A Nielsen Shopper Trends study (2012) released recently is the longest running study of the evolution of the Indian shopper over the last 7 years, and this year it was fielded in February 2012 across 14 cities in India. The study reveals that in India a fifth of Urban Indian Shoppers now shop regularly at Modern Trade outlets. Read on…
In India, a fifth of urban shoppers (21%) are now regular Modern Trade shoppers according to the Shopper Trends study released by Nielsen, a global provider of information and insights into what consumers watch and buy. This is clearly seen by the proportion of shoppers who claim to shop at Modern Trade occasionally growing over the last year from 54% in 2011 to 66% in 2012. Indian shoppers continue to spend confidently with sales for branded packaged FMCG growing at double digits across channels types. With India’s Modern Trade retailers creating more shopper-centric strategies, growth across this format has also grown strongly in terms of value as well as registered a higher proportion of sales moving through this channel. For the period January to December 2011, modern trade grew 28% and garnered a share of 9.2% - a jump of 1% over last year. “A stabilization of shoppers who spend a majority of their money within Modern Trade at this level indicates that this format is a part of the regular buying cycle for India’s new breed of urban shoppers. They are now habituated to the modern trade environment and will continue to drive its adoption through the demonstration effect,” says Adrian Terron, Executive Director, Retailer and Shopper, Nielsen India. The Shopper Trends Study is the longest running study of the evolution of the Indian shopper over the last 7 years , and this year was fielded in February 2012 across 14 cities in India. Globally, it is conducted on an annual basis in over 50 countries. Indian Shoppers are also flitting between stores more, with over a third ( 43%) now frequenting 2 or more stores. This continues as a previously observed trend as shoppers seek to explore a wider variety of store offerings, brand ranges and assortments, newer store environments and a broader set of store types. However, on an average, the number of stores per shopper has stabilized to 2 stores indicating a strengthening of store loyalty.
The Deal-Seeking Shopper
One of the key attitudinal and behavorial changes in the ‘deal seeking’ behaviour of the shopper. The proportion of shopper’s actively seeking promotions in the stores they frequent, has shot up from 39% to 54% marking a sudden affinity for promotions, at a time when shoppers are price sensitive. Deal seeking is also now combined with a growing preference for bulk packs acting as an important strategy to neutralize the impact of rising prices.35% of Modern Trade shoppers today cite buying bulk prices as their response to rising food prices. The percentage of those adopting this within Traditional Trade is significantly lower at 29%. This also highlights the ability of organized retail to drive a growth of the monthly purchase basket and a shift towards larger quantities. For this, retailers have succeeded in creating ‘deal-weeks’ as annual events that cater to a growing breed of bargain seekers thought the year. “With an expanding thrust by retailers to draw shoppers and an external environment rife with inflationary pressures on the household budget, India’s shoppers unwilling to give up their new found fondness for better shopping experiences are gravitating towards promotions”, says Terron “The shift towards larger packs with shoppers buying bulk packs every fortnight is more prevalent in categories like brand staples. This also points to a significant willingness by shopper to ‘stock-up’ and increase the value of each shopping trip in order to manage the monthly household budget”, opines Terron
About Shopper Trends
Shopper Trends is a global consumer research study conducted in over 50 countries to understand shopper attitudes and behavior. In India, Shopper Trends is conducted in 14 cities: the top eight metros (Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Ahmadabad & Pune) and six 20 lakh-plus cities (Nagpur, Jaipur, Indore, Gurgaon, Noida & Lucknow). The target respondents include main grocery buyers and influencers; males/ females aged 18- 65 years in SEC A, B, and C households. The study is conducted through a door to door methodology. We interview over 3700 respondents across the 14 cities.
Nielsen Holdings is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands