Kitna deti hai?” (What?s the mileage on the car?) is a billion-dollar question in India. Kishore Biyani, the king of colloquial retail has made the most with the ?Isse sasta aur acha kahi nahi? (Nothing?s cheaper or better than this) proposition.?But this?value-squeeze game is getting increasingly hot, and not surprisingly difficult as the retail sector is still burdened with low margins and high operating costs. To say that we are a price sensitive nation would still be true, but it?s not characteristic of us anymore. The argument that we don?t buy into price, we buy into ?value? is vague and not very helpful either. And the idea that we are buying a more ?premium? offering is too broad to put into practice. There is a need to articulate sharper propositions that resonate with the audience and create a unique strategic position in today?s competitive environment. ?
To arrive at these opportunities one must look at what?s changing from a larger socio-cultural standpoint. We all agree that the India story is a story of fast changing, rapidly evolving people.?Our younger demographics, upswing economy, increasing media penetration and a high rate of technology adoption has given us a massive appetite for change. However, this does not persist as a single, sweeping socio-cultural transformation, but rather as mindset shifts that warm us up to newer propositions?that appeal to our fatter pockets and evolved sensibilities.?There aren?t any truisms that apply uniformly across all consumer segments, or across all categories but they represent an evolution that?is most visible at the edges of urban life. And what?s happening with the uber-urban metro life manifests in different shades as we move to mini-metros and smaller towns.
In a rapidly evolving consumption environment in India, there are larger mindset shifts which impact what we are buying into, as much as how we are buying it. To understand this, we conducted a nation-wide
study under the theme of ?How changing Indian mindsets are reflected
in shopping behaviour and basket?.
At the heart of this study lies the hypothesis that the consumption story in India goes beyond our famed price sensitivity and that marketing to
shoppers becomes more meaningful when you analyse their behaviour and baskets through the lens of these change points.
The study at the very beginning was risky?we took abstract attitudinal shifts and expected
to quantify them through the act of shopping. As the findings suggest, some shifts are directly reflected in behaviour and basket while others (like technology or selfishness) point to expected changes in behaviour, which are seen in traces today but will manifest with the larger population in the near future, revealing a big opportunity for brands and retailers.
We went to 15 cities (both metro and non- metros) of India to test more than 20 change points through in-depth interviews, camera observations and extensive quantitative research to zero down on six changes points, which are revolutionising the way the Indian consumer behaves in the shopping arena.
And here is what we found out.
We are becoming increasingly hedonistic, selfish and unsettled. And that?s a good thing.
*Joy: We are seeking joy in routine tasks and are moving away from transaction to experience.
*Always on: Whether at work or at play we are constantly judged by how we look and feel. We are expected to be at our best. Always. *Comfort: We are trading convenience and price for a comfortable experience.
*Experimentation: Our eagerness to not miss out on the new leaves us unsettled.
*Selfishness: Earlier it used to be about the family. Now it?s about ?me?.
*Status: And that status can be shopped. Where I buy is as important as what I buy.
More than anything, it brings to life the inflection points in the lives of people who are on the cusp of change and aims at uncovering insights about what people are buying into and what is the best way to get your brand to the shopper?s basket.
Rajesh Ghatge and Tanvi Singh
Rajesh Ghatge is CEO and managing director of BatesCHI & Sercon while Tanvi Singh is group planning manager, BatesCHI & Partners. This article is the last in a series based on a nationwide proprietary shopper study ?Selfishness & Shampoo? conducted by BatesCHI & Partners.
