Black middle class township shoppers: a shopper typology

Due to an increase in spending power amongst Black middle class, this growing segment has become a lucrative investment opportunity for many retailers in South Africa and most emerging markets. The purpose of this study is to segment township consumers according to their demographics, life stage, attitudes towards township shopping centres and Living Standards Measure, to understand shopping patterns of township consumers. A survey among Soweto Black middle class township respondents was conducted, and maximum likelihood factor analysis was used to identify attitudes towards township mall factors. The study revealed five factors namely entertainment, convenience, mall essence, staff and mall basics, which were all consistent with previous studies, with the exception of staff and mall basics, which was revealed in this study. A K-means cluster analysis was then used to segment township shoppers according to their attitudes. Four shopper segments were discovered, namely disappointed crusaders, upcoming loyals, social seekers and local loyals, which, despite investigating shopper attitudes in place of shopper behaviour alone, were similar to well-establish shopper typologies. Each segment was profiled according to demographic variables, attitudes as well as shopping patterns. Results, therefore, suggest that retailers and developers need to consider the unique needs and differences among Black middle class consumers when developing retail strategies as they reveal unique characteristics from typical shopper typologies. Given similarities in some emerging countries such as India, the findings of this study could be generalized to other middle class consumers from emerging markets. Similar shopper segments may arise, which may be consistent with previous shopper typology studies and new segments unique to emerging market middle class consumer may be unveiled.     

Segmenting Markets Along Multiple Dimensions of Luxury Value: The Case of India

abstract

This is one of the first investigations of consumer motivations for purchasing luxury brands in India, a country with an emerging middle class. It identifies four dimensions of luxury benefits for segmenting markets. These include the financial, functional, personal, and social benefits of luxury value. Using data collected from 329 respondents in Mumbai the study identifies nine luxury factors for purchase behavior. These are used for classifying respondents into three behavioral segments using cluster analysis. The first segment appears to buy luxury goods primarily for their snob appeal, the second segment for their prestige appeal, and the third for their value appeal. The results show that while many consumers may buy the same luxury goods, their motivations for doing so differ. The findings should help marketers tailor their messages to specific luxury-seeking segments. There are many papers on luxury brands but very few are from emerging markets. The results may be of great use to global brands that are looking for expansion due to slowdown condition across globe.     

The new middle class in emerging markets: How values and demographics influence discretionary consumption

The rise of new middle‐class consumers in rapidly transforming emerging markets has attracted the attention of Western business executives. What they know about this growing segment of customers will determine whether they succeed or fail in these markets. The present study examines the factors that drive the discretionary consumption of this new middle class, including the effects of consumerist values, religious values, occupation, education levels, and ownership of fixed assets. The study draws its insights from data gathered from 391 new middle‐class consumers in Ankara, the second‐largest city in Turkey. The findings provide important implications for businesses, both indigenous and foreign. An overall implication is that managers ought to understand and qualify the new middle class in emerging markets not simply by their access to disposable income but by deeper attitudinal and behavioral characteristics.     

Latin American retail: where modernity blends with tradition

Latin America's retail landscape has changed dramatically over the last 20 years. Attracted by deregulation and a sizable and growing market, modern retailers arrived looking for the next El Dorado. But signs of maturity appeared much before expected. Traditional retailers modernized their offer, while keeping their appeal to the emerging consumers. While chain retail has concentrated earlier than expected – and faster by the hand of crisis that are usual in emerging markets –, local chains have developed formats which add modernity to their understanding of their customers' base. By providing better access through convenience and credit to a broader range that even includes affordable design and quality, local chains are showing the way to the growing mass customers that form Latin America's new emerging middle class. And leveraging on this customer understanding, they are redefining concepts like convenience and crossing borders to grab the opportunity of the new emerging consumers. This article covers the evolution of retailing in Latin America over the past two decades, and provides insights on the segment that has brought the most significant growth: emerging consumers.     

Social stratification and mobility among Chinese middle class households: An empirical investigation

Middle class (MC) consumers’ demand for a better quality of life continues to drive economic growth in emerging markets (EMs). Given their importance for the dynamically transforming economy in EMs, the present study examines the extent to which consumption patterns are associated with social stratification and mobility among China's MC consumers. Building on the extant literature that links material and culture consumption to social stratification, we construct a typology of MC households in contemporary China, identifying the factors by which these newly emerging MC households vary or are similar in their consumption behavior. We find that, of the three widely recognized stratifying dimensions (income, education, and occupation), educational attainment is the strongest indicator explaining the variance in culture consumption among the MC households, while occupation plays a relatively weak role in explaining their consumption patterns. Among the alternative pathways into the social class position of MC, our findings suggest that merely becoming wealthy is negatively related to culture consumption of these new MC households while becoming MC defined by educational attainment or belonging to the core middle class (whose status is achieved on all of the three stratifying dimensions) has a profound effect on both material and culture consumption. The findings support the conclusion that social stratification and mobility are of importance for China's MC consumers in shaping and maintaining their lifestyles and consumption patterns.     

Animalizing India: emerging signs of an unruly market

Focusing on recent artistic and photojournalistic portraits of India as an animal – an elephant or tiger – that wanders alone or sometimes with another animal companion – dragon or panda bear – called China, this article analyzes the ways in which India's potential as an emerging market and a rising power is being conjured in the popular aesthetics of magazine and nonfiction book covers. Even as an outpouring of verbal discourse from business and policy experts has hailed an India that is transitioning from a peripheral Third-World nation to a rising power, a steady stream of visual illustrations, including, those that deploy animal avatars, has sought to illuminate the vicissitudes of India's newfound economic recognition. Ultimately, my article's tracking of the visual semiotics of India's animal imprints seeks to get inside an economy of appearances in which zoological embodiments arbitrate this non-Western nation's prospects for entering economic globalization's newly minted scale of “emerging market.”     

The Growing Dominance of China in South Asia: An Indian Perspective

India's economic relations with its neighbors are important for the stable and peaceful development of the South Asian region and for its own security. In a globalized world, economic relations play a major role in deciding political relations and collaboration at multilateral fora. In the context of China's increasing trade and investment relations with India's neighboring countries, the present study examines where and how China has been improving its presence vis-à-vis India in Bangladesh, Pakistan, Sri Lanka, and Nepal. Further, the study also explores the factors of India's loss of market in its neighboring countries and suggests remedial measures.     

The new middle class in Turkey: A qualitative study in a dynamic economy

Although the middle class phenomenon is a widely investigated topic within a wide range of academic fields such as sociology, political sciences, anthropology, the current study concentrates on the middle class from a marketing perspective in the context of an important Emerging Market—Turkey. The definition we adapt in this study pertaining to the new middle class includes the households that have gained substantial disposable income and have experienced substantial lifestyle changes since the market liberalization reforms which commenced in the 1980s. We first present the importance of the middle class in emerging markets (especially the BRIC), the concept of middle class and the new middle class phenomenon. We then review the literature on the new middle class in Turkey and we explore whether secular and conservative subgroups of the new middle class differ in consumptional and attitudinal dimensions. Finally, we offer preliminary insights based on a qualitative study with 36 new middle class consumers in urban Turkey.     

Ostentation and funk: An integrative model of extended and expanded self theories under the lenses of compensatory consumption

In the last decade, economic growth have created in Brazil and other emerging countries a ‘new middle class’, a group that left the poverty line and entered the consumption markets. In this scenario, a musical movement with many traces of this ‘new middle class’ has emerged. Known as Funk Ostentação (ostentation funk), the movement is formed by young singers whose lyrics and promo videos refer to the consumption of designer's clothes, cars and aspirational products. We have studied Funk Ostentação by means of its promo videos, personal interviews and a group discussion with its fans (young adults) and found meaningful relations between consumption and identity building. We developed a framework that integrates the extended and expanded self theories under the lenses of compensatory consumption. This framework can be applied to studies with other groups that have similar characteristics of vulnerability with other niches of the ‘new middle class’ in emerging markets.     

Why do consumers purchase biodegradable plastic? The impact of hedonics and environmental motivations on switching intention from synthetic to biodegradable plastic among the young consumers

Human concern for the environment has grown in tandem with recent economic development, particularly in emerging nations. This paradigm change has led Malaysians to pay more attention to synthetic plastics challenges, particularly in Malaysia. This study aims to determine the attitudes of young Malaysian consumers on the usage of biodegradable plastics to minimize the use of synthetic plastic in the country. Generally, two motivations—hedonic and environmental motivations toward switching intention from synthetic to biodegradable plastic among the young consumers were examined in the study. Environmental motivations (environmental concern, environmental knowledge), as well as hedonic motivations (adventurous spirit, novelty-seeking), are used in this study to broaden the theory of consumption value (TCV) into four additional factors that may positively impact the young consumer's attitude and increase switching intention towards biodegradable plastics. The data was collected utilizing an online survey approach and a standardized questionnaire. The data of 386 young Malaysian customers were analyzed using structural equation modelling (SEM) using SmartPLS 3. The study's significant findings indicated that hedonic motivations, environmental motivations, and attitudes all impact switching intentions toward biodegradable plastics. This study also found that attitude is a mediator between hedonic and environmental motivations regarding switching intentions. These findings might aid the government in developing a new policy that encourages residents to adopt biodegradable plastics while also lowering pollution.     

The giant awakens: An interview with Professor Jagdish Bhagwati on economic reform in India

Few people are in a better position to reflect on the pace and substance of economic liberalization in India than Professor Jagdish Bhagwati. The author of four books on Indian economics, two on world trade, and an advisor to the Director General of the General Agreement on Tariffs and Trade (GATT), Bhagwati is an authority on the economic issues facing India today. Optimistic about India's future, he discusses the serious obstacles to liberalization that India has already overcome, and looks ahead to India's expanded involvement in world trade.     

Intra and inter-country comparative effects of symbolic motivations on luxury purchase intentions in emerging markets

Emerging markets, and especially lower-tier cities within these markets, are seen as the future growth engines for luxury brands. However, extant literature on the drivers of luxury consumption has predominantly focused on Tier-1 cities. Grounded in the theory of network effects, this study offers first such intra and inter-country comparison of the symbolic motivations (i.e. snob, bandwagon and Veblen motivations) underpinning luxury purchases between and within Tier-1 and lower-tier cities in two prominent emerging markets, China and India. The findings offer first account of similarities and differences in consumer motivations that drive luxury consumption within and between these markets. While most luxury brands have ubiquitous strategies for emerging markets, the results will assist managers in developing distinctive brand strategies catering to the intra and inter-country differences.     

Consumer insights into luxury goods: Why they shop where they do in a jewelry shopping setting

The question that guides this research concerns why consumers prefer to shop where they do for luxury goods. This study applies Tauber's (1972) motives, as representative of Sheth's (1983) nonfunctional shopping motives for luxury goods purchases. The study examines how well Tauber's motives describe consumers’ shopping motivations at each retail outlet in a jewelry shopping setting. These retail outlets consist of store- and non-store formats. The study identifies motives that are considered most important by consumers and that contribute to their shopping preferences. This study also identifies demographic profiles of jewelry shoppers at each retail outlet. Jewelry shoppers are more influenced by functional motives than nonfunctional motives.     

Entrepreneurial aspirations, motivations, and their drivers

Several drivers of entrepreneurial aspirations and entrepreneurial motivations are investigated using country-level data from the Global Entrepreneurship Monitor (GEM) for the years 2005 and 2006. We estimate a two-equation model explaining aspirations using motivations and socioeconomic variables, and explaining motivations using socioeconomic variables. We find that countries with a higher incidence of increase-wealth-motivated entrepreneurs tend to have a higher prevalence of high-job-growth and export-oriented entrepreneurship and that a country’s level of social security relates negatively to the prevalence of innovative, high-job-growth, and export-oriented entrepreneurship. We also find that the increase-wealth motive mediates the relationship between socioeconomic variables and entrepreneurial aspirations.

Book review

Abstract

Concerns about relatively high degrees of exchange rate pass-through in a number of emerging economies have contributed to a fear of floating. Despite the obvious policy relevance of this issue there is hardly any existing literature that has examined aggregate CPI pass-through for India, which has been liberalizing its economy since 1991. This paper estimates exchange rate pass-through (ERPT) at the aggregate level into India's CPI for the period 1980Q1 – 2005Q3. We also analyze whether exchange rate pass-through in India has changed over time, particular since 1991, which was the beginning of the country's economic liberalization program.     

Change in climate for foreign invesment in India

In 1991, India's Socialist economy hit its nadir. The pressures of the Gulf War had prompted a run on Indian foreign exchange reserves and forced Indian to seek loans from the IMF and World Bank to bail out the economy. Since then, economic and structural reforms have strenghtened India and made it more attractive to foreign investment. The convertability of the rupee, higher thresholds for foreign ownership, lower customs duties and the abolition of industry licencing have eliminated old investment stumbling blocks. These reforms have made India, says Thomas, an even better investment prospect than China, India's new rival.     

Building and transforming an emerging market global enterprise: Lessons from the Infosys journey

The story of Infosys’ growth and transformation from a $250 start-up to its current market valuation of approximately $26 billion provides one of the most pertinent lessons in leveraging India's strengths and managing the challenges faced by an emerging market global enterprise based in India. In this article, we present a wide-ranging interview with Infosys’ current CEO, Mr. S.D. Shibulal, as he explains what he considers to be the core strengths of the company that made it successful in the past, lays out his vision for the company's future, and discusses in detail how he sees the company's transformation taking place over the coming years. The conversation uncovers several interesting themes and lessons for multinational enterprises in emerging as well as developed economies, including the relevance of being born global, values-based governance, the necessity of creating hybrid business models that infuse the ‘India way’ with local cultures and practices in global markets, leveraging strategic partnerships via co-creation and co-evolution, and the delicate balance between ‘preservation-creation-destruction.’     

Blurring production-consumption boundaries: Making my own luxury bag

Leather crafting of leather wallets or bags exhibiting similar designs as prestige brands is an emerging hobby among fashion-forward Korean consumers. This study examines the motivations of this emerging craft consumer. Data collected using in-depth interviews and participant observations support the following observation. A conspicuous or materialistic orientation and traditional values of crafting drive consumer participation in leather crafting. The study's findings identify this group of people, labeled neo-craft consumers, as exhibiting Homo Faber (Bergson, 1983) and Homo Ludens (Huizinga, 1950) characteristics. Neo-craft consumers create a new type of consumer culture which blurs production and consumption boundaries.     

India: Trade Policy Review

The review of India's trade policy by the WTO, the third of its kind, is in three parts: the report by the WTO secretariat, a statement by the government of India and minutes of the discussion of the report by the trade policy review board. The review provides detailed information not only on India's trade and foreign investment policies but also an analytical review of India's export and economic performance. The review notes that India has made considerable progress with the liberalisation of its trade and investment regime, but it has a long way to go if it were to achieve a growth rate of eight to nine per cent, the stated objective of the policy makers. This paper, drawing upon the material in the report, analyses India's growth prospects and endorses the broad conclusions of the report.     

Brand prominence and social status in luxury consumption: A comparison of emerging and mature markets

This research investigated how the use of a prominent versus subtle branding strategy and status consumption affect consumers’ intention to buy luxury products across emerging and mature markets. To this end, an experimental study with consumers in India (emerging market) and the United States (mature market) was conducted. The results suggest that Indian (but not U.S.) consumers with a higher status consumption tendency are more willing to purchase prominently branded luxury products than subtly branded ones. On the other hand, U.S. (but not Indian) consumers with a lower status consumption tendency are more willing to purchase subtly branded luxury products than prominently branded ones. The paper discusses these findings, highlights their contribution to luxury research, and illustrates their practical value for luxury companies interested in targeting mature and emerging markets.