indian retail & buying behavior
DESCRIPTION
Understanding a little about the current Indian retail scenario. Understanding the buying process and cues to identify different types of shoppers in the store.TRANSCRIPT
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Indian Retail Scenario Understanding the Shopper
2 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
Overview
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
3 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
Overview
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
4 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
Growth of Organized Retail With consolida5on of produc5on and democra5za5on of consump5on, organized retail is growing
8%
45%
11%
80%
75%
32%
36%
37%
33%
1%
While frontier markets are right-sizing themselves, organized retail in emerging markets are growing at an average of 25% y-o-y
PwC Global Retail Trends 2012 Report
5 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
India’s Organized Retail Market Growing at 27% y-‐o-‐y, India’s organized retail market currently stands at 8%, with apparel the largest category
$518 BN 7%
Indian Retail Food & Grocery
11%
Apparel 33%
Mobile & Telecom 11%
Food Service 7%
Jewellery 6%
Consumer Electronics 8%
Footwear 4%
Others 20%
Organized Indian Retail
Urbanization of Villages & Towns Rising Incomes Exposure through Technology Availability of Choices Younger Population
IBEF -‐ India Retail 2013 Report
6 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
India’s E-‐Commerce Market Online retail is s5ll a very small por5on of retail in India
Offline, 98%
Online, 2%
# Mobile Phones Purchased (2013)
Offline, 99.8%
Online, 0.2%
Jewelry Sales $ (2013)
Offline, 93%
Online, 7%
# Books Sold (2013)
Offline, 99%
Online, 1%
Fashion + Footwear Sales $ (2013)
Accel Partners -‐ India Ecommerce 2014 Report
7 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
Overview
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
8 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
A Typical Shopping Journey
1. CREATING THE NEED
2. SELECTING THE CHANNEL / BRAND
3. PRODUCT DISCOVERY
4. DECISION MAKING
5. TRANSACTION
6. AFTER-TASTE
9 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
A Typical Shopping Journey
1. CREATING THE NEED
2. SELECTING THE CHANNEL / BRAND
3. PRODUCT DISCOVERY
4. DECISION MAKING
5. TRANSACTION
6. AFTER-TASTE
Marketing
Sales / Store-Operations
10 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
Overview
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
11 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
The Bargain Hunter
Most Time Spent During: Product Discovery
Interaction With Sales Associate: Negligible
Purchase Decision Influencer: Price - Promotion
Frequency of Purchase: Regular
Brand Loyalty: Low
How to Reel ‘em In: Something on discount always
12 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
The Man on a Mission
Most Time Spent During: Decision Making
Interaction With Sales Associate: Pointed Pertinent Questions
Purchase Decision Influencer: Personalization
Frequency of Purchase: Only need based
Brand Loyalty: Medium
How to Reel ‘em In: Cater well to the Target Customer
13 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
The Impulse Buyer
Most Time Spent During: Product Discovery
Interaction With Sales Associate: Sometimes need a small nudge
Purchase Decision Influencer: Societal Acceptance of Purchase
Frequency of Purchase: Low
Brand Loyalty: Low
How to Reel ‘em In: Emotional Appeal
14 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
The Researcher
Most Time Spent During: Decision Making
Interaction With Sales Associate: A LOT! They better be well-informed
Purchase Decision Influencer: Complete Comfort with Purchase
Frequency of Purchase: Low
Brand Loyalty: High
How to Reel ‘em In: Help them with product information
15 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
The Fashionista
Most Time Spent During: Product Discovery
Interaction With Sales Associate: Mainly for product discovery
Purchase Decision Influencer: Trendiness
Frequency of Purchase: High
Brand Loyalty: High
How to Reel ‘em In: Be Trendy Frequently
16 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
The Loyalist
Most Time Spent During: Decision Making
Interaction With Sales Associate: Personalization Queries
Purchase Decision Influencer: Personalization
Frequency of Purchase: Regular
Brand Loyalty: Very High
How to Reel ‘em In: Always have something for them
17 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
Overview
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
18 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
The Working Woman
111% Rise in urban women income 2001 - 2010
20% Rise in women employment 2010 - 2012
30% Growth of Women’s Western Apparel Market
Rs. 78,500 Cr Women’s Western Wear Market
19 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.
The Male Fashionista
Brand Awareness is the main driver
Men are more Brand Loyal than Women
In-store Experience not Avoided Anymore
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