This podcast episode discusses the unique aspects of consumer psychology and the credit landscape in India, as well as the importance of building native products for the Indian market.

It emphasizes the role of trust, cultural dynamics, and family values in shaping consumer behavior in India.

The rise of digital platforms and the availability of essential infrastructure are also explored as key factors for the growth of financial services in the country.

In India credit cards were largely given to consumers who could demonstrate stable income on record, which was not the case. –

Females or children actually have a much higher gross margin purchase tendencies than what men would do. –

Trust in India is hyperlocal or super concentrated

Trust in India is established through family bonds and trusted institutions, while legal systems are often slow and ineffective.

Lack of focus can be an advantage in low-trust societies, allowing for cross-selling and building brand trust.

8. Credit landscape in India is evolving

The rise of digital platforms and technology, such as the Aadhar stack and UPI stack, has facilitated the transition to a cashless society in India.

This has led to increased credit card usage and access to credit, which is changing the credit landscape in the country.

7. India has the potential to export world-building ideas and standards

As India becomes better at building original ideas for its own market, it can export these ideas and standards to the Western market.

Building original products for the Indian market helps understand human motivation and leads to globally appealing products.

Consumption in India is highly concentrated

A small portion of the Indian population accounts for a significant portion of discretionary spending.

Income disparity is high, and catering to the needs of affluent individuals is important for businesses targeting the Indian market.

Efficiency does not always equate to soulfulness in India

In India, there is a preference for things that are less efficient but more soulful.

Cultural experiences and vacations in countries with rich cultural heritage are highly valued, even if they are not the most efficient options.

In Asian societies, you can start with a very basic short video platform and suddenly become a large lending platform. –

A lot of India’s stacks just suddenly created these interesting ways to underwrite, which was historically not possible. –

Emotional events and social status drive Indian market

Products and services related to emotional events, such as weddings, and those that enhance social status tend to thrive in the Indian market.

Indians prioritize spending on events that strengthen family bonds and enhance their status in the community.

Cultural dynamics shape Indian consumer behavior

In Indian society, collectivism and family values drive consumer behavior.

Trust is concentrated in large entities and institutions, and the society functions differently from the West.

Understanding the unique cultural dynamics is crucial for business success in India.

9. Indian education system shifting towards creativity

Traditionally, the Indian education system focused on test scores and rote memorization.

However, there is a shift towards fostering creativity and deeper understanding, which will enable India to create and innovate in ways that resonate with the global market.

When you think of India as a society, the motivations and psychology of consumers and how they interact with Brands is fundamentally different than Western societies. – Kunal Shah

I think it’s changing a lot but it could be much better for example if one studies the profit pools of India which exists in the public market domain or we can study that you would fundamentally build a very very different company and priority has very very different services. –

5. Building native products for the Indian market is crucial

Startups and businesses in India should focus on developing products that cater specifically to the unique needs and preferences of Indian consumers.

Simply copying models from other countries may not be as effective.

I think that will actually extend to products that we might so SAS might be a big thing but we will become great at building consumer products for the West Market when we become good at building original ideas for Indian market because ability to build original products is ability to understand human motivation and when we get good at that the world will be a market open for us. –

 Infrastructure and labor participation are key factors for platform growth

The growth and success of platforms in India depend on the availability of essential infrastructure, female labor participation, stability in regulation and taxation, and catering to the specific needs and culture of the Indian market.

Building for that kind of a market which is saving every penny but splurging on emotional events…is a big market in India. – Kunal Shah

6. Asian markets provide insights for the Indian market

Products that work well in the Asian context tend to work well in India.

Insights from low-trust societies like Russia are also valuable.

Marketing capabilities need to be improved to increase global consumption of Asian brands.

10. Time spent is a good indicator of potential spending in India

In India, time spent is a significant indicator of potential spending.

The country has a high concentration of wealth in assets like education and real estate, indicating a focus on long-term investments and less emphasis on immediate consumption.

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