Consumer Lifestyles in India Euromonitor

CONSUMER LIFESTYLES IN INDIA
Euromonitor International March 2012
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LIST OF CONTENTS AND TABLES

Consumer Habits in Context......................................................................................................... 1 Current Behaviour Within the Broader Economic Climate ........................................................ 1 Consumer Confidence .............................................................................................................. 3 Misery Index ............................................................................................................................. 3 Chart 1 Misery Index 2006-2011 ............................................................................... 4 Learning ....................................................................................................................................... 4 University Life ........................................................................................................................... 6 Adult Learning .......................................................................................................................... 7 Chart 2 Chart 3 Number of Students in Higher Education and Expenditure per Student in PPP Terms 2006-2011 ............................................................................. 7 Regional Ranking of Number of Higher Education Students (incl. Universities) 2011 ........................................................................................ 7
Working Habits ............................................................................................................................. 8 Working Conditions................................................................................................................... 8 Women in the Workplace.......................................................................................................... 9 Commuting ............................................................................................................................. 11 Alternative Work Options ........................................................................................................ 11 Retirement .............................................................................................................................. 12 Chart 4 Chart 5 Chart 6 Employed and Unemployed Population and Labour Force Participation Rate 2006-2011 ..................................................................... 13 Regional Ranking of Female Employment Rate 2011 ................................ 14 Population Aged 15-64 Compared with Old-Age Dependency Ratio 2000-2020 .................................................................................................. 14
Eating Habits .............................................................................................................................. 15 Dining in.................................................................................................................................. 15 Dining Out ............................................................................................................................... 17 Caf Culture ........................................................................................................................... 18 Snacking Habits ...................................................................................................................... 18 Attitudes Towards Food Trends .............................................................................................. 19 Chart 7 Chart 8 Per Capita Expenditure on Consumer Foodservice by Chained and Independent 2011 ...................................................................................... 19 Regional Ranking of Average Supply of Food Calories per Day 2011 ....... 20
Drinking Habits ........................................................................................................................... 20 Attitudes Towards Drinking ..................................................................................................... 20 Drinking Inside the Home ....................................................................................................... 22 Drinking Outside the Home ..................................................................................................... 22 Chart 9 Chart 10 Per Capita Consumption of Alcoholic Drinks and Soft Drinks by Category 2011............................................................................................ 23 Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs Ontrade 2011 .................................................................................................. 23
Grooming Habits ........................................................................................................................ 24 Attitudes Towards Personal Care ........................................................................................... 24 Attitudes Towards Beauty ....................................................................................................... 25 Male Grooming ....................................................................................................................... 26
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Use of Hair Care Salons, Spas, Nail and Beauty Parlours ..................................................... 27 Chart 11 Chart 12 Value Sales of Beauty and Personal Care Key Categories 2006-2011 ...... 27 Regional Ranking of Per Capita Sales of Men's Grooming Products 2011 ........................................................................................................... 28
Fashion Habits ........................................................................................................................... 28 Attitudes Towards Clothing ..................................................................................................... 28 Attitudes Towards Footwear ................................................................................................... 30 Attitudes Towards Personal Adornment ................................................................................. 30 Attitudes Towards Accessories/luxury Goods ......................................................................... 31 Chart 13 Chart 14 Consumer Expenditure on Clothing and Footwear 2006-2011................... 31 Regional Ranking of Consumer Expenditure on Clothing and Footwear as a Proportion of Total Consumer Expenditure 2011................ 32
Health and Wellness Habits ....................................................................................................... 32 Public Versus Private Healthcare ........................................................................................... 32 Attitudes To Health and Well-being ........................................................................................ 33 Over-the-counter Versus Prescription-only Medicines (otc Vs Pom) ...................................... 34 Sport and Fitness.................................................................................................................... 35 Obesity ................................................................................................................................... 36 Chart 15 Chart 16 Growth in OTC Expenditure on Pharmaceuticals Compared with Healthy Life Expectancy at Birth 2006-2011 .............................................. 36 Regional Ranking of Obese and Overweight Population 2011 ................... 37
Smoking Habits .......................................................................................................................... 38 Smoking Prevalence ............................................................................................................... 38 Attitudes To Smoking.............................................................................................................. 39 Chart 17 Chart 18 Smoking Prevalence amongst Men and Women 2006-2011 ..................... 39 Regional Ranking of Smoking Prevalence 2011 ........................................ 40
Shopping Habits ......................................................................................................................... 40 Main Household Food and Non-food Consumables Shop ...................................................... 41 Top-up Food Shopping ........................................................................................................... 42 Shopping for Big-ticket Items .................................................................................................. 42 Personal Shopping ................................................................................................................. 42 E-commerce and M-commerce .............................................................................................. 43 Chart 19 Chart 20 Importance of Hypermarkets, Supermarkets and Discounters within Grocery Retailing 2011 .............................................................................. 44 Regional Ranking of Sales through Internet Retailing 2011 ....................... 45
Leisure Habits ............................................................................................................................ 45 Staying in ................................................................................................................................ 45 Going Out ............................................................................................................................... 46 Public Holidays, Celebrations and Gift-giving ......................................................................... 46 Culture .................................................................................................................................... 47 Chart 21 Chart 22 Cinema Attendances 2006-2011 ................................................................ 48 Regional Ranking of Consumer Expenditure on Leisure and Recreation as a Proportion of Total Consumer Expenditure 2011 ............. 48
DIY and Gardening Habits.......................................................................................................... 49 Attitudes To DIY...................................................................................................................... 49 Attitudes To Gardening ........................................................................................................... 50 Chart 23 Number of Home Owners and New Dwellings Completed 2006-2011 ....... 50
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Regional Ranking of Home Owners as a Proportion of Total Households 2011 ....................................................................................... 50
Pet Ownership Habits ................................................................................................................. 51 Attitudes To Pet Ownership .................................................................................................... 51 Chart 25 Chart 26 Pet Population and Sales of Pet Food 2006-2011 ..................................... 52 Regional Ranking of Pet Ownership 2011.................................................. 53
Travel Habits .............................................................................................................................. 54 Getting Around ....................................................................................................................... 54 Use of Public Transport .......................................................................................................... 55 Air Travel ................................................................................................................................ 56 Chart 27 Kilometres Travelled by Road, Rail and Air compared with Road Network, Consumer Expenditure on Transport Services and Number of Scheduled Airline Passengers Carried 2006-2011................................. 57 Regional Ranking of New Car Registrations 2011 ..................................... 58
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Vacation Habits .......................................................................................................................... 59 Attitudes To Taking Holidays .................................................................................................. 59 Main Holiday-taking Trends .................................................................................................... 59 Domestic Versus Foreign Holidays ......................................................................................... 60 Preferred Travel Methods ....................................................................................................... 61 Popularity of Different Types of Holiday Activities .................................................................. 61 Chart 29 Chart 30 Domestic and Outgoing Tourist Expenditure by Sector 2006-2011 ............ 61 Regional Ranking of Holiday Departures 2011 .......................................... 62
Financial Habits .......................................................................................................................... 63 Attitudes Toward Payment Methods ....................................................................................... 63 Savings ................................................................................................................................... 64 Loans and Mortgages ............................................................................................................. 65 Chart 31 Chart 32 Consumer Lending Compared with Savings and Savings Ratio 20062011 ........................................................................................................... 65 Regional Ranking of Financial Cards in Circulation 2011 ........................... 66
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CONSUMER HABITS IN CONTEXT Current Behaviour Within the Broader Economic Climate
In 2011, Indias Gross Domestic Product reached Rs91.7 trillion, up significantly from Rs62.6 trillion in 2006. Generally, Indias robust economic growth over the past several years has been a boon to many of the countrys consumers, with real incomes growing over recent years. Indeed, per capita disposable income increased from Rs48,267 in 2006 to Rs61,591 in 2011. Perhaps not surprisingly, as per capita disposable incomes increased, so did per capita spending. In 2011, per capita consumer spending reached Rs44,462, up from Rs34,713 in 2006. While Indias economic growth continued in 2011, it nevertheless grew more slowly (7.4% over prior year) than it did in 2010 (nearly 10% over prior year). High rates of inflation have been a problem. In 2011, inflation reached 9.1%, down from 12.1% in 2010 but much higher than the 6.2% seen in 2006. Although government hiked interest rates and intervened to reduce prices of essential products, inflation has nevertheless squeezed consumers wallets and forced many to begin to cut spending. According to business publisher Business Today, [2012] is expected to be painful as the cumulative impact of macroeconomic weaknesses finally worms its way into the lives of almost every Indian. If 2011 was full of signs of an economy deceleratinghigh inflation, a slowdown in manufacturing, exports losing momentum, waning holiday sales and rising inventory of unsold apartmentsthis year will hit Indians, especially middle-class Indians, where it hurts the most: home finances. Generally, Indian consumers have always been value-conscious but rising prices in 2011 forced many to consider delaying non-essential purchases. As well, rising energy costs forced many consumers to try to reduce their fuel and electricity bills while rising food prices prompted many to trade down to less expensive grocery brands. Demand for new clothes, vacations and leisure and entertainment has declined due to consumer belt-tightening. At the same time, rural consumers were crushed by high inflation and uncertain financial situations while urban, middleclass consumers were only slightly better off, focusing on finding ways to get better value for their money. Low-income consumers, on the other hand, focused on somehow just surviving. Describing the impact of inflation in the short term, Business Today said What is going to be different [in 2012] is that incomes will likely remain flat from the previous year or rise marginally, even as the effects of such long-term inflation play havoc with rents, interest on loans, spending on health care, education and entertainment. Not all Indians have benefited from the countrys recent robust economic growth. Poverty, particularly poverty in rural areas, continued to be an issue in India in 2011. According to a recent report by the state-run National Commission for Enterprises in the Unorganized Sector (NCEUS) 25% of Indians lived on less than Rs20 per day and the impact of rising inflation has made life even more difficult for many in this income bracket. The countrys reading on the Gini Index (a standard measure of income inequality) rose from 37.8 in 2005 to 39.5 in 2010. Though the government implemented measures in an attempt to narrow the income inequality gap, such as investing in rural areas and implementing job creation programmes, inflation overshadowed gains leaving consumers little left over to spend from their newly earned income. A recent article in The Hindu newspaper, noting the most recent World Bank Country Overview on India, reported that A large section of the population especially the poor, scheduled castes, scheduled tribes, other backward classes, minorities and women lack access to the resources and opportunities needed to reap the benefits of economic growth.
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Indeed, those wishing to identify, observe and analyse the behaviour of consumers in India can only do so accurately by taking into account the dramatic differences in living standards in the country. These difference were recently highlighted in reports of the results from the recent Houselisting and Housing Census, the first phase of the Census 2011. According to a summary of the findings in the Times of India, One-sixth of the country, or 200 million Indians, don't possess any of the most basic assets like a transistor or TV, phone, vehicle of any kind or a computer. In three statesArunachal Pradesh, Nagaland and Madhya Pradeshclose to a third of the households own none of these assets. A further summary in The Hindu newspaper also discussed the wide gap in household conditions, noting that Though half of all Indians do not have a toilet at home, well over half own a telephone....The data on housing, household amenities and assets cast new light on a country in the throes of a complex transition, where millions have access to state-of-the-art technologies and consumer goodsbut a larger number lacks access to the most rudimentary facilities....They have ever more access to electricity and gather their information from television, rather than radio. At the same time, women are forced to rely on traditional smoky fuels to cook, and less than one third of the population have access to treated drinking water. Only 46.9% of the total 246.6 million households have toilet facilities. Of the rest, 3.2% use public toilets. And 49.8% ease themselves in the open. In stark contrast, 63.2% of the households own a telephone connection53.25 of mobile phones. The data also show that just 32% of households use treated water for drinking and 17% still fetch drinking water from a source located more than 500 metres in rural areas or 100 metres in urban areas. With these stark differences, it is, therefore, no surprise that consumer behaviour, demand and spending habits vary so greatly throughout the country. Indians have been very vocal about what they see as the economic hindrances caused by rampant corruption, which seems to be present at nearly all levels of government. For example, Indians have recently endured a series of scandals involving the auctioning of wireless licenses, the building of the infrastructure for the Commonwealth Games and various real estate deals. Many activists, supported by large numbers of Indian consumers, believe that the lack of job opportunities for many is a direct result of corruption and ineffective economic management. Indians have been pressing the government to establish an anti-corruption watchdog and without this dramatic action from the government corruption is expected to continue to grow in coming years, affecting the rate of growth and opportunity in a number of economic sectors. In the longer term, India is expected to continue to see sustained growth in disposable incomes and a climate of confident spending. In addition to the slow growth of the labour market, there are other broader economic issues that may influence consumers lives in coming years, such as the rising fiscal deficit, the rising balance of payments and the impact of the economic slowdown in US and the eurozone. But according to Tushar Poddar, Chief India Economist for Goldman Sachs, India still has much going for it as it positions itself amongst the worlds most robust economies. India is really unique because it has a large population, 1.2 billion peopleand rising. It also has a very young population, with half the population under 25 years. He added India will play an increasing role in the global economy as demand from a growing working-age population will continue to drive consumption demand. We estimate that over the next decade as this population earns, consumes and saves more, these factors could contribute about 4% annually to India's GDP. The government is also taking steps to address the countrys broader economic issues and in some cases the proposed initiatives are expected to significantly affect the day-to-day lives of Indian consumers. An analysis in the Economic Times noted what the 2012 budget means for consumers in practical terms. The article noted, among other observations, that new tax hikes mean that consumers will have to spend at least 2% more on almost every service; higher excise duties will raise prices of a wide range of products, from cigarettes to cars; there will be
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sharper increases in petrol and diesel prices; and buying gold and selling property will become costlier with higher taxes.
Consumer Confidence
After slipping significantly in 2009 as a result of the economic downturn, consumer confidence began to bounce back in 2010 and by 2011, despite mixed reactions, Indian consumers on the whole began to return to optimism when assessing the outlook of their (and the countrys) financial situation. Among the findings revealed in the recent consumer confidence survey conducted by the Reserve Bank of India (RBI), by the end of 2011 about 65% of the respondents reported that the economy has potential to grow above the current level. On the other hand, Although the positive perceptions on household circumstances have marginally increased, about one-fourth of the respondents continue to expect weakening. The survey went on to note that More than half of the respondents reported optimistic perceptions about employment scenario in the economy. Overall consumer confidence appears to have improved marginally, both for current and future periods. Among those who said that their household finances were better than they were one year prior, more than one-half said the improvements were due to rises in salary and business income. Of those who said they were worse off, 17% cited rising prices while another 16% cited declining salaries and business income. Inflation, rising prices and high interest rates are factors which are combining to spark concerns among many Indian consumers. The RBI noted The degree of negative perceptions on price levels for future periods have increased in December 2011 while more than 80% of the respondents were of the view that the current interest rates are high from borrowers view point. Only 15% of the respondents felt that interest rates are appropriate. The government has noted the optimistic but cautious mood permeating amongst consumers. Prime Minister Manmohan Singh recently said that it would be wrong to conclude that India is now unshakeably set on a process of rapid growth. Nevertheless, officials are trying to encourage consumers to avoid pessimism and to have faith in the ability of Indias strong macroeconomic fundamentals to support economic growth in coming years.
Misery Index
Mirroring declines in the inflation rate, the reading on the Indias Misery Index (calculated by adding the inflation rate to the unemployment rate) dipped to 14.6% in 2011, down from 18.6% in 2010. In 2011, inflation reached 9.1%, down from 12.1% in 2010 while unemployment reached 5.4% in 2011, down from 6.5% in 2010. Regardless of the declining trends, many believe both elements, particularly inflation, to be too high and this is in many cases having an impact on how Indian consumers view their personal financial situations. According to a recent report from the BBC, Rising prices have been driven by falls in the rupee, which is at its lowest level against the dollar for over two years. This in turn pushes up the cost of imported goods, such as oil. By the end of 2011, the report noted, Fuel price inflation stood at 14.79% and food inflation at 11.06%. To address rising inflation, the government has stepped in through the RBI to hike interest rates in a bid to curb inflation growth. Indeed, the RBI has increased rates 13 times since March 2010 in an attempt to hold back rising prices. The higher interest rates, as a consequence, have led to a sense of despair among many in the business community and among investors. Regardless, government officials are optimistic that inflation has already started showing signs of decline and this may prompt the RBI to lower interest rates in the future. Generally, unemployment is higher in the rural areas where two-thirds of the Indian population live. Despite greater employment opportunities opening in many key sectors, labour market growth is slow. Indeed, according to the Economic Survey 2011-12 (a survey that precedes the
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presentation of the governments budget), labour growth has slowed in both the public and private sectors. Analysing the results of the survey, the Times of India noted Just 15% of the total labour force has regular salaried jobs. While employment in the public sector grew at just 0.4% between 2010 and 2009 as compared to 0.7% between 2009-2008, private sector employment grew at 4.5% as compared to 5.1%. The bulk of workers in the labour market in India fall into the unorganised labour sector, with most working in the agricultural sector. Despite the recent economic slowdown and the resultant sectoral shifts, most of the organised labour sectors continued to experience job creation. According to recent reports from human resources consultant Ma Foi Ranstad, stable job growth was seen in key sectors such as manufacturing, banking and finance, IT, pharmaceuticals, media and entertainment (boosted by growing consumer demand for cinema, online digital media and mobile services), healthcare services and health insurance and the hospitality sector. In order to respond to the challenge of job creation and to continue to provide sound employment opportunities, the government has been increasing recruitment in public services, creating rural employment plans such as National Rural Employment Guarantee Act and promoting an environment of investment in the private sector. Generally, unemployment will continue to be a challenge for the government, though its five-year economic plan intends to drive inclusive growth by investing in Indias agriculture, education and health and social welfare sectors. The plan also aims to move India higher up the value chain by creating employment opportunities in such sectors as manufacturing. Chart 1 Misery Index 2006-2011
Source: Note:
Euromonitor International Calculated by adding the countrys unemployment rate to its inflation rate.
LEARNING
Generally, Indians tend to place great emphasis on education. The culture demands high academic achievement from children and this is encouraged by parents who see academic qualifications as the best ticket to a good career and a good standard of living. Parents are eager to invest in their childrens education and this has led to many private institutions being able to command high fees. India offers a wide range of educational options for students with institutions operated by both public and private bodies. Pre-schools (typically for students aged three to five years-old) offer preparation for admission to primary schools (where students are typically six to 10 year-olds). Students then proceed to secondary level (11 to 16 year-olds). Until relatively recently, most pre-schools were simply informal neighbourhood schools run by semi-professionals and most pre-school students were trained informally to get them ready for primary school. But over the past decade, there has been increased demand for better
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organised pre-schools and now virtually every large neighbourhood offers at least a few, with each competing fiercely with the other. Pre-schools have become hugely popular among Indian parents because they offer a structured, English-language syllabus focusing on early childhood learning. According to leading pre-school chain Serra International, the value of the Indian preschool market is now estimated to be Rs50 billion. In response to the huge consumer demand, several large organizations have entered the market and have launched pre-schools across the country. These include Mumbai-based Brainworks and Kangaroo Kids with 80 centres across India, Dubai, Maldives; EuroKids International with 584 centres across 160 cities and towns across the country; and Kidzee, an arm of Zee Interactive Learning Systems which has over 623 centres in more than 275 cities in India. Even larger corporate entities plan to enter the market; indeed, Aadyant Education plans to open about 500 centres in the coming years. Primary and secondary education is provided mainly through government public schools with funding shared between state and central governments (one-quarter is provided by the central government). Most primary and secondary schools offer students a wide range of subjects to study, including mathematics, science, English, social studies, arts, computer science, sports and music. Most schools encourage students to learn two languages, the national language Hindi and the state language. Overall, India's schools teach 58 different languages. There are a number of private primary and secondary schools and they tend to rank much higher than state-run schools in terms of quality of infrastructure, quality of trained teachers and the overall quality of education. In most urban centres, especially the top 25 cities, it is mainly low-income households which send their kids to public schools as they charge no fees. But given the uneven quality of infrastructure and teaching staff in most public schools, even parents in low-income rural areas try their best to send their kids to private schools, even if doing so means that they have to work longer and harder in order to afford the high fees. Fees at private schools can range from Rs10,000 to Rs50,000. The growing number of schools which offer an international syllabus also charge very high fees (up to Rs1 million per year) and they are considered expensive even by very affluent parents. Regardless, spots in these schools are highly sought after, a situation reflected by their very long admission wait lists. At the same time, many parents also send their children to private tuition agencies or private tutors. While most tuition providers are independent, some work for large organisations that operate several branches. In fact, some are so prestigious that students need high academic marks just to be eligible for admission. In response to increased consumer demand, the tuition/coaching /training sector has seen massive growth over the past decade. Considering the great emphasis parents continue place on the academic achievement of their children, the services of these agencies are expected to continue to be in great demand in coming years. The standard school year can vary across regions but in most regions it starts in April. Typically, schools have two long holiday breaks, a two-month summer break in May-June and a shorter two-week winter break in December. Apart from this, the main festival holiday break is the week-long break for Diwali. As well, there are day-long breaks for other major festivals such as Holi. The Christian Christmas holiday usually falls during the winter break. The typical school day runs for six to seven hours but timing can vary according to the part of the country in which the school is located. Lunch breaks usually last for 30 to 45 minutes. As well, there are usually one to two shorter breaks of 15 to 20 minutes for snacks. Most students from middle-income families attending private schools carry packed snacks and lunches from home. At the same time, many students from affluent households buy their lunch in the school canteen/cafeteria. Typical home cooked lunches consist of chapati (Indian breads), sabzi (cooked vegetables), rice and dosai (Indian pancake/crepe).Snacks might include cookies, crisps, sandwiches, fruit or poha (flattened rice snack). In public schools, government-funded free meals and snacks (food and beverages) are provided to students. While most city schools offer a reliable water supply, many parents still prefer to provide their children with filtered/boiled
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and cooled water. In public schools, books, stationery and other needed supplies are provided free but in private schools parents must pay for school books and supplies. Under the Integrated Child Development Services (ICDS), public schools and those partially funded by the government, along with Anganwadis, provide students with free mid-day meals. There are some public-private partnerships that also offer free meal programmes for students. For example, the Akshaya Patra Foundation, a public-private partnership, runs one of the world's largest NGO-operated school meal programmes, supplying food to 1.2 million children in eight states in India. The food is simple but nutritionally balanced and cooked according to local food customs. Almost all schools in India mandate the wearing of uniforms. The central government funds free school uniforms for all primary and secondary students in public schools but nearly all private school parents are required to buy school uniforms for their kids. Typical uniforms consist of shorts or trousers for boys and blouses and skirts for girls. In some schools, girls are offered the option of wearing traditional dress called shalwar kameez, which consists of a long tunic and long flared pants. Most schools are strict about not allowing make-up and allowing only a few items of modest jewellery.
University Life
Higher education in India is available to qualified students through both public (governmentfunded) and private institutions. Some Indian universities rank among the best in the world. Indeed, the Indian Institutes of Technology, Indian Institute of Management and private institutions such as the Indian School of Business have all often featured in top positions in the various lists of top science, business and technology institutions. According to the QS World University Rankings 2011, four Indian universities were rated among the top 100. Regardless, there has been some concern expressed about Indian universities, particularly after Narayana Murthy, chairman emeritus of Infosys Ltd, said in 2011 that the quality standards of top Indian universities are possibly slipping because admissions criteria are not as stringent as in the past. Indeed, a recent report from D&B noted In spite of gaining recognition as a prominent R&D hub in the global space, Indias total contribution to the world research papers remained at a dismal 2% as per statistics provided by Ministry of Science and Technology in 2003. India faces serious shortages in qualified research personnel in educational institutions, in national laboratories and in industrial R&D units, and to meet this ever-growing demand for research professionals, it needs to spruce up the quality of its higher education institutions. In India, the number of scientists and engineers engaged in R&D is close to 157 per million. On the other hand, countries like Korea have fifty times more and the US and Japan have about thirty times more scientists and engineers. Presently, India produces around 5,000 PhD scholars in science and around 800 in engineering annually. The Prime Ministers Science Advisory Council has estimated that if India wants to claim the status of being a knowledge-based economic power, it has to produce five times more the number of PhD scholars of international standards. While state governments provide most funding to public institutions, students still need to pay tuition fees. Indians prefer to invest in vocational colleges/universities and applied degrees rather than liberal arts or basic sciences. Engineering, medical science, law and accounting remain the traditional prestigious degrees but in the last decade many new vocational programs, such as computer animation, new media, journalism and financial degrees have become more popular. Unlike in the West, the majority of university students are day boarders and they live at home with their families. Academic programmes and universities need to be fairly popular to justify students leaving home and living in university dormitories. Dormitory/hostel living for female students is discouraged, although social acceptance is gradually increasing. Despite the relatively affordable cost of Indian universities, the share of foreign students is low.
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Most students do not need to work in part-time jobs since their parents tend to help them fund their university education. Even as fees have risen and as more students have taken advantage of increasingly available student loans, most students pay off their loans over their working lives after they graduate rather than immediately by working part-time jobs while studying at university.
Adult Learning
Adult education is not a popular concept in India. There are two programmes well-known to the majority of Indians. These include government- and NGO-sponsored basic literacy programs for uneducated Indians (typically rural adults) as well as supplemental courses taken by workers, taken mainly to enhance their academic credentials and, in turn, their prospects for career advancement. Programmes are offered via such institutions as the University of Delhi and Osmania University in Andhra Pradesh. In addition, the Indira Gandhi Open University offers mature students continuing education opportunities as well as a wide range of highquality, globally recognized programmes that lead to advanced degrees. Chart 2 Number of Students in Higher Education and Expenditure per Student in PPP Terms 2006-2011
Source:
Chart 3
Regional Ranking of Number of Higher Education Students (incl. Universities) 2011
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Source:
WORKING HABITS Working Conditions

India has comprehensive employment legislation and regulations that support the countrys workforce. These cover such key topics as working conditions, working hours, discrimination in the workplace and in hiring, compensation and benefits and holiday and leave periods. The Factories Act (1948) and the Shops and Commercial Establishments Act mandate the minimum acceptable workplace conditions. The Factories Act caps working hours at no more than 48 hours per week for adult workers. Typically, Indian workers work from 9am to 5pm but it is common work practice for workers to stay behind and work longer, especially among those in management. To ensure adequate rest time for workers, the law mandates at least one day off per working week. Moreover, if a public holiday falls on a weekend most employers provide a compensatory day off, though this is not mandatory. The overtime culture is stronger in the private sector and in industries like banking, IT and consulting. Beyond just working more hours, in many cases employees must address the needs of clients in the US, Europe and in other different time zones. As well, since 2000 there has been a rapid growth in the business process outsourcing (BPO) sector. As these companies often cater to clients in different time zones, workers often work in shifts. Most salaried executives and managers are not eligible for overtime pay. On the other hand, workers who earn hourly wages are indeed eligible for overtime pay. Any worker working for more than the prescribed maximum number of hours is entitled to pay for overtime hours at twice their ordinary rate. Typically, the total overtime hours should not exceed 50 hours in any one quarter. Detailed employment contracts are not common in the Indian workplace. Rather, employers often issue appointment letters describing the scope of the work and wages/salaries. In some cases, these are required, depending on the state. Typically, employment contracts are set for an indeterminate period of time. However, it is also viable to have employment contracts that are project-specific or for fixed periods, depending on the needs of the employer. Indian labour
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law does not envisage an at-will employment relationship. Dismissal may be for reasonable cause or based on misconduct. The Employees Provident Funds and Miscellaneous Provisions Act (1952) provides for a provident fund, family pension and insurance for workers. The Payment of Gratuity Act (1972) provides for the payment of gratuities (lump-sum payments to employees upon resignation, retirement or termination) to workers in certain establishments. In the corporate sector, the office dress code is usually business-like, with men typically wearing formal shirts and trousers while women wear formal shalwar kameez or saris. In recent years, Western business attire has become more common among women, especially in large global companies and in sectors such as financial services and banking. In some offices, Fridays are dress down days and employees dress more causally. Regardless, by and large Indians dress conservatively, especially while at work. Lunch is often brought from home by office workers and eaten in the office kitchen or sometimes at the employees desk. Most companies provide access to microwave ovens to help workers heat the food theyve brought from home. Increasingly, however, hectic work schedules and busy lifestyles are leaving less time for the preparation of home cooked meals and more workers now opt to dine on affordable meals offered at foodservice venues nearby their offices. The Child Labour Prohibition and Regulation Act 1986 prohibits employing children below the age of 14 years-old in hazardous work and regulates their work in other non-hazardous processes. The maximum number of working hours for a child should not exceed 4.5 hours in a day.
Women in the Workplace

In 2011, women accounted for 23% of the total employed population in India. According to Gender Diversity Benchmark for Asia 2011 report compiled by Community Business, India remains among the worst performers in terms of share of women in the workforce. Moreover, the trend of women dropping out early in their careers and in mid-career continues. Employment is open for women in most sectors (barring some hazardous sectors such as mining) but women tend to take jobs in some sectors while eschewing others. For example, the traditional jobs for women are in the education sector, nursing, hospitality and retailing sector. Sectors which have recently become attractive to women workers include jobs in banking, administrative jobs in a wide range of industries, media and entertainment, IT, journalism and research. In rural areas, the majority of working women work in the informal sector, using traditional skills such as weaving and knitting. Other popular sources of work include dairy cooperatives and jobs that include making handicrafts and using textiles. To prevent gender discrimination and to support working women, several legislative initiatives have been put in place. For example, both the Maternity Protection Act 1961 and Equal Remuneration Act 1976 attempt to address the needs of working women and to make Indian workplaces more accommodating for women. For example, female workers are entitled to an average maternity leave of 12 weeks. Many companies offer more generous policies, allowing working women to extend their leave up to one year and even to work part-time from home until their children are three years-old. As well, to ensure equitable compensation among genders, the Equal Remuneration Act 1976 mandates that male and female workers be paid the same rate for an equal amount of work. On the other hand, enforcement of this regulation (and many other regulations) is often weak and, in fact, gender-based wage discrimination is rampant in India. Women are often paid lower wages, particularly in the unorganised sector but also in the formal sector. Women continue to be discouraged (implicitly or explicitly) from taking on senior positions in the organised work sectors. Taking care of children, elders and doing housework are still considered by many to be the primary responsibilities of Indian women and social disapproval is
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rampant toward working women who are unable to fully perform these duties. Many qualified and skilled women end up being employed part-time in the informal sector. However, there has been a recent change, particularly in urban areas. According to a 2011 report by international communications agency Kwinessential Corporation, Indian companies have started investing in initiatives to encourage working women. These include providing flexible transportation options, on-site childcare services and flexible working hours to help them accommodate and balance their varied duties. Google, for example, has taxis on call allowing women to get home quickly and easily should there be an incident or medical problem with their children or relatives. Wipro has taken this one step further by running childrens day camps on-site during the holidays to help women avoid having to take time off work. According to Bloomberg Business, in 2011 leading companies such as Ernst and Young undertook wide ranging measures to encourage women to come back to work after their maternity leave. Indeed, in a recent article describing some of the obstacles that working women in India face, the Economic Times noted While women have taken giant strides professionally, their personal life often comes in the way, especially after they become mothers. And since they are the primary caregivers, it becomes a choice between pursuing a career or dropping it altogether. Some companies, however, appear to be addressing this issue. Companies today are designing profiles with flexible work timings. For a very long time part-time work was frowned at. But organizations now recognize the advantages of retaining their highly talented women employees and hence offer profiles that allow women to work from home as well. While this is not a very recent phenomenon, it has come up in a big way only in the last couple of years. The article continued, The Tatas, one of the country's leading corporate groups, were one of the first ones to think of bringing their women back. In 2008 they began a 6-month internship programme Second Careers where they assigned women with live, short-term projects to help reorient them to the industry. Upon completion many were even inducted with the Tatas themselves. The programme is still running. Since then the flexibility bug has caught on with many other organizations which have come up with customized programmes open for women looking for jobs in small pockets. Generally, however, a further obstacle to advancement for women workers is simply that the majority of top corporate positions are still held by men. According to a 2011 study titled Challenges Indian Women Face in the Workplace conducted by New York think-tank Center for Work-Life Policy, The measures of daughterly guilt are much higher in Indian women than in the West. In fact, gender disparities at Indian companies grow more pronounced in management's upper ranks. But the situation has nevertheless become more relaxed in recent years and now more women hold key positions in the government as well as in the private sector. In the past, sexual harassment in the workplace was brushed under the carpet or resolved informally. In 2010, however, the government attempted to introduce formal laws to resolve issues of sexual harassment. The Protection of Women against Sexual Harassment at Workplace Bill was placed before the Parliament for approval. According to a summary in the Times of India about this legislation as well as other government efforts, Giving a ruling on August 13, 1997, the Supreme Court held that sexual harassment of women is a violation of the fundamental right to work in a safe environment. The formation of complaint committee against sexual harassment in every governmental and non-governmental or private organisation, institution was also directed. Besides, the Central government also introduced the Protection of Women against Sexual Harassment at Workplace Bill, 2010 in Lok Sabha on December 7, 2010. The main objective of the Bill is to provide protection to women against sexual harassment at all workplaces both in the public and private sector, whether organised or unorganised and for the prevention and redressal of complaints of sexual harassment.
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Commuting
The Indian population has far outstripped the infrastructure in nearly all urban areas and, as a result, commutes to and from work in the country are now rated amongst the worst in the world. According to Payscale, a US-based salary tracking firm, time spent commuting in leading Indian cities is far higher even than time spent commuting in very large global cities such as New York. Commutes in Mumbai and Delhi average 47.5 minutes and 43.6 minutes, respectively, while commuting time in Bengaluru is 40 minutes. Among private vehicles on the road, cars dominate followed by motorbikes and scooters. Commuters who drive or who travel as passengers in cars or other private vehicles typically face heavy traffic congestion in cities as well as the often robust driving habits of fellow commuters. To add to the difficulties faced by commuting drivers, there is a huge shortage of public and private parking lots in urban areas. Securing parking spots for the long term (or even on ad hoc basis) is very difficult and is an important factor discouraging many commuters from driving to work. Fortunately, parking charges are still affordable for those lucky enough to secure a spot. As well, parking lot safety is not a major concern. Public transport is the dominant mode of commuting in leading cities such as Mumbai, Delhi, Chennai and Bengaluru, with travel by rail being the lifeline. At the same time, commuters travelling on buses tend to find them overcrowded and of poor quality. Nearly all commuters who use public transport buy long-term travel passes with monthly passes being the most common. Some large-scale projects have eased the pain of commuting in some urban areas. For example, the Delhi Metro Rail is one of the largest metro systems in the world and with an average daily ridership of 1.6 million. Bengaluru Metro phase 1 was inaugurated in October 2011 and metro rail construction is now underway in all other large metropolitan areas, including Mumbai. Walking and cycling to work are not as common as using public transportation but that, of course, depends on the distance from home to work. Cycling is fast becoming popular in some metropolitan areas as it is inexpensive and bikes are easy to store and park. In an attempt to promote cycling, the Delhi government has recently decided to build separate bicycle lanes for commuters on all major roads.
Alternative Work Options

Alternate work options are still not commonly available to workers in India. On the other hand, part-time jobs have been available to workers for decades. But schemes such as flexible working hours and job sharing have emerged only recently (roughly, over the past decade) and workers in these schemes are few. Regardless, many companies are becoming more openminded about alternative work arrangements and it is expected that more options will be available to workers over the coming few years. Among other benefits, these arrangements are often less expensive for companies than providing traditional office space for workers. Alternative working options are more often available to workers in private companies, typically in such sectors as IT and advertising and media, as well as sectors which involve online tasks and projects. While some are simply full-time employees working from home, in many cases such workers are self-employed or part-time workers working on a contract basis. In these cases, workers are not eligible for many of the company perks and welfare benefits for which full-time workers are eligible. Most part-time workers are women; in 2011, women accounted for 68% of all part-time workers. Since wages from part-time work usually do not adequately cover all of the essential household financial obligations, part-time jobs are typically taken on by family members to supplement the primary household income. In the unorganised labour sector, it is mainly women who opt for part-time jobs and other alternative employment options as, for the most part, they are still primarily responsible for
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taking care of the household and child care. In this context, typical jobs for women include direct selling, serving as tuition teachers, running small mom and pop retail stores, providing household services such as laundry and ironing services, providing beauty salon services, cooking and the home delivery of food purchased in shops. Most of these ventures are selffunded but there are some government and NGO schemes that provide training, up-front financial assistance and marketing assistance. There is similar support provided to rural women but the kinds of ventures more commonly launched in rural areas include handicraft manufacturing , home-based food manufacturing, making beedi (a traditional tobacco product) and making bangles and other jewellery. In large part, these jobs are popular in rural areas because many women in these areas are less skilled than educated urban workers.
Retirement
The retirement age in the public sector in India is 60 years-old while in the private sector the retirement age ranges from 58 to 60 years-old. In 2011, the number of Indians above the age of 60 years-old was about 93 million, representing 7.6 % of the total population. This proportion is expected to increase to nearly 10% by 2020. According to a recent article in the Times of India, the government is reviewing an increase in the retirement age for public sector employees to 62 years-old. For the most part, Indian workers do not have access to pension schemes, either public or private. As the average salaries in both the public and private sectors have increased significantly over the past decade, Indians have saved large portions of their income to fund retirement. Most retirees are able to live off of reasonable sums of money even if they are not in pension benefit schemes. This situation is in sharp contrast to that two decades ago when retirees had only modest sums upon retirement and thus, in many cases, had to rely on their children to cover at least some of their post-retirement expenses. With greater savings and incomes at their disposal, more Indian retirees are living comfortably. Traditionally, Indian grandparents lived with their childrens families (usually with their sons family) and they had strong roles in binding the extended family together, not only helping to take care of grandchildren but also simply offering the wisdom of their experience when family matters arose. They also ran errands and attended PTA/school celebrations when the parents were unavailable. While this scenario is certainly common today, currently there are also many retired grandparents who live more independent lives and who focus their spending (of both time and money) more on themselves than on their extended families. Since many of todays retirees are more educated and have greater financial independence, many more are spending time on projects that they believe make their own lives more rich and interesting. Typical spare time activities include recreation and fitness activities, travel, and entertainment. Of course, as in all discussions of consumer behaviour in India, there must be acknowledgment of are wide differences in levels of disposable income and, in turn, spending by Indian retirees. Generally, these differences determine the options from which retirees can choose as consumers. Regardless of levels of income and spending, however, it is clear that Indian parents tend to remain close to their grown children and their grandchildren and that they eagerly and willingly help however they can when needed. Special homes for retirees, such as assisted living accommodations, are still an alien concept to most Indian consumers. In fact, there are only a few such institutions in the country. Adult children who do not provide living accommodations to their dependent parents are often frowned upon in India. Traditionally, as Indians get older and as they become less able to live independently, their adult children step in to take care of them, often moving them into their own homes to live with their families. If they cant do this, they assist them financially. In any event, they remain in close touch to ensure that their older parents are emotionally supported. There is
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no formal large scale social policy or support structure for housing for the elderly which allows for independent living. On the other hand, the senior housing sector is changing. Indeed, a recent article in construction industry journal EPC&I discussed the changing face of retirement in India and what it might mean to the housing sector. Today, retirement homes offer a multitude of facilities to their occupants. And, despite the social stigma of abandonment attached to it in India, there are rising numbers of seniors who are adapting to the idea of senior living. The status of seniors in Indian market is experiencing a sea-change, owing to their growing cohort size, augmented financial independence and change in mindset. They are no longer considered as a withdrawn, risk-averse and financially dependent class of citizens. The immense potential of this segment, with its unique needs and promises, offers an array of opportunities to the Indian real estate market. The changing environment was confirmed in a recent article in the Times of India which described activities at the 2011 Retirement India Expo. It's now pass to talk about loneliness and old age homes referring to the older population. In India it deserves a new name for new timesthe ultimate unretirement. The retirement yearsdefined for so long as a time to take rest and do nothingare becoming a time of high activity and purpose, the article noted. It continued Senior citizens no longer look upon shacking up in an exclusive facility made for their needs as a sad happening or a let down by their children but view the upcoming retirement homes as dignified spaces for their autumnal years where support systems are provided at a cost... Senior citizens went gaga sitting on a climber of staircases powered by electricity. It is so very necessary for business India to tap further into this ageing market and bring to the elderly comfort, convenience and enjoyment in later years. In the words of Dheeraj Sinha, author of Consumer India (2011) nearly 27 million elderly live in the top three SEC segementations meaning they have the purchasing power to make their lives padded by supports and enhancements. Chart 4 Employed and Unemployed Population and Labour Force Participation Rate 2006-2011
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Chart 5
Regional Ranking of Female Employment Rate 2011
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Chart 6
Population Aged 15-64 Compared with Old-Age Dependency Ratio 20002020
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EATING HABITS Dining in

Reflecting the countrys rising food prices, its growing population and the wide range of new food offerings introduced into the market, per capita expenditure by Indian consumers on food and non-alcoholic beverages grew by 3.6% between 2006 and 2011. Consumer demand for processed and packaged foods has grown strongly in recent years but most consumers are still opting for traditional foods and for meals cooked fresh at home. This is due not only to traditional foods being considered healthier but to traditional foods being considered more economical. Indeed, the majority of Indian households continue to follow the traditional rules of Indian dining culture which places great value on freshly prepared meals. Most Indians prefer to buy fresh vegetables and meats and prepare meals from scratch. On the other hand, this is changing somewhat, particularly in urban areas and among affluent households, especially households with working women. Many of these consumers put premium value on convenience and time savings and opt for quickly prepared chilled or frozen meals. The availability of these meals has also grown as an increasing number of modern retailers now stock prepared and packaged meals. Indian cuisine is wide-ranging, reflecting the diversity of cultures found in the many different regions in the country. A large number of Indian consumers still prefer vegetarian dishes, in many cases because of the religious restrictions placed on Hindus that prohibit them from consuming non-vegetarian foods. Nevertheless, demand for non-vegetarian food is on the rise in India, even among erstwhile conservative consumers. Although there are regional culinary differences, there are many common attributes to Indian dishes. These include the fondness of using spices and cooking curries. Breakfast, lunch and dinner are the main meals but early evening snacks (especially during the tea break) are also very popular.
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Wheat-based foods are more common in the north and west of India due to a climate that supports wheat cultivation. Chapati is a common flat wheat bread consumed in those areas. Other unique foods and cooking styles found in north India include tandoori cooking, using a clay oven (tandoor) over a charcoal fire and cooking marinated meats on kebab skewers. In the south of India, rice cultivation is more common than wheat cultivation and this is reflected in local dishes. For example, dosas (savory stuffed flatbreads cooked like pancakes) are eaten along with curries together with dal (made from legumes), chickpeas and lentils. In western India, especially along the coast, coconuts and seafood are popular ingredients for local dishes. In eastern India, rice and seafood is very common but this region is also known for its special, delicious sweets that are often made with dairy products. Despite the growth in organized retail, the common perception among Indian consumers is that the produce in neighborhood street markets is fresher and more economically priced than produce in supermarkets and hypermarkets. This belief is reflected in their shopping habits and spending habits. Street vendors and vegetable vendors with carts are common sights in neighborhoods and they provide fresh supplies of vegetables and meat to consumers daily. As well, consumers still tend to prefer to purchase meat and seafood from fresh markets. Most households tend to shop for food frequently, with each trip usually meant to stock up for only two to three days rather than an entire week. This habit is changing somewhat, however, particularly in urban areas and among households with busy working women who have less time to spend grocery shopping so often. As well, many consumers return home tired from work and as shopping at unorganized street markets can be tiring and stressful, it is often avoided. For these and other reasons, a growing number of Indian consumers are turning to convenient and stress-free supermarkets and hypermarkets for their food shopping. Food shoppers frequenting supermarkets and hypermarkets tend to stock up for one to two weeks. They often buy frozen or chilled items, including ready meals, which typically can be stored for long periods. Frozen and chilled foods are preferred by consumers over ambient temperature prepared meals because the latter are considered less fresh. In the past, a big constraint affecting the availability of frozen/chilled food in India was the retailers and distributors lack of cold storage facilities and related infrastructure. But this has changed over the past five to seven years as a result of government initiatives and increased activity by industry players which has led to a dramatic improvement in the supply chain network and cold storage facilities. Even tier-two cities such as Lucknow, Chandigarh, Surat and Kochi have seen an increased retail presence of and, in turn, increased consumer demand for frozen processed foods. Indians have traditionally shown a strong preference for Indian flavours and cooking styles and even with interest in Western dishes on the rise most Indian consumers continue to prefer Indian-style dishes. Beyond Indian dishes, however, the more popular international cuisines (with meals often purchased as prepared ready meals and served at home) include Thai, Chinese, Mexican and Middle Eastern. Many of these international dishes are prepared with spices similar to those used in Indian dishes, making them popular among Indian consumers who love their spicy foods. Indian consumers often celebrate at home over home cooked meals. This is especially true during religious festivals. The main meals as well as the desserts and special celebratory food items are still typically cooked at home. However, in urban India, especially in households with working women, packaged food items are being rapidly adopted. Many Indian households have kitchens which are well-equipped with appliances. However, it must be noted that the household penetration rates for many modern kitchen appliances are low in less affluent homes and households in rural areas. Although India is a large volume market, household penetration rates and per capita ownership rates are low due to the differences in disposable income. Regardless, among the most popular appliances in Indian kitchens are
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blenders and grinders. Toasters, sandwich makers and other appliances used to prepare Western foods are not common but demand is rising due to the increasing adoption of Western breakfast and snack habits. Another new appliance which has become popular in recent years are microwave ovens, which Indian consumers use primarily for heating and reheating food rather than for microwave cooking. Aspiring consumers have created great demand for microwave ovens and their affordability now makes them more common in middle- and upperincome households. In contrast, it is not common to find coffee machines in the kitchens of teadrinking Indian consumers. As well, appliances such as juicers have become popular but these remain niche products found only in the most affluent households.
Dining Out
Although the majority of Indian consumers continue to prefer to dine at home, dining out has seen explosive growth in recent years. Indeed, over the past eight to 10 years Indian consumers, particularly urban consumers, seem to have found more occasions to celebrate and more opportunities to dine outside the home. Birthdays, wedding anniversaries, graduation parties, Valentines Day celebrations, reunion parties and many more occasions are celebrated by dining out, at least by affluent consumers. To meet the increased demand (and, in some ways, helping to drive it), a growing number of food service outlets have opened in recent years. In particular, there has been explosive growth in the number of Western dining formats, such as pizza restaurants and fast food outlets, in urban areas throughout India. According to the India Leisure and Entertainment Report by the Knowledge Tree company, dining out is now one of the three most popular recreational activities among Indian consumers. According to a 2011study on Indian consumers attitudes toward dining out conducted by the US Department of Agriculture (USDA), traditional eating habits in India are changing and consumers who traditionally always ate at home are now increasingly dining out. Busy urban workers often pick up a quick breakfast from street stalls located close to office; lunch (and often dinner, too) is often purchased from stalls close to office. But while the vast majority of dining out consists of purchases at street stalls, restaurants have nevertheless accounted for a rapidly growing share. According to the USDA report, dining out in India used to be reserved only for special occasions but increasingly younger consumers and consumers from middle- and upperincome households are dining out more often. Many have shed the biases often held by older and more traditional consumers regarding the quality of international franchises and foreign foods in general. By 2011, consumers in most metropolitan areas had access to a wide range of chained consumer foodservice outlets, ranging from McDonalds to KFC to Dominos Pizza to BaskinRobbins ice cream shops. Several new independent competitors have also sprung up, offering quality food and high standards of hygiene and service. Additionally, older Indian chains such as Haldirams, Nirulas and Bikanerwala have all modernised their outlets, menus and service to compete with Western formats and new emerging Indian outlets. According to a recent report by industry journal Express Hospitality, the main dining out trends (in terms of cuisine) in 2011 were contemporary Indian; Asian street food and grill; Pan-Asian cuisine including Vietnamese, Malay, Korean and Thai foods served in informal dining venues; and gastro-lounge-bars that focus more on their food offerings without fussing about dcor. Restaurants serving organic dishes are still considered a niche segment but demand is growing rapidly among some health-conscious consumers. For example, Modak, which opened in 2010, serves organic thali (Indian set meals) while Lumiere sells dishes from a Pan-Indian menu prepared with organic produce. However, sourcing organic food remains expensive in India so this is still an option only for affluent diners. Although consumers can now choose from a wider range of menu items in most outlets, prices have risen rapidly in line with increasing food prices. Even key fast food brands like
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McDonalds and KFC have been careful about their pricing strategies in order to maintain sales and satisfy consumer demand. Many chains now provide diners with a mix of affordable items and higher-priced items. For example, KFC launched its street wise menu in 2011 while McDonalds continued to heavily promote its Rs20 menu items. Chains also increased the number of items on offer in a bid to increase average bill size.
Caf Culture
Indians are mainly tea drinkers and the country is dotted with a large number of small tea shops serving fresh and affordable tea. But the number of cafs has grown significantly in recent years, reflecting increased consumer demand for coffee as well as the comfortable ambiance of Western-style coffee shops. However, demand for specialty coffee remains a mainly an urban trend, driven by the tastes of affluent consumers. Hot coffees remains the most popular with cold coffee drinks still more of a novelty. Unlike consumers in Western countries, consumers in India do not often buy coffee to take away. There are two main reasons for the growth of cafs in India. First, the caf culture took wings with the liberalisation of the investment climate which prompted many international caf chains to enter the market. Second, foodservice players wanted to take advantage of the changing tastes and preferences of younger consumers with rising disposable incomes who are increasingly influenced by Western dining and drinking trends. As in Western countries, most modern cafs in India today are considered by consumers to be places to sit and relax and to escape from the stress of urban living. In other words, cafs are simply places to hang out. The posh Western interiors, good music and attractive lighting make cafs very interesting places for young consumers to spend their time. Visits to cafs are most frequent during the evenings, around lunch and around snack times. To broaden their consumer base, in 2011 some cafs experimented by offering different formats, such as cyber cafs, music cafs, garden cafs and cafs that encouraged leisurely reading. Some have also added food to their offerings and expanded their menus to include other beverages such as tea and juices.
Snacking Habits
Snacking is very popular in India, both among children and adults. Snack times for kids usually occur during the school snack break and during evening tea breaks. For adults, snacks are usually eaten in the evening during the tea break. Indian consumers (both kids and adults) tend to prefer salty, sweet and savory snacks rather than chocolate, confectionery and ice cream. (Although instant noodles have become a very popular snack for kids.) Popular sweet/savory snacks include potato chips/crisps, extruded snacks and traditional snacks such as crisp Bikaneri bhujia (often simply called bhujia), string-like fried sev and chivda, a snack made from beaten rice flakes. Although most traditional sweet/savory snacks consumed in Indi are unpackaged or homemade, the share of packaged traditional snacks has seen a significant increase in demand. This has been driven in large part by busy consumers not finding the time to prepare and cook their own snacks at home. As well, rising disposable incomes have allowed more consumers to buy conveniently packaged snacks. In recent years, there has been a broadening of the range of snacks flavoured with popular Indian flavours. This has been seen, in particular, in the wider availability and popularity of flavoured chips/crisps. The traditional flavours appeal to the stubborn Indian palate which finds it hard to break away from classic Indian flavours. To satisfy Indian consumers, Frito-Lay India has also incorporated Indian flavours with the launch of its lentil/dal-based extruded snacks. In recent years, Indian consumers have seen the downsizing of snack packs. Smaller, less expensive packs were introduced in order to cater to the demands of low-income and rural consumers. Smaller pack sizes have also been a big hit among children who find them easy to
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consume in a single snacking session. The smaller packs also appeal to health-conscious consumers who simply prefer small portions. Sweet and savory snacks have continued to hold their special place in the snacking pantheon in India despite the growing awareness among consumers of the sometimes adverse health effects related to eating (often fried) sweet and savory snacks. On the other hand, an increasing number of consumers have started to reduce the portion size of their snacks while others are opting for healthier snacks, i.e., those that are low-fat, low-sodium and baked rather than fried. A number of quality snacks have also been introduced but their higher prices make them affordable for only the most affluent consumers.
Attitudes Towards Food Trends

Sensitivity to changes in attitudes towards food trends is dependent in large part on levels of disposable income and economic status. Indeed, a large proportion of Indians live in poverty while many others are considered middle class and even affluent. However, regardless of household income, rising food prices have been a big concern for all Indians in recent years. Rising food prices have resulted in a huge public outcry and the government has been attempting to stem the increases. A large number of Indian consumers are vegetarians but, increasingly, there has been greater demand for non-vegetarian food in recent years. This has been the result of Western influences on diet, increasingly liberal attitudes being adopted by consumers (particularly young consumers in urban areas) and declining social and family pressures exerted on those who chose to lead non-traditional lives. On the other hand, in some rural areas and among some social classes, eating habits and food choices continue to be determined by caste and religion. There is a growing trend among Indian consumers (at least among those that can afford it) to purchase and consume processed and packaged foods. This has been driven by consumers looking for time savings and convenience, an increased number of busy working women, rising disposable incomes and greater availability of processed foods from such leading producers as Aashirvaad, MTR and ITC. At the same time, however, there has been much discussion about and a growing awareness of the adverse health effects related to eating processed foods and this has led some to return to traditional foods and to preparing more home cooked meals. Demand for organic food among consumers is still low, mainly because organic food demands a premium price in India. But awareness of the benefits of eating organic food is growing rapidly, particularly among educated and more affluent consumers and demand is beginning to grow, albeit slowly. Organic food is typically found in supermarkets and more modern food retailers. At the same time, the concept of genetically modified (GM) foods is new to India and many consumers are unsure about its safety. In 2010 the government delayed the commercial cultivation of GM crops, thus signalling to many consumers that consumption of GM foods needs further study. Chart 7 Per Capita Expenditure on Consumer Foodservice by Chained and Independent 2011
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Chart 8
Regional Ranking of Average Supply of Food Calories per Day 2011
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DRINKING HABITS Attitudes Towards Drinking

There are no strict bans or religious restrictions on consumption of alcohol in India and drinking is a common social activity. Traditionally consumed by tribal groups, alcohol has gradually proliferated and drinking has become socially acceptable among other castes and
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groups. But even today, many in India frown upon consumption of alcoholic beverages by women. Prohibition is incorporated in the Indian Constitution among the principles of state policy. Prohibition was introduced and then withdrawn in Haryana and Andhra Pradesh in the mid-1990s although it continues in Gujarat with partial restrictions in other states (Delhi, for example, has dry days). There was an earlier failure of prohibition in Tamil Nadu as a great deal of illegal alcohol began circulating and deaths occurred. Apart from prohibition, the government has undertaken several other measures to regulate alcohol consumption. These include increasing excise taxes. But this has been found to be problematic as consumer demand is found to be inelastic to price changes. The traditional social stigma of drinking alcoholic beverages is dissipating rapidly, especially in urban areas. It is now even acceptable to see women consuming alcoholic beverages in fashionable pubs and upscale restaurants. In contrast, in rural areas consumers often drink cheap, low-quality liquor from street shops called thekas/addas. According to a recent article in the medical journal The Lancet, two-thirds of the alcohol drunk in India is unrecorded because it is either illicit home brew or because it has been smuggled into the country. According to a recent study by the World Health Organisation (WHO), a smaller proportion of Indians consume alcohol compared to consumers in Western countries. Indeed, the study notes that approximately 67% of males and 92% of females in India are lifetime abstainers. On the other hand, per capita consumption of alcohol in India increased from 3.3 litres in 2006 to 5.4 litres in 2011. Summing up the WHO study, the Times of India said Indians love their whisky, vodka and rum but are yet to develop a taste for wine. An average Indian adult (15 years and over) drank 2.6 litres of pure alcohol between 2003-05. This was higher than the per capita consumption in the south-east Asia region which stood at 2.2 litres. The article continued, noting that According to the Indian Alcohol Policy Alliance, which brought out an Alcohol Atlas of India a few years back, the average age of alcohol consumption in India has fallen by nearly nine years over the past decade. At present, an average Indian takes the first sip of alcohol at the age of 19 compared to 28 in the 1990s. Studies say that in another 5-7 years, a majority of Indians will start consuming alcohol at the age of 15... For every six men, one woman drinks alcohol in India. Indeed, among the various types of alcoholic beverages spirits are the most popular among Indian consumers. Traditional spirits, commonly known as country liquor, are found in many regions of India. Feni, a cashew spirit, and taadi, a toddy palm wine, are popular in Goa and South India and are sold unbranded. Country liquor sales are banned in several states as many suppliers dont follow prescribed regulations. With rising purchasing power and awareness of the health risks posed by country liquor, consumers are shifting to affordably priced branded spirits, including brandy, gin and rum. Despite the continued popularity of spirits, beer has seen phenomenal growth in demand in recent years. Indeed, per capita consumption of beer grew from 1.5 litres in 2006 to 2.5 litres in 2011. This was similar to the growth seen in per capita consumption of spirits, which increased from 1.8 litres in 2006 to 2.9 litres in 2011. Wine remained a distant third in terms of consumption but it has nevertheless seen stronger growth rates than spirits and beer in recent years. In large part, demand has been driven by young urban professionals who see wine as a healthier alternative to beer and spirits. As well, the price of wine has been declining in both offtrade and on-trade outlets, fuelling demand. The minimum age for the purchase of alcohol varies, going from 18 years-old in some states to 25 years-old in others. In 2011 the state of Maharashtra raised the legal drinking age to 25 years-old. The government also controls advertising of alcohol products. Demand for soft drinks has seen a massive increase in recent decades and it continues to grow. Per capita consumption of soft drinks increased from 2.9 litres in 2006 to 6.4 litres in 2011. Bottled water, carbonates and fruit juices are in greatest demand by consumers. In
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particular, bottled water accounted for two-thirds of volume sales in the soft drinks market in 2011. Indeed, per capita consumption of bottled water increased from 1.6 litres in 2006 to 4.3 litres in 2011. (In contrast, per capita consumption of fruit juices reached just 0.6 litres in 2011.) Bottled water has been available in India for over three decades but it has only been since the 1990s that health-conscious Indian consumers began driving increased demand. Other major contributing factors behind the popularity of bottled water include rising disposable incomes and the convenience of bottled water for on the go consumption. Demand for natural mineral water is also increasing due to the increase in awareness of its health benefits. Within the carbonates segment, low-calorie beverages and non-cola beverages saw strong growth in demand, again a reflection of rising health consciousness.
Drinking Inside the Home

In India, it has traditionally been considered socially unacceptable to consume alcoholic beverages at home. However, in recent years the attitudes of many consumers have changed and become more liberal and more consumers are now consuming alcohol while relaxing at home. However, home consumption by women is still taboo as the home is considered a sacred place. Other social restrictions also prevail. For example, is it considered disrespectful to consume alcoholic beverages in the presence of elders and it is considered irresponsible to consume alcoholic beverages in the presence of children. In past years, alcohol for home consumption had to be purchased in specialist shops. However, in recent years several states have permitted consumers to buy beer in supermarkets and hypermarkets. Regardless, consumers still shop for alcohol, particularly spirits, most often in specialist shops, reflected by the 99% volume share of specialists in 2011. Indeed, sales of spirits are usually restricted by state governments to specialist retailers except in Karnataka and Chandigarh where supermarkets and hypermarkets are also allowed to sell spirits. Glass bottles remain the preferred package type for spirits. Smaller sizes (30 and 60 millilitres) are becoming increasingly popular among consumers as they are more affordable. When buying beer, consumers tend to prefer the 330 millilitre metal beverage cans and 650 millilitre glass bottles. For some consumers, 330 millilitre cans offer more freshness as each can is opened separately and consumers do not have to open an entire large bottle and then save what they dont drink. However, when celebrating in a large group, consumers tend to prefer larger glass bottles as they are more economical. Beer in 500 millilitre cans is also popular since the cans are lighter and less fragile than glass bottles. For wine drinkers, glass bottles remain the most popular type of package. Demand for wine in boxes and cartons remains negligible as consumers do not believe that wine in these packages is of good quality. Consumers perceive wine in boxes and cartons to be cheaper and of a lower grade and, thus, these wines are not in great demand. As well, since wine tends to be consumed by more affluent consumers, price is less of an issue in the buying decision and, thus, better wine packaged in bottles is more often the choice. Even using PET bottles to package wine is a new concept among Indian consumers. Many Indian consumers fear that alcoholic drinks deteriorate unless they are packed in glass.
Drinking Outside the Home

In contrast to many Western countries which saw declining levels of alcohol consumption in recent years, there has been increased demand among Indian consumers, driven by rising disposable incomes and changing social attitudes which have resulted in greater acceptance of consuming alcoholic beverages. Consumers who want to drink outside of their home tend to do so in restaurants (usually with their meals) and in beer bars, pubs, clubs and discotheques. Restaurants mark off separate areas called permit rooms which accommodate the sale of
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alcohol. According an article on nightlife in India on website goindia.about.com, As drinking traditionally isnt part of Indias culture, the country's bars tend to be divided into two categories: cheap, seedy local bars frequented by Indias male population and classier venues catering to the progressive middle- and upper-class crowd. The latter can only be found in major cities. The site adds An interesting term used in India is that of the resto-pub or resto-bar. These are restaurants that double as places where you can drink, and sometimes dance later in the night, as many restaurants dont serve alcohol in India. Among rural and low-income consumers, the most common venues for consuming alcoholic drinks outside of the home are small street shops called theka/addas. These are small shanties selling cheap local liquor called tharra, taadi, desi or country liquor. Many are unlicensed. Among affluent consumers, going out for a drink can often be related to celebrating a special occasion or, in other cases, simply an opportunity to relax at a restaurant or discotheque. Increasingly, Indian consumers are combining dining out with drinking. Chart 9 Per Capita Consumption of Alcoholic Drinks and Soft Drinks by Category 2011
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Chart 10
Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs On-trade 2011
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GROOMING HABITS Attitudes Towards Personal Care

Indian consumers consider oral care products, bath and shower products and hair care and skin care products to be essential to their good grooming. However, as consumers disposable incomes and aspirations have risen in recent years, there has been movement among Indians to go beyond the basic personal care regimen and to add modern toiletries and cosmetics to the list of essentials. In 2011, per capita spending on beauty and personal care products reached Rs314, up from Rs177 in 2006. Spending growth was driven by increased demand from consumers for such items as deodorant. Between 2006 and 2011, per capita spending on deodorants increased threefold, driven in large part by younger consumers who find looking and smelling good to be important to success in their social lives. As well, growth in demand has been facilitated by the wider availability of deodorants. Beyond standard products, in 2011 there was increased demand for natural and herbal deodorants and for deodorants with sophisticated scents (resembling fragrances). As well, there was increased demand among Indian men for deodorants as men have become increasingly comfortable using grooming products. Indian consumers tend to be brand-conscious when it comes to choosing their personal care products. Preferences are usually based on factors such as the functional benefits offered, price, usage experience and recommendations from trusted sources. Domestic products from leading companies such as Hindustan Unilever, Garnier Labs and Emami, as well as from herbal care companies such as Lotus Herbals and Himalaya Drugs, are usually consumers preferred choices. However, imported brands are becoming popular, particularly among urban consumers, and they have now widely available in supermarkets and other retail venues.
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Oral care products continue to be in great demand. Oral care regimens in India have evolved over the last two decades, with changes driven by growing awareness of the benefits of modern oral care, rising disposable incomes and heavy promotions and information campaigns by manufacturers. In recent years, many consumers have traded up from tooth powder to toothpaste and more have expanded their oral care regimens by adding mouthwashes and dental rinses. Moreover, some consumers have switched from cream to gel toothpastes while others purchased advanced formulas such as total care and whitening. In 2011, a small but notable trend was the growth in popularity of herbal and ayurveda-based toothpastes (based on alternative medicine native to India) which are perceived by some consumers to be more natural than standard products. Middle-aged consumers have driven increased demand for advanced skin care products, such as anti-aging products. Popular brands include Ponds Age Miracle Range and Olay Total Effects. These products mainly appeal to working women (especially those aged 30 years-old and older), who find that they need to take care of their appearances within the context of their jobs. Anti-aging products are quickly growing in popularity among other age groups and this is expected to drive even more demand in coming years. Since light skin is traditionally highly valued in India, most consumers, particularly women, are very aware of the extent of their exposure to the sun. Traditionally, consumers used a variety of measures to avoiding direct sun exposure, including using home remedies such as papaya fruit masks. More modern consumers resort to the ever-popular skin cream Fair and Lovely from Hindustan Unilever, which many believe prevents them from getting darker skin as a result of sun exposure. In more recent years, however, sun protection and sun protection products have come to be more closely associated with the health of the skin rather than simply ensuring lighter or fairer skin.
Attitudes Towards Beauty

Traditionally, Indians have emphasised achieving beauty using a holistic approach, caring not only for the body but caring for the mind and the soul, as well. Accordingly, while there is certainly significant demand for beauty products among Indian consumers, generally an effort has also been made to ensure personal beauty by living a balanced lifestyle. Popular traditional beauty products in India include henna for hair care, gram flour (flour made from ground chickpeas) and sandalwood paste for skin care and kohl for eye make-up. According to leading Indian fashion magazines, though glamour remained an underlying theme in the promotion of many leading products, in 2011 achieving simplicity also became an important beauty trend. For example, the current fashionable hair cuts were more natural with hair softly flowing rather than heavily styled. Popular lipstick colours included a natural cherry, superseding the hot pinks that were in vogue just a few years ago. Packaging also emphasised a simple and natural look with light and earthy colours meant to express high quality. The growing demand for natural products was reflected in the increased number of new product launches from such brands as Forest Essentials, Biotique, Himalaya, Blossom Kochhar, VLCC, Dabur and Lotus Herbals. Indian consumers have driven increased demand for luxury cosmetics and other beauty products in recent years, supported by rising disposable incomes and influenced by enhanced exposure to global media and fashion. Per capita spending on premium cosmetics increased nearly twofold between 2006 and 2011, a rate higher than that of mass cosmetics. Growing consumer demand is being met by a wide range of new product launches, such as Baccarose which launched Este Lauder Pure with minerals in the premium segment. Faces launched over 39 premium products in 2010, leveraging its natural /pure minerals theme. Significant gains have also been made by such premium brands as Mac, Artistry and Este Lauder.
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At the same time, there has been increased consumer demand for imported cosmetics. According to a recent report on beauty website beautypackaging.com, the emergence of a young, urban elite group of women with increasing disposable incomes, changing lifestyles, mounting aspirations and an increasing appetite for Western goods is driving demand for imported cosmetic products. For the most part, Indian consumers tend to look towards international brands as lifestyle enhancers and they believe that these products have superior quality over domestic brands. As clear and healthy skin has traditionally been perceived in Indian culture as a mark of beauty, it is not surprising that there has great demand amongst consumers for skin care products, including whiteners, anti-blemish creams, nourishers/anti-agers and firming/anticellulite products. Consumers, particularly young consumers, are expected to continue to pamper themselves and to use portions of their rising disposable incomes to purchase premium skin care products in coming years. Cosmetic surgery has become more popular among affluent Indian consumers, spurred by greater exposure to global fashion trends, rising incomes and safer surgical procedures. The number of both invasive and non-invasive procedures has increased in recent years and it is expected that growth in demand will continue. Facelifts, facial skin surgeries, rhinoplasty, cosmetic dental treatments and tummy tucks remain among the popular current surgery choices. Encouraged by consumers efforts to fix their imperfections, some obstetricians, dentists and other specialists have begun to add aesthetic cosmetic surgery procedures to their therapeutic offerings.
Male Grooming
The mens grooming segment remains dominated by very basic products, such as razors, blades and shaving creams/gels. However, consumer demand for more sophisticated grooming products, such as skin care and hair styling products, has increased in recent years. Indeed, between 2006 and 2011 per capita spending on mens grooming increased nearly 1.3 times. For the most part, cultural changes have made it much more acceptable for men to spend their time and money on grooming and looking good. In particular, younger men tend to be less shy about spending money on grooming products. In recent years, an increasing number of male consumers have been trading up to premium products. For example, there has been growing demand for premium mens whitening creams from Garnier and Vaseline. There has also been greater demand for high-quality branded mens deodorants, such as Axe, Set Wet and Wild Stone. New premium variants positioned as herbal are also growing in popularity. For example, Gatsby recently launched its New Whitening Wash Foam that contains yam bean powder to whiten and condition the skin and plant fibres to exfoliate the skin. Products from multinational brands such as Gillette remain the most popular among male consumers in India. But increased demand for mass market products has spurred the launch of many domestic brands from such companies as Paras Pharmaceuticals, Emami and Godrej Consumer Products. According to Devendra Chawla, Head of Private Brands at retail chain Future Group, Growth is coming not just from metros, but small towns, too, driven by rising incomes and the growing penetration of TV promotions. A variety of new hair styles among men has emerged in India in recent years, but most recently it has been popular for men to wear their hair short. Crop cuts are common but spikes are becoming more popular with men up to their mid-thirties. Long hair is still not widespread (and not encouraged in professional settings) but stylish iconic celebrities such as Shahrukh Khan and Hritik Roshan have sported long hair intermittently since 2010 in order to make a style statement. Beards are not the normthey are considered to be a bit old-fashionedbut stylish
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beards such as the short French beard have been spotted occasionally on celebrities who sought to present new and different images.
Use of Hair Care Salons, Spas, Nail and Beauty Parlours

For the past several decades, it has been common for middle-income and affluent women to visit beauty parlours and salons for hair and nail care only occasionally. But in recent years rising disposable incomes and greater awareness of personal grooming have prompted women to visits salons more frequently. As well, with more and more pressure to meet international beauty standards and to adopt Western beauty trends, consumers have been seeking out treatments that provide more than just paint and colour. Thus, it is not surprising that nail art has boomed in salons across India since 2010. Driven by rising incomes and greater exposure to international beauty trends, demand for spa services has surged in recent years among affluent consumers. Given the huge demand, many spas are no longer considered super exotic and they are no longer located only in five-star hotels. Indeed, many good quality spas are now located throughout urban areas, including in affluent neighbourhoods and upscale shopping malls. The most popular treatments sought by Indian consumers going to spas include Ayurvedabased treatments, reflexology, hydrotherapy, aromatherapy, meditation, Thai massage, Swedish massage, foot care treatments and hair care treatments. A recent trend in spa treatment has been to infuse extracts of precious and semi-precious gems into skin care products. Some spas brand these as 'jewellery for the skin and they promise to impart healing energies. Adding organic ingredients, topical probiotics and rare fruit extracts to advanced products and treatments has also been in great demand. Chart 11 Value Sales of Beauty and Personal Care Key Categories 2006-2011
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Chart 12
Regional Ranking of Per Capita Sales of Men's Grooming Products 2011
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FASHION HABITS Attitudes Towards Clothing

Reflecting the diverse cultures found in regions across the country, Indian clothing comes in a wide variety of styles and fashions. Clothing trends in India have shifted dramatically over the past decade and the pace of change seemed to intensify with each passing year. Among the key trends was a significant movement from traditional Indian clothing to Western clothing and fusion wear. As well, many Indian consumers began passing up the less expensive clothing they used to buy and began to turn instead to more expensive branded wear. Gone are the days when international high fashion labels such as Tommy Hilfiger, Gucci, Calvin Klein and Diesel were meant only for the affluent. Today they are found easily in top-end stores in all leading Indian cities. These dramatic shifts have been the result of rising disposable incomes and increasing exposure to global media. Reflecting these shifts, per capita spending on clothing increased by 10% between 2006 and 2011. In urban centres, women are dressing much more boldly than they did before. According to reports from leading fashion magazines such as Vogue India, necklines are deepening and hemlines getting shorter. Unseen three to four years ago, it is now common to observe women in cities wearing short dresses, skirts, capris and even shorts. In fact, in recent years it has become common to see affluent, educated and fashionable women dressed in strapless blouses, spaghetti strap tank tops and similar Western attire. In response to growing consumer demand, modern clothing retailers such as Pantaloons, Shoppers Stop and Westside have begun to stock a wide range of private label products as well as domestic and international brands for young and middle-aged working women. Often, these consumers work in sectors such as information technology, telecoms, media and entertainment
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and banking and financial services. Brands popular among these consumers include Wills Lifestyle, Allen Solly, Louise Philippe and Raymond. On the other hand, while Western attire has become much more common it has not become dominant. In most urban centres, a unique trend seen over the past four to five years has been to wear so-called fusion clothing, a mix of ethnic Indian and Western wear. Brands popular among consumers that have capitalised on the ethnic fashionable look include Fab India and Cotton World. Over the years, younger consumers have shifted from traditional Indian attire to jeans and Tshirts/blouses. Even many consumers well into their thirties and forties now dress in jeans since Western wear has become more socially acceptable. The traditional sari is now mainly worn by older women and women in rural areas and smaller towns. Beside saris, popular clothing in the rural areas includes salwar kameez for women and shirts/trousers for men. Casual T-shirts, jeans, capris and shorts are becoming more common but they are still frowned upon for women. Traditionally, it was common for women to wear head scarves or face veils as a mark of modest dressing. But these symbols are fast disappearing, even among women from conservative small towns and villages. However, for celebrations Indians still prefer to dress traditionally, wearing clothes that give a rich and exotic look with heavy embroidery/adornment. A recent report from RBC Radio attempted to list and explain traditional Indian clothing for its North American listeners. For women, clothing items described included the sari, an extremely versatile garment. It simply consists of a single, rectangular piece of material, five to six yards in length, accommodating any size. The style, color, and texture of this material vary according to region and caste. Different draping styles convey the status, age, occupation, region, and/or religion of the wearer; the choli, tightly fitted complimentary coloured, short blouse worn under a sari. Originally, cholis only covered the front, now they have evolved to include versions covering front and back to midriff; the lehanga, a pleated skirt worn mostly in Rajasthan. Worn with a choli, it is secured at the waist, leaving the back and midriff bare. A length of fine cotton called a dupatta, completes the ensemble, covering the head; and the salwar kameez, which started as an alternative dress form in Kashmir and Punjab, it has grown in popularity all over India, especially with younger women. Salwars are pyjama-like trousers gathered at the waist and ankles, worn underneath a long, loose tunic known as a kameez. The report also described traditional clothing for men. Though the majority of Indian women wear traditional costumes, the men in India can be found in more conventional Western clothing, the report noted. Shirts and trousers are worn by men from all regions in India. However, men in villages are still more comfortable in traditional attire. For the most part, traditional mens clothing consists solely of a lungi or hoti. A lungi is a short length of material worn around the thighs like a sarong, while a dhoti is simply a longer lungi with an extra piece of material drawn up between the legs. As well, men wear a sherwani, a coat-like garment, worn by men, fitted close to the body, of knee-length or longer and opening in front with buttonfastenings. Below, the men wear a garment for the lower part of the body, baggy and wide at the top tied with a string at the waist and tight around the legs and ankles. It is a very elegant dress for the men and mostly worn during ceremonies. Finally, there are Kurtas, a knee-length collarless shirt which is adorned in mostly white or pastel colours and pyjamas, loose trousers with a string tie at the waist. Traditionally white in colour. Hindi film industry (Bollywood) stars and actors and actresses from popular Indian TV shows also wield significant influence over fashion trends in India. For example, in popular TV shows such as Kyunki saas bhi kabhi bahu thi, Kahani gahr ghar ki, TV stars wore heavy makeup, lots of jewellery and heavily embroidered saris. This influenced mass market fashion and heavy make-up and ornate saris became very popular among many Indian consumers.
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Attitudes Towards Footwear

Typical casual footwear for Indians includes Hawai chappals, flip-flops and sandals. For formal occasions, Indians typically wear leather shoes or shoes made of artificial leather. Spurred by rising disposable incomes and shifting fashions, per capita spending on footwear increased by 8% (in constant terms) between 2006 and 2011. Greater awareness of international footwear trends due to increased global media exposure has driven urban consumers (especially women) to seek a wider range of footwear styles. Womens footwear has been one of the fastest-growing segments in the overall footwear sector, reflected by value sales growth of 19% (in constant value terms) between 2006 and 2011. For the most part, Indian consumers are seeking more variety in footwear designs and they are increasingly able to afford more shoes. According to a recent article on online fashion magazine fashioncentral, an important footwear trend in 2011 among affluent urban women (especially women in their twenties and thirties) was wearing clogs and sandals. There has been increased consumer demand for sports footwear in India. In particular, there has been rising demand for womens sports footwear. Per capita spending on womens sports footwear increased by 61% (in constant terms) between 2006 and 2011. In contrast, per capita spending on non-sports womens footwear increased by 18% over the same period. Brands like Bata remain the most popular choice among consumers, given the brands perceived high quality and affordable prices. However, other more expensive international brands such as Reebok and Nike are becoming increasingly popular. Sports footwear is typically purchased from independent footwear specialists as they tend to offer the widest selection of the latest styles and designs. Exclusive brand outlets from Bata, Reebok and Nike remained popular with consumers in 2011.
Attitudes Towards Personal Adornment

Gold and diamond jewellery remain among the favourites of consumers in India, even among men. Traditionally, men tended to opt for gold bands or chains but in recent years mens luxury jewellery (gold studded with birthstones and other charms) has become more popular. A recent article in The Hindu newspaper highlighted jewellerys popularity, noting The demand for the yellow metal and diamond jewellery has been quite heavy in India with market analysts foreseeing gold's long-term price determinants to remain bullish from investors and jewellery buyers in both India and China. The World Gold Council reckons that India consumes a humongous 746 tonnes of gold every year. India's import of gold during April 2011 to January 2012 was a hefty US$50 billion, next only to the import of petroleum, oil and lubricants at US$118 billion. Indian consumers prefer to shop at domestic jewellery outlets such as Motiwalla in Mumbai, Hazoorilal in Delhi and Ganjam in Bangalore and they tend to buy domestic jewellery brands, such as Zoya (Tanishq), and Nakshatra (Gitanjali). International jewellery brands such as Tiffany and Bulgari are also becoming popular among Indian consumers but their products and prices tend to cater solely to the affluent. Watches, sunglasses, bags and related accessories also appeal to Indian consumers. Again, affluent consumers tend to buy international brands such as Rolex, LV and Gucci while most other consumers prefer domestic brands. An article on cultural website esamskriti.com asked the question What Does Your Bindi Say about You? and it then went on to try and explain the significance among Indians of wearing a bindi. An Indian proverb says A woman's beauty is multiplied 1,000 times when she wears a bindi. For many Indian women, getting dressed for a special occasion is incomplete without the bindi. When a woman grooms herself in a lavish Indian way, she gives special importance to decorating her forehead with a bindi. However, modern day bindi stickers have made it easy and bindi is used more for decoration today. For generations, bindi has been the most visually
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attractive of all forms of body decoration. In fact, in the 16 decorations for personal grooming (solah-shrungar), bindi is the first shrungaar and has a strong religious implication. Bindi, which means dot, is also known as sindoor, tilaka, tilak, tilakam, tika and pottu. The placement of the bindi on the forehead between the eyebrows is highly significant: The area where the bindi is positioned is said to be the location of the Agnya Chakra (the subtle spiritual eye) in the language of yoga which is said to be the major nerve centre in the human body. To the spiritual seeker, the tilaka made of sandalwood paste serves as a reminder of a seeker's ultimate goal, i.e., enlightenment. Mehndi, henna painting on the body, is a traditional form of personal adornment in India (as well as in the Middle East and Africa). According to earthenna.com, The henna plant is believed to bring love and good fortune and to protect against evil. Mehndi is traditionally practiced for wedding ceremonies, during important rites of passage, and in times of joyous celebration. A paste made from the crushed leaves of the henna plant is applied to the skin and when removed several hours later, leaves beautiful markings on the skin that fades naturally over one to three weeks.
Attitudes Towards Accessories/luxury Goods

According to a 2011 study conducted by Technopack on trends in luxury items in India, there are several key consumer segments in the luxury market: the old-money rich (inter-generational affluent consumers who differentiate themselves with heritage inter-generational luxury goods); the high-level globally traveled corporate executives with discerning eyes for sophisticated luxury goods; and the nouveau rich who enjoy conspicuous consumption and often seek out the most expensive and sometimes most flashy luxury labels. International brands such as LV, Prada, Coach, Gucci, Fendi and Diesel have all begun to expand their presence in the India market in response to strong consumer demand for luxury goods. Indeed, nearly all luxury brands come from outside of India. For example, in the luxury watches segment Swiss watches and brands such as Rolex and Omega are in great demand, as are newer (to India) brands such as Tag Heuer. The Technopack report also noted that, beyond investment, many Indian consumers buy luxury products simply to fulfil their flaunt quotient. This is especially true of nouveau rich consumers. According to the report, consumers seek out luxury assets such as luxury homes and cars far more often than they seek out luxury services such as golfing services, customised fine dining, exotic spas and cigar and wine tasting clubs. When buying smaller luxury products, gold jewellery remains the undisputed leader but other items such as luxury watches, fine wines, haute couture and designer clothing, handbags and accessories such as scarves, ties, gloves are becoming more popular. Of course, there are a wide range of traditional accessories and fashions worn by Indians that reflect the religious and cultural diversity in the country. For example, male Sikhs from the Punjab region wear the 5 Ks that (as explained in a recent BBC report) taken together symbolise that the Sikhs who wear them have dedicated themselves to a life of devotion and submission to the Guru. The 5 Ks include Kesh (uncut hair), Kara (a steel bracelet), Kanga (a wooden comb), Kaccha (or Kachh or Kachera, cotton underwear) and Kirpan (a steel sword). Chart 13 Consumer Expenditure on Clothing and Footwear 2006-2011
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Chart 14
Regional Ranking of Consumer Expenditure on Clothing and Footwear as a Proportion of Total Consumer Expenditure 2011
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HEALTH AND WELLNESS HABITS Public Versus Private Healthcare

Healthcare in India is available through government service providers and private healthcare providers. Although there is no law ensuring universal healthcare for all citizens, most government service providers, whether hospitals, dispensaries or primary health care centres, provide free treatment or treatment at minimal cost to patients. On the other hand, the quality of healthcare services is often wanting and the healthcare infrastructure is severely lacking in
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some of the more remote areas of the country. Spurred by rising consumer incomes and greater demand for better medical services, the quality of healthcare services has been improving and this has led, in turn, to a rise in the cost of healthcare services. In 2011, per capita government spending on health was Rs402.5, up from Rs262.4 in 2006. The cost of private healthcare is very high, especially in urban areas. The bulk of consumer spending on healthcare tends to be for private sector services; indeed, spending on private sector services accounted for 64% of total consumer health expenditure in 2011. According to a recent report based on research from Institute for Social and Economic Change (Bangalore), the London School of Economics and the Centre for the Study of African Economies at the University of Oxford, In south India, even poor people use private healthcare more often than public healthcare...In addition, nearly 70% of poor peoples healthcare expenditure is on private healthcare...Out of all health incidents for which poor households sought treatment, 60% were treated at private clinics or hospitals. The corresponding proportion for the non-poor was 69%. Overall, there is a shortage of adequately trained doctors, nurses and healthcare workers in India and this shortage has enabled providers to charge premium prices for their services. But the same shortage has made access to healthcare services challenging for rural and lowincome patients. According to the Medical Council of India (MCI), the doctor/ patient ratio in 2011 was about one doctor per 2,000 people; in contrast, the international recommended ratio is one doctor per 1,500 people. To ease this personnel shortage in rural areas, the MCI has approved and instituted a threeand-half-year course on rural healthcare for students from rural areas only. Students passing the course will eventually be licensed to practise only in their designated rural area. In another effort to improve the quality of healthcare services provided to rural and low-income consumers, the National Rural Health Mission (NRHM) was initiated in 2005. According to a recent article in the Times of India, Indias flagship National Rural Health Mission has started to make large strides by ramping up the human resource strength. Despite many doctors refusing to practise in rural settings, the Ministry of Health added nearly 1.4 lakh [140,000] health officials up to last September11,712 doctors/specialists, 10,851 specialists practising Indian systems of medicine, 66,784 auxiliary nurse midwives, 32,860 staff nurses and 14,434 paramedics. As well, the government has made efforts to mobilise doctors from the traditional Indian healthcare systems. For example since 2006 the government has increased budget outlays for expansion of the AYUSH infrastructure throughout the country. According to the Times of India, the most recent government budget also provides support for the expansion of alternative medicine services. The Ministry [of Health] has also been pushing for integrating ayurveda, yoga and naturopathy, unani, siddha and homeopathy (AYUSH) into the national healthcare delivery system. Himachal Pradesh, Jammu and Kashmir, Mizoram, Manipur and Tripura are being assisted to set up 50bed hospitals, and Sikkim and Assam for 10bed AYUSH hospitals. In order to develop and promote the Indian system of medicines in an organized and scientific manner, over Rs900 crore [crore equals 10 million] was allocated in 201112. The government has also undertaken several information campaigns to make the population more aware of the benefits of the alternative medicine.
Attitudes To Health and Well-being

India has a long and rich history of medical disciplines such as yoga and ayurveda that go back more than 4,000 years. However, these became less popular over the centuries and the culture of fitness and well-being that was once very strong in the country appeared to have declined with them. Colonial rule, the poor economy and low disposable incomes over the years shifted the focus of Indians from fitness to other more pressing and practical issues. More recently, the countrys general state of health has been affected by the rising stress and busier lifestyles brought on by urbanisation, the increased consumption of processed foods and
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generally more sedentary lifestyles. Rising obesity rates and lifestyle diseases such as cardiac disease and diabetes have also alarmed many Indians. As a result, compared to other developed countries, the culture for health and wellness in India is considered by many to be in need of rejuvenation. Since the 1990s there has indeed been a growing awareness among many Indians of the benefits of living a healthier lifestyle, reflected by the growth of 30% in per capita spending on health and wellness products between 2006 and 2011. Many consumers have become more careful about avoiding unhealthy foods, i.e., those with high levels of fat and sugar and those with high caloric values. Indeed, the increased availability of healthier food options has led consumers to now seek out products that are low-fat, sugar-free and low in calories. At the same time, many consumers have also started to spend more time and money on fitness, exercise and weight-loss programmes. Influenced by the celebrity culture, including the well-publicised lives of Bollywood film stars, many Indians, particularly women, aspire to be thin and some even seek size zero figures. There is also a trend among Indian men to look fit and muscular. As a result, there has been a rapid rise in the number of fitness centres opened across the country. As well, there has been increased consumer demand for slimming and weight-loss products. Driven by strong consumer demand, more health and wellness packaged food and beverages brands have become available in recent years. For example, Dabur India launched two superfruit juices, cranberry and pomegranate, while ITC introduced oat fibre Marie biscuits. Dit Foods India introduced healthier chocolate confectionery, pastries and cookies while Nestl India introduced fortified cooking sauces which can be added to food. Hindustan Unilever introduced a vitamin-enriched tea while GlaxoSmithKline Consumer Healthcare introduced fortified instant noodles. However, these products are relatively expensive and appeal mainly to affluent consumers. Dahi (yogurt) is a traditional Indian favourite and usually prepared at home by consumers. But with lifestyles getting busier, there is less time to prepare dahi at home and packaged yogurts are being enthusiastically adopted by consumers. Consumers have become very enthusiastic about naturally healthy beverages such as green tea and 100% juices with many preferring them over carbonates. Further, many consumers are going beyond simple bottled water and looking for products such as natural mineral water. This was reflected in the growing demand for brands such as Himalayan Mineral Water, Qua and Evian, which are being increasingly stocked by leading supermarkets and hypermarkets.
Over-the-counter Versus Prescription-only Medicines (otc Vs Pom)

In recent years, there has been rising consumer awareness regarding the health benefits of OTC products. This has been fuelled in large part by the increasing availability of new variants and formulas of OTC products and the greater affordability of OTC products. In addition, many consumers have sought to avoid spending money on doctor visits, seeking less expensive selfmedication through OTC products instead, while others simply appreciate the convenience of buying and taking OTC remedies. Indeed, between 2006 and 2011 per capita spending on OTC products increased by 2% (in real terms). The most common OTC medicines purchased by Indian consumers include analgesics and digestive remedies. For more complex ailments, consumers dont mind spending money to visit a doctor or buying prescription medicines. An important trend that is making consumers more aware of home medication is the growing use of advertising and promotions by producers. Such information campaigns have made consumers more aware of the safety and effectiveness of OTC products, thus encouraging them to resort to them more often. OTC producers also spend a great deal of time and money promoting new products and new variants of existing OTC medicines. For example, in 2010 Dabur India added two new fruit-flavoured variants for the herbal product Chyawanprash, targeting teenagers and fussy children. They promoted these new products via celebrity
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endorsements on national and regional TV networks. The company also relaunched the Dabur Hingoli brand in the anti-flatulent category in a bid to refresh the brand in the minds of the consumers. Presenting it in a more modern form helped position what was considered an ageold herbal remedy into a modern and safe digestive remedy. In India, many prescription medicines are sold illegally under the counter and many consumers purchase these without a doctors prescription. Many consumers, particularly lowincome, rural and older consumers, cannot afford prescription medicines and often just purchase OTC or prescription medicines without visiting a doctor. High prices for prescription drugs may be alleviated somewhat in coming years as a result of a recent decision by Indian Patent Office to grant the first compulsory license to Hyderabad-based drug-maker Natco to make and sell a version of Bayers Nexavar, a drug used to treat liver and kidney cancer. (A compulsory licence is granted by a country on health grounds, where patients are unable to access a life-saving medicine.) According to a report in The Hindu newspaper, The judgment reasoned that the patent-holder, Bayer, had not met the reasonable requirement of the public. It had not worked the patent or manufactured it to a reasonable extent in India. Besides, the drug was not available at an affordable price. Because of its high price, the report continued, Only 2% of the 8,842 patients needing the drug got the medicine...The patients needing the drug far exceed the supply of the product the Patent Office declared. In a separate article, The Hindu noted potential future benefits to health consumers in India. The bold move on compulsory licensing should be a first step in a process of reform and price controls that will make available essential drugs to all Indians at little or no direct cost, the article said. Drawing up a strong essential drug list to suit the current national disease profile is important. The public sector pharmaceutical industry and its capability to produce generic drugs have a strong role to play in such a plan, and deserves encouragement to revive its fortunes. This initiative is crucial to the universal health coverage that the Indian government wants to provide to all its citizens in coming years, starting with the Twelfth Plan. It should also serve as a clear signal to pharmaceutical companies to stop extracting staggering profits from a market with weak social support mechanisms.
Sport and Fitness

Compared to Western countries, there is a low level of emphasis on sport in India. Although PE (physical education) is mandatory in all private and public schools, the amount of time students devote to PE is low and the overall infrastructure for well-organised sport activities is lacking. While students do spend time playing games and sport, it is usually unstructured. Indeed, in traditional Indian families, parents tend to stress academic achievements for their children rather than encouraging them to spend time playing sports as academic achievements are considered far more important in the effort to secure entry into prestigious universities and, in turn, building a good career. While hockey is considered to be Indias national game, Indians truly have a passion for cricket. Indeed, some believe that the two strands that bind all Indians are cricket and Bollywood. Most young boys learn to play cricket informally, playing with children in their neighbourhoods, rather than going to formal training schools. However, in recent years there has been a trend for more organised training and many boys from middle-income and affluent households (some as young as six and seven years-old) attend cricket training schools and camps. Although there is a shortage of courts, tennis has also begun to emerge as a fashionable sport among the more affluent households. In smaller towns and cities and in rural areas, children also play traditional games such as Kho Kho and Kabaddi. Traditionally, Indian women tend to be less active when it comes to participation in sports. However, in recent years more girls have taken up sports in a more serious manner. Even many older women have begun participating in sport and fitness activities, driven by their growing
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awareness of the health benefits of exercise. It is also much more socially acceptable for older women (rather than younger women) to be associated closely with sport activities. Yoga is Indis traditional health and fitness activity. It had been considered a bit old-fashioned until about a decade ago when there was a big resurgence of interest among members of all age groups. In response to the huge interest in yoga, several yoga training centres opened all over the country. These included fashionable and expensive yoga programmes such as the Art of Living and Power Yoga. Several other fitness regimens have also become popular, particularly among women in urban areas. These include Wii Fitness, Zumba, tai chi, aerobics and pilates. As well, an increasing number of Indians are enlisting in fun fitness centres where the workouts are not too stressful. Perhaps reflecting their greater awareness of international trends, many corporate executives in India spend time staying fit. Many are working out in gyms, running and exercising. According to a recent survey published in the Times of India, 18% of Indian corporate executives said they even carry sports clothing and sports shoes with them when they travel on business.
Obesity
Obesity rates are rising rapidly in India and the number of people considered to be obese in 2011 was 2% of the population, significantly higher than in 2006 when it was 1.4% of the population. According to a recent study conducted by Saffolalife, a not-for-profit initiative by foods company Marico, the north Indian cities of Delhi and Chandigarh are the countrys obesity capitals with 53% of those surveyed being obese. The studys breakup shows that every second woman is obese and the worst-affected age group is the 24-39 year olds bracket. Poorer states or smaller cities and towns have a lower proportion of obese people. And obesity is higher in urban, affluent, wired and low on physical exercise urban India. The Saffolalife Study also shows that the 30-39 age group has higher lipid readings and higher BMIs (basal metabolic rate index). Although India's obesity problem is lower than countries such as the United States, there is a cause for concern, since the rate of the rise has been very high and if this rate were to continue in the future it would have serious health consequences at an aggregate level. Indian adults have become more aware of the adverse health effects of being overweight and/or obese. Many are using a combination of techniques to arrest rising weight gain, including restricting calories, undertaking diets for weight loss, signing up for regular gym workouts and physical exercise, including using yoga for weight loss and improving fitness. Consumers are also resorting to adding low-fat foods to their diets and using slimming products, OTC drugs and herbal remedies. Per capita spending on weight-management products increased four-fold between 2006 and 2011. According to several industry reports, 20% of the Indian school children are considered to be overweight. Further, it is estimated that a further 15% of the student population is at the risk of becoming overweight. Not surprisingly, many parents are becoming alarmed. Among the reasons for this are high academic pressures that leave little time for physical activities as well as increasingly sedentary lifestyles that lead to spare time being spent on computers and mobile phones and watching TV. Some cultural factors are also in play; common misperceptions include the belief that baby fat will eventually disappear and that chubby children are healthy. Chart 15 Growth in OTC Expenditure on Pharmaceuticals Compared with Healthy Life Expectancy at Birth 2006-2011
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Chart 16
Regional Ranking of Obese and Overweight Population 2011
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SMOKING HABITS Smoking Prevalence

According to first Global Adult Tobacco Survey 2010, released by the Union Minister for Health and Family Services, an estimated 275 million Indians consume tobacco. Indeed, India is the second-largest consumer and the third-largest producer of tobacco in the world. Tobacco consumption spans across all socio-economic classes and is common in both in urban and rural areas. Further, the report revealed that there is widespread tobacco use among Indias youth, with more than 15 % of youngsters under 15 years of age and nearly 25 % of those between 15 to 17 years-old consuming tobacco. Nineteen percent of those in the 18 to 19 year-old age bracket consume tobacco. The mean starting age of tobacco use was found to be 17.8 years, with the mean age for boys being 18 years and 17 years for girls. Various other studies by the Ministry revealed that three in five tobacco users noticed the health warning on tobacco packages but they still were not persuaded to quit. In 2011, male smoking prevalence in India was 24% while female smoking prevalence was 4.4%. Men accounted for over 85% of all smokers in India in 2011. The smaller proportion of female smokers was due to cultural factors such as smoking among women being very much frowned upon in India. On the other hand, Indian women (particularly poor and uneducated women) are much more likely to consume chewing tobacco than smoke cigarettes. The number of smokers overall continues to rise, with young consumers adding significantly to the total. While most smokers in India are males, smoking cigarettes and the hookah (waterpipe) are luring an increasing number of Indian women into adopting the smoking habit. The trend is being driven in part by the false sense that modern, liberated and fashionable women smoke. Some women are taking to smoking as a result of their stressful professional and urban lifestyles and others are giving into peer pressure. Regardless of the reasons, more Indian women have started using tobacco, especially cigarettes. Other than cigarettes, a very popular smoking product is beedi, a local smoking tobacco product whose use is rampant among uneducated and low-income consumers. In rural India, even women are seen to consume beedi, especially poor farm labourers. Beedi was estimated to account for 35% of total Indian tobacco consumption in 2010. Consumers in the north and northeastern Indian states (Bihar and Uttar Pradesh, in particular) have the highest share of beedi consumers and they were estimated to account for 35% of total beedi volume sales in 2010. Although beedi contains a lower quantity of tobacco than regular cigarettes, the tobacco that is used to produce them is considered to be much more harmful. Indeed, due to the lack of government control and regulation of smokeless tobacco/chewing tobacco, some producers continued to use sub-standard ingredients. Over the past several decades the government has initiated several measures to control beedi usage but its addictive nature and low price has made it an attractive option for the countrys smokers. Gutka, zarda and khaini are among the most common types of chewing tobacco products. These are mainly consumed by poor and uneducated consumers, especially in rural areas such as Uttar Pradesh, Haryana, Bihar and Chattisgarh. However, in recent years its use has greatly increased among urban consumers thanks to its wide availability at pan shops (corner street shops) and the strong and instant tobacco high it provides. Both men and women use chewing tobacco. Due to the lack of government control and regulation of smokeless tobacco/chewing tobacco, some producers continue to use sub-standard ingredients. Demand for cigars and cigarillos is relatively low and typically limited to affluent consumers who purchase them at upscale restaurants, cigar shops and other specialist retailers. In recent years, some manufacturers have tried to extend these products to the mass market, but their high price discouraged many consumers from buying them.
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Attitudes To Smoking
India is the second-largest consumer of tobacco in the world. In an effort to reduce prevalence, the government has implemented several measures, including a public smoking ban in 2008. As well, the government mandates that producers must display graphic health warnings on tobacco packaging and they cannot advertise or promote their products. Indeed, India has some of the toughest legislative measures concerning the advertising of tobacco products in the world. Tobacco advertising in all forms of media, including television, radio, outdoor media and the press, has been banned since 2004. Since 2005, it has no longer been possible for any person, individual or character in films or on television to be depicted using cigarettes or other tobacco products (except for certain specific exemptions). Indirect advertising is also prohibited and the sponsorship of sporting and cultural events (including music concerts) is strictly prohibited. The government has also initiated a series of ongoing excise tax increases on cigarettes and tobacco. In many cases, the higher cost for cigarettes has simply led to many consumers trading down to beedis and other less expensive tobacco products. For the most part, the 2008 public smoking ban is weakly enforced. On the other hand, some argue that the ban has been relatively successful, based on a highly committed government, greater consumer awareness and a current law far clearer than laws implemented in the past. A recent article on globalpost.com reported that The [current] ban, unlike previous ones that had loopholes, made rules regarding where people can smoke extremely clear, says Prakash Gupta, the director of the Healis-Sekhsaria Institute for Public Health in Mumbai. A restaurant can only have a smoking area, for example, if the section is physically separate, follows special air pressure rules and does not serve food or drinks. Public support for the ban has also played a role in consumer acceptance, Gupta noted, adding that 92% of respondents in cities across India strongly favour regulations to make public places and work places smoke-free, according to a 2008 poll published by the Institute. Nevertheless, focusing on the ban in Mumbai, the article noted While the enforcement of the ban is generally high and extends to workplaces and train and bus stations, it is far from universal. A smoker can still find public places indoors to light up, such as so-called country liquor bars that serve cheap alcohol and in hookah lounges. Smoking cessation aids have been available to consumers in India for many years. Popular OTC nicotine replacement therapy (NRT) products include Nulife Chewettes from Ceejay Healthcare, Eucomint and Good Kha, which is flavoured to mimic the taste of gutka, a form of chewing tobacco which is popular in rural India. Prescription-only products are also available, including Pfizers Champix and Sun Pharmaceuticals Smoquit. However, due to the limited availability of these products and their high prices, NRT smoking cessation aids have not had any significant effect on smoking prevalence in India. Chart 17 Smoking Prevalence amongst Men and Women 2006-2011
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Chart 18
Regional Ranking of Smoking Prevalence 2011
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SHOPPING HABITS
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Main Household Food and Non-food Consumables Shop

Consumers in India can shop for food in a variety of retail venues, ranging from push cart vendors in their neighbourhoods to wet markets that sell fresh produce to modern supermarkets and hypermarkets. Another channel popular with consumers looking for fresh food includes specialists such as bakeries and butchers. For the most part, Indian consumers purchase bread daily or two to three times a week, depending on their individual needs. Most neighbourhood bakeries are independents but there are also some chains such as Hot Breads which are very popular. Regardless, local independent bakeries outnumber chains by a huge margin. Dairy products, especially fresh milk sold lose, are typically purchased daily in neighbourhood stores, often from regional milk cooperatives such as Mother Dairy in Delhi, Vijaya in south India and Aarey in Mumbai. Meat is often purchased fresh from neighbourhood butchers and wet markets. On the other hand, with the increased number of refrigerated sections in supermarkets and hypermarkets, many consumers are choosing to purchase frozen and chilled meats rather than fresh meat from the neighbourhood butcher. Shopping for fresh food and produce is typically done by consumers in the morning while dry grocery items and other household items are purchased at any time convenient to the consumer. While many households still buy fresh produce two to three times a week, an increasing number of households (particularly members of busy urban household with working women) have less time to spend shopping and opt instead to shop once a week or less frequently. Another factor which influences the main food shop has to do with household size. Typically, in Indian cities homes are small or, at best, medium-sized. Thus, if these households have refrigerators they also tend to be small or medium-sized, prompting consumers to buy fewer items while food shopping and to make more food shopping trips. When shopping for dry grocery foods and other household items, consumers tend to prefer kirana stores, small outlets, typically family-owned, found on almost every street corner, including in rural areas. However, over the past decade modern food retailing has become more developed and supermarkets and hypermarkets are now viable options for food shopping, particularly among affluent consumers. While the neighbourhood kirana stores are appealing to consumers because of their close proximity, lower prices and (often) free home delivery, supermarkets and hypermarkets are increasingly considered due to their broad range of offerings, convenience, cleanliness and, importantly, their increasingly competitive prices. In response, kirana stores and other small independent food retailers are upgrading their venues, offering more modern display shelves, better prices and other benefits in order to compete with their larger neighbours. As well, there has been rapid development in the installation of cold chain/refrigerators in smaller kirana stores. Several leading supermarket chains such as Nilgiris in south India and local cooperatives such as Apna Bazaar in Mumbai and Super Bazaar in Delhi have now been around for more than a decade, catering successfully to consumers seeking fresh and dry grocery items. Larger supermarkets such as Food Bazaar have also become very popular among consumers for both fresh produce and groceries. Online food shopping is still a niche service in India. Regardless, there has been an increase in the number of retailers offering food online and the number of consumers (mostly affluent and urban) purchasing groceries online. For example, MyGrahak from Rei Six Ten Retail launched in 2011. The site offers online grocery shopping during the festive seasons. According to the company, the scope of products purchased is not wide with some best-selling products including confectionery and sweet/savoury snacks packaged for gifts. Regardless, as the household penetration of internet-enabled computers rises in India in coming years and as costs for online food shopping decline, it is expected that the inherent convenience of online shopping will make the service more popular, attracting consumers in much the same way online shopping for nonfood items has attracted consumers.
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Top-up Food Shopping

Kirana stores are widespread and found on almost every street corner and they serve as convenient venues for Indian shoppers needing to top up their main food shopping. Although small in size, most stock a wide range of essential foods and household items. Since kirana stores dont carry fresh foods, any top up needs for vegetables and other fresh items are usually satisfied by local neighbourhood vendors and the larger fresh produce markets. Consumers usually pay a little bit more when shopping at these venues but they are usually willing to do so in order to take advantage of their proximity and convenience. Convenience stores, mainly located in petrol/service stations such as Hindustan Petroleum, Reliance, Essar, Shell, Indian Oil and Adani's, are still in early stages for food retailing development and they typically only sell packaged dry foods. Thus, consumers looking for a broader range of foods for their top up shopping tend to avoid them.
Shopping for Big-ticket Items

For most Indian consumers, choosing to buy big-ticket items usually involves decisions not only on which brand or product to buy but also where to buy it. Consumers have a wide range of retailers from which they can choose, including specialist retailers (either chained or independent) that stock a large number of brands. Other consumers choose department stores or dedicated company showrooms, such as the LG Shoppe and the Samsung Gallery. Most consumers tend to conduct detailed product and price research before they buy bigticket items in order to compare product features and find the best price. Specialist retailers often offer good discounts, often better than those offered at manufacturers dedicated outlets. Thus, consumers typically do their comparison shopping at multi-brand outlets. As well, in recent years several online comparison shopping websites have been established, making product research that much easier and convenient. A recent article in The Hindu newspaper discussing a study by rural consultancy Mart noted that sales of consumer durables in rural areas have recently been lagging. Burdened by several price hikes, lack of discounted offers, and inadequate consumer finance, the consumer durable industry witnessed a de-growth of 6% in calendar year 2011 in the rural markets, the article reported. Covering consumers in Uttar Pradesh, Maharashtra, Andhra Pradesh and West Bengal, the study also revealed that lack of awareness of consumer finance options was also dampening demand for big-ticket durables. In India, almost 14% of consumer durable purchases happen through a finance option, out of which a meagre 2% is accounted for by rural areas, said Mart Partner Pankaj Mishra. Regarding demand for specific big-ticket items, Mart CEO Pradeep Kashyap noted Television is no longer seen as a dowry item in the rural areas because the penetration levels are already very high. He added that rural areas have now upgraded to microwaves or water purifiers, and are not buying second or third televisions. Also with the upgrade to LED and LCD TV, companies are no longer promoting basic models even in rural areas.
Personal Shopping
Consumers who can afford it typically shop for cosmetics and toiletries once a month. Since these products are widely distributed, consumers can buy them in almost any type of retailer, including grocery stores (including kirana stores, supermarkets and hypermarkets); non-grocery retailers (including pharmacies and drug stores; health and beauty specialist retailers; and mixed retailers (including department stores). Consumers are increasingly also going to nonstore retailers, in particular internet retailers and direct sales companies. Amway India Enterprises along with Avon Beauty Products India, Oriflame India, Modicare and Hindustan
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Lever Network sell directly to consumers and offer a wide range of skin care products, colour cosmetics, fragrances and bath and shower products. Consumers appreciate the attractive prices and the convenience of shopping without having to go to a store. Traditional kirana stores and other small shops often do not have enough shelf space to display a wide range of personal care items. In contrast, supermarkets and hypermarkets have spacious and attractive shelf displays as well as special display counters. As a result, consumers are increasingly buying personal products from supermarkets and hypermarkets at the expense of specialists. On the other hand, when shopping for clothing and footwear consumers tend to shop in specialist retailers. This was reflected in the value share of more than 90% registered by clothing and footwear specialists in 2011. Additionally, nearly every city has markets and designated areas where a wide range of value for money apparel and footwear can be found. Examples include Sarojini Nagar and Chandni Chowk in Delhi and Linking Road in Mumbai. These are popular shopping areas, particularly among middle-income consumers. Like most consumers seeking luxury goods, Indians tend to prefer exclusive retailers. Often, these retailers are located in five-star hotels such as the Taj and Leela Kempinski. As well, they are can be found in the prime shopping areas of cities. Delhis luxury mall DLF Emporio houses many luxury retailers and attracts shoppers not only from the immediate area but from nearby cities in north India such as Chandigarh and Lucknow. Consumers in India shopping for luxury products also tend to look for luxury service. Consumers care greatly about choosing retailers which have trained staff who offer the best service. Celebrity product endorsements have been around in India since the 1980s and consumers have become accustomed to them. Companies have engaged Bollywood mega-stars such as Shahrukh Khan, Amitabh Bachchan, Amir Khan Kareen Kapur and Priyanka Chopra and cricket icons such as Sachin Tendulkar and MS Dhoni to endorse a wide range of personal products, including soaps, shampoos, hair colours, watches and premium clothing and sportswear. According to the Adex Survey of TAM Media Research, MS Dhoni, Sachin and Sharukh Khan continued to be top celebrities for brand endorsement in 2010. Among female celebrities, Kareena Kapoor, Sonam Kapoor, Kajol and Aishwarya Rai Bachchan were some of the most popular Bollywood beauties endorsing products. Celebrity endorsements have a huge impact on consumers purchasing decisions and it is expected that celebrities will continue to play a role in the advertising of personal products in coming years.
E-commerce and M-commerce

According to recently released data from the 2011 Census, about 20% of urban households and 5% of rural households in India own computers or laptops. Only 1% of rural households own a computer with internet access compared to 8% of urban households. According to the Census, Chandigarh, Delhi and Goa are the only states or union territories with household internet penetration rates above 10%. In Bihar, the internet penetration rate is under 1%. Regardless, demand for internet retailing in India has seen rapid growth, particularly among younger, tech-savvy consumers. In 2011, India was estimated to have 110 million internet users. However, when it comes to broadband speed, India has much room for improvement. According to a recent report on the state of the internet from Akamai, one of the leading cloud platforms in the country, broadband speed in India has improved but generally speeds remain very low. Indeed, India is ranked at 112 in the world, lagging far behind emerging countries such as Thailand. Low prices, efficient delivery, warranties and after-sales services make online shopping attractive to Indian consumers. Perhaps even more attractive are the recent advances in secure and safe payment methods. Among the most popular online purchases by consumers in India were consumer electronics products. The bulk of purchases in this category were computers
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and laptops from companies such as Dell as well as mobile phones. Media products such as books and DVDs were also popular items for online purchases. Consumers in India go to popular internet retailers such as flipkart.com and infibeam.com. Although some grocery retailers have launched internet sites, few consumers use them. Other popular internet retail sites include multi-product internet retailers such as Futurebazaar, Shoppers Stop, Cafegadgets, Indiatimes and Rediff; vertical shopping retailers such as Fern N Petals and Dell India; and comparison shopping sites such as olmol and Naaptol. It was recently estimated that India had 500 million mobile phone subscribers. Regardless, mcommerce is still in its infancy, the key reason being that most merchants in India do not have the tools or the infrastructure to accommodate mobile payments. M-commerce is mainly popular among young urban, educated consumers who use it for a variety of transactions such as buying cinema tickets and airline tickets and transferring money. Some of the leading services include Nokias joint effort with Yes Bank and Obopay to launch Mobile Money in India, ICICI Banks mCheck services and IDBI Banks alliance with PayMate, a mobile commerce company. But since most consumers are still a bit wary of the safety of m-commerce, the Reserve Bank of India has been working to increase the already stringent standards to ensure safe m-commerce transactions. Chart 19 Importance of Hypermarkets, Supermarkets and Discounters within Grocery Retailing 2011
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Chart 20
Regional Ranking of Sales through Internet Retailing 2011
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LEISURE HABITS Staying in

Traditionally, leisure time in India tends to include staying in at home with the family, having a meal, watching TV, reading or simply relaxing. As well, many spend their spare time at home pursuing their hobbies and special interests. Television is an important source of in-home entertainment and watching TV is a significant leisure activity for most, especially those in urban areas. On average, most households spend one to two hours daily watching TV, with time spent watching by women much higher as many women tend to relax by watching TV during the afternoon as well as in the late evening after finishing up with their home chores. Spending leisure time on the internet has increased in recent years, but it is largely limited to younger and affluent consumers, mainly urban, educated and obviously tech-savvy. In many households with extended family members, spare time is often spent playing games with cousins or listening to grandparents stories. According to a recent study by the National Book Trust, India and the National Council of Applied Economic Research, TV remains the favorite leisure activity among young Indians and they watch on average 98 minutes per day. This is followed by reading 76 minutes per day; spending time on the internet for 70 minutes per day; and listening to the radio for 61 minutes per day. Young girls prefer to read during their leisure time more than young boys. According to a report from Comscore titled the State of Internet in India, 75% of Indians who go online are under the age of 34 years-old and almost one-half are under 24 years-old. Searching for information, social networking (particularly on Facebook, Twitter and Orkut) and exchanging e-mails are the top online activities in India. Gaming is another online activity that now takes up an increasing share of young consumers leisure time. This has been reflected in
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the rapid growth of Indias gaming industry. According to a recent article in the Times of India, in 2011 gaming in the country was valued at Rs14 billion. Trends in types of games played are changing as Indian consumers demand more local content. According to a report from gamasutra.com, games based on NBA basketball and FIFA football used to dominate the Indian gaming industry but these are now being swept aside by India-flavoured games, including games based on blockbuster Indian movies such as Ghajini and Zindagi na milegi dobara
Going Out
Leisure activities undertaken by Indians when they go out of their homes vary according to such factors as age, income levels and whether they live in urban or rural areas. For example, people living in rural areas tend to visit friends and family at their homes more often while urban dwellers, flush with a wide range of out-of-home leisure and recreation options, often meet up at venues other than homes. A common activity in both urban and rural areas is going to the cinema. With the large Hindi film industry and the equally large regional film industry, the variety of movies is impressive. Consumers can usually find whatever type of film suits their taste. Going to the cinema is also one of the more affordable entertainment options and that has made it very popular among Indian consumers. Another common (and affordable) activity is going on picnics at nearby parks, beaches or other locations of interest. Many families, as well as groups of friends, often plan and go on picnics when they are seeking an opportunity to relax. Generally, according to a recent article on leisure trends in the Times of India, the increasingly busy pace of urban living in India is driving a greater appreciation of down time in the country and consumers are becoming more and more willing to spend money on relieving their stress. Tourism website india-hotel.net notes that As a rule, traditional Indians did not used to believe in nightlife and its associated activities. However with Western influences and work ethics coming in, the rules of the game have changed. Most big towns and cities have pubs and discos that are open all through the week. Even then the major crowds will only surface on the weekends yet from time to time some events are organized which will draw in the crowds. Indeed, cities such as Mumbai offer a wide range of nightlife activities and venues for those who want to go out for entertainment and relaxation. These include restaurants of all sizes and price ranges as well as clubs, lounge bars and discotheques for younger consumers. Young Indians typically go out to socialise on a weekly basis but some go out more often. According to website goindia.about.com, In most cities in India, nightlife is early to start and early to end because of the curfews in place. While Mumbai may have the biggest selection of party places in the country, come 1.30am theyre all starting to close for the night. With a few exceptions, the scene is similar in Delhi and even worse in Chennai, Bangalore and Hyderabad which have 11pm or 11.30pm curfews. Even in Goa, most places are forced to close by 10pm due to noise restrictions. Many venues have found that the solution to the curfews is to open during the day or early evening. A ban on dancing was introduced in Bangalore in 2008, but it was finally removed in late 2011 after a series of protests.
Public Holidays, Celebrations and Gift-giving

Indians practise many different religions and embrace many cultures and the wide range of public holidays celebrated in the country reflect that diversity. Most popular holidays are based on Hindu festivals, such as Diwali, Holi and Dussehra. Islamic holiday periods include Eid and Sikh holidays include Guru Nanak Jayanti. Traditional Christian holidays Christmas and Easter are also celebrated. Since most of these holidays follow the lunar calendar (which varies each year) dates vary annually. Regardless, the most widely celebrated festival, Diwali, usually falls around end of October or the beginning of November each year. Holi is usually in March and Eid
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Al-Fitr usually falls around September. There are also three other holidays commonly celebrated in India. These include Independence Day (15 August), Republic Day (26 January) and Gandhi Jayanti (2 October). Gift-giving is common during some of the leading holidays as well as on occasions such as birthdays, weddings, anniversaries and, increasingly, new Western-style occasions such as Valentines Day, Friendship Day, Mothers Day and Fathers Day, all of which have become popular over the past decade. Birthday gifts vary across age range, income group and gender. Books, toys, clothing and stationery remain popular gift items for students. Accessories, cosmetics and jewellery are common gifts for younger women and girls. For adults, popular birthday gifts include books, personal items and household items such as gardening tools and home repair kits for Dads and kitchenware for Mothers. Consumer electronics products are popular among those who can afford to give them; these include such items as mobile phones and accessories and digital cameras. Weddings are also appropriate occasions to give gifts. Most couples do not have a wedding registry at a store so most gifts from well-wishers are handed to them directly. Cash, jewellery, household items and expensive clothing and accessories are common wedding gifts. Other popular wedding gifts include gift vouchers, holiday packages and spa vouchers. Other occasions for gift-giving include house warming parties, baby showers and school/university graduation. Greeting cards are popular mainly among school and university students and other younger Indians. Cards are common for birthdays, as a thank you and for other specific occasions. But sharing feelings through cards (without meeting in person) is sometimes considered to be a bit impersonal for some Indians. It is still important to visit the person rather than just sending a card, especially during sad occasions. Indian consumers have easy access to card shops and there are a large number of independent stores in most cities selling cards and small gifts. There are also large card and gift chains, such as Archies Gift Gallery, which are very popular among consumers.
Culture
Traditional Indian culture is rich in music, dance, art, theatre, literature and architecture. Indian culture has developed over the past 4,000 years and this is reflected by its diversity and complexity. The presence of nearly all of the major religions in the world (Hinduism, Islam, Christianity, Sikhism and Buddhism), the presence of dozens of regional languages and the diverse racial stock, among them Aryans, Dravidians and Mongols, have all contributed significantly and uniquely to the culture of the country. The active appreciation of Indian culture seems to be pursued mainly by serious enthusiasts rather than the general consumers. Popular culture has shifted to other forms of dance and music, such as Bollywood, Indipop and WesternIndian fusion. Hindi cinema, TV soap operas, TV game shows and reality shows and other expressions of mass media seem to have a great influence on popular culture. Indian classical dance has roots in religion as well as in literary texts. The two main texts from which several classical dance forms have emerged are Natyashastra (Science of Dance) and Abhinaya Darpana (Mirror of Gesture). Both are estimated to be between 1,700 to 2,200 yearsold. There are eight classical dance forms with the most notable coming from south India (Bharatnatyam, Kathakali, Kuchiopudi), east India (Manipuri, Oddisi) and north India (Kathak). The government-run National Academy of Music, Dance and Drama promotes the performing arts, providing financial assistance, venues and training as well as domestic and overseas promotion of Indian dance. It is still common for young girls from all regions to be trained in traditional classical dance forms, and it is considered a reflection of refinement and culture to be trained in traditional dance. Training is not very expensive, although it is rigorous and it takes a long time to achieve high standards. In addition to classical dances, all regions of India are
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home to free form/folk dance tradition. Examples include bhangra in the north Indian state of Punjab and dandiya from the western state of Gujarat. Bollywood dancing (dance forms popular in the Hindi film industry) is one of the most popular forms of dance in India. With great popularity and high TV viewership, national dance competitions highlighting Bollywood dance have become very popular. Several training schools have opened across India and Indians of all ages, desperate to get the chance to participate in national TV dance competitions, are enthusiastically enrolling in these coaching classes. Highly evolved forms of classical and folk music from all regions of India also abound. Key classical music forms include Hindustani classical from north India and Carnatic music from south India. Various folk music genres from different regions of India add to the diverse repertoire of Indian music. In addition to these classic music genres, the Bollywood music industry produces a wide range of music popular among the Indian masses. Indeed, film music accounts for more than 70% of all music sales in the country. Other current musical forms include Indipop and, with the growing influence of Western music, a type of Western-Indian fusion has become popular. Other popular music includes folk music, or Sufi music. Light classical, Sufi and fusion music are popular among many young modern urbanites while Indipop and Western music is popular at dance parties. Chart 21 Cinema Attendances 2006-2011
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Chart 22
Regional Ranking of Consumer Expenditure on Leisure and Recreation as a Proportion of Total Consumer Expenditure 2011
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DIY AND GARDENING HABITS Attitudes To DIY

Demand by consumers for DIY products is relatively low in India as there is an affordable alternative, i.e., hiring skilled labour and handymen for various home maintenance and repair jobs. Consumers seldom undertake repairs and renovations themselves. Indeed, it is unheard of for even low-income households to take up such projects even to save money. DIY specialist stores are virtually non-existent in India and the tools and supplies needed for such jobs are usually purchased by hired labourers at hardware stores. Barring simple jobs such changing light bulbs or replacing broken shower heads, nearly all repair and renovation jobs are outsourced. Most Indian consumers are happy to pay for the services. Regardless, in recent years there has been a small but growing trend for some urban dwellers to undertake their own DIY jobs. According to recent article on online news website trendwatching.com, some urban Indians appear to be on the fringe of the do-it yourself culture, led by young homemakers, industrious professionals and born-again traditionalists. The consideration is not so much about pinching pennies as it is about a growing disenchantment with consumerism and the desire to stand out from the crowd and assert one's independence in an industrialised society. In many cases, it is overseas Indians who have returned to India after several years in Western countries such as USA, Europe and Australia who are adopting the DIY ethic. Those without DIY skills often learn repair and renovation techniques from online tutorials. There is no big player in the DIY and home improvement sector but there are a number of independent paint and hardware stores commonly found in most neighbourhood markets. However, in recent years large retailers such as Lifestyle International and Pantaloon Retail India have attempted to enter this segment. At the same time, retail chains such as Home Centre and HomeTown offer home solutions that do not involve home owners taking on the jobs themselves.
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Attitudes To Gardening
In most cities, inhabitants tend to live in small apartments with no gardens. For that matter, there is often not even enough space potted plants. For the most part, home gardens are limited to affluent households. This is in sharp contrast to many Western countries where a large proportion of families live in homes with gardens. As a consequence, demand for gardening tools, supplies and services is much less in India that it is in Western countries. Even in those Indian homes that do have gardens, gardening work is generally done by hired gardeners rather than by home owners. Hiring gardeners is affordable and in many ways a mark of status. Moreover, Indian consumers tend to have little knowledge of growing and maintaining gardens. Unlike in the West, gardening in India is considered a chore rather than a relaxing and enjoyable pastime. Most hired gardeners purchase the needed supplies and tools as most home owners have little knowledge about what is required. While there are not many specialist stores or large chains dedicated to gardening (such as gardening centres), there are nevertheless good nurseries which supply plants and seeds as well as garden tools and accessories such as plastic and ceramic pots, rocks and pebbles, soil, organic fertilizers and organic pesticides. Although there is not a huge trend toward growing fruit and vegetables at home for personal consumption, awareness and interest is growing, particularly among affluent home owners and those with a passion for healthy foods. Chart 23 Number of Home Owners and New Dwellings Completed 2006-2011
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Chart 24
Regional Ranking of Home Owners as a Proportion of Total Households 2011
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PET OWNERSHIP HABITS Attitudes To Pet Ownership

Due to the low per capita disposable incomes in India, spending money on keeping pets remains a low priority and is considered by most Indians to be a luxury. As well, most urban Indians occupy small living spaces (usually apartments) which makes it somewhat difficult to keep pets. That said, in recent years pet ownership has been on the rise, due in large part to rising disposable incomes of many Indians and the adoption of aspects of Western lifestyles. In smaller towns and cities where real estate prices are much lower than in big cities some households have gardens and yards, making it much easier to keep pets, even large dogs, since space is less of a constraint. Apart from small home sizes, some other notable factors that discourage pet ownership include insufficient veterinary services and a lack of adequate public facilities for pets, such as dog parks and dog runs. As well, many pet shops are unlicensed and hence the quality of the pets and pet care products they sell are often suspect and avoided. Pet training services are also somewhat limited and, when available, quality standards often seem to need improvement. One measure meant to address some of the current pet ownership and maintenance issues includes the governments plans to implement Pet Shop Rules all over the country. This legislation is intended to regulate private pet operations and pet shops. The breeding and sale of pets will require appropriate licenses and the conditions for the granting of licences will be more stringent. As well, prospective pet purchasers will need to have a separate license for each pet they own and this is to be renewed every year. The measure also aims to improve sterilisation levels; no pet shop shall be allowed to sell a dog or cat that has not been sterilised. While most pet lovers hail such improvements in rules and regulations, there is resistance from some who believe the new rules are cumbersome and will lead to an increase in the overall cost of keeping pets. Dogs remain the most popular pets kept in India, followed by cats, rabbits, birds and fish. Increasingly, pets are considered by their owners to be integral members of the family rather
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than just working animals. Thus, dogs are no longer regarded merely as house guards. In light of this, pet owners are increasingly buying advanced pet care products such as branded pet food, pet oral care products, pet shampoos and bath and shower products, pet vitamins and nutritional supplements and pet furnishings, such as beds. According to a recent article in The Economic Times, until about a decade ago pet owners tended to feed their pets home cooked food, as they considered this more nutritious. But this perception has changed thanks to mass advertising from pet food companies and growing advice from veterinary doctors. Today, most pet owners (especially affluent pet owner) feed their animals a great deal more of branded packaged pet foods in order to provide better and more balanced nutrition. Consumers have made Pedigree the leading brand in dog food. Other popular brands include Royal Canin, Purina and Whiskas. In recent years, pet owners have increasingly become more particular about specific foods formulated to address the specific ages or conditions of dog, for example special food for senior dogs and puppies. The increased fondness for keeping pets has led some affluent consumers to buy premium items such as inflatable pet swim pools and buggies, luxury shampoos with evening primrose oil and pet dietary supplements. According to The Economic Times, some affluent dog owners have even purchased premium dog leashes from brands such as Gucci and LMVH. In other instances, affluent pet owners have taken their pets to pet counselling services using crystal therapy, pet massage parlours and toenail painting salons for cats while others have switched to expensive organic pet food. Taking a cue from this trend, many supermarkets and hypermarkets have dedicated separate sections of their stores to stock pet care products. Chart 25 Pet Population and Sales of Pet Food 2006-2011
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Chart 26
Regional Ranking of Pet Ownership 2011
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TRAVEL HABITS Getting Around

According to recently released data from the 2011 Census, close to one-half of Indians own no means of transport. Only 5% of households own a car while 21% own a two-wheeler and 45% own a bicycle. Regardless, there has been strong growth in ownership of personal passenger vehicles over the last decade, the result of rising disposable incomes and the wider availability of credit. As well, owning a car in India is considered to be an indication of high social status and this too has driven consumer demand. Since the economic downturn in 2008, the Indian passenger car market has fared well. While consumer demand remained strong in 2011, the Society of Indian Automobile Manufacturers nevertheless reported slower growth, but this was due to a shortage of supply of the popular Maruti Suzuki rather than a decline in consumer demand. Indeed, demand has seen rapid growth in recent years, reflected by household possession of passenger cars rising from 2.7% of all households in 2005 to nearly 4% in 2009. Demand from rural consumers has also been on the rise. According to a 2011 report from the Information and Credit Rating Agency (ICRA), over the last five to six years the share of sales in top 10 cities in India fell from 60%-65% of overall sales to 40%-45%. The ICRA report also revealed that India is mainly a small car market. Popular models include Maruti Suzuki Alto, Hyundai Santro i10 and Tata Motors Indica and Indigo along with its latest small car Nano. At the same time, however, many affluent consumers have also upgraded to sedans and larger cars such as Chevrolets Optra and Toyotas Corolla and Camry. However, larger cars remain a niche market and for the most part Indian consumers are opting for smallsized cars that are affordable, easy to park and more fuel-efficient. According to a recent article in the Times of India, the top four car brands in 2011 in India were Maruti, Tata Motors, Hyundai and Mahindra. Other popular brands include General Motors, Volkswagen, Ford, Toyota and Honda.
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Indian consumers tend to prefer hatchbacks with very small engine sizes (the majority of Indian cars have an engine size of one litre). As well, the considerable difference in price between petrol and diesel fuels has driven significant demand for diesel cars. Information from various industry reports indicate that consumers top preference in terms of colour is silver followed by white, red and blue. Black, which is popular in other markets, is not popular in India because it is associated with corporate cars or cars owned by businesses rather than by consumers. According to the National Highways Authority of India, nearly 80% of passenger traffic in the country is carried on the nations roads. The overall road network, the second-largest in the world, includes 71,772 kilometres of national highways (national highways carry 40% of total road traffic), 1.3 million kilometres of state highways, 4.7 million kilometres of major district roads and 26.5 million kilometres of rural and other roads. According to a recent report from Reuters, India is taking on several projects in coming years to help it reach its goal of adding 20 kilometres of new road per day. Currently, India's road network is the world's second largest, but its densely populated cities are heavily congested and inter-city highways clogged up with trucks, tractors and even livestock in more rural areas the article noted. However, planned investment will boost to the government's ambitious target to pour US$1.5 trillion into infrastructure...to help unclog its congested roads and ports, and build world class airports and underground metros.
Use of Public Transport

Most Indians use public transport to get around. Indeed, 66% of overall consumer expenditure on transport services in 2011 was for buses, coaches and taxis. In contrast, consumer spending on rail travel accounted for 11.4% of overall spending on transport services. As bus travel is usually the least expensive option, most consumers prefer to travel on buses when getting around within towns and cities as well as when travelling from one city to another. Although it varies by location, there are usually both public buses and private buses available to consumers, with the number of travellers on less expensive public buses usually higher. On the other hand, the more expensive private buses tend to be more modern and more comfortable and offer travellers better overall service. Public buses usually have basic seating and they are usually not air-conditioned. Private buses are cleaner, have better seats, windows and are often air-conditioned, especially if they are travelling longer distances. Over the past decade, there have been significant measures initiated in many cities and regions to improve the quality of public bus services. For example, to control pollution all public buses in Delhi operated by the Delhi Transport Corporation now run on compressed natural gas (CNG). As well, bus routes have been expanded, the frequency of services has improved and more air-conditioned buses are on the road. In addition to public bus systems, some cities such as Mumbai offer consumers a strong suburban public rail system. However, such suburban rail systems are found in only a few other large cities such as Kolkata, Chennai and parts of Delhi. Rapid rail transport has expanded over the past decade. The metro rail is operated in only a few cities including Kolkata. Since 1984, the Kolkata system has offered 18 trains that can carry as many as 3,000 passengers on 22 kilometres of track. Delhi, which opened its metro rail system in 2002, offers travellers a much longer route (156 kilometres) and since its commencement it is estimated to have carried over a billion passengers. Rapid transit systems are now being planned or built in several other major cities, including Mumbai, Hyderabad, and Pune. In urban areas, travellers can also hire radio taxis, auto-rickshaws and cycle rickshaws to get around. Website business.mapsofindia.com recently noted that Metered taxis are available on the streets. No prior booking in necessary for those as you can hail cabs on the street. There are also taxi stands located in various parts across every city where you can find taxis. You can
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also avail taxi services in India by calling taxis. There are organizations, which send taxis to the home of the caller, upon request over telephone. There are also 'pre-paid taxi booths' located in important points across the city like rail stations, airports etc., where you can book your cab by paying the stipulated amount before boarding taxi. As well, many travellers wanting to get around in Indias cities hire one of the many auto-rickshaws that roam the streets soliciting passengers. In rural areas, Indians tend to use bicycles for getting around. However, the use of bicycles is associated with low-income, uneducated households and most consumers aspire to upgrade to mopeds, scooters or motorbikes as soon as they are able to afford them. Bicycles are also used by low-income Indians in cities and it can be very dangerous since they use the same roads as cars, buses and trucks. This is often a recipe leading to severe road accidents. Often there are no cycle lanes in urban areas and, when sometimes when cycle lanes are present, many cyclists avoid them. Generally, the quality of public transport in Indian cities is much worse than it is in other developed countries, but travellers in Indian cities are still better off than those who must rely on the public transport infrastructure in rural areas. The use of public buses has fallen over the past decade due to poor service standards and safety concerns. Consequently, there has been an increase in the use of private buses. Now, however, the government is taking steps to address the issues surrounding rural public bus systems. According to the Ministry of Roads, Transport and Highways, the Association of State Road Transport Undertakings (representing public bus systems) has proposed the purchase of 50,854 new buses during the upcoming 12th Five-Year Plan (2012 to 2017). The government also intends to replace about 35,000 older buses over this period. The government also plans to spend about Rs1,220 crore to establish new inspection centres and another Rs1,000 crore for new and improved driving training centres. It is hoped such developments will improve public transport conditions, making it safer and more comfortable for Indians to travel by bus in rural areas.
Air Travel
Consumers have a vast range of choices among full-service domestic airlines. Air India and Jet Airways are most popular, connecting more than 80 cities across India. But rising incomes and the desire for more comfortable travel and reduced travel times has combined with the wider availability of less-expensive air fares from low-cost carriers to fuel the growing consumer demand for air travel in recent years, not only demand for domestic travel but for international travel, as well. In fact over 73 million passengers travelled on scheduled airline services in 2011 compared to 40 million in 2006. Over a dozen low-cost airlines have served Indian travellers since 2004 and they have brought a revolution in cheap air travel. Leading carriers include Spice Jet, Go Air and Indigo Airlines. As a result of the recent liberalisation in aviation policies, domestic airlines and some low-cost carriers now also offer wide connectivity to nearby overseas locations. Their competitive air fares have made low-cost air carriers very attractive and in some cases they compete with rail services for share of domestic travel. India has a well-developed network of airports. In 2008, there were more than 335 civilian airports in India, 250 with paved runways and 96 with unpaved runways. As well, there were more than 20 international airports providing consumers with access to international destinations. The Indira Gandhi International Airport in Delhi and the Chhatrapati Shivaji International Airport are the two primary airports in India and collectively they handle almost one-half of the air traffic in south Asia. Indias international airports were recently modernised with new terminals built and some of the best retail and shopping environments in the country. Renovations have resulted in modern washrooms and facilities, posh greeting areas, bigger luggage reclaim areas, more immigration and emigration counters and new baggage belts, as
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well as more business lounges, eateries and duty-free shops. The new Terminal 3 in Delhi is a state-of-the-art facility that was completed in time to accommodate visitors to the 2010 Commonwealth Games held in that city. According to taxfreetravel.com, an online website which tracks duty-free shopping, among the interesting new concepts is the Uisge Beatha zone, an area highlighting duty-free malt whiskeys that is described as the ultimate malt experience zone. Delhi airport also offers a large space dedicated to perfumes and cosmetics as well as a walk-in humidor for Cuban cigars and cigars from Honduras and the Dominican Republic. The new terminal is also appealing due to its ethnic retail experience. Shops offer products such as tea, ayurvedic treatments and massage oils as well as a wide range of Indian crafts. Chart 27 Kilometres Travelled by Road, Rail and Air compared with Road Network, Consumer Expenditure on Transport Services and Number of Scheduled Airline Passengers Carried 2006-2011
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Chart 28
Regional Ranking of New Car Registrations 2011
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VACATION HABITS Attitudes To Taking Holidays

In recent years, Indian consumers have taken many more holidays, reflected by the increased per capita spending on both domestic and overseas holidays. This was driven by rising disposable incomes, greater promotional activities by travel agents and, of course, more affordable opportunities based on the increasing number of low fares offered by new low-cost air carriers. Typically, workers in India take 20 to 30 days of annual leave. Most family holidays are scheduled to correspond with school holidays in the summer or during the winter break. In many cases, families take three to four weeks off to visit friends and relatives in other cities or travel to the various domestic holiday destinations in the country. Visits to beaches, mountain areas, religious shrines and historical monuments are popular. Many young urban singles use their holiday time to go back and visit their families and friends in their home towns. As a result of more affordable air fares offered by low-cost air carriers, a growing number of Indians now take shorter but more frequent holiday breaks or city breaks. As opposed to longer holidays, long weekends and shorter breaks better fit the hectic lifestyles that many Indians now lead.
Main Holiday-taking Trends

For Indians, typical holidays usually involve travelling with members of the immediate family, although increasingly families travel with other relatives and go for holidays in a larger group. These trips provide a good opportunity for family members to bond and spend time with each other that they could not spend otherwise. While the vast majority of holidays are taken to domestic destinations, there has been a growing trend of taking overseas holidays as in many cases they have become more affordable. As well, declines in accommodation prices have made holidays have resulted in some travellers staying on holiday for longer periods.
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Until relatively recently, young Indians tended to take their holidays with their families. However, a growing number of young and single holidaymakers are now travelling alone or with a group of friends. Although still a niche trend, there has been an increase in the number of women only groups of friends taking vacations together. This is more common among young Indian urban women but the trend is catching up with older women in their forties and fifties, as well, with some taking reunion holidays with old friends. Rising safety standards for women travellers is encouraging more of them to visit both domestic and international holiday destinations. Thanks to their relatively high disposable incomes, many older Indians are taking advantage of their spare time and travelling. Until recently, this was considered by many as an unnecessary indulgence. In many cases, older Indian parents have one or more of their children who have immigrated overseas, usually to the US, UK, Europe or Australia. Hence, one of the common holidays for many older Indians is to travel overseas to visit their expat children. Older Indians also like to take group tours to affordable domestic destinations and overseas destinations. Among the most popular destinations (at least among those who can afford it) are Singapore, Malaysia and Thailand. There is a preference for large organised group tours because these holiday packages are well-guided and well-planned and present fewer potential obstacles than travelling alone or in small groups.
Domestic Versus Foreign Holidays

The share of visits to domestic holiday destinations was larger about a decade ago due to the greater familiarity of consumers with domestic destinations and also because they were more affordable than overseas destinations. But with the introduction of low-cost carriers, trips to neighboring Southeast Asian countries have become very affordable. As well, Indian travelers are attracted by lower accommodation costs in many neighboring countries such as Nepal and Sri Lanka, again making overseas destinations more affordable than many of the more popular destinations in India. Overseas holidays are considered to be a status symbol and hence they are very popular, not only among affluent urban consumers but increasingly among Indians from smaller towns, as well. Almost all who can afford it now take their holidays overseas in family groups, alone or with groups of friends. In contrast to older Indians who felt it was better to first travel throughout India before venturing abroad, many younger consumers prefer to immediately go overseas for their holidays. Overseas travel has been facilitated by the rising penetration of computers and internet. Indian consumers, particularly young consumers, are using the internet to gather travel information. Older, less tech-savvy consumers continue to rely on traditional travel agents and tour operators. It is noteworthy that even though prospective travellers use the internet to gather information, most (including younger consumers) are still uncomfortable making online payments or buying travel and tourism products due to their mistrust of paying online. As travel providers improve their security systems, this is expected to change. Among the popular domestic holiday destinations, Andhra Pradesh is ranked at the top. However, rather than just a leisure destination, Andhra Pradesh also attracts a large number of travellers wanting to visit Tirupati, a highly revered temple. Uttar Pradesh (UP) is the second most popular holiday destination, but many visits are made by Indians of UP origin who have moved away and who travel during their holidays back to their home towns. However, many visitors also go to UP to see the Taj Mahal. Other popular domestic holiday destinations include mountainous areas such as those in Himachal Pradesh and Darjeeling, Kerala, the beaches of Goa, the monuments in Khajuraho and the deserts in Rajasthan.
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Preferred Travel Methods

Rail and buses/coaches continue to be the fundamental mode of travel for the majority of Indian holidaymakers due to their lower prices and their often superior connectivity compared to airlines. Indeed, many small towns and cities with popular domestic tourist attractions, such as the mountains in Shimla and the pristine beaches of the Konkan belt in western India, are still not easily accessed by air. The quality of buses and coaches has improved over the past decade making them a very attractive and affordable mode of travel, especially for short and medium distances. Even while in overseas holiday destinations, Indian travelers prefer to get around in buses or by rail. Many Indians are still not comfortable renting cars on overseas holidays. Affordable airfares from low-cost carriers have spurred growth in holiday travel, both to domestic as well as to overseas destinations. Their presence has forced traditional full-service carriers to more competitive and they are offering more attractively priced fares. In fact, in some areas the inexpensive fares offered by low-cost carriers are competitive with railway fares. Leading domestic low-cost carriers such as Go Air and Indigo have begun to offer very cheap fares on medium-haul routes to neighboring countries and travelers are increasingly using them for overseas travel. However, Indian holidaymakers continue to prefer full-service carriers such as Air India and Jet Airways if their fares are competitive with those offered by low-cost carriers. In recent years, declining car prices and improvements in the inter-city road networks have made driving easy and affordable and more people now use their cars to drive on short getaway holidays. Better road signage, safer highways, a wider variety of restaurants and dining venues and convenient restrooms and other facilities have collectively made even long-distance road travel more enjoyable. Further, it is still easy and affordable to hire a driver and many families find it more relaxing to do so, especially when travelling longer distances. Having a car offers holidaymakers flexibility. Cars also allow travellers more privacy. In many cases, they are also the more convenient option, especially when planning last- minute holidays.
Popularity of Different Types of Holiday Activities

For many years, holidays to the seaside, mountainous areas and significant historical and religious sites were the most popular choices for Indian travelers. However, this is shifting somewhat, particularly among younger and more active holidaymakers. According to Frederick Divecha, head of tour operator B2C, key international travel trends among Indian travellers in 2011 included growth in niche travel, with so-called adventure tourism being the most popular travel concept. (For example, going to South Africa for jungle safaris or to Indonesia or Thailand for water sports). According to online travel website voyagersworld.in, luxury travel is another growing trend and affluent Indians appear no longer shy to splurge on holiday on private islands, luxury yachts and exclusive hotels in locales such as Ireland, Switzerland and Greece. Another unique trend identified in 2011 was the increasing number of travellers planning holidays to single destinations rather than combining visits to multiple destinations. Among the popular mono destinations booked by Indian travellers in 2011 were the Fiji Islands, Scandinavia and the Caribbean. Experiential tourism is another rapidly emerging trend amongst Indian travellers as holidaymakers seek to understand and become a part of the local culture in their destination. As well, according to the Kuoni India Holiday Report 2011,eco-tourism, though currently in slight demand, is growing and is expected to be amongst the top five future travel trends for Indians. Other niche holidays such as yoga and fitness holidays and spa holidays have also become more popular. Chart 29 Domestic and Outgoing Tourist Expenditure by Sector 2006-2011
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Chart 30
Regional Ranking of Holiday Departures 2011
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FINANCIAL HABITS Attitudes Toward Payment Methods

India continues to be mainly a cash society and bulk of the payments by consumers still involve cash. Despite the predominance of cash, however, in recent years cards, cheques and electronic payments have become more popular among consumers. Nevertheless, in 2011 paper payments accounted for just more than 89% of payments; of this, 95% were made with cash and 5% were made with other paper instruments such as cheques. Electronic payments by consumers accounted for 7.4% of overall payments and financial cards (excluding commercial cards) accounted for 3.4%. Indians consider cash the most convenient instrument for consumer transactions as other payment methods require unique tools and an underlying infrastructure. For example, point-ofservice (POS) machines are needed to use financial cards, ATM machines are needed to use ATM cards and computers are needed for some electronic transactions. For the most part, despite the tools and the underlying infrastructure needed to implement non-cash payments are not widespread in India, resulting in low usage rates. Moreover, even in urban India many consumers continue to worry about the safety of using such non-cash payment instruments and methods. Regardless, non-cash payment infrastructures are expanding and improving safety measures, boosting consumer confidence. In 2010, there were 554,000 POS machines for card transactions installed in India, up from 215,000 in 2005. This has resulted in a surge of card use in recent years, reflected by the number of cards in circulation rising from 105 million in 2006 to 338 million in 2011. Among financial cards, the number of debit cards in circulation grew far more quickly than the number of credit cards. While credit cards have a longer history, their popularity has declined as a result of the economic downturn and consumers attempts to avoid more debt. Indeed, before 2008 banks had been very aggressive in lending through credit cards and in many cases consumers enthusiastically opted to use their credit cards to spend well beyond
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their means. However, in the slower economy banks saw a rising rate of credit delinquency and hence they shifted from promoting credit cards to promoting debit cards. However, despite the large number of debit cards in circulation in India, consumers still dont use their debit cards as often as they use their credit cards. As well, the average purchase transaction per debit card is much lower than that of credit cards. According to industry sources, over 50% of debit cards are not in regular use and consumers use them mainly to withdraw cash rather than as a means of payment. Indian consumers use cheques mainly to pay for large purchases or to make large payments. They do not use them often for small payments, such as purchases from neighbourhood stores, because most stores dont accept cheques. At the same time, there has been a growing trend, albeit not widespread, to make payments for utilities, school fees, interest payments and other monthly bills via electronic transfers. Most large service providers now provide well-designed sites and systems that make such payments convenient and secure.
Savings
The savings ratio (the percentage of disposable income saved) of Indian consumers has traditionally been high. These high rates stand out not only when compared to rates in developed countries but also when compared to other emerging economies. Culturally, Indians tend to place a huge emphasis on saving for a rainy day and this has resulted in the high savings ratios that continued through to 2011. Most Indians understand that since the majority of work in the informal sector does not translate into pension benefits and that less than 10% of formal sector employees are covered by pension schemes, it is vital to save. Moreover, consumers are aware that there is no social security or health insurance system or even subsidies to support education expenses or other big expenses. In short, to pay for these as well as unforeseen eventualities, Indians must rely on their savings. Despite the strong cultural pressure to save, the savings ratio fell to 27.9% in 2011, down from 29% in 2010. This decline was due mainly to soaring inflation which ate into consumers disposable incomes, resulting in less saving. Deepak Mohanty, Executive Director of the Reserve Bank of India, recently said that savings among individuals and small businesses has been adversely affected due to rising prices, forcing both to spend more on daily needs. As well, there are higher interest costs due to recent rises in interest rates, which in turn were implemented in a bid to contain inflation. But according to Madan Sabnavis, Chief Economist at Care Ratings, savings are likely to rebound to their higher levels in coming years as inflation steadies and as the economy improves. There is wide range of saving options for consumers and new schemes are emerging every year. Traditionally, Indians prefer to put about 50% of their savings in fixed deposits in banks. Currently, fixed deposit yields are around 9% for annual returns for non-senior citizens, depending on the term of deposit and other guidelines. This return makes these savings instruments very popular. Insurance policies are another popular investment alternative as they offer the opportunity to indemnify life, assets and money while also providing satisfactory and risk-free profits. Many consumers seek out savings options with tax benefits. For example, the National Saving Certificate (NSC) from the government of India is a secure investment with a lock in tenure of six years. NSCs also offer the benefit that, while interest accrued on the certificates every year is liable to income tax, it is deemed to have been reinvested. Public Provident Funds (PPF) are another popular savings scheme chosen by many consumers. PPFs offer yields of 8% with a lock in tenure of a maximum of 15 years. Many rural consumers save using postal deposits, Kisan Vikas Patras, which are saving instruments backed by the government of India that provides interest income similar to government bonds. These offer safe and high (currently 8%) yields and since banks and financial providers have designed them specifically for rural
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consumers, they are heavily promoted in rural areas. No income tax benefit is available under the Kisan Vikas Patra scheme and interest income is taxable. Investments in stocks have helped deepen and stabilise Indian stock markets and consumers, mainly younger consumers, continue to look at these investments as an attractive way to save. Large private-sector mutual funds such as the HDFC Mutual Fund and Kothari Pioneer Mutual Fund have shown a history of high returns over the past decade and they continue to be popular choices among consumers. In view of the fact that a significant portion of Indian household savings are in less-productive assets such as gold, India's government has looked for ways to encourage consumers to move their savings into newer options, such as the Gold Deposit Scheme. More financially savvy consumers have already deployed a part of their assets into these savings schemes and they have benefited from the fact that interest is exempt from capital gains tax and the wealth tariff. Such new savings options have helped consumers channel their household savings into investments in the country's debt, equity and infrastructure.
Loans and Mortgages

Traditionally somewhat averse to consumer loans, Indian consumers have recently become more open to the concept, particularly since the 1990s when economic liberalisation policies resulted in a range of attractive loan products from the private and government sectors. Rising incomes and exposure to global lifestyles (which convinced many consumers to borrow and enjoy goods and services rather than save and wait for future consumption) combined to make taking on debt more comfortable. Consumers growing appetite for loans was reflected in soaring per capita consumer lending outstanding balances. In 2011, in terms of outstanding balances, the most popular loans made to consumers were credit card loans (55%) followed by automobile loans (41%), home lending /improvement loans (34%), education loans (10%), personal loans (7%) and loans to purchase durables )1.6%). Looking to the future, many believe that Indian consumers appetite for credit will grow. According to Credit Suisse India Consumer Survey 2011, Growing comfort with debt will have an obvious impact on the savings culture, which tends to decline as economies mature... [The] appetite for credit in big-ticket purchases (property and cars) has markedly increased. We believe this is aided by both better availability of financing options (larger participation by banks and wider array of products) and structural reduction in retail financing costs over the last few years. However this must also be viewed in the context that even today the majority of homes (estimated around 80%) are not financed by mortgages. The outstanding balance on mortgages in 2011 was Rs3.7 trillion, up by 17.4% from the Rs3.2 trillion recorded in 2006. According to a recent article in The Hindu newspaper, consumers already reeling under high inflation can expect no respite from high interest rates as the Reserve Bank of India has decided to leave borrowing rates unchanged. The article noted For consumers, it means they will have to bear elevated interest rates on their home loans, which average 12%-14% now, for some months. Chart 31 Consumer Lending Compared with Savings and Savings Ratio 2006-2011
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Chart 32
Regional Ranking of Financial Cards in Circulation 2011
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Consumer Lifestyles in India Euromonitor

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Consumer Lifestyles in India Euromonitor

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CONSUMER LIFESTYLES IN INDIA

Euromonitor International March 2012