When did you really bought something you really needed? Impulsive buying has changed our needs into wants. Why are international brands growing? Because people are more impulsive in buying rather than planned. The main reason behind this is the change in lifestyle. People have started accepting the brands as style statements. People are no longer seeing the utility of a product, but the market value of that product. You wear Reebok shoes because it covers your feet or you wear it because it is a brand? If you say, that you wear Reebok shoes to cover your feet, than why Reebok? There are many other brands cheaper than Reebok and have better utility.
The change in saving habits has also created a boom in spending. How can savings increase spending? Today’s youth have accepted the credit style of purchase. Now they have the option to pay on later date for the purchase on today’s date. Earlier people used to believe in savings. And they used to spend only from their savings. They had limited resources to spend. The profits they earned were invested in realty or gold for their children. They never spent on lifestyle products. But now people have the power to over purchase than the resources available with the help of credit facility.
The increase in nuclear family has also changed the shopping habits. In joint family, the head of the family used to make decision regarding the purchase. The head of the family had the control on the budget of the expenditure. After the increase of nuclear families, there is no control on each other and people start to misuse this freedom by over spending. In nuclear family parents don’t have time for their children. They don’t have any control over them. And they also don’t want to interfere as they will have to give away their career if they sit at home and take care of their children.
And the biggest support to these brands is information available to children from an early age. They have access to television, radio, internet, etc. And the marketers have also smartly targeted them at an early stage. There are more than 15 channels for children between the age group of 2 to 10 years. Now a girl doesn’t want a doll, they want Barbie doll. And a boy wants Hot Wheels, and not a car. And there is no way to control them once they are exposed to the information.
If you have any other reason why the brands are growing, I would like to hear them. These were the few observations I have made. Please share your thoughts with us in the comment box.
jiteshujain 