Posts Tagged ‘demand’
The Textile and Apparel (T&A) industry in India is a major contributor to the GDP, exports, employment and foreign exchange earnings. It contributes about 14% to the industrial production, 4% to the GDP and 17% to the country’s export earnings. It is also the second largest provider of employment after agriculture, providing direct employment to over 35 million people.
The domestic size of the Indian T&A industry was about US$ 33 billion in 2008. It is projected to grow at an annual growth rate of around 10% to reach US$ 47 billion by 2012. Additionally, T&A exports were US$ 22 billion in 2008 and are estimated to reach US$ 36 billion by 2012 at an annual growth rate of 13%.
India’s current domestic consumption is expected to grow to US $200 billion by 2025. One of the major problem is the lack of supply to meet this demand. The current manufacturing capacities cannot meet this unprecedented growth in the demand and we may need huge foreign investments in this area. India needs huge investments of more than US $100 billion in the area of textile and apparel manufacturing. However, if this is not met, then probably the domestic demand will be met by the imports.
The rural consumer behaviour exhibits certain behaviour unique to rural settings and this makes it important for marketers to understand rural consumers through appropriate research. Rural consumers, for example, tend to lead a more relaxed lifestyle compared to the urban counterparts and exhibit little urgency. Consumers in rural markets tend to have greater trust in products and services endorsed by the government and its agencies. They tend to be more brand loyal, as habits once formed are difficult to change and they tend to feel a pride in getting a good deal rather than paying premium prices for products and services.
The cultural values and norms have a strong influence in determining buying and consumption behaviour in the rural areas. There are restrictions on the type of food and the type of intoxicants that can be consumed in the villages. Similarly, women occupy a more traditional place in rural areas and therefore western apparel may not be accepted in the rural markets. However, the rural youth are open to any new ideas, and influenced by the urban consumption patterns.
Rural communities tend to be closer than urban societies and reference groups have a greater importance. Relatives and people from the same caste are important reference groups. Joint families still exists in villages although the trend is towards the nuclear families. In rural areas, the consumption is driven to a large degree by the occupation and income of the consumers. Low income levels and inadequacy of credit facilities also affect the consumption patterns. Another important factor that affects demand patterns in rural areas is the instability of the income of the farmers, which is linked to the seasonality of agricultural production as well as to the unpredictability of the harvest. Similarly, the landless labourers and daily wage earners get their remuneration on a day-to-day basis and therefore they purchase in smaller quantities of products at a time, mostly on a daily basis.
As compared to the urban counterparts, the rural consumers have different interpretations of colors, symbols, and social activities. As the exposure to mass media and information technology is increasing, rural consumers are being more informed about products and services and their dependence on traditional reference groups is waning.