Page 109 - Nuvama | IC Report 2023
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INDIA: THE 5D ADVANTAGE
We note the key characteristics of this cohort.
• Not bogged down by a scarcity mindset like their predecessors
India’s new-age consumers have grown up in an age of abundance with an extensive variety of
goods to choose from. As incomes accelerate, these cohorts would have the greatest opportunity
and willingness to spend and wallow in material comforts of a home, a car and other premium
goods and services. This is a marked shift in the lives of millennials vis-à-vis previous generations
who considered thrift a virtue.
• Digital natives, and open to trying out new things
Millennials, particularly Gen Z, grew up in an India with ubiquitous internet, smartphones, digital
media and digital consumption platforms. In this process, they are exposed to a wider set of
lifestyles, attitudes and consumption patterns. More importantly, they can relate to them and are
willing to try out new products and services.
Businesses in FMCG space are already benefitting from this trend. FMCG players have been
expanding their offerings to cater to different tastes and preferences of the young.
• Urbanisation breeds consumerism
As argued in Urbanisation, India is seeing rapid urbanisation, which often goes hand-in-hand with
consumerism. Urban households prefer premium lifestyles with a strong inclination towards Urban
households prefer
branded products. Major Indian cities are now turning cosmopolitan with several cultures premium lifestyles
intermingling, which encourages the attitude of trying out new things. with a strong
All these characteristics make urban areas breeding and testing grounds for innovative and luxury inclination towards
products. The success and learnings thereof are replicated elsewhere in the country by consumer. branded products
Exhibit 5:
41 40 Share of people
living in urban
39 areas is on the rise
37
35 34
33
(%)
31
29 28
27
25
FY05 FY18 FY30E
Share of population living in urban areas
Source: Oxford Economics, Euromonitor, PRICE Projections based on ICE360 Surveys (2014, 2016, 2018)
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