Deloitte India has unveiled the 2021 edition of the report ‘Know your consumer – What you see is what you get’ at Retail Leadership Summit (RLS) organized by Retail Association of India (RAI), highlighting key trends that will drive a new wave of growth strategy in the retail consumer industry.
Adoption of digital technologies has significantly accelerated to compensate for store closures and the consequent reduction in customer engagement (due to lack of touchpoints) in the current times.
Amidst the massive disruption, the discerning Indian consumer has been seen to rather lead the narrative−actively seeking information, comparing products available in the market, and taking informed decisions.
Speaking at the report launch, Rajat Wahi, Partner Deloitte India, said, “The pandemic continues to transform consumer buying behaviour, making consumers more digitally inclined and demanding at one end, whilst becoming more health and socially conscious on the other.
Adding to this trend is the evolving technology enabled lifestyle, better access to data, and the work from home and learn from home culture that often may lead to consumption uptick.
Convenience continues to be an important factor impacting the shopper journey, and as per Deloitte’s Global State of Consumer Tracker, 73 percent consumers are ready to spend more on convenience, which is further driving online sales.
A new dimension in the world of retail known as retailtainment is also emerging, where shopper/consumer experience (CX) has become a key factor for consumers to differentiate between retailers – this implies that retailers and brands need to mine the consumer and shopper data better so as to provide best-in-class CX to their online and offline shoppers”.
Commenting on the report launch, Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said, “One of the key behavioural changes driven by the pandemic has been the fast-track adoption of digital, both by consumers and retailers. This report focuses on the technology-driven future of retail and brings to life select inspirations from best-in-class peers. As the customer journey of the average Indian consumer evolves over the next few years, the tenets of KNOWing your customers come to the forefront of business decisions”.
The reports lays a structured framework to thrive in the new normal including a deeper understanding of the market segments, understanding nuances of the consumers they target and adopting a omnichannel strategy mapped to each consumer profile.
Key highlights from the report
Product customisation and personalisation: With increasing competition across product categories, creating unique value propositions is becoming more and more challenging for brands. As a result, personalisation and bespoke offerings are becoming a norm to attract and retain consumers. Do-it-yourself products, especially in the food and beauty segment, reflect consumers’ desire to take control of what they eat, drink, and put on their skin.
Increased consciousness: Modern consumers are more connected and environmentally conscious. They are more aware of the brands they use, their sourcing and supply chain, the ingredients of the food products they consume, the environmental and social impact of production processes, etc.
As a result, consumers are likely to be more mindful in their consumption of products, and are likely to be more thoughtful in their purchase decisions.
Digital bonding: Technological advancements, and the rising internet and smartphone penetration have facilitated information exchange from most advanced and developed countries to the remotest rural regions in the country. This information exchange has allowed varied and distinct consumers to connect (through chatting, social media, vernacular commerce, etc.) and pick up on global and regional trends, thereby influencing their buying decisions.
From B2C to C2B: As more and more consumers have access to internet and are able to communicate their needs, wants, likes and dislikes about products easily to the retailers and brands, it has led to a communication shift – with brands and retailers listening more and more to their consumers to adapt their offerings to the consumer needs.
Greater responsibility: With increased concerns around broader issues (such as global warming, environmental exploitation, scarcity of natural resources, and increasing wastage) and greater realisation of their implications, consumers are likely to become more responsible in choosing products and services.
Instant gratification: Consumers’ changing lifestyle has made them busier than ever and they want instant action on their requests. Brands and retailers are also evolving by adopting lean and agile processes to become more responsive across channels, including the advertising channels of print and electronic media, digital, radio, and social media.
