A TOUCH OF LUXURY FOR INDIA'S MIDDLE CLASS.

The development of markets for luxury durables is well underway in India according to a recent report in The Times of India (New Delhi).

The Times report surveyed a number of executives for companies that produce and distribute luxury durables in India, and a consensus of their remarks indicates that consumers currently favor the convenience features of the products over their value as a status symbol. Status, though, is gaining ground as Indian consumer culture begins to take on more of the attributes of consumption in the West.

According to one of the consumer electronics executives interviewed, pricing is an important factor as well. Addressing the convenience/value features of LCD-TVs, for example, the electronic executive said that consumers were attracted to the lower power-consumption, static-free screens, and Picture-in-picture capability. As well, of course, consumers liked the high-resolution picture quality, sound capabilities, and the thin profile.

Similarly, for "projection and display technology enabled gadgets" the fact that these devices are digital is a selling point for consumers. The color reproduction capabilities digital implies are important. The significance of color generally in Indian culture is an often noted element.

The global market for appliances converged with digital capabilities is growing and finding ready acceptance in India.

The Times reported that one of the world's largest manufacturers is offering a combination refrigerator/oven with remote and networking capabilities. The device can be programmed to bake food it is holding refrigerated, and keep the food warm until the time set by the consumer indicating the food is ready to be served.

Another appliance giant headquartered in China is offering a detergent free washing machine in India. The company was quoted by the Times as saying that consumers like the machine's pollution-free operation. The lower total cost of ownership is undoubtedly a factor as well.

The washing machine uses "membranous chemistry" and changes the pH of tap water to mimic water with dissolved detergent. This cleans the fabric.

An estimate of the Indian "middle class" market, extrapolated from 1999 estimates, puts the total at approximately 350-million consumers. The original numbers and our extrapolation are offered with the caveat that the total may vary as much as 15 percent, lower or higher. The definition of "middle class" itself is not income dependent, and is highly subjective.

CONSUMER MARKET INSIGHTS: