THE new Indian consumer doing the rounds of the markets this season is a savvy shopper. He is educated, knows his brand and is ready to spend more on premium lifestyle products and entertainment.

He is dreaming big and going all out to translate his aspirations into reality, even if it means overspending and using credit. And giving him the power are banks with low-interest finance schemes. All this has combined to make pricing an insignificant factor in the decision to purchase goods.

Picture this: A large fast-moving consumer goods shop in the Lajpat Nagar market, a sprawling middle class shopping zone in the heart of the capital, is crammed with the summer holiday crowd looking for good bargains on air-conditioners and refrigerators.

The air-conditioners in demand are expensive, fitted with special features and add-ons. The buyers, mostly middle-class families with double incomes, are willing to shell out more for air-conditioners this summer, with the average lowest cut-off price being Rs.13,000 for a machine.

'Our range of split air-conditioners is doing very well this summer. It is primarily because we are projecting our new air-conditioners as lifestyle products rather than utility goods,' V. Ramachandran, sales and marketing director of LG India, told IANS.

'We have introduced several new features like plasma technology, 12-stage air filter for 99.9 percent pure air and brands with high aesthetic values like floral ACs (with floral patterns) and Artcool, which look like paintings on the wall rather than an air-conditioner.'

The machines are priced between Rs.18,000 and Rs.70,000. And the company's business in air-conditioners has grown by nearly 40 percent, spurred mostly by first-time buyers, says Ramachandran.

Similar is the trend for all other consumer goods in the market, say industry watchers.

Photographs: Stock Xchange