The Consumers of the Future
Friday, March 7, 2008
The so called ?next billion? consumers come from Brazil, China, India, Eastern Europe and even parts of Africa and Asia and represent the largest untapped consumer market in the world. The Boston Consulting Group estimates that these new consumers already spend over a trillion dollars a year although they have barely entered traditional consumer markets yet. The individuals who make up this new consumer market are neither especially affluent nor particularly poor, however most are young and economically active. They have growing salaries at their disposal and spend around a third of this on consumer goods.
Until recently, however, businesses have been avoiding the challenge of trying to win over these consumer groups. Most underestimate their growing value or are still blinded by old stereotypes.
The following characteristics distinguish the ?next billion’ from other consumer groups:
- Fluctuating incomes. The monthly income of this group is fairly high; somewhere between 63 and 700 US Dollars (China: 63-375, Brazil: 100-700) however it is also volatile and customers are therefore more likely to hold back from purchasing non-essential items.
- Practical constraints: Most people live in small flats with very little space and have to cope with electricity and water breakdowns.??
