We've barely scratch the surface when it comes to understanding and building for the Indian consumer. There's room for disruption everywhere you look- whether it's in category creation, brand building or rethinking reach.
India is many countries. Most startups say they're catering to 'tier 1' or 'tier 2/3' India as a way to profile their consumer base, but these tiers are defined solely by population size. Household income, gender and age will tell you more about your consumer: I'm struck by how little we understand Gen Z and the female consumer.
We all know discretionary spend is on the rise and the Indian middle class is getting larger. But what's striking is how much Gen Z- which now makes up 25% of India's population- is willing to pay for value. Gen Z is hungry to discover brands that align with their ethos, aspirations and allow them to express themselves. This consumer doesn't have the same scarcity mindset that our parents grew up with. They believe in abundance. They're not afraid to speak up, and they're changing mindsets and behaviours with their spending patterns.
Women have of course long been undervalued as a consumer, given household spends have been controlled by men. But as this changes significantly (over 40% of D2C fashion spends are now driven by women!) there is a huge gap when it comes to understanding, designing and targeting this base- whether it's in healthcare, fintech or retail.
Rather than asking what the current market size is today, I'm interested in investing in startups that focus on emerging areas like pet care, sexual wellness and brand curation- and make renting, buying properties, taking care of our own health, children and ageing parents easier.
I'm excited to partner with founders who dare to think differently and build from first principles. Creating consumer demand, manufacturing your own products or building your own distribution network to reduce reliance on influencer marketing and marketplaces is a different ballgame. It requires vision, patience, and grit- but it's a game where you get to set the rules if you win.
