NRI Papers
No.132 July 1, 2008
  Marketing Strategies Targeting the Middle Rich in India  
Nori KAWAZU and Eisuke ISHIZAKA
   IIn July and August 2007, Nomura Research Institute (NRI) conducted the "Survey on Consumer Behavior and Attitude of Middle Rich in India" in three major cities in India (Delhi, Mumbai and Chennai). This survey revealed actual lifestyles and mindsets relative to consumption of the middle rich who earn an annual household income of 250,000 rupees or more. The middle rich segment is expected to rapidly expand in the future.
   Automobiles (personal), personal computers (PCs) and the use of the Internet are still at the developing phase towards popularity among the middle rich in India. However, mobile phones and DVD players/recorders have already penetrated as deep as the mass segment. As such, the pace of popularization largely varies depending on the product. The survey also revealed these varying growth rates that can be regarded as characteristics unique to the Indian market. Growth is also expected in the leisure market targeting the middle rich.
   While the middle rich have innovative consumption mindsets, they also give emphasis to "if price matches quality" and "if a product is durable." They do not choose products only for such reasons as "because it is a well-known brand" or "because the price is low." They carefully examine information and make decisions based on their own criteria.
   To effectively appeal to the consumption mindsets of the middle rich, a marketing approach focusing on high quality, which constitutes the primary strength of Japanese companies, as well as highlighting carefully considered after-sales services should be adopted, thereby maximizing the number of customers loyal to the company's brand before competition intensifies.
Contents
I Lifestyles of the Middle Rich in India
II Mindsets of the Middle Rich in India towards Consumption
III Important Points in Marketing Strategies

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