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.