Globalization: Effects on Indian Consumer
Globalization has led to providing consumers with more purchasing choices than ever before in known human history.
Furthermore, with Internet, we now have new avenues for doing transactions from the comfort of homes. With a click of a mouse and/or just tapping our smartphones; products & services are made available from any corner of the globe.
All this has changed consumer behavior in ways that was not anticipated even 20 years back by the consumers themselves. In many ways, Globalization has benefited the consumer the most; barring a few negative repercussions caused by tax wars etc. Better Product and services options, Competitive prices and Quality that is at par across the globe. The Quality and Price benchmarks post Globalization are exceptionally in favor of Consumers.
The level of India imports is testimony to the consumers’ acceptance of foreign-made goods. Indian Consumers in the Pre-Globalization period had limited choices in all sections of their Purchase, be it Food Items, Clothing, Electronics goods or whatsoever. Today, the behavior of Indian consumer has changed. And, they not just have various options but also are inclined to go for Better Quality products creating Competition even in the local manufacturers. The local Manufacturers are competing with International ones to not to lose the Consumer base to them. This has benefited quality improvement in local goods and better local and international options for the Consumers
Latest Trends in E-commerce show that the Indian consumer is not limiting their will to buy international or local products from Brick & mortar stores but also willing to do huge purchases online without being afraid of Quality or Price issues, they have a sense of faith even while dealing in Online Transactions.
With the surge in middle class in India, more and more International companies now intend to reach the Indian Consumer to focus on this base population. They are attracting customers not just with offers but ensuring that the better Quality and Price awareness of Indian consumers are balanced and met. McDonalds and KFC have ensured that they have offerings that are localized to ensure Indian Consumers get what they want; so is equally true for consumers all over.
For example, we now know that a “Person A” in a remote town of India has the power to order Products manufactured in China or USA, assembled somewhere else in the world and couriered to Indian cities. Now the consumers don’t do it just with ease but with confidence of getting what they want.
Indian consumers now have liking for International Brands, they have local options too and buy what they think works best for them – from cost, quality and need perspective.
This is further set to change; with advent of so many E-Commerce companies such as amazon.in, flipkart.com, olive-route.in, myntra.com and their success in providing Products and services at consumers door. The consumer behavior is moving further towards online shopping and this is all set to peak between 2020-25. During this period of 2020-25, if trends available on internet are to be believed there is going to be a huge shift from Shopping across the street to Online Stores. This will further lead to change in the way the Consumers do their purchases or where they put their money.
Internet in addition to Globalization has led to this change that we are witnessing and will continue to do so for times to come. For sure, Globalization and Internet together have changed consumer’s buying behavior in a new advantageous way, then ever before.