Consumers in emerging cities behave differently from the big-city consumers. The impact of penetration, frequency, and spending per purchase varies across categories. For another, many consumers are making different buying and tradeoff decisions.
Across all income segments, consumers in major metropolitan centers and tier 1 cities those with populations of more than 1 million spend more than their counterparts in other locations. Consumers in big cities, on average, buy more premium products, which leads to higher spending.
Abhishek and Radhika hope to visit exotic locations for vacations; they especially want to visit Switzerland in the coming years.
Higher spending levels in big cities are not the result of greater product penetration, as penetration for a given income segment is generally similar across cities. Similarly, affluent households are becoming comfort seekers, and they are willing to pay for it.
Potential for Trading Up in Emerging Cities. Omnichannel interaction is increasingly important, but its significance varies by category. First, they should change their notion of the market and competition. Consumption increases slightly with income.
We expect emerging cities to see the highest growth in the number of elite and affluent households through The study revealed five broad categories of correlations between rising income levels and expenditures.
People want to fit in with their peers. Spending Patterns Evolve Rising incomes affect spending patterns in various categories differently. As companies reimagine themselves along these and other lines, they should make two key adjustments.
Rising affluence is the biggest driver of increasing consumption. Time compression has far-reaching consequences. From throughthe average age at marriage rose from Or take eating out. Consumers today regularly crisscross online and offline touch points in their purchase journeys, and, as a result, multiple types of pathways are emerging.
In terms of consumption expenditures, emerging cities those with populations of less than 1 million will be the fastest growing. Abhishek, 35, his wife, Radhika, 32, and their two children, 8 and 6, were living in their own free-standing house in the Nizamuddin West area of New Delhi.
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