“In general people want to improve their quality of life.. It’s not a new phenomenon..Now people are saying that I’m earning some money and I want to invest,” said Bansal.
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According to him, people are willing to pay for a brand not because of its advertising, but because of the promise and trust it embodies.
“A lot of times we feel that now that I’m advertising, I should be able to charge a premium. But that’s not necessarily a brand.”
People buy the proposition, not the price, he added.
According to Kushwaha, chief executive of omnichannel jewellery brand BlueStone, Indian consumers, particularly the younger generation, are willing to pay more for products or services that stand out from the rest.
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“You look at Starbucks coffee, there was a time when people said no one will pay more than Rs 10 for tea and coffee. But people are paying Rs 300-500 for coffee,” he said.He further said that there’s still a long way to go but having a great product can lead people to be more willing to pay a premium.
Earlier, Nykaa founder and CEO Falguni Nayar said that beauty and fashion are particularly appealing to the young population, and are among the categories driving consumption today.
“Currently, India’s per capita fashion spend is approximately $54. As the GDP per capita increases to $5500 by 2030, we are expecting this to grow to $160 per capita,” Nayar said.
By 2027, it is expected that the ecommerce market will be dominated by fashion, grocery, and general merchandise, accounting for two-thirds of the market, she said.
On August 11, ET reported that Nykaa expects the premium category in the BPC segment to grow faster than the mass category. It sees the premium segment accounting for 55% of consumer spending in the beauty sector by 2027.