The Kaleidoscope Of Consumer Demand
The Economic Times - May 2000

There would still be a fair amount of economic, cultural, exposure and market environment heterogeneity within each consumption sector, requiring us to think about consumer segments within each consumption sector, if we are to get the demand pattern framework right. For example, the knowledge economy consumption sector will have rich knowledge workers, well off (relative to others of their background) 'skilled labour' supporting class (call centre personnel, medical transcription workers etc), and low income lower order services providing class (whose income, aspirations and consumption behaviour would be different from others of their ilk). The agricultural economy consumption sector will have the usual consumer segments - big farmers, small ones, agricultural labour etc. The traditional economy dependant consumption sector will have consumer segments based on income and self employment status.

Using this framework, I see a sharp rise in the coming year for top end goods and services fuelled by the buoyant consumer confidence, the sky high salaries, and the passionate search for quality time from the 'knowledge economy 'consumption sector. This consumption sector will also get a consumption kick from the mere increase in availability of relevant goods and services. It has a lot of unfulfilled desires. I see a dip in the purchases (of popular priced FMCG and durables) from the 'Government dependent' consumption sector but a compensating increase in the industrial economy consumption sector. I am still a bit confused about whether we have had drought or not, and that will determine the consumption performance of the agriculture dependent consumption sector.