Economist and marketers have predicted that in the near future the younger generation of China and India will be the core of most consumers spending in that region. According to research and records there are around 300 million people that live in China and India that are between the 16 and 30 years of age and that core has about $136 billion to spend.
Winning the loyalty of these youth is the key to being successful in your marketing. Most of the newer generation of consumers would prefer to purchase products that really reflect who they are personally and/or aspire to be. This can also be the way they express themselves or compensate for what they don't have. Another trend that is starting to emerge lately in China and India is that the youth are very receptive to products and brands they see can/will improve or drastically change how they lead their lives.
This same generation can now decide what they want and how they want to live within their community. In the past it was that the younger generations had to accept whatever their parents would pay for them. The economy there wasn’t very strong and consumers did not have a lot of money to spend. Now the youth there are much more focused on their needs, and they want to find different ways to define themselves more than any generation before them. They have a great desire to be unique or an awakening sense of self.
“Research has found that consumers under the age of 28 had zero savings. The reason for this is that they are optimistic about their futures that they are willing to spend everything they earn on clothes and consumer electronics. In a recent survey the respondents said they expected 10% to 20% annual salary increases so that they are spending completely for purposes of enjoying themselves. It is that optimism that has helped to increase the number of credit cards in circulation in China and India. It is not strange to see Chinese secretaries making $800 a month buying $1,000 Gucci bags.” (Wood, 2012)
The youthful shoppers, which are high end shoppers, are only part of the picture. There are still a lot of youth in smaller cities that don't have the money to spend on higher end products. So of course in these smaller cities the big brand name products have a harder sell. Being brought up in this lifestyle these youth have a different outlook with money and tend to believe that having these luxury brands do not matter. They also tend to look at those people that do buy and/or wear big brand names as wasteful. These youth will show...