Author: Ashwin G Shetty
Approximately 60% of the consumers saw their financial condition deteriorating even after positive news of vaccine development. Showed a recent study.
Lately, the number of consumers who are changing their spending habits is showing an upward trend with a global average higher than 46%. Adding to this Nielsen IQ mentioned that more than a third of them in urban India feel less confident about income prospects in the first half of 2021.
Scott McKenzie, global head of NielsenIQ mentioned that the brands need to develop laser-focused on this group's newly emerging Cautionary spending environment by quickly calibrating assortment, pricing, innovation and distribution of products”.
A large number of urban consumers in India are coming up with new coping mechanisms to manage the household budget wherein 46% are driven by low prices irrespective of brands, 50% seek private labels, 45% buy products based on promotions and about 61% of consumers are brand loyal and will change the brand if the regular price shoots up significantly.
In India’s groceries spending data, 31% indicated they would spend less on it if the economic situation worsened, whereas 26% would spend more. Adding to this 90% of consumers want a variety of good quality value offers, 83% are willing to buy directly from manufacturers and 79% will pay more if product quality is higher.
McKenzie pointed out that, even though the FMCG industry has seen an uptick in consumption towards the end of 2020, it is not the same for brands and retailers this year. They need to understand how their consumer's situation has changed so that they can meet their new needs.