26 July 2024, Mumbai
A new study by PwC India, ‘Voice of the Consumer Survey 2024’, reveals a complex interplay of evolving consumer behaviors and expectations in India's retail landscape. As digital penetration deepens, Indian consumers are increasingly prioritizing trust, sustainability, and personalized experiences.
The survey, covering 1,000 consumers, underscores a significant shift in consumer attitudes. While online shopping is gaining traction, physical stores continue to hold a strong appeal, with 56 per cent of consumers frequently purchasing non-grocery items in-store. However, the in-store experience needs an upgrade. Retailers must leverage technology like augmented reality and mobile payments to create engaging and seamless shopping journeys.
Trust as the new currency
Data privacy emerges as a paramount concern. A staggering 82per cent of Indian consumers consider data protection crucial for building trust. This sentiment is particularly pronounced in the context of social media, the least trusted channel despite being a primary platform for product discovery. Brands must prioritize transparent data handling practices to gain consumer confidence.
Ravi Kapoor, Partner and Leader – Retail and Consumer sector, PwC India, emphasizes the importance of authenticity in building trust. "Brands need to stay authentic to earn consumer trust and ultimately build loyalty," he said.
Sustainability in focus
Indian consumers are increasingly conscious of their environmental impact. The survey indicates that 60per cent are opting for sustainable products, even willing to pay a premium of 13.1per cent. This shift is driven by concerns over climate change and a growing desire for healthier lifestyles.
The fashion and apparel sector, a major contributor to environmental concerns, is at a crossroads. Brands must integrate sustainability into their core business models, from sourcing to production and packaging. Offering transparent information about sustainability practices, such as independent sustainability scores, can significantly enhance brand reputation.
Health and wellness in focus
The survey highlights a growing interest in health and wellness. Nearly 70per cent of consumers plan to increase their fruit and vegetable consumption, and there's a strong demand for information on food sustainability. This presents a golden opportunity for retailers to curate products and services aligned with these preferences.
The role of social media and influencers
Social media continues to be a powerful tool for brand discovery and influence. However, its impact is tempered by privacy concerns. Brands must leverage social media authentically, building relationships with influencers who resonate with their target audience.
The AI conundrum
While AI offers opportunities for personalization and efficiency, consumers remain cautious. While AI can assist with product information and recommendations, it's essential to maintain a human touch, especially in complex or high-stakes decisions.
Key takeaways for retailers
Prioritize trust: Implement robust data protection measures and build transparent relationships with consumers.
Embrace sustainability: Integrate sustainable practices throughout the value chain and communicate efforts effectively.
Enhance the in-store experience: Leverage technology to create engaging and convenient shopping experiences.
Focus on health and wellness: Curate products and services aligned with consumers' growing health consciousness.
Leverage social media responsibly: Build authentic connections with consumers and influencers.
Balance AI and human interaction: Use AI strategically to enhance the customer journey while preserving the human touch.
