Prof K S Chandrasekar
vc@clujammu.ac.in
Before independence, Bharat was deep rooted in Swadeshi consumption and the same continued in much stronger vein after independence. However, as we are approaching the 100 years post-independence, there is a need to relook at our consumption patterns which has been shaped by the western ideologies and brand consciousness. Like the Western countries, India too had a set of people belonging to different generations. However, India was under the British rule and the old generation which is now almost extinct had given their blood for the independence from the British. From the shackles of the British regime, India has gone forward with periods of uncertainty and later on bringing parity with the world countries. The so called Baby boomers who were born between 1946 to 1964 have seen the difficulties India faced and have been told about the British rule by their parents. This generation had seen the rule where importance was given to public sectors and government. They also were willing to wait for benefits and had the patience to accept what was available. The need for Swadeshi started with them and that has been passed onto the next generation. This in turn was passed on the Generation X who were born between 1965 and 1980. This generation X were very obedient, loyal and committed to the jobs they were given. Generation X is the bridge between traditional and modern eras, they have embraced technological advancements while maintaining a strong sense of practicality and individualism. This generation has found a new freedom on the choice of foreign brands. Gen X’s unique traits make them well balanced leaders, out of the box thinking, and as they were loyal, their superiors were in a position to support them, playing a critical role in shaping workplaces, families, and communities. They have seen the change and uncertainty and are in the realm of enduring influence on society. In fact, the learnings from the Gen X’s in terms of how to value profession, close knit family ties, concern for the children etc., have actually shaped the present day India. Since they had the habit of savings, it was imperative that they focus more on the local brands and were confident of the same.
The Millennials who were born between 1981 to 1996 were the ones who started understanding the relevance of liberalization, privatization and globalization. They were the ones who came out of conventional programmes and made their presence felt through the advancements in technology. This generation has seen the travails of the generation X and they decided that they should focus more on “Buy now, pay later” concept. This led them to have quick access to the brands which they were planning to have it with them. This is basically the watershed moment in the whole process. Gen Z who were born after that between 1997 to 2012 and Gen Alpha who were born between 2013 to 2024 completely went under the radar of the international brands as it was accessible and affordable for them since their parents were able to make money for them. Millennial had a strong connect to the freedom movement and were either taught through their parents or peers on the difficulties they faced. This has had an effect on them so any international brand they were planning to buy they were bit cautious. However, this generation did not influence the next for the purchases they do since this millennial were seen to be travelling more to international destinations and became more interested in the international brands as such.
According to World Bank, inequality in India has come down significantly between 2011-12 and 2022-23, making it the fourth-most equal country globally. There is a sharp decrease in extreme poverty, which has dropped from 16.2% in 2011-12 to 2.3% in 2022-23. This has forced them out of the rationable products and brought them to the main stream purchases. CK Prahlad in his famous book, “Fortune at the bottom of the Pyramid” indicated this class and mentioned that they will be the consuming class latter. This has led to Project Shakti by Hindustan Unilever and they started manufacturing brands aimed at this segment. The report also says that only three countries that have a better Gini Index score, a measure of equality, are the Slovak Republic, Slovenia and Belarus. India is much better placed than countries like China, the United States and the United Kingdom. India’s Gini Index stands at 25.5. This indicates that consumption by all is possible in this economy.
Indian economy is evolving as a service exporting economy of the world. At home, it has evolved as a domestic consumption economy. The latter accounts for 65% of the total GDP. Compared to that, 42% of Chinese economy is for domestic consumption. These two statistics account for reasons of high disparity between two nations export performance. Indians consume more than they export; hence focus is on domestic markets. The reverse is true in case of China, where the focus is to grab FDI, build factories and export goods. Now consider the very large segment of population, less than 30 years age in India. Specifically, India has a large proportion of young people, with more than 50% of its population below 25 years old. It is active, educated, progressive and vibrant. If this population is able to consume the local and national brands, Swadeshi concept will take off and over the period, more manufacturing companies will be set up which will bolster the economy. Considering the fact that President Trump’s tariffs will have heavy bearing of $50 billion on India, it is high time we need to start look inwards. This could ensure the Rupee’s value will fall which will lead to more cost per person in the country. India is currently is at 2.9% of the world trade and we need to increase it beyond to ensure that we are considered in the World market. There is a need for sensitizing the citizens, families, students on the need for Indian brands and that alone can solve the issue posed by President Trump. A pan-India network of retail outlets has changed the retailing landscape. Foreign retail vendors like Wal-Mart or Metro are not having smooth sailing, while trying to enter the Indian retail market. One of the many reasons for their lack of their success is that India fears that these chains will become outlets for Chinese made goods stores in India. Instead, the consumers wish for them to source most products in India. Recently, there is an increase in the number of DIY outlets which source mainly from China. This needs a change and requires Indian brands to be promoted. India being a consuming nation, it is imperative on the part of establishments, institutions to make aware of the need for Indian brands to be purchased which can actually change the whole way. One area could be DGS&D which can now avoid keeping international brands in their supplies and resort to Indian brands at the initial stages.
(The author is Vice Chancellor, Cluster University of Jammu)
The post Swadeshi and Generational Shifts- way forward appeared first on Daily Excelsior.