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Understanding India’s FMCG Shopper
Report

Understanding India’s FMCG Shopper

A close look at what motivates purchase of FMCG products in India

  • Word-of-mouth is a key source of awareness for 60% of Indian shoppers
  • One in every three modern trade shopper goes online to get information before making a purchase
  • Shoppers buy more than they plan to when stores feature promotions
The Indian economy has been fuelled to a large extent by the growth of fast-moving consumer goods (FMCG), which form its fourth-largest sector. While growth prospects are abundant for the FMCG sector, failing to identify true demand may stem expansion. Changes in consumer needs, weak consumer sentiment and inflation may further impact the sector’s chances of attracting and retaining customers. So with those potential headwinds in mind, it’s important for brands and retailers to listen to what shoppers have to say about their needs, preferences and attitudes.
 
Modern Trade: Watch This Space…

Over the last half a decade, Modern Trade has seen increased acceptance with the proportion of urban shoppers regularly visiting Modern Trade going up by 2.5 times to 44 percent today. Moreover, this channel garners the maximum share of wallet for more than 1/4th of shoppers. As a result, Modern Trade contributes to 10 percent of FMCG sales for urban India and has grown at par with the overall market over the last year.

To Buy Or Not To Buy

A recent Nielsen study, conducted among urban affluent modern trade shoppers, found that word-of-mouth still drives a significant percentage of shopper decisions, especially among elders. Approximately three in five shoppers say they become aware about products through information spread by word-of-mouth. Shoppers not only asked about the store they should visit, but they also sought input on the range of products to buy.

Friends, colleagues and family members are the most important sources of awareness about FMCG products among respondents of all age groups, especially the older shoppers. Men seem to have more “touch points,” the study indicated.

Variety More Appealing

“Premiumness” and variety supersede promotions as key reason to visit a store. Older shoppers seek assurance across key store parameters of variety, promotion, new launches.

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Understanding India’s FMCG Shopper

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