When you think of the middle class, what comes to mind? Is it an image of a family with their sedan or a new professional renting their first apartment? What if we tell you there is a lot more to the Indian middle class than what you already know? Here are some things that we found out:
Entrepreneurship is the new aspiration
The middle class mentality used to revolve around aspirations of securing a government job or pursuing a conventional career path, but now it has become more open to new possibilities. Fresh graduates in the country are increasingly inclined towards chasing their entrepreneurial dreams rather than aiming for early retirement. Shows like Shark Tank India can also be credited with contributing to the shift in traditional middle class mentality.
The fire is further fueled by access to education, technology, and government initiatives. From Dadaji Khobragade inventing HMT rice with 80% higher yield compared to conventional rice to Mansukhbhai Prajapati inventing the clay refrigerator Mitticool, innovation and entrepreneurship can be seen within the middle-class community.
Rise of rural middle class
A general middle class image was often centred around a town or a city but it’s changed significantly now. Anand Ramanathan, Partner and Consumer Industry Leader-Consulting at Deloitte India, in his interview with CNBC TV-18 shared insights from Deloitte India’s report. He discussed how the rural middle class is emerging as a significant force in India’s socio-economic situation.
As per the report, this growth is due to rising income levels, growing discretionary spending, shifting online preferences, omnichannel customer experiences, the emergence of new channels, and robust payment and logistics infrastructure.
Be it a local retail store or a repair shop, there are several businesses who run successfully by just targeting this population. According to an ExpertView on PRICE, rural India will drive 55 percent of the incremental consumption in 2031. So it’s only going to offer more opportunities for the new categories to enter.
Heightened sense of social and political awareness
Political conversations have shifted away from drawing rooms, with the middle class actively engaged in today’s politics. The middle class is not just a vote bank, they’re people who like to make informed decisions.
Strong opinions, educated inclinations and a heightened sense of social responsibility can be seen in this Indian middle class. Their buying decisions, investments, and a lot of preferences often are influenced by this sense of responsibility, leading companies to focus on sustainable and sensible practices.
Focused on financial literacy
There is an increasing awareness of financial concepts and products among middle-class households. Though we still have a long way to go, there are a lot of initiatives in this direction taken by the Reserve Bank Of India and other financial regulators.
It can’t be denied that the Indian middle class doesn’t want to live paycheck to paycheck anymore. This middle class no longer solely relies on their CAs or advisors for investment or tax advice. They’re learning to take matters into their own hands. With the popularity of fin-fluencers and investment banking and mutual funds apps like 12% Club and Zerodha continuing to attract more users, there is a clear interest in financial literacy.
Conclusion
How does a business target such a vast population? How do marketers create for them? These are some of the questions that have been making the industry sweat and keeping economists awake at night.
Time and again different authors have tried to answer these questions and we have one such expert with us. Watch the episode where Rama Bijapurkar is trying to address all these burning questions and who knows you might find your answers.