Abstract

From the perspective of the overall population scale in India and average incomes, Indian consumers' main needs are still basic daily needs. In regular towns and villages, therefore, one mostly finds traditional commercial areas where food and clothing make up the majority of sold items. In first- and second-tier cities however, rapid economic growth in recent years and rising incomes have caused changes in these cities' commercial districts.

Large Cities: Commercial Districts Transforming

In large cities consumer behavior is changing due to increasing incomes. Commercial districts which in the past focused on providing food and clothing are slowly becoming districts with entertainment as their main component.

In the past, people would frequent small retails shops or chaotic commercial districts to buy goods, but now people are getting more accustomed to going to places which are better planned, orderly, and offer a greater variety of goods. Therefore, in these cities entertainment commercial areas centered around department stores or cinema complexes have started to emerge, as well as specialized commercial districts offering total solutions and the ability to compare prices.

Emerging Cities: New Commercial Districts Developing

In new emerging cities there are usually an old city center and a new city center. The old city centers are the area where people in the past used to congregate and where there are large concentrations of shops and stores. However, these areas haven found it difficult to adapt to changing consumer behavior and lifestyle patterns. In the new city centers one usually finds modern large residential buildings, with small shopping centers located next to these buildings to provide food, clothing, entertainment etc. These have become a new type of commercial district, with an emphasis on entertainment.

Marketing Methods Aimed at Different Commercial Districts

Advertising through the mass media is an important marketing method, especially because of the fact that Indian consumers love to watch television, and the 20 million newspapers sold everyday. These have therefore become important media for all branded vendors. Advertising fees for television and newspapers are relatively high, though. For example, an advertisement on a quarter of a page in a nationally distributed newspaper could cost a company 500,000 Rupees (US$12,632; US$1=39.58 Rupees). For companies with limited resources, other marketing methods aimed at commercial districts could be an outcome.

In more traditional commercial districts, companies can collaborate with local distributors and organize events on holidays and festivals, boosting sales through the large number of people coming through. In more remote areas, companies can use trucks and lorries to advertise their goods, offering the opportunities to display products to potential consumers and possibly selling products as well.

In specialized commercial districts, companies can choose to set up exclusive product display areas in stores. By offering consumers the chance to experience products and boost sales, this type of marketing also serves to establish a company's brand image.

As for entertainment-focused commercial districts or new commercial districts, incomes of people frequenting these districts are relatively high, as is their spending power. Besides the fact that mid-stream and high-end products are the mainstream in these areas, companies can use direct-sales outlets/brand franchise stores, or even flagship stores, to provide a consumer environment different from regular retail stores and build up their company's brand image.

Appendix

List of Companies