Youth-oriented Consumer Economies are characterized by a powerful combination of an increase in technology, youth population and consumerism. This consistent rise has led to the creation of opportunities for businesses especially those targeting their next mass customers. The fact that there is a rising middle class in countries that is characterized by an increase in youths present businesses with an opportunity to develop products that can meet their demands (Dover, 2014). This emerging tend can be seen in economies like that of China and India. Marketers in both India and China need to embrace the changes in their youth-oriented economies so as to remain afloat in business.
There are several goods and services that interest both Chinese and Indian youth-oriented economies. Both nations have a diverse culture and what a young person from a rural setting might desire might not be the same as that desired by a youth from an urban setting. Nonetheless, there has been a purchasing trend in the two countries that signifies what commodities young people are interested in. For instance, there is a massive purchase of vehicles. The young persons in these countries are very interested in cars and purchase the latest model of any make whenever it is available. The other commodity that is of interest to the youth is cell phones and advanced high tech commodities (LI, 2012). There is a huge preference that is given to imported products especially those made in the US since they are deemed to be of better quality than the local ones. These youth-oriented markets are material based with an aim of purchasing the best commodity on offer.
The Chinese and Indian youth-oriented consumer economies are faced with myriad micro and macro environmental forces that influence the marketing strategies to be employed. For instance, the increase in consumer demand for commodities will give rise to many companies providing the same service in that market for profit. This presents a micro-environmental force of competition between businesses. Marketing strategists will need to embrace product differentiation in an effort to upturn competitive benefit over other businesses and guarantee profitability (Dover, 2014). The macro-environmental challenge is as regards to government policy and regulation that is quite different from the regulations in place in the US. Chinese and Indian laws are more stringent on advertisements and proper guidelines must be adhered to before such broadcasting.
These environmental problems can be detrimental to business in these countries and marketing strategists need to mitigate them in order to penetrate the two youth-oriented economies.
There are marketing strategies that are implemented in both Chinese and Indian youth-oriented markets. The Chinese and Indians are a collective society in that they adhere more to standards in a group than that of an individual. All marketing strategies that have been implemented in these countries often put this into consideration with an aim of getting to the whole community rather than an individual consumer. But the youths have brought a different analogy to the whole concept. Indian and Chinese youths desire to be recognized individually for who they are (LI, 2012). The Western based consumption market has been based on individuality where they target a person’s notion of life and their perception for who they are. Market strategists have to reflect individuality in their promotions so as to assure youths that if they consume such products then they have distinct identity.
The perception change as regards to foreign products in both China and India provide US companies with an opportunity to penetrate the youth-oriented markets. Since these youth have gained employment and now have a higher purchasing power, they can afford their commodities. Since their advertising campaign revolves around individualism, they stand a better chance to convince both the Chinese and Indian youth to partake in the consumption. American brands like Pizza Hut, Domino’s and KFC can tap into this and sufficiently perform in these countries by attracting youths to their product lines.
- Dover, M. (2014). Co-Creating your Brand with Young World Consumer-Entreprenuers. Retrieved from iveybusinessjournal Website: http://iveybusinessjournal.com/topics/strategy/co-creating-your-brand-with-young-world-consumer-entrepreneurs#.VAWQCWPqTps
- LI, C. (2012). Brand culture and consumption: Chinese consumers and the foreign brands. Paris: Université d’Aix- Marseille III.