Manual The New Consumers: The Influence Of Affluence On The Environment

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DuPont, P. New York. Postel, S. Norton, New Pearce, D. Riley, K. Atinc, P. Bank, Washington, DC. Roodman, D. Ekins, P. Wallart, N. Palanivel, T. Cobb, C. Arts and Sciences, Cambridge, MA. Takahiro, A. Dasgupta, P. Brown, L. DeSimone, L. Energy Information Administration, U.

The new consumers: The influence of affluence on the environment

Department of Energy In- Hawken, P. Department of Energy, Wash- Brown, Boston. Russel, T. McDonough, W. Arrow, K. Streets, D. G , Jiang, K. Sinton, J.

The New Consumers The Influence Of Affluence On The Environment

Pauli, G. Agarwal, A. Schmidt-Bleek, F. Carnoules, France. Parikh, J.

Frank, R. Kates, R. Alagh, Y.

The New Consumers: The Influence Of Affluence On The Environment

Klein, L. Schor, J. Kasser, T. Daly, H. Robins, N. Quick Upload. Featured Examples. Creation Tutorial. Video Tutorial. Quick Upload Explore. Case Studies. Home Explore New consumers: The influence of affluence on the environment. New consumers: The influence of affluence on the environment Published by Guset User , Meat : juicy steaks and hidden costs IV. Further resource linkages : household electricity, eco-footprints, and human numbers V. China : a giant awake and roaring VI.

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India : the second "biggie" VII. The big picture of 20 countries VIII. Sustainable consumption : where do we find It? Sustainable consumption : how to get from here to there App. GNI and its shortcomings more GNI and its shortcomings App. Four outlier countries.

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Details Collect From YY Order a copy Copyright or permission restrictions may apply. We will contact you if necessary. To learn more about Copies Direct watch this short online video. The categories reflect the following consumption-income relationships:. A clear understanding of these correlations helps identify a growth trajectory for each of these categories and subcategories. In many cases, historical growth is not a good predictor of the future.

For example, mobile-phone sales and mobile internet connections are likely to show disproportionately high growth rates over the next decade as incomes rise quickly. TV sales, on the other hand, increase only slightly with rising incomes, so they are more likely to maintain their historical growth trajectory.

Shifting Growth Drivers. Traditionally, for many consumer categories, increasing market penetration has been the biggest driver of sales growth. But this is set to change as frequency of purchase and spending per purchase occasion rise in importance. There is a shift toward higher-quality, higher-price subsegments within categories, as Indian consumers trade up with greater frequency and enthusiasm.

The impact of penetration, frequency, and spending per purchase varies across categories. The difference is mostly a matter of higher spending per purchase; differences in product penetration and purchase frequency are not significant. Or take eating out. Elite and affluent householders spend 35 times and 13 times more, respectively, than strugglers in this category. All three factors contribute: increase in penetration, frequency of occasion, and spending per purchase.

Potential for Trading Up in Emerging Cities. Across all income segments, consumers in major metropolitan centers and tier 1 cities those with populations of more than 1 million spend more than their counterparts in other locations. This is true for basic categories such as laundry detergent powder and biscuits and for more discretionary categories such as eating out and the mobile internet. Higher spending levels in big cities are not the result of greater product penetration, as penetration for a given income segment is generally similar across cities.

Consumers in big cities, on average, buy more premium products, which leads to higher spending. This represents an opportunity for companies that make more premium products available—and can convince buyers of their value—to boost growth by encouraging consumers in small cities to trade up. Changing Spending Behaviors. For one thing, shopping is becoming more social—involving all family members—and much more frequent, thanks to the rise of online shopping. For another, many consumers are making different buying and tradeoff decisions.

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For example, immediate gratification is becoming more important than asset creation. Also, the biggest desires of aspirer households used to be to own a house and a car. Today, many more of these consumers want to take international vacations. Similarly, affluent households are becoming comfort seekers, and they are willing to pay for it. Aspirer households are also trading up more frequently in categories such as apparel, buying better brands for everyone in the family.

Social media have played a big role. People want to fit in with their peers. At the same time, consumers in numerous basic categories such as biscuits, salty snacks, tea, and kitchen and floor cleaners are far less conscious about the brands.

The evolving circumstances, behaviors, aspirations, and consumption patterns of Indian consumers are evident in a comparison of aspirer class families with whom we spoke during our research for our and reports. Shabahat and Nishat Fatima. When we met Shabahat, aged 39, his wife, Nishat Fatima, 30, and their two children, 11 and 9, in , Shabahat was a secondary school teacher and Nishat Fatima, a housewife.

The family told us that they bought branded clothing only for their children. Shabahat and Nishat Fatima shopped mainly in local shops and at the bazaar. The family had high aspirations for the future. Shabahat was looking for better job opportunities in other schools. His dream was to buy his own house and furnish it according to his own tastes and preferences rather than those of his parents.


Shabahat and Nishat Fatima also hoped to buy a car and trade up to better brands of clothing. Abhishek and Radhika. Abhishek, 35, his wife, Radhika, 32, and their two children, 8 and 6, were living in their own free-standing house in the Nizamuddin West area of New Delhi. Abhishek was working as a manager in a pharmaceutical company; Radhika was a housewife.

The shares of spending on clothing, housing, and health care were about the same, but the amounts were higher because of their higher income. Within categories, their spending patterns were different from those of Shabahat and Nishat Fatima. In , the discussion with Abhishek and Radhika covered a wide range of brands for apparel and footwear that they had considered, or bought, for the entire family and not just for their children.

Similarly, in , Abhishek and Radhika were doing much more of their shopping at branded stores and a premium grocery chain. Abhishek and Radhika hope to visit exotic locations for vacations; they especially want to visit Switzerland in the coming years. This is true for all manner of urban and rural consumers. The composition of the user base is also changing. Most of the digital focus to date has been on urban users, but rural areas will see much of the action for the rest of this decade. We expect that more than half of all new internet users will be in rural communities and that rural users will constitute about half of all Indian internet users in Users are older and more mature.

Companies need to consider three aspects of rising digital penetration and its increasing influence on consumption patterns. Online spending is taking off. In the past three years, the number of online buyers has increased sevenfold to 80 million to 90 million. Continued growth in internet penetration and rising e-commerce adoption will drive further growth in the number of online buyers.

Multiple factors are behind the rising adoption of e-commerce channels. These include the strong value proposition offered by online merchants, proliferating payment platforms, strengthening delivery logistics, and significant financial investment in the sector. On the basis of these and other factors, we anticipate that the number of online buyers in India will climb to million to million by In terms of value, online commerce is still a small portion of total retail sales, but it is growing fast.

See Exhibit 5. Discounts are another popular feature for more than half of online shoppers especially lighter online shoppers , and availability and assortment of merchandise are important to more than one-third.