India has come to be known, around the globe, as a nation producing value-enhanced superior, trained human power. Indians have made their mark in the field of information technology, biotechnology, pure sciences and economics.

The globalisation of the job market, demand and acceptance of Indian skills worldwide has opened up opportunities for creation of new jobs within the country, particularly back office operations of multinational corporations.

Furthermore, the service sector in India is also witnessing robust growth. This flat world is bringing a confluence of culture and new lifestyles across India. Emerging lifestyle trends have altered the fabric of the Indian society and have also modified the social and financial behaviour.

To identify the reasons for shift in tastes and preferences of Indian consumers from traditional and conservative looking product lines to more varied, modern and liberal assortment of commodities; a few critical trends are enumerated and some may be appreciated:

*Households making way for nuclear families

*Increased mobility especially for career

*Increase in number of working women and  they  want a career while managing a family.

*Increasing tendency to spend on fashion, health, fitness, education, etc, attributed to increased incomes,

societal factors and independence from parental pressures.

Changing values

These emerging trends are more pronounced in Metropolitan cities because of availability of a broader range and better quality of products and services.  Overridden by guilt over protracted absence, fatigue or work pressures, the parent-centered family has changed its orbit and become child-centered. For most families cultural values were imparted to children by grandparents, but with increased urbanisation, values are now self-acquired. Technology has filled the void of grandparents. 

With joint families disintegrating, the social and financial responsibilities have to be shared by the husband and wife. The joint family used to act as a protection against the impact of any untoward incidence in the family. That natural protection now needs to be replaced by financial planning to protect against economic shock and steady inflow of finances to manage old age needs and any unplanned expenditure.

The India Financial Protection Survey- an all India survey conducted in 2006 across 63,000 households, confirms the change in financial behaviour. It is seen that 82 per cent households save for emergencies and 69 per cent of the households save for old age.

Parallely, a trend is seen in increasing literacy and education levels. There is increasing inclination to provide quality education for children. The survey also revealed that 81 per cent of Indian households save for children education, a reason second only to emergencies. Seventy nine per cent of rural households also save for children education which clearly points towards the growing awareness of providing quality education to children.

Gender bender

Career opportunities and better education has provided women greater financial and emotional freedom; this has leveled the playing field on the domestic front. However, this change in social standing of women is more evident in urban India especially in upper income groups. Conversely, gender discrimination is still rampant in major sections of the society, which acts as a major impediment in acquiring basic education and social skills.

Uneducated women are increasingly vulnerable to poverty and exploitation. On one hand this brings the need for change in the outlook of the society, on the other there is an increasing need to make women financially independent to have the status of equality in society. Financial services sector including life insurance can play an important role by developing products specifically designed to meet the requirements of women.

Life insurance is also helping women in urban India through micro entrepreneurship initiative where women can have the flexibility of managing their time and still earn to be financially independent by being distributors of insurance. Further, as employees in the same sector, great opportunities especially in sales, training and servicing are on offer for women.  The initiative needs to gather momentum both in rural and urban India to bring a lasting change in the social structure of Indian society.

Info on demand

Technology has also made a significant impact on the lives of consumers. With television and internet reaching to rural India also, people are more informed and their aspirations have changed. The urban-rural divide is fast fading and the aspirations of rural India are almost similar to their urban counterparts.

But this does not mean, what will work in urban India can be replicated in rural India also, there is a need to understand the consumer behaviour, needs of rural India and develop products, distribution channels and communication media specially to address those needs.

In rural India lies a massive potential waiting to be tapped, what urban India makes up in value, rural India will substitute in volume. With almost 70 per cent of India residing in rural India and almost 50 per cent of our Gross Domestic Products (GDP) contributed by rural economy, it is time that corporate India work overtime to develop and provide products and services better suited to the needs of rural India.

The changing face of the Indian society is bringing with it new challenges and opportunities. It brings to forefront a new India, where women and children will gain more importance, where rural India will have the purchasing power, be more demanding and where products and service offerings would be tailored to suit this new set of consumers. 

The writer is Executive Director- Distributions, Max New York Life.