobile service vans, smart service mobile applications and advanced telematics solutions in order to diminish the need for customers to squeeze in lengthy servicing schedules within their demanding daily routines.
The digital age
Collectively, this digital intervention is setting a fine benchmark in the industry. Given the demanding nature and dynamic sensibilities of the millennial consumer, it is important for companies to invest in a simple and responsive after-sales service model.
Further adding to the endless gamut of digital interactions, the industry is keen on promoting customisability to buyers and allowing them to build their own cars.
Through initiatives like the Nexon Imaginator, we at Tata Motors offer special edition style kits and several thematic decals for our customers to choose from and build their cars with completely personalised designs. This activity furthers the dialogue between brands and consumers, while providing all participants with a bold sense of affinity for the badge.
Through these disruptive measures and relevant product offerings, the industry is trying to leverage the urban millennial segment and explore its potential to the fullest.
Going forward, I am certain that auto companies will anchor on the aspirations of this age group with refined relevance, thereby amplifying the possibility of a brighter future for both, the organisation and their customers in symbiotic fashion.
The writer is President, Passenger Vehicles Business Unit, Tata Motors
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