These are unprecedented times as billions around the world are staying in, and as a result, markets and economies are struggling to hold their ground. On one hand, in just a matter of months, consumers around the globe have started to accept the uncertainty of a rapidly changing situation.
Companies and marketers in India are seeking directions or early indications to the following questions:
- Will consumers focus on saving and investing more than spending?
- Will social distancing stay for good, for services and products that do not require a human-to-human connect?
- Will urban and non-metro consumers in India be as well-versed with online shopping as they are with social media and messaging?
- Will the trend towards better health and well-being intensify and influence customer expectations from all firms they transact with?
- Will the trend of e-commerce eating into brick-and-mortar sales pick up a higher gear?
This study attempts to understand the underlying purchase behaviour and intentions of Indian consumers on what are the key needs that are top-of-their mind and how do they see themselves allocating their share of wallet against these needs. It also tries to uncover how will they spend across twelve different need categories like Health, Transportation, Financial Investments, Fashion, Lifestyle, Entertainment, Housing and the like. Also, how do Indian consumers perceive and see their timeline on return to normalcy of their spends and their confidence on things getting back. Also, it tries to decipher how will Indian consumers spend between offline and online for these needs.
Key findings of the study
- Compared to pre-COVID 19 period, Indian consumers’ focus on Health, Grocery & Household items and security will increase the most.
- For 9 out of 12 Need categories, consumers expect normalcy in online spends to return sooner than offline spends.
- Across Need categories, 64% consumers are open to transact with new brands, providing opportunities for brands to gain share from competition, if they are proactive and focus on the convenience needs of Indian consumers.
- About 74% expect support from firms they transact with in form of ‘easy finance options.’
- 66% are confident/very confident that their lives will return to normalcy within 6 months once the COVID crisis is over, while only 37% expect it in a month. Almost 80% are confident that the return to normalcy will happen within 1 year.
Swaminathan, Co-founder & CEO Hansa Cequitysaid “This report sheds light on how Indian Consumers will alter their purchase behaviour across different categories in a Post-COVID World. The way brands need to acquire, grow and retain customers intelligently & optimally will increasingly get a lot of attention using various marketing technology tools and digital platforms in the near future.”
Says Neeraj Pratap, COO, Hansa Cequity “The study provides some interesting findings on categories like transportation and housing on what seems to be going through their minds when it comes purchasing these categories. It gives a lovely hue on differences in expected purchase behaviour between metro & non-metro consumers. Increasingly, digital & data-driven marketing will take centre stage in many categories across a consumers’ lifecycle like before.”
As Unlock 3.0 gets underway across India and consumers start getting out of their homes, how will the consumer purchase pattern and behaviour change in the short and long run as a consequence, and how organizations will be required to change the way they market their brands will become critical to their growth.
For getting you copy of the study go to:
https://www.hansacequity.com/Inside-Indian-Consumer-Mind/