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  White Paper - Z Disruption for enterprise globalisation  
     
     
 
W H I T E   P A P E R
Z Disruption
 
   
is the real-time and radical
change post India’s 1991
economic liberalization that’s leading to end-customer behavioural changes at
every level
 
   
Classroom session for thirty senior managers
of British Aerospace on“Globalisation of the emerging markets" course at Indian Institute
of Management, Bangalore (IIMB)
 
   
by Shombit Sengupta
 
Z Disruption - India specific phenomenon
   
   
   
Disruption
How end-customers have evolved, over recent decades and historically, through crests and troughs of varied influences, is depicted in the form
of the letter Z, and leads us to today’s powerful purchase influencers,
the ZAP 86 generation.
 
Mental shift of Indian society & consumerism today through
the historical perspective
Mental shift
   
   
   
3 generations are existing in India today
ZAP 86 is totally cut-off from the Retro generation born before 1968, and the Compromise generation born after 1968
The generation born after 1986 was triggered by India’s
new Z Disruption departure. We call them ZAP 86. Like zapping TV channels, they are interested in everything
and always look out for choice.

These children were 5 years old when the economy began
to be liberalized from 1991. At 5, you are conscious enough
to make and influence decisions in the home. You have no past to remember, so you have no bias towards it.

ZAP 86 has seen only the spending period of their parents, and not the savings mentality of Indians who lived in the
protected economy when both livelihood and lifestyle
products and services were scarce.
3 generations
 
Indian society in transformation:
visible attributes of
the 3 generations
RETRO GENERATION:
BORN BEFORE 1968
COMPROMISE
GENERATION:
BORN AFTER 1968
ZAPPING GENERATION:
BORN AFTER 1986,
NOT CARRYING ANY RETRO
OR COMPROMISED VALUE
  Savings

Sacrificing

More security in
a government job

Suppressing
thoughts of sex

Routine
  Investment

Westernised, with
Indian values

Good listener
& learner

Unbalanced
lifestyle

Dominated by
children’s demands
  Speed of technology

Code language

Global thought
and knowledge

Sexual liberation

Flitration with jobs

Heavy influencer
of all pruchase
decisions
 
ZAP 86 influences the Compromise and Retro generations
ZAP 86 is setting the trend and changing the way of life in India. These youngsters influence all age groups in different proportions. ZAP 86 influence in the Compromise generation aged 30-40 years is about 60%. The Retro generation of
40+ years has 20% ZAP 86 influence by default, although for a savvy few it can go up to 30%. The bottomline outcome for every business is that it is imperative to tap the interest and desire level of this ZAP 86 generation for business to fly.
 
ZAP 86 generation is the future of India
bullet
Zapping mentality
bullet
Low attention span
bullet Influencer of all
purchase decisions
 
 
 
  Inclination towards high status
  Stylish foreign cars are gaining popularity in the low price segment. In any category,
sale of the luxury version is overtaking
regular models especially as the young
people love to get involved in proven
true value. Green cars are preferred.

Restaurants have sophisticated ambience
with multi-specialty cuisine at prices
affordable for people with basic income.
Fast food chains are preferred over
Indian taste and ethnicity as ZAP 86 has
a fascination for the new.

People spend more on entertainment.
The old cinema hall with tickets at
Rs. 5 to 40 is giving way to the
multiplex with ticket prices from Rs. 150
to 500. Digital entertainment is in vogue,
and simulated games are in high demand especially by those born in and after 1986.
 
Traditional Ambassador
to trendy vehicle
Low cost eatery
to speciality restaurants
Age old theatres
to multiplexes
Inclination towards high status
 
 
 
Markets opening up has been the GDP growth engine
Customized KFC:
Rice and vegetables
 
Foriegn brands Foriegn brands
enter with a low cost product strategy for
high penetration
 
  Sophisticated, low cost
mobile phone
telecommunication
  Facilitation
through tele
communication
 
Incredible Nike shoe store
single lifestyle brand retail outlets
Entry of globally reputed “single lifestyle
brand retail outlets” due to 100%
FDI permission
       
Raising standards  
EMAAR Entry of global
real estate
players with
superior
technology and
global standards
   
Indianized MTV  
Liberalization of electronic media Liberalization of
the electronic
media as private
sector
 
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