Spending patterns of Singles in Pakistan

Introduction to Topic:

The spending pattern is attributed to a widely recognized phenomenon known as impulse buying behavior. It is a sudden compelling hedonically complex purchasing behavior. The rapidity in purchase decision process predicts thoughtful deliberate consideration of information and choice alternative.

Research conducted in July 2008 in Pakistan derived the following hypothesis based on the purpose of identifying variables related to impulse buying, the relationship of these variables and ascertain their validity in Pakistan.

1. The impulse buying behavior is found much stronger in individualist cultures rather in collectivist culture

2. Level of impulse buying behavior is also driven by mood of the person

3. Proximately and impulse buying behavior are directly related to each other

4. Females have higher tendency of impulse buying behavior than men

5. Younger people are more towards impulse buying behavior than older and aged people

A relationship between gender and income was also found. Men and Women relate the material possession differently. The research demonstrates that women preference is for items related to elemental values, while men preference is for items related to leisure and finance.

The reasons for the respective preference were that women value their possessions for “emotional” and “relationship” reasons. Men on the other hand value their possession for “functional instrument reasons”.

It was also found that the men purchase items for personal identity reasons (independent). Women on the other hand make purchase for social identity reasons

Introduction of Pakistan:

Pakistan comprises of a population of 186.77 Million with approximate ratio of 48:52 of men to women. The age bracket of 15-24 years age comprises 19.73% which is a huge target market for luxury goods.

Usually this age bracket consist of very less portion of men and women employed since they complete their basic education at the age of 22-23 years and then start searching for jobs, so until then they are dependent on their parents. Some percentage of this people also earn part time whose parents cannot wholly afford their son/daughter expenses. So our target market rests with age bracket of 23-27 years.

Trend has been changing in the Pakistani market in some casts of the country regarding marriage that is parents want their sons and daughters to get married earlier due to the greater media exposure and impact which has given exposure of negative things to boys and girls so that they get sexually frustrated and become very desperate to experience adulthood at an earlier age.

Although the age bracket of 23-27 years comprise of around 15% of our bachelors and spinsters but the transition time from bachelorhood to adulthood is around 3-4 years which is very less for new entrants or for low scale companies to introduce new products.

Spending pattern for Bachelors and Spinsters:

The consumption expenditure pattern for this age bracket consists of following areas:

1. Foods, Drinks and Tobacco

2. Apparel and Footwear

3. Transport & Communication

4. Recreation and Entertainment

5. Education

The major chunk of income expenditure is dedicated on Food and Tobacco, Transport and Communication, Apparel and Entertainment. These areas can be the target areas since this age bracket does not think about their housing problem or investing in some bonds or

certificates to start earning for the future and if we provide them these items on reduced costs with good quality, it can capture a huge market share.

Food:

Man from the beginning of this world has always being hunting for food. He initially had developed different method to kill animals and eat their food. But the modern day man has now started making chemicals for developing different food items like scientifically cloning vegetables and fruits.

Since the arrival of international food chains in Pakistan, the cost of eating good quality fast food has increased which has gone out of reach from the lower level. Also with the increase in petrol prices, the cost of major food items for consumption like milk, meat and vegetables as well as for using in producing other dishes from these foods items has increase.

So if we provide them these food dishes or provide them with alternatives to these items by introducing a food street or a food court chain, we can attract this sector as well as lower class of our society. Also the people belonging to age bracket of 23-27 years are very fond of food and drinks because after recreation, there is always need for refreshing and energy which can be satisfied through food and drinks.

Since this age bracket doesn’t have high incomes because they usually belong in the lower management or are working as trainees, so therefore they can allocate some portion of their income which is viable to them and also satisfy their need.

Apparel:

Clothing has always been the mankind’s most important requirement after food and therefore it has become a complementary requirement of life.

Now a day there are many apparel brands in the country which has mostly been catering to middle upper and upper class but with the arrival of Chinese apparel and footwear in the market, they have started to cater the lower and lower middle class.

If we introduce a Pakistani brand in the market with lower cost and maintain a good quality, it can be use to cater to lower and lower middle class in apparel like dress shirts and pants, bed wear and other knitted products like T-shirts and hosiery items.

A fashionable brand can also be introduced for those middle class singles who are fashion averse and want to look trendy and fashionable. By introducing such brand, they can cater needs of this sector at affordable cost and satisfy their needs.

Transport and Communication

Majority of all Pakistanis do not own any means of personal transportation, 8% have claimed to own a car and 41% said they have access to motorcycles and the rest use the public buses as a means of transportation.

A higher percentage of urbanites compared to the ruralites, have access to cars or motorcycles.

Yearly 3 million cars are sold in the Pakistani market but they cater to mostly middle upper and upper class. With the advent of Chinese motorcycles in the market due to the heavy traffic on road, the cost of motorcycles have gone down but still it is out of reach of the lower class.

The age bracket of 23-27 years having low income can not afford the low cost Chinese bikes. This need can be catered by introducing the motorcycle technology in Pakistan through joint venture with a foreign company dealing in these products so that the assembled motorcycles in Pakistan will be low cost and in reach of this age bracket.

Recreation and Entertainment:

After the events of 9/11, there have been too much terrorism in this country and now a days, you once in a week we hear of a blast happening in one of the busy shopping markets in the known cities of our country which upsets the mind of the individual.

Also with the instability of our government due to the political scenario and the increased inflation has badly affected the lives of the people in this piece of land so therefore the importance of recreation and

entertainment has increased drastically but there has been a constraint of income for every sect of people.

Only a minority of all Pakistanis participate in outdoor activities such as Eating out (31%), Domestic travel for fun (27%), Domestic travel for work (16%), and Foreign travel for fun and work (1% each) within a span of one year.

Most people who belong to the age bracket of 23-27 years usually hangout on sea view or maybe other cheap hangout places but usually they can’t afford since they also have to contribute to the house hold income.

They usually replace it with some sports like cricket and football which are the most popular in this part of the subcontinent and are also affordable with the common man.

Other modes of entertainment might be watching Indian movies in the cinema or stage dramas which has got some attraction for people since our own movies and stage dramas standard has gone so down that people can’t go watch them with their families.

For these reasons, if there are much recreational parks providing most common sports facilities like squash, swimming, snooker, badminton and gymnasium that would at low costs so that middle level people can go enjoy their weekend with their families and friends and the frustration among them deteriorates.

Education:

Majority of the population of this country is living below the line of the poverty and one of the reasons for this problem is no proper education. If proper education is provided to each and every citizen of this country, we can improve the poverty level of our people to a great extent because an educated person can find a resource of earning bread and butter for his or her family.

Conclusion:

In a nutshell, it can be said that the singles market in Pakistan comprises of a good market for selling luxury items as well as necessity items.

Although this age bracket people do not have high incomes, but they have preferences limited to their own individual personality and not much towards their family and household. Also they are not worried about their future savings and live their lives in a casual way and if they are provided with the quality items of their preference at low cost due to increase inflation, they can become a source of income to many companies producing these products.