The Rise of the Urban Consumer

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Rise of Urban Consumer

There is a major shift in consumer spending in the urban retail environment, in recent times. The question that comes to mind is that, where have all these new consumers come from? Who are they? What influences them to purchase brands? And how have the dynamics in the retail environment prompted them to see the shopping experience differently?

Before we attempt to answer the above questions, we need to review some basic parameters of urban Pakistani consumers.

For instance the rise of the nuclear family structure has brought many changes in lifestyles, such as independent living, smaller family size, focus on education and careers, increased social consciousness, desire to associate and express through the rich and famous, influencing ideas from Hollywood and Bollywood.

Another significant aspect is the massive growth of cell phones and the steady increase of internet usage, clearly suggests how information reaches consumers at great speed.

In fact, this only substantiates a comment made by a senior telecom expert, who said, “Countries like Pakistan may be a bit late at acquiring technology; however, once it’s there they leapfrog and catch up with the developed world”.

Coming to the consumers and identifying the changing environment and influences, one does question as a marketer if there is enough research being done on profiling them. Perhaps, some large companies have commissioned research to profile their own customers, yet I am unaware of any independent research that is available to marketers for specific consumer insights.

I feel that the time is ripe for Pakistani marketers and certain trade bodies to take up the project and conduct a thorough analysis of what, where and why about this sizeable and affording segment.

In this context, I would like to share with you, top lines, of a recent research on SEC classifications, done by The Market Research Society of India (MRSI).

In this study, there is an addition of four new consumer classifications thereby increasing the total number of SEC’s from 8 to 12.

The beauty of the research is that it was simple as it was based on two variables i.e. Education of chief earner and number of ‘consumer durables’ (from a defined list of 11 items) owned by the family.

The results seem to be quite effective as it has improved specific SEC classification, creating greater focus on consumer type. Furthermore, it is less subjective as they are not using occupation as a factor. On a mass scale level it has also evolved into a single system for both urban and rural India.

Taking this idea further, if we review the urban consumer lifecycle (as highlighted to me by an expert researcher); we need to perhaps formulate age based profiles of these customers.

Though I am not proposing to trash the SEC based profiling, which is currently in use, there is merit in seeing customers through a different lens of lifestyle habits, which changes with age. Perhaps, this is the right time to develop consumer profiles that can be categorized as Tweens, Teens, Young Adults, Nuclear Families, Middle Aged Bread Earner Families and Empty Nests.

These titles are just basic starting points but they can be changed or further sub-classified.

In our normal routines and standard business practices we do tend to miss out on the subtle changes that take place in the short-term which can magnify into substantial changes in the medium term.

To quote some examples, the recent addition of Atrium Cineplex and its adjoining food court has a major impact on movie viewing, shopping and dining habits of customers frequenting the mall.

Similar tendencies are observed where hyper-markets (modern trade) have brought in large number of customers in malls and generated high footfall for other brands and stores within the premises.

Though one can argue that these examples do not cater to very large number of customers, yet one is forced to see this as a growing phenomenon.

Another very fast changing scenario is the mushroom growth of food home delivery businesses, which are simply serving a customer need. In the fast paced lifestyle of urban cities, customers are quite responsive to being served at home; offering great potential for groceries and other low involvement level products/brands to experiment here.

This is only the tip of the iceberg. In order to excite customers, we really need to keep a regular track of what is affecting their decisions.

Taking the first step is always the most difficult; however, once the journey begins it has its own experiences and memories which will make the effort worthwhile.

So my two pence worth of advice to all stake holders is – take a plunge and commit some serious money in profiling your customers, as it will save you a lot in the medium and long-term.

Ali Raza Merchant is a seasoned Marketing Professional with a unique blend of experience in core Brand Marketing as well as Advertising and Communications. He is a brand strategist with a versatile understanding of traditional and new media. He is presently Executive Director at Synergy Group and pursues marketing actively, always willing to discuss his ideas with Professionals and Students. Courtesy – Synergyzer