Share of Occasions Will Drive Demand
Thankfully, there are now a sizeable number of alcoholic beverage drinkers who are drinking with no intention to get drunk. Instead, they are seen experimenting with different kinds of alcohol; they are appropriately pairing their alcohol with food… As a result of these and more creative endeavours with alcoholic beverages, alcohol is becoming or has become the ‘second screen’ in their socialising occasions, observes Shelley Sengupta, Head – Consumer Planning, Diageo India.
One needs to understand the phenomenon of upgrading to premium beverage alcohol products a bit better and in a more holistic manner. India’s GDP is set to quadruple by 2030 to make it the third largest economy in the world. As a result of this, the share of consumption expenditure in India’s GDP will grow from 50 percent in 2018 to 60 percent in 2030. What this entails is that there will be a shift from a ‘savings’ mindset to a ‘consumption’ mindset with more people wanting to ‘buy more’ as well as ‘buy better.’ In India’s alcobev sector, there is a divide between the incremental consumption expenditure to be spent on ‘buy more’ and ‘buy better’. “Therefore, if this is the future that we are headed towards, we have to take cognisance of consumers’ desire for better products and experiences and gear up as an organisation to provide the same to them,” points out Shelley Sengupta, Head – Consumer Planning, Diageo India. In terms of market dynamics, she says, “a fundamental aspect of the alcobev business is about understanding of occasions rather than consumers.” “The alcoholic beverage brand that is able to understand what the consumer is looking for on which occasion and is able to provide that, will garner a higher share of her/his occasions, since the same consumer can reach for different brands on different occasions,” predicts Shelley.
