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.
AD Agencies
Abhay Duggal joins JioStar as director of Hindi GEC ad sales
The streaming giant brings in a seasoned revenue hand as the battle for Hindi television advertising heats up
MUMBAI: Abhay Duggal has a new desk, and JioStar has a new weapon. The media and entertainment veteran has joined JioStar as director of entertainment ad sales for Hindi general entertainment channels, adding 17 years of hard-won revenue experience to one of India’s most powerful broadcasting operations.
Duggal is no stranger to big portfolios or bruising markets. Before joining JioStar, he spent a brief stint at Republic World as deputy general manager and north regional head for ad sales. Before that, he put in three years at Enterr10 Television, where he ran the north region for Dangal TV and Dangal 2, two of India’s leading free-to-air Hindi channels. The north alone accounted for more than 50 per cent of total channel revenue on his watch, a number that tends to get attention in any sales meeting.
His longest stint was at Zee Entertainment Enterprises, where he spent over six years rising to associate director of sales. There he commanded the Hindi movies cluster across seven channels, owned more than half of north India’s revenue across flagship properties including Zee TV and &TV, and closed marquee sponsorships across the Indian Premier League, Zee Rishtey Awards and Dance India Dance. He also handled monetisation for the English movies and entertainment cluster and the global news channel WION, a portfolio that would stretch most sales teams twice his size.
Earlier in his career Duggal closed what was then a Rs 3 crore single deal at Reliance Broadcast Network, one of the largest in Indian radio at the time, before that he helped launch and monetise JAINHITS, India’s first HITS-based cable and satellite platform.
His edge, by his own account, lies in marrying data and instinct: translating audience trends, inventory signals and client demands into long-term partnerships built on cost-per-rating-point discipline rather than short-term deal chasing. In a media landscape being reshaped by streaming, fragmented attention and AI-driven advertising, that kind of rigour is increasingly rare and increasingly valuable.
JioStar, which blends the scale of Reliance’s Jio platform with the content firepower of Star, is doubling down on its advertising business at precisely the moment the Hindi GEC market is getting more competitive. Bringing in someone who has spent nearly two decades doing exactly this, across some of India’s most watched channels, is a pointed statement of intent. Duggal has spent his career turning audiences into revenue. JioStar is clearly betting he can do it again, and bigger.
