With the increase in per capita income of Indian citizens and rising remittances from Indians abroad, India has transitioned into a high-consumption economy. This shift has naturally boosted our service sector.
In this episode, we have the privilege of speaking with Mithun Madhusudan, a leading expert with profound insights into Indian consumers, particularly those in “India 2” (residing in Tier III and smaller cities). Mithun’s extensive experience in product development for platforms like ShareChat and Apna has given him a unique perspective on the evolving consumption patterns and preferences across different segments of the Indian market.
I recently observed that many people in my family circle, around 30-50 individuals, have traveled from Kerala to Kashmir in the last 2-3 months. These trips were organized by local travel agents based in their hometowns. People trust these agents because they can visit their offices, and even though they are apprehensive about the distance, the agents are familiar and accessible. This sense of trust wouldn’t be the same with a digital travel agent, where there’s no physical presence. If something goes wrong, they feel they can hold the local agent accountable.
-Mithun Madhusudan
This shift is also seen in retail, where consumers are moving from small, low-tech kirana shops to supermarkets, seeking a more aspirational shopping experience. Even though they might be buying the same products, the air-conditioned environment and the use of shopping carts make them feel more important as shoppers. This is a clear indication of how innovation in consumer behavior has been recognized and adapted to meet these evolving trends.
Watch the full podcast to listen to the full conversation!
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