With increasing competition across product categories, creating unique value propositions is becoming more and more challenging for brands and as a result, customisation, personalisation and bespoke offerings are becoming a norm to attract and retain consumers, according to a Deloitte India report.
The report released during the Retail Leadership Summit organised by Retail Association of India (RAI) said: “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.”
As per the report, 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 among others, it said.
As a result, consumers are likely to be more mindful in their consumption of products, and they are likely to be more thoughtful in their purchase decisions, it added.
Further, technological advancements, and the growing 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 among others and pick up on global and regional trends, thereby influencing their buying decisions.
Speaking at the report launch, Rajat Wahi, Partner, Deloitte Touche Tohmatsu Limited (DTTILP), 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, he noted.
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,” Wahi said.
Kumar Rajagopalan, CEO, Retailers Association of India (RAI) said that one of the key behavioural changes driven by the pandemic has been the fast-track adoption of digital, both by consumers and retailers.