Every wondered about the state of the retail clothes business in India? Well here is the article you have been waiting to read - generational analysis: Insight into consumer behaviours
At a macro level this is a fascinating article about a vast and hugely important country. It seems that consumers are falling out of love with apparel shopping.
A major reason for this is the distraction of competing purchase options. For example, spending is up on cell phones (from 0.2% of expenditures in 1995 to 0.7% in 2004) and medical services (from 20% in 1995 to 23% in 2004). Clothing was left with only a 4.0 per cent share of consumers' total expenditures in 2004, down from 4.9 per cent in 1995. In dollars, this decline in share equates to a $324 billion loss. That is a massive slug of demand to disappear.
One explanation for this decline, that is glossed over, is that consumers have enjoyed a decade of deflating product prices, increased purchasing power has enabled them to get more apparel for less.
Where I think the article enters world of dreams is when it analyses the shopping behaviour of three age groups (Xers, Boomers and “The Silent Generation” (59- to 70-year-olds). What a ghastly name.
I have no idea how many people are covered by these three generation groups but I suspect it is a big number with a lot of zeros. To believe that you can make sensible marketing decisions based on such blunt analysis is lunacy.
Dick Stroud www.20plus30.com
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