In recent years, the consumer products business has seen a profound transformation. The worldwide health crisis has spurred a surge of new consumer goods trends, mostly driven by consumer desires. A shift in demography may cause the continual need for enterprises to reinvent goods based on new technologies.
Also, businesses must provide value to customers and, most importantly, be truthful and clear about their brand strategy. Digital-first firms must know that these primary dynamics will impact the consumer goods market. Also, they assist organisations in shaping R&D to suit consumer desires.
According to several studies, the aspirations of consumers in developing nations will surpass those in wealthy nations. There shall be several key trends of the Indian Consumer Market. This article will discuss some of the latest consumer behaviour trends in 2023 and how they will affect businesses.
Top 5 Key Trends Of The Indian Consumer Market
#1 Consumer Preferences
People’s buying habits have been altered by the pandemic, but not in the way you might expect. The future of buying will be more complex than a shift to online while brick-and-mortar establishments fade into obscurity. If a brand’s vision and ideology connect with those of its consumers, it gains its allegiance immediately.
More than 50% of consumers still prefer in-person shopping because they can see and touch the products, and those who prefer internet shopping suggest they only do so partially. However, this does not negate the growth of online shopping. From 2018 to 2022, online shoppers increased by almost 40%.
People will continue to prefer in-person shopping much into the future, following the epidemic, despite the existence of online shopping. Product type will not affect the decision to buy online. Instead, it will depend only on the buyer’s desires. Some industries have more online shoppers than in-person shoppers and vice versa.
For years, Amazon has been a popular retailer of electronic devices. It’s the sort of product that folks purchase online. But the delivery of groceries? This service was typically utilised by specific client groups, such as seniors and young professionals living in urban areas without cars. The majority of folks just visited the supermarket.
However, this does not imply that individuals will only utilise it. The likely scenario is that they will take advantage of both possibilities, selecting the one that works best in the given circumstance. For most individuals, the behaviour pattern will fluctuate between online and in-person interactions based on various factors, including their mood on a given day.
#2 Craving For Convenience
In an era where business strategies have been spun on their heads due to social distancing safeguards, brands have been forced to go innovative. The last few years witnessed upmarket sit-down restaurants offering takeaway, stores adding pickup options, and hygiene-motivated initiatives such as cashless payment and contactless delivery gaining traction.
In the future, it is improbable that consumers will desire to abandon these comforts. Many still prefer eating at home, whether it’s a home-cooked meal or pizza delivered from their favourite restaurant. As pandemic precautions are loosened, companies must consider restoring normal operations following the key trends of the Indian Consumer Market.
They must start providing consumers with the increased convenience alternatives they have been accustomed to and will continue to want. Consumers will select brands that provide many convenient service alternatives without compromising the product quality and the cost of services or products.
#3 Security For Loyalty
Customer loyalty has always been one of the most reliable strategies for increasing revenue and sales. However, does brand loyalty appear to be declining? According to the report State of Consumer Behavior 2021 by Raydiant, 48% of consumers have substituted an online purchase for an in-store purchase of a specific product.
A quarter of users claim they are switching bands more frequently than in the past. These figures may not constitute a majority, but they are nonetheless substantial. The harsh reality for brands is that the initial reason for a brand move is largely irrelevant. The only thing that matters is whether or not the customer prefers the new brand.
In addition, consumers increasingly rely on reviews when making purchasing decisions. Before making a purchase, 89% of consumers will read reviews. Collect customer testimonials to distinguish oneself from the competition. Consumers will explore more options and choose the one they enjoy the most, regardless of past buying history.
#4 Consumer Knowledge
While organisations conduct research to comprehend consumer preferences and interests, modern consumers are also interested in learning more about brands before making a purchase. Numerous young, tech-savvy consumers utilise social media and other digital channels to increase their understanding of the brand’s ethics, goals, etc.
Research conducted by Deloitte in 2021 revealed that approximately 28% of buyers have stopped purchasing specific products owing to environmental concerns. In addition, the study revealed that 64% of participants want firms to reduce their packaging, while 46% want brands to clarify where their products come from.
#5 Desire For Value
Consumers seek value in the quality of products, customer service, and other areas. Today’s consumers purchase from brands that share their values and beliefs. In the retail industry, sustainability is one of the hottest themes. Since 2016, 70% of searches have been for sustainable items.
89% of consumers are more likely to purchase from a brand they believe positively impacts the world. Numerous businesses have created methods to demonstrate to clients their eco-friendliness. Consider the purchase of an item from online stores that are packing their products in recycled paper to reduce their carbon footprints.
Customers will seek genuine, transparent brands to make their purchasing decisions meaningful. The consumer products industry has seen tremendous upheaval in recent years. Recent global health concerns have sparked a surge of key consumer trends in the Indian Consumer Market, mostly driven by customer preferences.
These developments may result from a shift in demographics, the ongoing need for businesses to reinvent their products based on new technology, provide customers with value, and, most importantly, be honest and transparent with their brand strategy. E-commerce companies must remain conscious of these key market dynamics.
Now that consumers have invested in their at-home activities, it is probable that they will remain after the pandemic has passed. Firms whose products can benefit from this trend (such as home office equipment) will flourish. In contrast, brands whose previous business strategies relied on people coming to them would have to adapt.
These trends will influence the consumer goods industry and help organisations shape R&D to meet consumer needs. Several research indicates that consumers’ expectations in emerging nations will surpass those of developed nations. So, it’s high time to follow these Indian Consumer Market Trends for your E-commerce business.