Declining household saving is forcing shoppers to buy smaller packs, and cheaper variants of household consumables. Apart from millennials reluctant to own homes, tighter budgets and job uncertainty mean that families will put off purchasing homes. And yet the affordability and accessibility of credit, particularly with the entry of digital lending players that offer instant loans, will ease this scenario.
Lenders have seen a 50% surge in loan applications for holidays
Deals Will Be Big Deals
97% of Indian households in 2019 bought at least one CPG (consumer packaged goods) product on promotion, with overall promotion volumes up by 6.4%. Brands have no option but to find new ways of rewarding smart, well-informed, deal-seeking consumers, as information gathering becomes an integral part of the shopping experience.
85% of consumers check at least two data points other than prices and discounts when purchasing
Pool & Share
Consumers have embraced technological solutions such as carpooling and shared bus rides. Cities plagued by congestion and infrastructure troubles, such as Mumbai and Bengaluru, are quick adopters. The lack of action towards improving the abysmal quality of air is encouraging people to work from home, even as solutions such as air purifiers and oxygen bars emerge to give them a breather.
The shared-transportation market will grow to ₹ 35,000 crore by 2025
Love Thy Environment
22% of Indians say that plastic waste is the top environmental concern – significantly higher than the global average of 15%. A similar proportion are prepared to make changes in their lifestyle for the environment. Expect greater awareness and action around food waste, and trends such as upcycling to take off, spurred by conscious business and activist youth.
53% of Indian consumers will pay more for environment friendly products
Gaming: The New Way to Relax
Kantar’s mobile gaming study reveals that 76% of gamers play games on their mobile phones more than twice a day; and 31% play 4-5 times a day. In-app purchases in online and mobile games present developers with financial opportunity. Some brands will deploy ASMR (autonomous sensory meridian response) – videos using audio stimuli like sounds of nature, mellow music, people whispering – to relax, soothe or invigorate viewers.
70% of gamers spend more than half an hour and 42% spend more than an hour playing mobile games
Tighter control over spending does not necessarily mean that consumers are cutting back on experiences. 37% of urban Indians say that they finance experiences by trading down in certain product categories (including jewelry, mobile phones, apparel, and home furnishings.) Some consumers are optimizing their spends by renting kitchen appliances, clothes, and furniture; 25% of consumers would consider renting in the future.
Love for Korean culture & Japanese brands
Despite the political reluctance to leverage trade opportunities within Asian, Chinese, Japanese and Korean consumer brands – which have won the hearts and wallets of Indian consumers – they will continue to do well. Expect an integration of technology and content in many of these products (from home appliances to automobiles to social platforms.) While Korean pop culture will capture the imagination of youth across campuses and small-town India, Tokyo’s hosting of the Olympics will create greater engagement with Japanese brands.