For the consumer and retail sector, the third quarter stands for opportunities and profits. While demand and supply see an uptick, attractive discounts and offers are increasing the shopping appetite of consumers. This Grant Thornton Bharat consumer buying trends report examines the pandemic’s impact on consumer purchase attitude and how different factors influence buyers and their decisions/ preferences.
According to the survey results, 75% of the respondents are willing to spend more or the same as the pre-pandemic levels. Interestingly, while spending increases, more than half (52%) of the respondents are now opting for a hybrid way of shopping. With sustainability influencing decision making, respondents have also revealed that they are more likely to choose environment-friendly and locally sourced products. This trend presents an opportunity for local manufacturers to tap into this booming market.
Key highlights of the survey
- Hybrid model gaining popularity: The pandemic has changed the way people shop. Over half (52%) of the respondents suggested they prefer the hybrid shopping model (online and offline). Digitally-influenced brick-and-mortar purchases are at an all-time high, influencing store footfall too.
- Spending capacity sees no negative impact: This festive season, three-fourths (75%) of the respondents are planning to spend either at pre-pandemic levels or more. A positive indicator for the consumer and retail sector, this number hints at increased consumer confidence and heightened optimism backed mass vaccination drive, better spending capacity and uptick in economic activity.
- Growing consciousness of consumers: 63% respondents agree to being more drawn to purchasing environment sensitive/ sustainable products, even if they come at a premium. With more than ever focus on environmental, social and governance (ESG), companies need to allocate higher budgets for products that do not/least harm the environment and are socially responsible.
- High trust on e-commerce portals: 58% people favour buying branded products online, rather than going to retail stores, hinting at a commendable level of trust that these e-commerce portals hold. High consumer confidence and prevalence of niche luxury platforms also depict how relaxed consumers feel with online shopping, even when huge amounts are involved.