Lilliput Land: How Small Is Driving India's Mega Consumption Story Hardcover – 7 March 2024

This book is a masterpiece from one of India’s foremost minds in understanding the Indian consumer. Prof Rama Bijapurkar, in her own inimitable way, with incisive depth, exhaustive data, dispassionate and objective observation of India’s economic journey and its impact on the Indian consumer, cutting across geographies, demographics and cultures, has put together yet another unputdownable book on this evergreen topic, that is equally vibrant and engaging as this great nation.I need to congratulate Prof Bijapurkar for her courage to take on the high and mighty in dispelling some of India’s ‘mega trends’ that are either politically motivated by policy makers or based on short sighted view of most corporate leaders. This book is not a simple X-ray of the Indian consumer, but a multi-dimensional CT Scan. While we boast of India as the world’s 4 th largest economy in the world, the per capita income at about $ 2500 takes our rank to three digits. The disparity of income is huge. While the top 10 percent have an income of about $8500, the bottom 10 percent languishes at around $450. Even the top 10 percent is at the threshold of the ‘poverty line’ by US Standards. Yet, India is a huge market, given the sheer size of the population, and the top 10 percent equals the size of Mexico. Further, the story of a growing middle class needs introspection in terms of its size and purchasing power.The book has an excellent ‘Framework for Understanding Drivers and Shapers of India’s Consumption’ divided into three elegant parts: Consumer India Structure Story, Consumer Behaviour Story and Supply Side Story.In analyzing the structure story, Prof Bijapurkar’s methodology in presenting the data on income category, education, income, consumption, ownership of appliances, savings, occupation of CWE (Chief wage Earner), rural and urban divide and other data, is the hallmark of this book. This part is the true wake up call for all policy makers in public domain and for business leaders. The conventional ‘wisdom’ that the rich live in cities and the poor in villages for example is shattered upfront. Thanks to the liberalization of the economy in 1991, proliferation of new products, invasion by cheap Chinese goods and rural connectivity, both physical and digital, have blurred the boundaries between cities and villages culturally and economically. Today, of the richest 20 percent, 55 percent are in cities while 45 percent are in villages. This convergence is a key learning for all marketers. If we take the source of income, an educated professional, working as a salaried employee, in a large corporate is likely to have a much more stable income, with social security and other benefits like medical and life insurance compared to his equally rich matriculate cousin who depends on agriculture or a small enterprise. Vulnerability of income and its volatility is key to shaping consumer behavior. Hence, the need for a realistic socioeconomic classification argues Prof Bijapurkar.The chapter ‘Trends in Income Distribution and Covid Impact’ highlights the vulnerability of the structure. Post Covid, income disparities have increased and the bottom 60 percent are terribly worse off.On the consumer behavior side, the Indian consumer has morphed from being ‘Accepting’ (not for me, this is for badey log) to one who is Aspiring (I want, so how do I manage to get it). ‘A Tectonic Shift from Acceptance to Aspiration, Facilitated by Credit’. In addition, human intelligence in India is now measured not on IQ or EQ, but on DQ (the ubiquitous Digital Quotient) that needs to be embraced and built-in any business model aimed to address the Indian consumer. A young woman in a rural area would go for a wedding, wearing a knock-off dress (at less than 5 percent of the cost of the expensive designer wear, worn by the heroine in the latest Bollywood movie), perhaps made in China, ordered on-line at a hyper local e-tailer, using EMI facility. She might even return it back after the event! The rural women are comfortable and feel liberated wearing western wear, while their urban sisters think of bespoke ‘traditional ethnic’ wear from boutiques. On a lighter note, a prospective bride need not know how to cook, since she can comfortably order on Swiggy. Humour lightens the load of heavy reading. This again is Prof Bijapurkar’s unique trademark.Yet, the Indian customer is largely underserved. Large FMCG companies, especially MNCs with a couple of exceptions (like HUL and Maruti), have not penetrated beyond the top 20 percent, and waiting for India to be ready for new products. The largest oral care company says that only 45 percent of Indians ‘brush’ their teeth, without realising that most Indians religiously ‘clean’ their teeth and gums, perhaps far more effectively than brushing. The question is ‘Are you looking for a market for your strategy?’ or ‘Do you have a strategy for your market?’. This is the summary of the Supply Side Story.With such insights, missed by most MNCs, Indian startups (with numerous examples) have brought in products and services at fractional costs, with functionality that is just enough, and served through ‘phygital’ business models, using vast human resources and digital platforms, in a gig economy. MNCs kindly note.Policy makers need to think of injecting purchasing power into the hands of the bottom 20 percent, liberating them from economic shocks and enabling them to consume basic goods. This will catalyse the supply side, enhance small business opportunities and create jobs. A virtuous circle of consumption led growth, Made in India, Made for India. Prof Vijay Govindarajan in his path breaking book ‘Reverse Innovation’ explains that such a strategy is capable of producing low-cost solutions in the developing world which can be gainfully deployed in developed nations. Examples galore! MNCs are better equipped with deep pockets, cutting edge technologies and digital processes to encash this huge opportunity. What is lacking is the right mindset. As aptly put in this book, MNCs need to retain their religion (technology, quality, process etc) but radically change the rituals (embrace low cost, high volume, affordable, rural and a real understanding for the Indian consumer).This book is like attending a market research class by Prof Bijapurkar. Her unique perspectives and ability to constantly challenge us to understand the consumers psyche and unstated needs, makes her our most beloved teacher, even three and a half decades after graduating from IIM-A. Thank you Professor, for showing us the way into the minds of the Indian consumer. Eternally grateful.

This is a must read if the India consumer intrigues you . Really pushes the thinking . Loved the first part of the book which is though a very data heavy part , really strong and enables drawing connections . Loved it .

Indian consumer market is complex and varied. Its not easy to understand it. Many multinational failed because they thought they thought its one more market , so the same global strategy applies, and they failed gloriously , kellogg, Coca-Cola, etc. The market to crack is mass market, which is huge. Indian middle class is 20% of the top income group,and not 60% of middle. Middle class is much smaller than popular estimates. But Mass market is challenging. It demand affordability and acceptability. The book is an easy read and interesting for those who want to know consumer india.

The media could not be loaded. The book is easy to read and full of graphics and images. It delves into consumer behavior in Indian society. If you're interested in how India consumes things, this book is for you.

The book addresses 3 matters;1 The Economic and Demographic structure of consumer India2 How consumer India behaves3 what the supply side has to offerThe first part is supported by many analytical tables to capture the structure part well across many parameters.Both the 2 and 3 parts are more qualitative in nature and supported by numerous examples to illustrate the changes that have taken place in the last 20 years.The author writes with great authority and clarity on the subject

Good product

About small business and consumer behaviour in India in small towns

Dr Bijapurkar continues to surprise with her insights based on data. The book is a must for anyone interested in updating oneself on India. You need to read and re-read and keep handy as a reference. I have gifted a copy of the book and recommended it to a few too. It is a great read. Buy it.Thank you to Dr Rama Bijapurkar for writing this book.