The Indian consumer has stepped into 1997 with great expectations no doubt. Can't blame him. After all, he has now been transformed into a world class consumer. Usually markets go through a phase of evolution but the transformation of the Indian consumer into a global one can well be termed as a revolution.
The Indian marketing scene during the past six years has witnessed a tremendous transition. There has been an ongoing upgradation in products and services. With aspirations on the rise, the result has been a great amount of flux in the marketplace leading to severe ups and downs. And there is more to come.
What do I see in the marketing window of 1997? What can the Indian consumer expect? What should he or she not expect? Which aspects should be given careful consideration? Let me analyse the track record and come up with some humble marketing predictions for this year.
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* Choices galore: Yes, that's what the Indian consumer will be faced with. Thanks to stiff competition, there has been pressure on manufacturers to add value and reduce the product portfolio of redundant products.
The focus has now shifted to goods and services which specifically cater to consumer needs and wants.
Take the banking industry for starters. The number of banks has substantially risen. And they will be going all out and vying with each other for a slice of the depositor's wallet.
Not to mention a host of consumer durables. More and more players will be entering the refrigerator, television and automobile industry.
The service industry, namely hotels and airlines, will all be offering various deals in a bid to grab the consumer's attention.
But hold on consumer. Such a wide variety must not have you taking rash decisions. Wait and evaluate. Since there is definitely not going to be a shortage of products or services and virtually no chance of a monopoly, unlike a few years ago, what's the rush?
* Service with a smile: Manufacturers are fast learning that the Indian consumer can no longer be taken for granted. For a considerably long period time, sellers have churned out shoddy products and provided the Indian consumer with pathetic service. Interestingly, sellers in the past six years who failed to meet adequate service standards and provide some amount of courtesy recorded a drop in sales and profits while a few unfortunates even had to close down shop.
So one can well look forward to better service and respect. Be it a small restaurant or a jewellery or saree store, the seller will definitely take note of the status of the consumer and give him or her the respect due.
With the emergence of such a scenario, the consumers should not tolerate bad service as is so often accepted. If services have to be improved for oneself and for the future generations, the Indian consumer must put his foot down and demand full service. After all, he is paying for the product. So why should he not be entitled to the same service that meets his worldwide counterpart?
* Drop in prices: A fall in the cost of certain services and products is imminent. Unfortunately, this is applicable only in certain categories. The cellular phone industry is a prime example. The airline industry, specially for international travel, in the last three months of 1996 also witnessed such a scenario.
The reason for the price reduction is not just competition. It also stems from the fact that manufacturers will start lowering their margins and be more cost efficient. This will permit them to pass on more value to consumers.
However, where these rules may not apply is in certain luxury categories where the reverse logic is applied: higher the price, the greater may be the chance to increase sales.
Where consumers have to be wary is that they do not fall into a