Being cosmo hub a big strength of Mumbai

Mumbai, the city that never sleeps, the land of dreams, the maximum city, has been romanticised in innumerable films, books and works of art. "A city like Bombay, like New York, that is a recent creation on the planet and does not have a substantial indigenous population, is full of restless people," noted Suketu Mehta in his book 'Maximum City: Bombay Lost and Found'. Over the years, the city has become linked to an indefatigable, resilient spirit, a truly distinctive characteristic of its people, its consumers.

This spirit of Mumbai consumers also has significant commercial value. Estimates peg the consumption potential of the city at $25 billion. It accounts for 6.2% of India's GDP, the highest of any city in South, West or Central Asia. As a result, the city's appeal to companies wanting to sell their goods and services comes as no surprise. However, where it gets challenging is the distinctiveness of the Mumbai consumer. What is so unique about the Mumbai consumer? What do companies need to keep in mind as they navigate this attractive, albeit complex environment? Let us explore three interesting characteristics of a Mumbaikar as a consumer.

Demographically, Mumbai stands apart from its Indian counterparts. More than 30% of Mumbai's households earn more than Rs 10 lakh per annum, as compared to only 17% for urban India. While the city is richer on average, it also has the greatest income disparity, as elucidated by the co-existence of the largest slum in Asia and the world's first billion-dollar home within 10 kilometres of each other. This diversity creates a situation where one can get a meal ranging from Rs 10 per plate at a roadside vada pav vendor to Rs 10,000 per head at the country's best concept bars and restaurants. In short, there is an opportunity for every part of the price spectrum.

Mumbai is one of the most densely populated cities in the world, the highest in India and almost twice of New York and Tokyo. The population density makes everything, from living space to public transportation, a challenge. As a result, "adjusting" is a way of life for Mumbaikars and they are always willing to try new things. This spirit of experimentation creates opportunities for new products and services to be launched and tested in Mumbai. Several city-based start-ups have sprung up to satisfy specific needs across physical fitness (Fitternity), cold-pressed juices (Raw Pressery), home delivery of almost everything (Scootsy) and on-demand beauty services (MyGlamm), to name just a few.

Mumbai is a true melting pot of cultures, languages and preferences. Not only does it have people from every part of India seeking economic opportunities, but also a large smattering of global citizens drawn by its promise. Migrants constitute more than 40% of the total population of the city according to recent estimates. Some of India's largest suburban festivals are based in Mumbai such as the Li'l Flea and the Bandra Festival, reflecting the social and cultural vibrancy of the consumers. Add to this a high global exposure through travel, internet and television, and what you get is a highly cosmopolitan set of consumers with global tastes. This makes Mumbai an avid follower of international trends, be it fashion (latest fashion week ramp looks), food (wellness, food trucks) or education (international board schools).

Delhi has greater wealth, Kolkata has the old world charm and Chennai has Rajnikanth. The distinctiveness of Mumbai as a consumption hub comes in the form of its diverse, experimental and cosmopolitan population. These peculiarities of a Mumbaikar pose both challenges and opportunities. Any company, whether an incumbent or a start-up, needs to develop a Mumbai playbook incorporating these considerations – a playbook that is highly customised. They need to think global, yet localise because the scale will make it attractive. They need to aim for the stars but stay grounded because execution is complex. Most of all, they need to be first, because there are no consolation prizes for losers in this city.

Mall is a partner, Boston Consulting Group and Parul Bajaj is a project leader in the same firm