Move over product range, location, and friendly staff, when it comes to shopping for groceries, an overwhelming 91 per cent Indians want their rupee’s worth. This was revealed by a global online survey conducted by the Nielsen Company. Not just Indians, 85 per cent of global consumers ranked ‘Good Value for Money’ as the most important consideration when choosing a grocery store.
Conducted in mid-2007, Nielsen surveyed 26,486 Internet users in 47 markets from Europe, Asia Pacific, the Americas and the Middle East on the factors that influenced their choice of grocery store.
Rajshree Dave, Director, Client Solutions, the Nielsen Company, India, said, “It is interesting to note that consumers in the world’s booming economies like Russia (93 per cent), India (79 per cent) and China (78 per cent) are amongst the few for whom ‘Better Selection of High Quality Brands and Products’ is very important. Shoppers expect the best of both worlds from retailers today. On the one hand, we are all natural bargain hunters and demand good value for our grocery currency, and on the other, we expect retailers to stock a wide selection of high quality brands and products to allow us to indulge in our favourite premium treats.”
The survey revealed price, promotions and perceptions as most influential in helping consumers arrive at a perception of value. Indians associate a store that offers products at a cheaper rate than competitors (79 per cent) and a store, which runs regular promotions and price discounts as good value for money. 64 per cent Indians also research and compare prices to decide which store offers Good Value for Money. With 58 per cent, word-of-mouth information also effects where an Indian shops.
Dave added, “The Indian consumer is cocooned in his values and culture and he comes from a close knit family. Opinions of friends and family matter a lot to him, hence, word-of-mouth information remains an important factor while deciding on a store.”
“India is a price sensitive country, and good bargains and promotions catch their fancy. This trend is seen across all classes of consumers. Here prices drive sales. For Indians, getting valued brands for a lesser price enhances their shopping experience and is a motivating factor for them to be more loyal to the stores,” continued Dave.
Regionally, Asia Pacific shoppers defined prices published in the store’s own promotional material, the stores’ promise to have every day low prices and own research and price comparison across retailers as their most important Good Value indicators.
While on the environment connect, environmental concerns are on the rise and plays a major role in Indian consumer’s decision to choose a grocery store. 39 per cent Indians rate a store higher if it offers recyclable bags and packaging for their products. Indians rank second globally behind China, where choosing a store for its environment friendliness is concerned.