PremiumCustomer loyalty and trust are being put to the test as 36% of Indian grocery shoppers have switched to lower-priced alternatives while another 34% plan to switch from their usual brands to save money
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NEW DELHI: Concerns around the pandemic, high inflation and the war in Ukraine are weighing heavy on the average Indian household, market researcher Mintel said in a white-paper released on Thursday.
Hit by high inflation, urban Indian households are looking at ways to save money on food and drink, with 42% of consumers surveyed by Mintel saying they stick to a budget as much as possible while shopping.
The dual impact of the pandemic and soaring inflation on cost of living has led Indian consumers to pay closer attention to their spending. “While the pandemic remains one of the primary concerns among Indians (46%), supply chain disruptions caused by the conflict in Eastern Europe also weigh heavily on consumer spending as prices of basic commodities increase. Four in 10 (41%) consumers state that the situation in Ukraine will have a direct impact on their household finances," it said.
Mintel surveyed 1,000 internet users over 18 years of age.
“In the face of financial and health-related uncertainty, consumers feel vulnerable and want brands to give them greater decision-making control by being more authentic and transparent. Customer loyalty and trust are being put to the test as 36% of Indian grocery shoppers have switched to lower-priced alternatives while another 34% plan to switch from their usual brands to save money," said Saptarshi Banerjee, senior lifestyle research analyst, Mintel Reports India.
This uncertainty has also been pushing consumers to seek more transparency from brands, especially on pricing, ingredients and sourcing practices.
In fact, 36% of Indian grocery shoppers switched to lower priced alternatives, while 34% of those surveyed plan to switch from usual brands to save money. In fact, 42% of those surveyed strongly agree that they would be loyal to brands that are transparent with consumers, including transparency in pricing and grammage cuts.
This transparency also extends to the labelling on packaged food and drink products. For instance, checking product labels (49%), researching brands (42%), and tracking product or sourcing origins (36%) are some of the activities consumers engage in.
Nearly half of those surveyed strongly feel that packaging waste needs to be reduced urgently, and 34% agree that it is hard to tell which products have the most environmental packaging. Another 36% of Indians think that there is very little information available on how to reduce packaging waste.
“Sustainability is closely linked to packaging and brands can create initiatives for consumers to actively participate in, and contribute towards, sustainability practices. Our research shows that given the choice of similar food products, 44% of consumers will opt for the one that is labelled as environmentally friendly," said Saptarshi.