There was a time when no one paid much heed to the younger generati-on. While the elders blabbered on, the younger generation was supposed to listen. Cut to the present. The youth has a mind of its own. They will not accept anything and everything set down by others.
This segment is also willing to take risks. Small wonder then that the youth is seen as a lucrative market and for marketeers, a prime segment to rely on. This is more so because two-thirds of India’s population is below the age of 35. And if a survey by MindShare Insights is anything to go by, then 65 per cent or more than 700 million people in the country are below 35.
The youth is, no doubt, a lucrative market but it must be remembered that the segment is very difficult to crack. It sets the trends that others follow. The youth also has greater buying power. “Even a decade ago, the youth did not have much purchasing power. Now youngsters can spl-urge on anything they want,” says Saumya Chat-topadhyay, director, Strat-egic Planning, Ogilvy Africa. What’s more interesting is the fact that Generation Y has started earning at a young age — around 54 per cent of youngsters now earn while pursuing higher studies. Even certain service industries and call centres are recruiting young people and that has made them an extremely desirable age group for marketeers.
And yes, the youth cannot be cast into any particular mould. They may have a fascination for divergent things. For instance while they may be keen on acquiring international labels they may also find an ethnic brand like Fabindia stylish. Kentucky Fried Chicken may suit their palates but they may not dislike Bengali fare at a true blue Bengali restaurant. Gen Y may also like to watch FTV as well as a religious channel like Aastha. So, marketeers have to take into consideration these contradictory traits while targeting this segment.
Gen Y are not tech nerds rather they are quite tech savvy and are tuned into the latest gizmos. They are onto gaming and social networking. If a survey by the industry body Internet and Mobile Association of India (IAMAI) is anything to go by, then 40,000 brands advertise online to target the youth. And the numbers are definitely increasing.
Marketeers are also finding digital advertising an effective medium. That’s because while watching a viral clip sent by a friend, a person may also notice the advertisement. In fact, digital marketing currently comprises `350 crore of the `22,700 crore market. The market is also poised to grow at the rate of 150 per cent over the next few years. It may be noted that an estimated 80 per cent of the 180 million mobile users in India comprise the youth — between the age groups of 18 and 35. Bluetooth advertising is another form of mobile advertising which is gaining popularity. These ads are usually beamed to the youth in shopping areas. Mobile advertising is fuelling retail growth.
Marketeers are also realising that the youth are interested in new products and they are far more willing to experiment with new brands. Even real estate developers have realised the importance of making a pitch to the young. After all, the youth in the age group of 30 and 35 are buying homes today!
All the above definitely make Gen Y a lucrative target. However, a word of caution. There is also the added fact that the youth’s attention span is short so if a brand no longer appeals to them they will not hesitate to switch. This fact could pose a challenge to marketeers who need to take all these details into consideration before making a pitch to a generation that is on the get-up-and-go mode!
The writer is a well-known industry watcher