Consumer Behavior And Future Trends In FMCG - Stratefix Consulting

Consumer Behavior And Future Trends In FMCG

Consumer behavior
& future trends in FMCG

In India's consumerism is the emergence of the rural market and
market for eco-friendly products for several consumer goods

By 2030, 80% of households will be middle-income, compared to
50% today. This growing middle class is expected to drive consumer
spending – buying more and buying better

One of them is consumers buying family packs and combo o􀃣ers as
it saves them and extra trip to the grocery store. Other common
in instances of consumer behaviour are:

  • Rise in demand of ready to eat snacks
  • Wellness products mostly organic and premium quality even if they
    have to pay higher price.

In order to keep up with these trends every FMCG company must be proactive in taking these steps which ensure brand building and longevity in the market.

Value for money is an important factor in determining consumer
behaviour in India. Indian shoppers are well-informed and want to get a good deal – even for luxury products.

Innovation is a fundamental quality which each customer expects from a brand.

Region: India

  • The most influencing factor that affects the buying decision of the consumers:
    – Price
    – Quality
    – Easy availability
  • The Indian consumer has become
    – Much more open-minded
    – Experimental in his/her perspective.
    – High degree of value Orientation.
  • Foreign brands have gained wide consumer acceptance in India, they include items such as; Beverages, Packed food, Ready to eat food, Pre-cooked food, Canned food, Personal care products, Audio/video products, Garment and apparel, Footwear, Sportswear, Toys, and Gift items.
  • Bulk purchases from hyper stores seem to be the trend these days, rather than frequent visits to the neighborhood market or store or vendor.
  • A large number of consumers are visiting especially to the Malls rather than the plenty of shops available to the next door.
  • Even, luxury brands have to design a unique pricing strategy in order to get a foothold in the Indian market.
  • The product that communicates feelings and emotions gel with the Indian consumers.
  • Consumers are highly involved when the product is:
    – Expensive
    – Risky
    – Purchased infrequently
    – Highly self-expressive.
  • Thus, buyers will have to pass through a learning process, first developing beliefs about the product, then attitudes, and then making a thoughtful purchase choice.
  • Marketers of high-involvement products need to help buyers learn about product-class attributes and their relative importance, and about what the company’s brand offers on the important attributes.
  • Habitual buying behavior also occurs among a certain group of the population under conditions of low consumer involvement and little significant brand difference. In certain categories friends and family play a big part as influencers in buying decisions. Now opinion leaders from other countries can now have an influence on Indian customers. This can occur on social networking sites, comparison shopping sites, and reviews for example.
  • A customer’s buying behavior is also influenced by social factors, such as the groups to which the customer belongs and social status.

Region: South India

  • Consumers in southern India tend to buy small pack sizes, are more experimental, and on average, spend more on groceries compared to the rest of India.
  • The report said India’s five southern states are more urbanized, economically progressive, better developed, and lead the country socially. And this influences their shopping behavior.
  • The Consumers in this part accept technology quicker than in other parts of India. Spends more than average as compared to north Indian consumers.
    Factors like:
    – Reliability
    – Product attributes
    plays a very important role for this low-income and price-conscious set of people.
  • The consumers largely remain brand loyal.
  • A considerable portion of monthly income is spent on buying groceries (including FMCG products).
  • Promotions and offers have a considerable impact on larger households and young adults.
  • At the same time where they are buying generic products, they nourish aspiration value for branded products which remains restricted due to lack of money.
  • Evolved retail channels and consumers who are willing to spend on trying new and more expensive products merit the presence of a wide variety, the south, unlike other zones, has a very well-developed multi-channel distribution.
  • Factors affecting the purchase in Rural South India:
    – Promotion factor: Consumers make decisions based on the visibility of FMCG on the retail shelves along with their preference for attractive packaging.
    – Lifestyle factor: Consumers prefer to buy FMCG that makes them feel dignified while buying/possessing/ using them.
    – Trust factor: Consumes trust and buy brands/products that are promoted by Government. Along with the availability in the market.
    – Value factor: Consumers look for products that are affordable, low priced, and fulfill their intended benefits. (buy products only when needed)
    – Product factor: It depends on four variables -more features, size of the FMCG product, better quality, durability.