To understand the impact of Flowing society as a macro force on the emergence of new product categories in India and the subsequent drivers and trends that have resulted in a shift in society.

1. PRODUCT AND BRAND MANAGEMENT ASSIGNMENT
Flowing Society
Drivers and Trends in Indian Context
2012
Submitted By: Group 5
Apoorva Sharma
Chandni Goel
Deepika Misra
Garima Dhamija
Neha Bhutani
INFINITY BUSINESS SCHOOL

2. Introduction
The current scenario witnesses the world in a constant state of flux. This gives
rise to a macro force that defines our society in a distinct characteristic
fashion.
It is evident that there is a peculiar movement of capital, information, people,
technology, images, symbols etc. This has lead to integration of technological
and communication platforms. Thus, creating a coliseum for free exchange of
social, cultural and economic ideas and beliefs between people from various
parts of the world. This sharing helps in creating a global community and a
‘Flowing Society’.
As a result, there is transformation of old institutions thereby paving the way
for evolving common standards, preferences, patterns and codes.
Brands use this opportunity to leverage their respective competences in order
to earn a greater share of consumers by offering innovative products and
services that are more suited for a global culture.
Since, this society of flows creates a global consumer market hence, the
aggregate basket of goods and services converts itself in the form of a
homogeneous mixture of offerings.
This report critically examines the crucial relationship between the various
drivers operating in a flowing society and the trends that are created as a
product of these drivers.
This critical analysis of the drivers and trends at work is done keeping an
Indian context in mind therefore, understanding the macro force that defines
the current state of the Indian society.

3. Drivers and Trends
Trend 1: New Global Elite
Driver: De-territorialisation of the identities
This trend is characterised by an emerging class of new global elite who is a product
of the society of flows. The new global elite possess a peculiar characteristic of
increased mobility. This increase in mobility has caused a free flow of capital and its
owners beyond the previously limiting geographical boundaries.
Cases in Indian Context
India has witnessed the emergence of this trend in the recent past. Cellular
technologies like 3G connections and mobile applications have provided the new
urban Indian with excessive mobility and multitasking abilities.
1. Mobile Apps
1.1. The value of the Indian value added services industry, which includes mobile
apps, was estimated at $3.4bn (£2.2bn) in 2011.
Source:Deloitte.
1.2. The mobile application industry in India alone is predicted to top $4bn by the
year 2015.
Source:Asia Pacific Research Group (APRG).
1.3. One in three of the country's urban internet users have accessed a mobile
phone application.
Source:IMRB
Examples:
• Zomato.com has an app if you are looking to dine out.

4. • Amity university was one of the first universities to come out with a
dedicated app for its students.
• Booking movie tickets has never been easier because of the
bookmyshow.com app.
• Various leading banks have apps for mobile banking.
2. Integrated Technology
Integrated technological platforms like mobile banking and mobile commerce
facilities have enabled the new global elite to conduct business on the go.
Examples:
• Airtel Money: M-commerce
• Vodafone Mobile Money
Critical Analysis
Increasing integration of technological platforms have caused De - territorialisation of
identities. This has provided the new global elite with an increased mobility. Facilities
like mobile banking, M-commerce offer an opportunity for business on the go. This
facilitates increased mobility of capital and its owners.
Mobile applications like pay your bills, book tickets etc. help carry out the daily tasks
from a remote location. Consequently, the new trend has seen decreasing
geographical limitations and the capital is not bound by territorial boundaries.
As a result, there is dissociation of everyday tasks like work, shopping, leisure,
education etc. from the spatial proximity to centers where such tasks were
conventionally carried out.

5. Trend 2: Worldwide Availability of Goods and Information
Driver: Accessibility to Communication Channels and Expansion of
Information Networks
This trend is characterized by an increasingly global consumers’ market and
decreasing geographical limitations in procuring goods and services. The basket of
goods and services has become fairly homogenous across regions and nations.
Cases in Indian Context
India saw the emergence of this trend with the entrance of multinational brands
offering products and services previously unavailable to Indian consumers. On one
hand there is availability of international brands in India while on the other hand a
boost in online retail has created a platform for acquiring products from other
countries.
1. Online Retail
1.1. Online shopping in India has touched a growth rate of 18 per cent and is only
likely to grow further.
Source:comScore Inc
1.2. Nearly 60 per cent of netizens in India visit a retail site monthly and the
number of online shoppers has grown by 18 per cent over the previous year.
Source:comScore Inc
Examples:
• Amazon.com
• Ebay.com
Two of the major global online retailers recently started shipping products to India.
2. International Brands
2.1. Ever since the Government permitted FDI in single brand retail, India has
seen a plethora of international brands entering the market. However, the
trend accelerated in the last 5 years.

6. 2.2. The luxury retail market in India is growing currently at a compounded annual
growth of 25%.
Source: AT Kearny
Examples:
• Fashion brands: Louis Vuitton, Gucci, Salvatore Ferragamo, Diesel, Chicco,
Zara, etc.
• Cosmetics: Mac, Lancôme, L’Oreal, Colour Bar, etc.
• Automobile: Porsche, Audi, BMW, Jaguar, etc.
• Food & Beverage: International liquors, chocolates, etc.
3. International Product Launch
This trend witnesses multinational companies launching new products with
simultaneous world roll outs.
Examples:
• Apple i-pad 3: Apple launched its third generation i-pad in March 2012 with a
simultaneous international launch in key markets and a world roll out within
days of the launch.
Critical Analysis
This trend manifests itself in two ways. First, there is increasing entrance of
international brands in the Indian market. This makes the physical availability of
goods and services possible in the domestic market.
Second, the emergence of online retail enables customers to purchase products
produced in other countries. This enables the development of a global consumer
market extending beyond the geographical proximity.
As a result, creating a more or less homogenous mix of goods and services across
nations thus, reducing differences between the local markets.

7. Trend 3: People Flows
Driver: Movements and Networks
A Flowing Society is peculiarly characterized with a trend of People Flows. There is
increased movement of people across countries. This results in a growing number of
people with friends and family in different parts of the world. This greatly enables
information and cultural exchange.
Cases in Indian Context
In the last couple of years, India has seen a growing number of outbound tourists. In
addition, the country has also experienced a rising number of visitors in the form of
tourists and NRIs. This has created a platform for exchange of social and cultural
ideas thus exposing the Indian population to western lifestyles.
1. Travelers
1.1. 12.5 million Indians travelled abroad in 2010.
Source: PATA
1.2. India will account for 50-million outbound travelers by 2020.
Source: World Tourism Organization
1.3. Foreign tourist arrivals (FTAs) in India in 2011 are pegged at 6.29 million.
Source: Ministry of Tourism, Government of India
Examples:
• American Express: Introduced travelers’ cheques by leveraging their
expertise in cash management to take advantage of increased travelling.
• Visa and Master Cards: Offer global shopping convenience.
• Matrix: Introduced calling cards for inexpensive international roaming and
Matrix Forex cards for a cashless travelling.
2. Transnational Lifestyles
2.1. People flows cause information exchange thereby exposing people to
cultures and lifestyles of other countries.
2.2. This results in changing demands of the customers and creating a more
global culture.

8. Examples:
• Barista and Costa Coffee: The rising café culture in India has been
borrowed from the western trend of cafes serving freshly brewed coffees
around street corners.
• L’Opera Patisserie:The concept has been borrowed from the French culture.
• Geoffery’s: Based on the concept of English pubs.
Critical Analysis
Movements and Networks drives a trend characterized by constant movements. The
flow of people facilitates exchange of cultural, social and organizational ideas and
information. This translates into export of transnational lifestyles.
As a result, there is a growing demand for products and services relevant to these
lifestyle experiences. Exposure to foreign cultures also makes consumers more
accepting towards goods and services that lend such western lifestyles.
In addition, movement of people across nations creates a bridge for transfer of
knowledge that may be used for various business purposes.
Trend 4: More Energy Needed
Driver: Movements and Networks
A flowing society is a dynamically changing society with constant movements. Hence
there is a pressing need for greater energy to fuel the capacity of working and
keeping pace with a rapidly changing society. This trend manifests itself in two ways
– firstly, individuals in a flowing society require more energy to perform multiple tasks
and cope with rapid changes. Secondly, the macro-energy needs of the society
witness a rapid increase.
Cases in Indian Context
Over the last few years India has been evolving at a rather accelerated pace. This
immensely dynamic society and increased mobility demands greater energy in order
for people to be able to maintain pace with life in the fast lane.

9. 1. Food On The Go
1.1. Sales at fast food chains in India are growing at approximately 28 per cent
per annum.
Source: PricewaterhouseCoopers (PWC)
1.2. Consumer expenditure on fast food is pegged at $400 million.
Source: Euromonitor
Examples:
• McDonalds
• KFC
• Subway
Fast food chains offer an opportunity for quick satisfaction of hunger on the go and
snacking in between meals. This ensures an increased consumption of food to meet
the growing energy requirements of people.
2. Energy Supplements
2.1. In order to keep pace with the rapid multi dimensional lifestyle consumers
take the aid of energy drinks and bars for instant energy.
2.2. 78% urban youth in India consume energy supplements on a daily basis.
Source: ASSOCHAM
2.3. Energy drinks consumption is projected at 20-22 million cans in India in 2012.
Source: rediff.com (http://www.rediff.com/money/2006/may/24drink.htm)
Examples:
• Red Bull: Its consumption is marked at approximately 5 lakh cans a month
and it has a 95% market share in India.
• Gatorade
• Cloud 9
• Burn
• Power Horse
• Horlicks Nutribar
• Rite Bite Nutritional bar

10. 3. Macro Energy Needs
3.1. 2009, India was the fourth largest energy consumer in the world.
3.2. Oil/Fuel Consumption: India consumes 3.2 million barrels per day (bbl/d)
in 2010.
Source: Oil & Gas Journal
3.3. India’s oil imports exceed 2.2 million barrels per day.
Source: Ministry of Petroleum & Natural Gas, Govt. of India
3.4. India imported 280 million tons of crude oil in 2011.
3.5. Growth trend of Fuel Consumption in India at CAGR 6%.
Source: Ministry of Petroleum & Natural Gas, Govt. of India
3.6. High speed Diesel accounted for 41% (max) share of total domestic
production of petroleum products.
3.7. Power Consumption: Overall energy consumption is increasing at CAGR
6.98%
3.8. The increase in electricity consumption from 2010 to 2011 has been 13.34%
3.9. Domestic consumption of electricity is growing at CAGR 9.67%
Source: Ministry of Power, Govt. of India

11. Examples:
• Automobile Companies: Increasingly launching diesel and CNG/LPG
variants to meet consumer demand generated due to high petrol prices.
Hyundai Verna Diesel variant.
• Larsen & Toubro: Offers technology and infrastructure for electrical power
generation and oil refineries.
• Inverters: Luminous, Su-kam, Microtek etc.
• Autonomous Bodies: Organizations like Bureau of Energy Efficiency and
Energy Star provide energy ratings to electrical appliances to certify their
energy utilization efficiency.
• Electrical Appliances: LG, Samsung, Whirlpool etc. launched 5 star rated
appliances like air conditioners, refrigerators etc. offering higher energy
efficiency.
• Phillips: Offers CFL lighting which is power efficient.
• Power Saving devices: For instance companies like Power Saver India, ES
Electronics India Pvt. Ltd. etc. have developed energy saving devices.
Critical Analysis
A flowing society causes increased mobility and constant motion. This results in a
growing demand for more energy in order to sustain the dynamic pace of a rapidly
changing society. This has implications in both biological need for energy as well as
macro energy needs. As a result, Fast food chains and energy supplement brands
find this opportunity to leverage their expertise to provide consumers a chance of
enhancing their performance at work. At the same time brands develop energy or
fuel efficient variants of their products.
Trend 5: Transnational Families
Driver: Movements and Networks
This trend is characterized with an increased migration of people abroad in search of
better opportunities. While on one hand there is excessive relocation of talent and

12. workforce, their families are left behind creating a paradoxical unity fueled by the
increased geographical distance between family members.
Cases in Indian Context
India has been a victim to excessive brain drain over the last decade. Lack of
opportunities and uncontrollably rising population has caused growing migration of
the Indian talent pool to foreign countries.
1. Courier Services
1.1. Currently stands at INR 71 billion and growing at approximately 20% per
annum.
1.2. Contributes more that INR 10 billion towards Government revenues per year.
1.3. International express cargo holds 6% of the express cargo industry, but is
forecasted to reach 40% by 2017.
Source: Euromonitor
Examples:
• DHL
• UPS
• FedEx
• TNT
2. Money Transfer Services
2.1. Indians living and working abroad usually send money back home.
2.2. Over 20 million Indian immigrants send home approx. over $ 20 Billion per
annum.
Source: Aite Group, Research and advisory body
Examples:
• Western Union Money Transfer: Market leader
• Money Gram

13. Critical Analysis
A flowing society offers excessive mobilisation to its inhabitants. Lack of
opportunities in the native country and a desire to increase their income motivates
the citizens to migrate to foreign countries for jobs.
While on one hand it results in depletion of talent pool and productive work force in
the native country, on the other hand it also becomes a source or foreign exchange
revenues in the form of worker remittances received from abroad because these
immigrants send home money and consignments to their families.
Due to this transfer of currency and gifts, the families find a binding unity even
though there is a huge geographical distance. This creates the phenomenon often
known as Transnational Families.
Trend 6: Massive Migrations
Driver: Economic, Cultural and Social Interdependence
In addition to migration abroad, a flowing society also witnesses the migration of
rural population to urban areas. This trend is characterised by ever expanding city
boundaries and intercultural segregation.
Cases in Indian Context
India has been witness to an ever increasing relocation of rural population to urban
areas. The cities of India are bursting with diverse populations thus resulting in
expansion of suburban areas on the outskirts of theses urban cities.
1. Migration
1.1. From 2001 to 2011, 22 million people migrated from rural areas to urban
cities.
Source: Census of India, 2011

14. Examples:
• Construction companies: DLF, Jaypee Greens, Arihant Superstructures Ltd.
etc. These builders and developers take this opportunity of ever expanding
urban population to develop the suburbs and offer residential properties.
• FMCG brands: Clinic plus, Colgate, Parle G biscuits, etc. Keeping in mind the
diverse populations that are now residing the urban regions due to migration
from villages, FMCG brands are increasingly attempting to make smaller and
more economical SKUs available to these consumers. For instance,
introduction of Shampoo sachets.
Critical Analysis
The increased mobility in a flowing society manifests itself not only in the form of
citizens migrating abroad but, also in the form of rural populations migrating to urban
areas in search of better opportunities.
This causes a high degree of pressure on cities as there is a lack of space and
resources to satisfy the exploding urban population. This trend creates a multicultural
diversity thus making the cities a melting pot for diverse cultural and social ideologies
leading to complex multi ethnicity exchanges.
Trend 7: Multilanguage
Driver: Blurring World and Movements & Networks
A society of flows is characterized by multiplicity of languages. Both the society and
the languages used in the society are dynamic in nature and constantly keep
evolving from generation to generation.
Cases in Indian Context
India is a unique nation with its diversity distinctly reflected through its various
languages. However, recently, India has also been a hub for various foreign
languages with a number of training institutes opening up to offer their academic
services.

15. 1. Diverse Languages
1.1. India has 22 official languages and 398 living languages and dialects.
Source: Ministry of Culture and Tourism, Government of India
1.2. In addition foreign languages such as French, Spanish, Mandarin etc are also
becoming popular in India.
1.3. India requires close to 1.6 lakh foreign language professionals as the market
for language sensitive work stands at about $14.4 billion.
Source: Nasscom-McKinsey report
Examples:
• Alliance Francaise: French is the most popular foreign language in India.
Alliance Francaise is the market leader in certified French courses and
currently operates more than 15 centers at various locations.
• School of Language, Jawaharlal Nehru University, Delhi: Offers multiple
degree programs in foreign languages and is one of the premier academic
institutions for higher studies in foreign languages.
2. Media Content
2.1. The content of Indian media has also been affected by this multiplicity of
languages.
2.2. 53% of newspapers and magazines publications in India are in regional
languages, 34% in Hindi and 13% in English.
Source: HT Mint
Examples:
Print Media:
• Big brands like Times of India and Hindustan Times are using this
multiplicity of languages to their advantage by publishing newspapers in
regional languages.
• Navbharat Times
• Dainik Jagran
• Punjab Kesari

16. Television Channels:
• Discovery Channel: offers its content in English, Hindi and some regional
languages.
• NDTV: offers news channels in both Hindi and English.
• Star or Zee Network: Regional language channels are now available all over
the country contrary to the scenario a few years back when they were
available in specific regions.
Advertising:
• Garnier: airs advertisements dubbed in both Hindi and English.
• L’Oreal: makes advertisements in both Hindi and English.
3. Use of Slangs and Symbols from Other Cultures
3.1. Brand in India have increasingly been using slangs, mixtures of languages
and references from western cultures.
3.2. Hinglish has become the lingua franca of the new Indian youth.
Examples:
• Dominos: The tag line, “Hungry Kya?” makes use of a mixture of English and
Hindi to appeal to conventional youth audiences.
• Dominos 3 Cheese Pizza advertisement: In its advertisement “Signs”,
Dominos uses a western reference for to portray God.
Refer: http://www.youtube.com/watch?v=1clPGZJSXa0
Critical Analysis
A society of flows has a peculiar feature of multiplicity of languages. Since, a flowing
society offers excessive mobility and multiple communication platforms hence, the
people of such a society observe dynamically changing languages.
Due to increased exposure to other cultures and free exchange of transnational
socio-cultural ideas, the people in such a society are exposed to idioms, symbols
and slangs from other parts of the world.

17. Conclusion
The Indian society in its current state demonstrates all the trends that
characterize a Flowing Society. There is an increased mobility of capital,
people, information, technology etc. in the Indian society.
This has given rise to a new class of people who are not limited by the
geographical boundaries and are participating in the daily national life of a
rapidly changing country.
There is growing exposure to cultures from other parts of the world which
manifests itself in a rising demand for products and services that offer a
transnational lifestyle to the modern Indian.
Therefore, India is a society of flows in its true glory, waiting to completely
blend in the global culture yet retain its unique identity.