A new study by Leo Burnett has discovered that the oft-overlooked majority in China and India — those earning less than US$2,000 a year — are in fact sophisticated consumers with spending power.
In a study entitled Marketing to the Majority, the agency sent film crews to each country for six months to document conversations with villagers, activists and local marketers, led by Burnett Malaysia executive creative director and celebrated filmmaker Yasmin Ahmad.
The self-funded project was supported by Procter & Gamble. "Everyone can imagine an affluent or a middle-income consumer, but any lower and it tends to get very fuzzy," explained Michelle Kristula-Green, president of Leo Burnett Asia-Pacific.
Despite minimal earnings, with many dipping as low as an annual income of US$120, non-affluent consumers had disposable income and possessed familiar aspirations for branded goods. "Their expenditures are low — they don't have to pay much for housing, food or childcare — so they have the spending power," said Kristula-Green.
Another surprise was the awareness of the Western world — one Chinese villager could recite an entire Toyota ad. Kristula-Green cited TV as a key portal for this segment, with 99 per cent of families owning a TV and 48 per cent of villages having access to the internet.
Plans are in the pipeline to expand the study to cover the entire BRIC (Brazil, Russia, India, China) market.
