Consumer Problems in
DR. NIDHI GUPTA
Based on the maturity level of the various consumer services sectors, the
following sectors are far more matured in terms of investments, service
delivery and innovations. At their current levels of maturity, these sectors
are riddled with entry barriers like huge investments, higher risks and
complex legal procedures. In spite of this, they offer good returns on
investments. Thus entrepreneurs willing to venture into these segments
must be prepared to invest huge money and take great risks.
Banking and financial services:
Banking services that started in Europe in the 12th century evolved from the
need of safeguarding the money of travelers who roam across the continent.
Present day banking system is much more complex and requires huge
investments and a plethora of legal compliances & permissions to start
banking business. These services reflect the current changes in the
demographics and they change with the changing demography.
For instance, banking industry witnessed a surge in growth as employment
levels increased in the post-liberalization era leading to increased disposable
incomes. Similarly, other financial services like insurance services, chit fund
services, etc. also have tasted success.
Education as a consumer service has evolved from the need to acquire
knowledge, improve grades, get better jobs and stay abreast with changing times.
Academicians too have evolved from simple knowledge providers to integrated
facilities for overall development. Apart from regular academics, people also go
for vocational or work-specific certifications/courses that can give them a boost in
To make things easy, many universities – both Indian and foreign – offer online
certification courses for aspiring people. Education as an investment avenue is
quite matured and requires big initial investments (while returns are
commensurate with the investments).
There is a steady rise in the consumer travel needs and this can also be linked to the
increasing employment avenues and increasing income levels. Raising disposal
incomes have also led to increased travel services catering to both regular travel as well
as holiday travel. Many travel agencies like Club Mahindra Holidays, Cox &Kings
Thomas Cook, Raj Travels and Travel Port among others have mushroomed in the
recent past to address this growing need by helping consumers to plan their travel
schedules and provide other allied services. Travel services also include ticketing
services that in itself is a big business.
Ticketing services first started with the flight booking and eventually seeped into other
modes of transport including train and bus. Today, ticketing agencies like IRCTC,
MakeMyTrip.com, Cleartrip.com, iBibo.com, Yatra.com and Redbus.com are some of the
vendors that are flourishing by rendering these consumer services.
Though it looks petty, this is a very useful service for consumers who cannot
spend time going around the offices of utilities and government departments to
pay their bills. Online bill payment service has evolved around this need to save
time while getting things done. This need has been so drastically felt that
government have entered the scene and opened e-portals to address this using
the online channel. e-Seva from Government of Andhra Pradesh is a classic
Fast food restaurants:
Today there are quite big names in quick service restaurants business that offer
ready-to-eat fast foods in ambient atmosphere. The changing demographics have
prompted the demand for eating outside and this was further fuelled by entry of
organized multinationals like McDonalds, Subway and KFC. This is a multi-billion
dollar industry today and is putting up impressive growth rates year after year.
However, the operational risks are equally higher as that of the revenues.
Beauty & Wellness:
Look good and feel good factors are key drivers of this industry. The modern
lifestyle that people lead today is enabling this industry by providing unlimited
supply of customers with desire to look good. Be it cosmetic enhancements or
slimming regimen, this industry is catering to a growing customer base from both
the genders. Almost all of the top players in this industry like VLCC have expanded
their presence through franchising.
Unlike the matured sectors, there are other sectors in consumer services that are
still in the emerging phase. They are characterized by innovative business models,
lower levels of initial investment, lower risks, minimal legal compliance and
medium to good returns on investment. Trailblazers in these segments have often
started off humbly and went on to make fortunes as they grew. These segments
are the current hotbeds for investment and entrepreneurs looking to make it big
in consumer services must focus in these areas. Here are a few such segments:
E-commerce in India initially sounded at the turn of the millennium, but fizzled out
due to lack of proper infrastructure and high speed Internet. However, it picked up
steam in the late 2000s as the Internet speeds spiked and as home-grown brands
Flipkart.com, Myntra.com and Jabong.com among others made their foray.
The biggest pull for e-commerce is the convenience of shopping from the comfort
of your home. Consumers and netizens today are entangled in time-poverty and
do not often find time to go around shopping for things they need. E-commerce
comes as the savior in such times by saving time, providing the element of
convenience, while enhancing the user experience.
: As e-commerce caters to the primary market handling new products,
re-commerce addresses the secondary market that handles pre-owned and
refurbished products. Re-commerce market is on the rise currently as more and
more aspiring people seek their dream brands and products at affordable prices.
While Quickr and OLX have garnered reputation as online re-commerce players,
YNew is pioneering the brick-n-mortar store format through franchise route.
This particular consumer service is fuelled by ever increasing number of consumer
durables and electronic gadgets that enter the market every year. Products break
down while in use and need to be serviced. Repair services, especially, for the
electronic gadgets like smartphones and PCs are on the rise.
From street side vendors to organized players like e-Techies and YNew, everybody
is working their way to increase their share of the pie. The service providers often
use innovative ways to attract consumers to get their devices serviced.
There is a pressing need for babysitting and day care services in cities and urban
regions as both the parents go for work. This segment is lately receiving more
attention from the investors as organized pre-school setups have succeeded in
addressing these needs. Still in its nascent stage, the market is also getting filled
with fragmented unorganized and small-time players sprouting around street
corners. However, the impending policy sanctions due for next year may change
the operational dynamics.
The traditional dry cleaning segment that was filled with fragmented,
unorganized single shop vendors is getting a facelift with the arrival of organized
brands like Wardrobe, White Tiger, Pressto and Four Seasons Dry Cleaning. Along
with them, they have brought the organized look for this segment. However, the
organized players are required to augment their efforts in creating brand
awareness among the larger public, as the current awareness is at miniscule levels.
Real Estate Services:
When there are large scale migrations from hinterlands to urban metropolis, the
need for real estate services also raise proportionally along with the migrations.
People rent houses when they shift to a new places and purchase properties as
they settle in life. Rental agencies and brokerage firms came in to existence as
individuals cannot scout entire cities to find their dream house.
Magicbricks.com, CommonFloor.com, 99acres.com, makaan.com and
Housing.co.in are some of the examples of online organized real estate platforms
that operate online. By aggregating properties under one roof, they have made life
easier for people search for properties.
Home Interiors & Improvement:
Home interiors segment is an integral part of the construction industry and is
closely linked to the development of real estate industry. The home interiors
industry picks up whenever there is boom in construction industry. Moreover,
there is a growing awareness among consumers to decorate their homes through
professional interior designers. Consumers are not hesitating to pay more to get
their dream homes decorated in beautiful ways.
Event Management services:
It caters to organizing domestic/household events from small gathering birthday
parties to large wedding gathering. While it is already familiar with weddings
being organized by event management firms, more and more people are trying
the event management services in smaller events as well.
Apparemment, vous utilisez un bloqueur de publicités qui est en cours d'exécution. En ajoutant SlideShare à la liste blanche de votre bloqueur de publicités, vous soutenez notre communauté de créateurs de contenu.
Vous détestez les publicités?
Nous avons mis à jour notre politique de confidentialité.
Nous avons mis à jour notre politique de confidentialité pour nous conformer à l'évolution des réglementations mondiales en matière de confidentialité et pour vous informer de la manière dont nous utilisons vos données de façon limitée.
Vous pouvez consulter les détails ci-dessous. En cliquant sur Accepter, vous acceptez la politique de confidentialité mise à jour.