It is bigger than the entire population of the United States put together and expected to grow to about 445 million by 2006. It is demanding “more” and “better” and knows that it deserves it. It would be spread over 75 million households by 2006 says the National Council for Applied Economics Research in Delhi.
… And the good news is- Its all good news!( I was not talking about an underground movement!)
The great Indian Middle-class, after years of brand deprivation has arrived and is being welcomed royally.
Social scientists see definite trends which indicate the radical changes taking place in the Indian Middle-class lifestyle. You do not have to be an Einstein to figure out the same. It’s all around us to be seen.
To begin with, the T.V. came in first, then the cable T.V.; and it shifted from the living room to the bedroom. The telephone also made its way from the table to the trouser pockets. Soon, we had refrigerators, washing machines and their cousins moving into their respective places in a common household, on a permanent basis.
While so much was silently taking place, the family discovered a one-stop, air-conditioned, fully loaded and an actually cheap shopping-mall nearby, where hours(and not cash) could be spent away like peanuts.
The multiplex experience happened. 5-6 films were playing in a single place and the tickets were even available through the phone and the internet(I did mention the credit card, computer and the internet, right?).
Somewhere in between, the movies celebrating “togetherness and love” in a family started topping the box-office, with the Indian Middle-class bringing in the maximum moolah.
An enterprising lady, somewhere, saw all that and came up with scores of family-oriented soaps on T.V., each one touching a new TRP high.
Can you pick up a pattern here?
Lets take a look at it again, from a different angle altogether.
How would you describe a typical outing?
Mobile phone ring tones(more than 19 million users today) in a cacophony of kids giggling, youngsters talking, music playing, and the middle-aged catching up at a restaurant /a fast-food joint/mall/multiplex. But, to reach there, you have to, at first, find a parking space(a Herculean task).
Let’s go back a bit – when you were on your way to the restaurant /a fast-food joint/mall/multiplex…(Phew!).
Now that you are on the road(Everybody can visualize that?), how many cars can you see around?
Hey! Was that your neighbor in that beautiful car?! But, he did not have it until yesterday. What did he do? Dig up a goldmine in his backyard or just returned from Treasure Island?
Relax! Move on. At least your uncle’s friend’s broker’s cream-colored Padmini Premier Fiat looks somewhat different from the black and yellow cab overtaking you. And you got it at a cheap price too!(Mom was so happy when I told her how I haggled!) So what if the gear shift rebels at times and somebody keeps knocking from under the bonnet?(At least, rest assured, it is not a dead body in the diggy.)
There… now take a few deep breaths. That’s better. Now lean back till the creaking seat stops budging. Now adjust the rear-view mirror. Good.
Hey wait! Don’t! …Too late.
So, you saw your colleague from work driving this black Scorpio and grinning at you in recognition? Somehow the happiness is not so mutual; so you move to the left to let him pass. He passes you by, waving cheerfully and his wife smiles while his children make the spacious back of the car into a personal playground.
Has to be goldmine somewhere…. But where?!
“The Indian Middle-class has arrived. It wants more, and that includes services.” says Vinay Sanghi, CEO of AutomartIndia.
AutomartIndia is in the business of doing just that. “We do not simply supply used cars, we ensure customer delight.” says Vinay Sanghi.
After a house, a car is the most important possession of the middle-class family today. It is a “family-experience” which chalks out the itinerary for the entire family-be it to a movie, a picnic, a Big Bazaar or a pilgrimage. It is an instrument of togetherness and mobility which falls well in tandem with the new eating joints, multiplexes, cell-phones and the likes.
Earlier, buying a consumer durable was a major decision for people with little disposable income. The elders would sit down, close friends and knowledgeable colleagues would be volleyed with questions on inside information. Debates would take place over the “need” for such an expense. It used to be nothing short of “An Elders of the Family-Summit”.
Today, the children have a say(Marketing experts call it the “Pester-factor”), a cornucopia of information is available and disposable income has grown, trying to keep pace with rising aspirations of the middle-class. Consumer spending has grown at an average of 12% per annum over the last decade. This class knows its right to demand credibility and convenience.
Taking a cue from all this, Mahindra and Mahindra, the name which stands for trust and competence in the auto-sector today, has come up with AutomartIndia(AMI).
AutomartIndia offers a wide range of cars(more than 80 models), all of which are certified. Their value is calculated using a stringent 118 point checklist. All the tedious legalities and paper-work like RTO tax, Insurance, Registration, PUC, RC Book, etc. are taken care of by AutomartIndia. The car history is provided along with.
AMI also provides an umbrella-warranty on all cars, taking into account every small or big glitch that might occur. The number of outlets across India is posed to stand above 70 by the end of 2005. AMI also provides its services online through its website https://automartindia.com, providing all the services at a click of a mouse.
Easy finance schemes are offered through well-known names like HDFC, ICICI, Kotak finance, etc.
All this stands in contrast to the unorganized used car market in India at present. The usual path available was the “round-the-corner” car bazaar which offers cars with dubious history and at costs directly proportional to your bargaining powers.
Maruti Udyog Ltd. has True Value to offer services similar to AMI but is handicapped by the fact that it has a limited product width of just 10 models and that too, all Maruti.
With the Indian middle-class becoming increasingly aware of the services it can avail, and the big corporates realizing that as well, the whole treat has been laid out on a platter for it. Now, all they need to do is to dig in and enjoy!