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Indian youths' spend more on Cosmetics, Clothes, Phones - a Special Report- 13-Aug-2013

New Delhi:  About 75% of India's youth spend on cosmetics, clothes and mobile has crossed Rs. 6,000 per month due to rise in pocket money, growing awareness and increasing advertisements, reveals an ASSOCHAM comprehensive survey released on the occasion of "World Youth Day".

In a country wide survey, ASSOCHAM interacted with 2,000 youngsters in the age group of 16-21 years to evaluate their purchasing tendencies in cosmetics, apparel and mobile phones in ten cities comprising Delhi, Mumbai, Kolkata, Bangalore, Chennai, Hyderabad, Lucknow, Ahmedabad, Jaipur and Chandigarh.

It reveals over 75% teenagers said, their branded cosmetic consumption has gone up by about 65% in last ten years. Over 58% of youth said that their expenses on cosmetics application have risen by 65% as against 68% upper middle age group to maintain their looks reveals the ASSOCHAM survey.

The youngsters in Delhi are ahead of their counterparts in other cities as 75% of them said their budget for shopping has exceeded Rs.6,000 every month. About 25% said they splurge between Rs.2,500 to Rs.3,500 on cosmetic, clothes and phone every month.

The expenditure has exceeded Rs. 6,000 per month against their average expenditure of less than Rs 1,500 in year 2003 an increase of over 300%, reveals the ASSOCHAM Secretary General Mr. D S Rawat.

On an average in this segment, a good majority of respondents felt that they would spend less than Rs. 1,000 per month on cosmetic use during year 2003 which have exceeded Rs. 4,500 per month now and the main reasons for this is increasing number of women who are getting employed.

Secondly, massive advertisements both in electronics and print have influenced the customers in this segment that these inspired for increased allocation of their monthly expenses towards theses articles.

The survey also came out with interesting revelation, highlighting that males have developed a special craze for cosmetic application as compared to their female's counterparts and their monthly expenses rose by about 35-40% during the period.

Looking good and appearances are important and youngsters across India spend the most each week on clothes, mobile phones and going out as per the survey. Food also tops their passions. On an average, about 25 per cent of their pocket money is spent on food, as per the survey. The youth doesn't think twice before blowing money on mobile phones, clothes, eating out, even cosmetics.

However, the consumption pattern of cosmetics and apparel incase of teenagers went up substantially between 2010 and 2013 because of increasing awareness for up-keep of teenagers exterior as 75% of teenagers wards admitted this.

According to findings, the male consumers tend to spend more on cosmetics i.e. Rs. 1,000- 5,000 per month when compared to females mainly due to the demand for men's hair care, deodorants, razors and blades. It also stated that 85% of male consumers generally prefer to purchase and make the brand selection of cosmetics, apparel, mobile individually. Quality is the major factor influencing the purchase decision of male consumers, accepted 85% of them.

85% of male consumers frequently change their handset twice or thrice in a month and keep two handset. So, their expenditure on mobile phones is much higher than females.

It has been observed in the survey that female cosmetic, apparel consumers prefer to purchase individually. 85% of women consumers tend to buy cosmetic, apparel items from any shop of their convenience rather than a single shop. They buy all their items from different shops rather than a single shop. Quality is given utmost preference by the women consumers, highlights the survey.

The percentage of respondents who selected the brands by themselves is slightly high among females 65% compared to those among the males is 50%.

About 68% of respondents spend about Rs.1,000 to 15,000 for cosmetics, Rs.3,000-25,000 for apparel, Rs.5,000-35,000 for mobile on yearly. The rest of the respondents spent an amount in the range of Rs. 500-5000, Rs. 2500-5000 & 3500-10,000 respectively.

There is a tremendous increase in the female cosmetic and apparel consumers due to increasing number of women becoming earning members of the family. Also increased level of literacy and growing influence of the media, more males in India are becoming conscious about the way they look and are increasingly looking to grooming products to spruce up their physical appearance.

This newfound male grooming consciousness was encouraged by men's active participation in prominent fashion shows, such as the popular Fashion TV channel, and in beauty pageants exclusively for men especially in the forward-looking and cosmopolitan cities of Mumbai, Bangalore and New Delhi, adds the ASSOCHAM survey.

The purchasing power of Indian consumers is increasing thereby shaping aspirations and lifestyles of consumers, who are upgrading to good value products at affordable prices. This has also increased the demand for essential everyday items like bath and shower products, hair care, oral hygiene and skin care. Another strategy followed by companies to promote cosmetics in rural areas was sachets' approach, highlights the survey.

Gender analysis revealed that the awareness level was much higher in boys than in the girl's case of girls. In other words they seem to keep a track of the market trends much more than what the girls do.

Girls spend the most on clothes, cosmetics and toiletries as compared to boys who spend maximum on computer games and equipments. Gadgets (including mobile phone), recreation and holidays, hobby classes, fitness activities, parties, beauty treatment are taken care of by the parents, found the survey.