Re-examining ‘why people buy’ for today

Every business owner today has the option of serving either of two broad sets of audiences. The price sensitive and the rest. The divide between the audience is perhaps correlated to the divide between the haves and the have-nots. In a market like India, the majority is on the have-nots spectrum. But let’s examine this a little more across categories.

1. F&B (food and beverage): Catering to the price sensitive segment has been easy –  pump products with substandard but attractive colours, cheaper trans fats, hidden sugars for a sweeter low cost in non-recyclable but bright, flashy packaging. Job done. On the other hand we have businesses incorporating  R&D to serve clean labels for a higher price into their value chain – which sadly only a smaller section of society can afford.
2. Beauty and Personal Care: One can sell low performing highly advertised products for a lower price while high performing products are the domain of the luxury brands that few can afford.
3. Shoes and apparel: Here, it’s a different story – quality of fabric has long lost being a factor impacting decisions among the ones with more disposable income. It is all about the attitude associated with the brand. Wealthy people are willing to carry off ragged and torn clothes, as long as there’s adequate ‘cool’ associated with the brand/look. Karan Johar’s recent airport look which went viral is a case in point. But the price sensitive still seek durability, quality of stitching and non-bleeding colours. In this sector, it is not unusual to find the higher quality fabric in the cheaper, unorganised market – because they are catering to a segment of society that seek a greater bang for the buck. The sturdy, durable, long-lasting, weatherproof brands of women’s sandals like Flite is a case in point.
4. Telecommunications: This is one category where unbeatable quality is now inexpensive across the board. That’s the cool thing about technology. Even Apple products that are superior in output and flash value, and insanely high cost for the average Indian – by adopting EMI plans to become accessible for all – plays a role in bridging the gap between the 2 broad segments of audiences. When Reliance Jio prices brought down the cost of internet in India, they did a spectacular service to society. Now, by applying the same strategy in the cola industry, they may succeed in making aerated drinks super cheap in India across brands – but it makes one wonder if they ever really cared about ‘serving society’ as earlier assumed. Had they picked a probiotic drink to do this to the health and wellness domain, it would have been a different brand story.

So, the question is this: if clean labels that follow sustainable practices were available at lower costs, would the large population of price sensitive customers not opt for those instead? If the aspiration of the average Indian is to climb up the societal ladder. What is the first metric of that climb? A gym membership?  Healthier choices? Sustainable practices? Garbage segregation? Like all the fancier gated societies and posh areas in cities? Surely, it must be a mark of affluence to care about health, wellness and the environment.

Whether or not the major population of India cares about hygiene, health and the environment, they surely care about a lifestyle that mimics the affluent. Either way, the main point is that given an option they too would choose products and brands that help them be healthier and environment friendly. Most sections of society do not have the choice of deciding what they pay for – because of price constraints. Although the concerns about misleading labels and nutrition is a reality everywhere. And so perhaps, the time is right for businesses to consider the long term profits in lowering prices or work out zero interest EMI plans –  that make pro-health and pro-planet choices democratised. There’s merit in switching to the good side. The masses who are proactively seeking and aspiring for it will junk bad brands the moment they can. The opportunity and possibilities for clean, do-good labels made accessible to all is immense. 

The views and opinions published here belong to the author and do not necessarily reflect the views and opinions of the publisher.

Pooja Nair

Pooja Nair has over 20 years of experience as a branding consultant across leading global Ad consultancies. Pooja is also known to be an ex theater performer, actress and model. Since September, 2022, she has focussed completely on her passion for the changing face of business, brand-building and reputation.