A continent on the move

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India has long been on the periphery of the radar of many market researchers at global headquarters. But the facts and figures make us sit up and think: India’s GDP is growing by 7% year on year and is forecast to stay that way for the next three.

It is the world’s seventh-largest economy by GDP and, measured by purchasing power parity (PPP), is the third-largest. It is home to more than 1.2 billion people, has 29 states, seven union territories, 22 recognised languages, and – at a rough estimate – more than nine religions.

It sounds optimistic, and the reality is indeed upbeat, full of energy, but very complex. India comprises multiple traditions, cultures and beliefs, which vary not only from region to region, but also among generations.

Add to that the rapid pace of change – some aspects of which we outline here – and you begin to appreciate that to succeed in the new India you need a firm grasp of what’s going on, on the ground.

A new mindset

A new wave of Indians with a fresh mindset is materialising – more than the phrase ‘emerging middle class’ suggests.

While many still follow ancient traditions, lead a simple life and face daily struggles of survival, there are also a large number that are optimistic and aspirational, with increasing access to education and the business market.

Recent societal and economic developments have delivered a huge boost – both economic and mental – to the current generation. This has been across almost all social classes, leading to a sea-change in mindset and triggering a new spirit – India, and Indians, are on the move.

Rediscovering one’s roots

An important shift has been in the changing attitude towards western brands. While for a long time western brands and influences were hugely aspirational, absorbed and integrated almost instantly, now there is a new movement towards appreciating Indian roots and thereby creating new Indo-western adaptations.

Consumers are localising and merging the new with the old. They’re not leaving their traditions behind, but finding and inventing new variations that successfully marry existing habits with new products.

This is what is called ‘jugaad’ – the Indian term for impromptu, clever solutions; the ability always to find a way with whatever is available, even if it might be unorthodox. This allows a very focused, flexible and fast approach towards an end goal without being held back by set structures and processes.

Political initiatives – bridging social boundaries

One strong force of change is a new, positive political energy.

There are numerous government investment initiatives and campaigns fostering upward social mobility, such as Make in India, Startup India and Smart Cities, all of which are aiming to increase civic sense and green awareness, and – ultimately – support the emergence of a new generation that crosses social boundaries, enabling access to a better future.

Female empowerment plays a hugely important role in this – the genders are still treated very differently in India. Government initiatives, including access to educational resources and the funding of country-wide self-help groups, are being initiated to foster a broader societal understanding of gender equality, and to counter potentially deep-rooted gender discrimination.

The Indian government is investing in numerous initiatives to improve the quality of life, one of which is the recently launched Smart Cities project that focuses on accelerating urbanisation, which in India is still under 31% – far lower than comparable countries such as China ( 54%) and Brazil ( 90%).

The project involves 100 cities being targeted for support in improving infrastructure: securing reliable water and power supply; ensuring decent sanitation and solid-waste management; public transport; and robust IT connectivity, e-governance and citizen participation. The investments are targeted to help millions more Indians reach their dreams of a better life, with the hope of increasing living standards and leapfrogging into new aspirations, lifestyles and consumerism.

Digital India is the government’s mission to connect rural India – still 70% of its total 1.2 billion population – to high-speed internet. Facebook is currently debating with the government whether to get approval to provide free but limited access to the internet to everyone.

Marketing and research in the new India

For many brand owners, the jugaad phenomenon – the mixture of new dynamism and flexibility – is challenging. At the same time, many western marketers see that their approaches need to adapt quickly, simply because tried-and-tested adaptations of western versions don’t work anymore.

Equally for researchers, there’s a need to adapt methods, employing jugaad-style – as opposed to agile – flexibility, and, of course, to embrace new, more experimental approaches.

Mobile research methods are on the rise, since every method needs to be cost-effective. It’s a challenge that those with experience of the culture and expertise in both traditional and emerging research tools are rising to – handling complex and strategic studies with limited budgets and quick turnaround. In a country of 1.2 billion consumers, it’s ‘Agile XXL’.

Outlook

During the next decades, India’s economy is expected to grow annually by 8% – overtaking many competitors – to take the number one global growth slot, and with rosy prospects if the trajectory continues. We don’t know yet if all the initiatives and movements will be successful but, if India continues its current path, it will produce a vast number of educated and aspirational people who will easily compete with the developed markets.

Sabrina Schöder is managing director of Happy Thinking People’s Mumbai office.