Shopper insights in india


Published on

The Indian grocery retail sector is set to enter a phase of rapid growth and transformation, with the advent of modern retail and changing consumer attitudes towards grocery shopping itself. This report Shopper Insights in India identifies key prevalent trends, provides insight into the potential growth opportunities, and offers strategic action points for the evolving modern grocery retail in the country.

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Shopper insights in india

  1. 1. Shopper Insights in IndiaPublished:November 2011No.Of Pages:66Price:US $ 3450IntroductionThe Indian grocery retail sector is set to enter a phase of rapid growth and transformation,with the advent of modern retail and changing consumer attitudes towards groceryshopping itself. This report Shopper Insights in India identifies key prevalent trends,provides insight into the potential growth opportunities, and offers strategic action points forthe evolving modern grocery retail in the country.Features and benefits* Understand the key consumer trends/insights driving the growth of modern grocery retailin India.* Develop stronger brands and a superior competitive positioning by drawing inspirationfrom the pioneers in the Indian grocery retail industry.* Focus on factors that influence consumers store choice through shopper profiling on thebasis of evolving desires, wants, and shopping habits.* Avoid costly investments by learning important lessons from companies already operatingin India.Browse All Retail Market Research ReportsHighlights* Covers the overall grocery retail sector in India with a specific focus on drivers of modernretail formats, including category-specific data and consumer survey data. It providesdetailed analysis of consumer attitudes towards and the perceived influence of differentretailer schemes and strategies.* In-depth action points offering practical strategies based on the trends and insightsuncovered in the report. India is benchmarked against other relevant countries, as andwhen appropriate.Your key questions answered* What are the major trends shaping the future course for the grocery retail sector in India?* How effective are store loyalty programs in India and what are the key strategies toimprove the store loyalty of Indian shoppers?* What is the role of private label offerings and online grocery retail in Indias modern retailsetup?
  2. 2. * What are the key trends emerging from the increasing participation of men and children ingrocery shopping, and what are its key implications?Table Of ContentsOVERVIEWCatalystSummaryTHE FUTURE DECODEDIntroductionTrend: in addition to value, product quality, range, and convenience are emerging as stronginfluencers of store choice for the Indian shopperThe value seeker consciously hunts for bargains and tries to stretch each rupee to themaximumQuality seekers prioritize buying quality productsRange seekers prefer more product options and like to compare and contrast betweennumerous choicesConvenience seekers want to diminish effort on grocery shopping, which is mostly perceivedas a choreWhile convenience and value strongly influence store choice in northern India, productrange in the east and quality in the west act as key influencersQuality seeking as a behavior tends to be strongly prevalent across all shopper profiles, butbecomes significantly more important with rising incomeTrend: the active participation of men and children in grocery purchases is redefining thedecision-making processMen are increasingly identifying themselves as collectively responsible for grocery shopping;however, factors related to store and product choice influence them differentlyChildren are influencing the choice of store for grocery shopping and the specific choice ofbrand as wellTrend: Indian shoppers are fast adapting to the idea of bulk purchases, as the frequency ofshopping decreasesThe modern shoppers attitude towards grocery shopping at local kirana stores is changing,as the frequency of visits to these stores is on the declineTrend: the gradual rise in price consciousness and a changing perception towards privatelabels is providing a fertile environment for the growing Indian private label sectorPrivate label in India is at a very nascent stage, especially in terms of shopper perceptionsabout quality and value for moneyAs private label brands evolve, it is apparent that specific product categories like householdcleaning products and food offer better opportunities for growthInsight: superior quality and the longevity of products are the strongest contributors toIndian shoppers’ evolving perceptions of value for moneyRetailers are moving towards brand differentiation on the basis of quality product offeringsInsight: product preservation remains a key concern for Indian shoppers when it comes topackaged consumer goodsHowever, Indian shoppers tend to be wary of buying packaged fruits and vegetablesRetailers are focusing on delivering more product information to Indian shoppersInsight: despite increasing retailer initiatives, store loyalty is yet to evolve as a significantinfluencing factor of store choiceInsight: though still at a nascent stage, shoppers are exhibiting growing interest in onlinegrocery shopping
  3. 3. ACTION POINTSAction: retailers should focus on loyalty programs that differentiate them from competitorswhile driving long-term loyaltyAction: retailers should explore opportunities in online grocery retailAction: introduce private label offerings in niche categories and create a distinguished brandappealAction: increase sales by addressing the growing participation of children in grocery retailAPPENDIXMethodologyFurther readingSecondary researchAsk the analystDatamonitor consultingDisclaimerLIST OF FIGURESFigure: Value is mostly sought by younger, single, and female shoppersFigure: Quality is more often sought by females, married couples, and older consumersFigure: Range is another attribute that mostly appeals to female, married, or older shoppersFigure: Single shoppers in the younger age groups tend to be convenience seekers, abehavioral trend which is also more apparent among female shoppersFigure: Northern Indian shoppers show a greater affinity towards value product offeringsand convenience, while those in eastern India are more concerned about product rangeFigure: Quality seeking is an attribute that is strongly visible across all consumer profilesFigure: Consumers in higher income groups are significantly more swayed by qualityproduct offeringsFigure: The average household size in India has seen a constant decline over the last twodecadesFigure: The gender divide in the Indian workforce is diminishing, which also means thatmore men are participating in household responsibilities like grocery shoppingFigure: Women are increasingly being influenced by their family members, even in thechoice of distinctive product categories like household cleaning and laundry productsFigure: A significant proportion of Indian men now identify themselves as "partly" or"mostly" responsible for the main grocery shopping in the householdFigure: Factors like proximity to home, loyalty schemes, and product quality have a greaterinfluence on womens store choicesFigure: Habit, brand image, and product attributes like scent and ingredients have greaterinfluence on female shoppers, as compared to male shoppersFigure: Children can prove to be significant influencers of the grocery brands selected byshoppersFigure: Child friendliness is a significant factor affecting the store choice of modernshoppers, especially for younger married couplesFigure: Indian shoppers are tending towards making bulk purchases in fewer trips tosupermarkets and hyperstoresFigure: Retailer schemes, a changing consumer product basket, and the introduction ofshopping carts are among the factors that are encouraging bulk purchases by shoppersFigure: The frequency of visits to local kirana stores for top-up shopping is on the declineFigure: Kirana stores are still the preferred shopping destination for perishable food itemsFigure: Private label offerings have seen a consistent increase over the years, across retail
  4. 4. formatsFigure: Big Bazaars Tasty Treat range is a prime example of how vending a home brandgives retailers higher negotiation power with established brands, while providing analternative revenue streamFigure: Private label offerings can prove to be a key differentiator between competing retailbrandsFigure: The economic slowdown has changed Indian shoppers attitudes towards privatelabel offeringsFigure: Private label products are still perceived to be of inferior quality to brandedofferings, and thus rank lower in terms of value for moneyFigure: A higher proportion of respondents perceive private label household cleaning brandsto be superior to existing company brandsFigure: Indian shoppers value consciousness has significantly augmented after theeconomic slowdownFigure: Superior quality and longer lasting products are greater contributors to the overallperception of value, for the Indian shopperFigure: In contrast to Big Bazaar which offers bulk and discount deals, Hypercity focuses oncreating a distinguished positioning through quality product offeringsFigure: Packaging innovation goes far beyond providing convenience, giving brands anopportunity to recreate their brand imageFigure: Preserving freshness and product protection are the key features that Indianshoppers seek from product packagingFigure: Tetra Pak has successfully elevated the perceptions of product preservation, thuscreating a market niche through its uniquely positioned advertising campaignsFigure: Packaged fruit and vegetables are not likely to be accepted by the "freshnessconscious" Indian shopperFigure: Indian shoppers, especially the female segment, are looking closely at ingredientinformation when making product choicesFigure: There is a visible shift towards more detailed ingredient and product informationacross categories, in response to the increasing interest from shoppersFigure: The Big Bazaar Shakti Credit Card combines the features of a credit card and a storeloyalty cardFigure: Retailers like Reliance and Hypercity are focused on delivering simplicity andconvenience through their loyalty programsFigure: Store loyalty cards are the least influential factor on shoppers store choiceFigure: Both Internet penetration and broadband connectivity is on the riseFigure: A significant percentage of respondents, mostly in the 22–34 age group, agree thatthey have spent more time shopping online in 2011 than in previous yearsFigure: An increasing number of online grocers are offering services across IndiaFigure: Tata Teleservices T24 offering in collaboration with Future Group is an example ofhow a retailer and a product brand can work together to improve customer loyaltyFigure: Australian retailer Woolworths offers an integrated loyalty program which appeals tovarious shopper aspirationsFigure: Retailers could look at the following solutions to tackle the existing barriers in onlinegrocery retail in IndiaFigure: Integration with local stores, strong digital marketing, and online innovation aresome of the key factors contributing to the success of retailers like Tesco in online groceryretailFigure: A tiered private label strategy can work well for retailersFigure: Increasing competition for shelf space means that manufacturers need to specificallybrand and position products that trigger childrens attention, while fulfilling the nutritional
  5. 5. requirements that parents seek for their childrenFigure: While offering confectionery at checkout counters can add substantially to retailerssales, providing optional confectionery-free checkout counters can help retailers todistinguish themselves from the competitionAbout Us:ReportsnReports is an online library of over 100,000+ market research reports and in-depthmarket research studies & analysis of over 5000 micro markets. We provide 24/7 online andoffline support to our customers. Get in touch with us for your needs of market researchreports.Follow us on Twitter: Facebook Page: Rambler road,Suite727,Dallas,TX75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit our Market Research Blog