With market liberalisation, increasing consumerism and the entry of more foreign players, Indian markets are seeing revolutionary developments. The Indian consumer is rapidly evolving and is now being encouraged to see shopping as an experience and is spoiled for choice by a host of international brands selling their products at competitive prices. The spending pattern of the Indian consumer is also changing rapidly. The relative importance of basic necessities such as food and apparel is declining whereas for categories like communications and healthcare, it is rising.

'According to a study by the McKinsey Global Institute (MGI), India's middle class will swell by more than ten times - from its current size of 50 million, to 583 million people - by 2025. And over 23 million Indians - more than the present population of Australia today - will be counted as billionaires. By 2025, India will also become the 5th largest consumer market, surpassing Germany, moving up from the 12th position it occupied in 2007.' The Boston Consulting Group (BCG) forecasts that Indian household spend is going to reach nearly US$ 325 billion by 2015 compared to US$ 150 billion in 2007.

Although much of the new wealth and consumption will be created in urban areas, rural households will also benefit enormously considering rural incomes have been rising.

In the seventh annual Global Retail Development Index (GRDI) conducted in 2008, India stood second as the most attractive destination for retail investment. It is estimated that the Indian retail market will increase from US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015. Organised retailing comprises just 4.6 per cent of the currently estimated Indian retail market. However this segment grew nearly 40 per cent in 2007 and is estimated to increase to 22 per cent by 2010.

The Indian Direct Selling Association (IDSA) estimates the industry turnover to grow two fold in the next five years to touch US$ 1.27 billion. It is, presently, growing at over 10 per cent.

In the intensely competitive Indian market, it is imperative for companies to steer ahead of its competitors and keep the leading position in the minds of the consumers for as long as possible. To achieve this end, companies are constantly re-assessing and upgrading their marketing strategies.

Concept-based Marketing

With a radical change in the purchasing power and demands of the customer, companies are analysing their ways of defining and delivering value to consumers. Companies are moving away from the tangible to the intangible with the focus moving to ideas, concepts, and paradigms and shifting away from physical resources such as capital, technology, and manpower. The customer's delight has become the most critical issue in marketing.

"There has been a 40-50 per cent decline in offers like discounts, gift vouchers and other schemes over the last one year as it could not help companies sustain margins. Instead, they are now coming up with innovative marketing schemes like combination of products to consolidate profits," according to Venugopal Dhoot, chairman of Videocon Industries.

Mall entertainment is an area of great interest to retailers. While shopping continues to be the main attraction, entertainment options like gaming, magic shows and events today account for a considerable potion of mall revenues. As per industry estimates, the mall entertainment market is worth approximately about US$ 240 million and it is growing at an average rate of 15 per cent.

Mall chains have brought in a lot of innovations. Shoppers Stop has shown previews of new collections to loyal customers to elicit their responses. Likewise, Kirtilals, a jewellery player, has been flying down a group of customers to its factory units. Pantaloons and Shoppers Stop organises focus groups for a direct interface with key customers.