During inflationary times, affluent Indian shoppers prefer larger packs for consumer products rather than seasonal sales, to economise, according to Nielsen.
Nielsen's 2011 Global Online Shopping and Saving Strategies Survey of more than 25,000 Internet respondents in 51 countries shows that 46 per cent of India's online consumers prefer to purchase larger ‘value' packs to save.
Mr Roosevelt D'Souza, Executive Director, Nielsen India, says, “Indian consumers have always been value conscious, and the inflationary environment has increased this tendency. At Nielsen we see more people actively seeking out deals, or even switching stores to avail of deals or better value. The emerging modern format encourages this practice, and the primary factor for choosing the modern trade format as a shopping destination is to look for options that offer better value.”
Compared to those who preferred larger pack sizes for better value, 23 per cent of respondents think that purchasing smaller packs with lower unit price would help them save on their household expenses. Indians also see an advantage in shopping at value retailers (41 per cent), and at locations close to their homes and offices (40 per cent).
The primary reason for an Indian shopper to patronise a particular retailer is highly dependent on the value for money he or she perceives that the store offers. This factor influences almost three out of five shoppers in their choice of store. Furthermore, 56 per cent of shoppers rate the convenient location of the store as being the most influential factor in their choice of retailer. A similar proportion (55 per cent) sees the availability of the items they want as influencing their choice.
Respondents report they stock-up on groceries and other consumer packaged goods as a way to save money, yet stocking up as a primary reason for making a trip to the store is not widespread across the globe. In India, only a quarter make a trip to the grocery store to stock up on goods and staples; 30 per cent make a trip to the store to pick up a few essential items.
Overall, stocking up for groceries is less common in Asia Pacific, Latin America and West Asia where approximately one in five online consumers surveyed say that is the primary reason for visiting the store.
When considering new and flexible retail formats for grocery shopping, there are distinct consumer preferences for online delivery options. In India, 31 per cent of respondents indicate they are highly likely to exercise the option of ordering groceries online and getting them delivered if this were available to them. While over a fifth (22 per cent) prefer the option of ordering online and picking up their groceries from inside the store, the concept of ordering online and picking up via a drive-thru or from outside the store is less preferred.
“Time saving tactics are critical for today's time-starved shoppers, and e-tail grocery stores are slated to emerge as a viable channel for shopping as well as an important way for retailers to differentiate themselves while reducing costs,” said Mr D'Souza. “This will be accelerated by increased Internet penetration and the emergence of mobile technology as shoppers get savvier and the need to save both time and money, without sacrificing quality — remains paramount.”