MAM
Retail continues to undergo incredible shifts driven by changing consumer behaviour – Report
Mumbai: Capgemini Research Institute published a report on 2023 consumer behaviour for products in retail industries. It is a navigating experience for consumers at large here are a few highlighted observations. Consumer behaviour is paramount for identifying market trends and analysis for future market anticipations.
Importantly, this research report is based on five basic themes of purchasing patterns, cost of living, raising concern over essential products, fulfilment beyond in-store experiences, and rise of social media influencers.
According to report observations and key findings, the majority (61 per cent) of consumers globally are extremely concerned about their personal finance situations. For Millennial (66 per cent), Bommer (55 per cent, and Gen Z (60 per cent) consumers as a whole. Consumers are worried about the increasing cost of living. 73 per cent of consumers are making fewer impulse purchases. 69 per cent of consumers are cutting costs on non-essential items such as electronics, plants, toys, and other non-essential products. More particularly cost-cutting measures or delaying the purchase of luxury items with convenience.
Interestingly, the new trendsetter part of the report highlighted more than half of consumers (65 per cent) of consumers said that they are buying products preferring cheaper private label products over branded products. 64 per cent of consumers prefer to buy products from hypermarkets, and discount stores. Over 75 per cent of consumers are spending more time and energy to fund deals and discounts from physical stores. Consumers are navigating different ways to adopt affordability. The cost of living crisis forces consumers to lead to more sophisticated purchasing patterns or behaviours.
Commenting on report findings, Unilever CFO Graeme Pitkethly said, ‘ We are starting to see consumers down trading and looking for greater value. Sales volume are beginning to fall as some shoppers switch from branded goods to own-label products in a bid to make ends meet. In another observation, 44 per cent of consumers said that they are reducing overall spending this year as compared to 33 per cent in November 2020.’
A paradigm shift in consumer patterns after Covid 19, consumers started spending less since the pandemic period. The majority of consumers globally expect companies to help them through this difficult time.
Also while navigating the best options for in-store and online sales for discounts and deals, still consumers’ preference for in-store shopping is declining amid the cost of living crisis. The slight decline from 67 per cent to 58 per cent in 2023 is an indicator of declining purchasing behaviour for in-store experiences. According to a survey in Capgemini Research in November 2021 survey, 38 per cent of consumers said they have significant interactions with retailers’ online channels. Consumer interactions with online retailer’s channels came down to 33 per cent in November 2022. But the long-term outlook increased to 38 per cent suggesting stabilisation and growth more from pre-pandemic times.
According to last year’s survey, consumers are spending their purchases across physical and online channels. As per the latest data, 40 per cent of consumers spend less on groceries across all channels. As per report identification, consumers can shift to physical channels in case of non-available basic necessity products. Around 40 per cent of consumers are more likely to switch stores or online stores as per contingencies.
According to the report section on sustainability and affordability parameters, more than half 54 per cent of consumers globally, they are preferring affordability over sustainability when making purchasing decisions. Rural consumers are buying less and recurring purchases of brand products as compared to urban consumers.
According to reports, social e-commerce generated 724 billion dollars in revenue in 2022. Social commercial revenue is expected to realise a CAGR (Compound Annual Growth Rate) of 30.8 per cent.
It is clear from the data Gen Z is considerably influenced by social influencers at large. 34 per cent of all global consumers learned about brands over social media while 22 per cent found new brands through TV ads.
According to research consumer behaviour is concerned with financial decisions, price consciousness, and changing adaptability.
Retail continues to paradigm shift in recent years which is driven by changing dynamics of consumer behaviour and expectations. Brands have to respond to ever-changing patterns of customer demand, shifting geographical situations, and global supply chain pressures. Inflation globally forces consumers to increase concern over affordability.
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
