Consumer

Behaviour

CB CL- 10 | KIAMS-H | 2022 A publication of

Dr. Rajesh K Satpathy

: : How the new Indian consumer shops?: :

The emergence of Shopping Styles

Understanding the purchase journey and triggers of
shoppers are key to winning over the new Indian shopper…
 The New Indian Shopper of 21st Century
Today, most purchase journeys in the
consumer durable and computing devices
category begin when customers want to…

▪ Upgrade their existing product or

▪ Buy an additional unit, not as a

replacement.

The purchase journey is becoming more

complex with multiple action points under four
phases: initial consideration, active
evaluation, final purchasing stage and post-
purchase experience.
 The New Indian Shopper
Evolving purchase triggers…

The initial trigger of needs and aspirations in the product purchase cycle is
changing rapidly.

With mobile devices quickly becoming the most important shopping &
payment tool, purchase triggers for hyper-connected consumers have
diversified.
 The New Indian Shopper
First-time buyers to govern Demand-Supply Dynamics…

With the significant rise in disposable income and middle-class

aspirational spending, it is exciting to note that the first time purchasers
are spending more on products like…

• Microwave (48%),
• Laptop (39%) and
• Tablet (42%).

This emerging category of customers is not only a reflection of evolving

lifestyles and preferences but the deepening penetration of consumer
durables and computing devices category beyond metros.
Data Source: https://brandequity.economictimes.indiatimes.com/
 The New Indian Shopper
Multi-channel Research Shoppers…

With swift progressions in technology, social & digital media has changed
the way how consumers to shop and behave.

While in-store purchase journey is governed by overall consumer

experience, online purchase journey depends solely on research...

• 69% of Indian consumers begin their purchase journey with search

engines to gather knowledge about the products.

• More than half (55%) of the consumers refer to the product review
and price comparison sites (51%).
Gathering knowledge about the products for purchase decisions
 The New Indian Shopper

Multi-channel Research Shoppers…

The majority of consumers who visit the eCommerce websites also refer
to the manufacturers’ website for further details and price comparison.

• While doing online research, chances of shoppers buying a particular

brand increase substantially if they visit the manufacturer’s website.

• Contrary to this, offline purchase triggers involve emotions such as

trust, instant gratification, value and time.
The New Indian Shopper

Source: https://brandequity.economictimes.indiatimes.com/
Experiential Retail
matters…

Research Shows,

• 39% of buyers use both

online and offline
research channels and

• 42% of buyers visit a

physical store to
research prior to
purchasing.

• Of those who research for

options in-store, a
whopping 82% go on to
make the purchase.

Source: https://brandequity.economictimes.indiatimes.com/
The New Indian Shopper
 The New Indian Shopper
The key purchase driver for Indians is the Price…

• It is important to truly understand all the factors that influence

consumers’ final decision at the moment of purchase.

• It’s a common belief (which is true) that there is only one thing that
can move the Indian consumer to buy i.e. Price.

• Although price is an important consideration, what catches the

attention is Value??. Indian consumers are ‘Value Conscious’ and
when compared to other Asian markets, Indians hold the highest
regard for the product’s features and quality.
The New Indian Shopper
 The New Indian Shopper
Growing Competition, Shrinking Brand Loyalty…

Amidst growing competition, the buyers have more

options to explore before making the final purchase
resulting in reduced brand loyalty.

There is now a growing segment of consumers who

replace products in less than two years, especially
microwaves (16%) and laptops (26%).

For building a loyal customer base, brands need to

focus on these growing product segments whose
replacement cycle is fastest and where consumers
are early adaptors.
The New Indian Shopper
The New Indian Shopper
 Strategies for the futuristic Indian Shopper

You as a Future Brand Manager, Step it up with AI…

A lot of customer engagement strategies in future will primarily be driven

by data analytics offering deep-dive insights. Serving this
purpose, artificial intelligence will help brands to formulate the product
promotions strategy through prescriptive analysis.

Therefore, brands need a more granular/grainy view of the consumer

behaviour during the purchase cycle providing visibility of device use,
search terms, touchpoints, sites visited and more for inclusive business
growth.
The futuristic Indian Shopper

Augmented
Reality to
Enhance the
Customer
Experiences
Thank You.