MAM
90 per cent of Indian kids want to be famous – IMRB study
MUMBAI: The latest BRANDchild research conducted by Millward Brown and IMRB, shows that pester power is spreading its tentacles far and wider than previously thought. Millward Brown marketing and business development director Jamie Lord and IMRB senior vice president Neerja Wable presented the highlights of the just released study at the Kid Marketing Forum held in Mumbai on Tuesday.
The key findings include
· pester power is merely the tip of the iceberg. The influence extends more than has been assumed thus far.
· Kids and adults form a relationship with a brand in much the same way.
· Kids’ influence decision making on categories beyond those just meant for ‘kids’
By 2030, in the markets studied, there will be 800 million tweens. BRANDchild research shows that six in 10 kids pester an average of nine times even after the parents say ‘no’ to a particular request.
Kids in the markets surveyed view an average of 20,000 every year, and the heartening aspect of this for advertisers and media planners is that most of these are affluent, there are more of them than in the past and their lifetime spends are going to be huge.
“A good product is not enough,” reasons Jamie Lord, “It is tapping the emotional need that provides the bond.”
The data for the study, culled over five years after interviewing 100,000 kids every year across 35 markets in the Asia Pacific, including cities like Sydney, Hong Kong, Tokyo, Manila and Mumbai threw up some interesting findings.
· Recognition of corporate logos happens at the age of six months
· Brand name requests begin by the age of three years
· Differentiating between brand values happens by the age of 10
· Brand loyalty begins by the age of 11
The study, undertaken among children belonging to the SEC A and SEC B classes, however made a pertinent conclusion. Kids are 40 per cent loyal to brands than adults. Brand loyalty, says Lord, increases sharply from age 10 and declines irreversibly after age 40. The study also noticed fundamental shifts in brand attitudes over two years, noticing that 51 per cent of kids are changing their relationship with brands in two years.
Across markets, the study found that peer pressure is a great driver of brand loyalty. The percentage is as high as 81 per cent in countries like India and China, followed by Germany at 71 per cent. While analysing attitudes, the study found that ‘being safe’ ranked higher than ‘having fun’ , with 92 per cent of Indian kids opting for ‘being safe’ as against 86 per cent who prefer ‘having fun’.
Tweens also differ in other attitudes across countries. In India, kids rated deference to customs and traditions at a high 80 per cent, followed by ‘being important’ at 73 per cent and ‘being better than others’ at 66 per cent. Indian tweens, notes IMRB India vice president Neerja Wable, are more creative, optimistic and fashion conscious leaders of the future, as compared to their counterparts overseas. “90 per cent of them want to be famous, as against 60 per cent of US kids who express similar views. 92 per cent of Indian kids are keen on inventing and creating new things, and an enthusiastic 80 per cent look forward to growing up.
Interestingly, in two out of three categories, kids and adults tended to bond to the same brand. The degree of bonding is however less intense in children than in adults.
Wable says that while kids do influence purchase decisions of products they use, 58 per cent of kids globally said that their parents ask their opinion before making a decision on a non-kid category too. Wable points out that this holds true even in rural India where often, the child is the only literate member on whom the family relies for information. The study shows that in India, bonding with adult categories is on the rise with 71 per cent of Indian kids saying they influence their parents’ decision when buying a car.
Globally, the study shows, nine out of 10 urban tweens love to watch TV, have a TV set in their bedroom and that the television is a major source of information for motor vehicles. One out of every kids would rather read a magazine than watch TV, 46 per cent love surfing the Internet and only 12 per cent have their own mobile phones. In India, the numbers are lower, but the direction is the same. Nine of 10 Indian kids love watching TV, one of five kids have their own TV and one of three kids would rather read a magazine than watch TV.
Most business owners treat their working capital limit like a safety net. It sits there, attached to their current account, ready to be drawn on whenever cash gets tight. And for routine operations, that arrangement works fine. But there are specific situations where a lump-sum loan disbursed quickly into your account is the smarter financial move. Knowing when to pick one over the other can save you real money and keep your business from getting stuck.
The Fundamental Difference People Overlook
A working capital limit, often structured as an overdraft or a revolving credit facility, gives you access to funds up to a pre-approved ceiling. You draw what you need, pay interest on what you use, and replenish it as receivables come in. It is designed for short-term, recurring needs like paying suppliers or covering payroll gaps.
A term loan disbursed quickly, on the other hand, drops a fixed amount into your account. You repay it in instalments over a set period, with a clear end date. The interest rate is typically fixed or at least predictable. These two products solve different problems, and treating them as interchangeable is where businesses get into trouble.
When Speed and Certainty Matter More Than Flexibility
Here’s a scenario that plays out constantly. A retailer gets an opportunity to buy inventory at a steep discount, but the supplier wants full payment within 48 hours. The retailer’s working capital limit is already partially drawn. The available balance might cover part of the order, but not all of it. Requesting a limit enhancement takes days, sometimes weeks, because the bank reassesses your financials.
An instant business loan solves this cleanly. You apply, get approval quickly, and the full amount lands in your account. You buy the inventory, sell it at full margin, and repay the loan over the next few months. The cost of interest on that loan is far less than the profit you would have lost by passing on the deal.
This pattern repeats across industries. A logistics company needs to repair a critical vehicle immediately. A restaurant has to replace kitchen equipment before the weekend rush. A manufacturer lands a large order but needs raw materials upfront. In each case, the need is urgent, specific, and finite. A revolving facility wasn’t built for these moments.
The Hidden Cost of Over-Relying on Working Capital Limits
There’s a psychological trap with revolving credit. Because it’s always available, business owners tend to lean on it for everything, including expenses that really should be financed separately. When you use your overdraft to fund a one-time capital purchase, you reduce the buffer available for daily operations. Then, when a genuine cash flow gap appears the following week, you’re scrambling.
Worse, many working capital limits come with annual renewal. If your financials have dipped, the bank can reduce your limit or decline renewal altogether. If you’ve been using the facility for purposes it wasn’t designed for, your utilisation patterns can actually work against you during the review.
A distinct term loan keeps your working capital limit clean. Your revolving facility handles day-to-day operations. Your loan handles the one-off expense. This separation makes your balance sheet easier to read and your banking relationship easier to manage.
Interest Rate Math That Favours Term Loans
Working capital limits often carry floating interest rates pegged to the bank’s benchmark. The rate adjusts, and over time, especially when monetary policy tightens, your cost of borrowing can creep up without you noticing because you’re only looking at the small daily interest debit.
A fixed-rate term loan gives you certainty. You know exactly what each instalment will be, which makes cash flow forecasting more accurate. For a specific expense with a known amount and a defined payback period, this predictability matters. You can map the repayment against the revenue that expense is expected to generate.
A working capital loan structured as a revolving facility makes sense when your borrowing needs fluctuate week to week. But when you know exactly how much you need and roughly how long it will take to pay back, a term product is almost always cheaper in total interest cost. The discipline of fixed repayments also prevents the slow balance creep that plagues overdraft users.
When Your Facility Is Maxed and Opportunity Knocks
Perhaps the most compelling case is the simplest one. Your existing limit is fully utilised. Business is good, money is coming in, but right now the account is stretched. A new opportunity appears. You can either let it pass or find additional funding fast.
Waiting for a limit increase is not a strategy when timing matters. Applying for a separate short-term loan, getting approval the same day or the next, and funding the opportunity directly is a concrete action with a measurable return. You are not adding long-term debt to your balance sheet. You are financing a specific transaction that pays for itself.
The smartest business owners don’t treat all credit as the same. They match the product to the need. Revolving facilities handle rhythm. Term loans handle moments. Getting that distinction right is one of the quieter advantages a well-run business holds over its competitors.
