Consumer Behaviour in Indian Market

Presented by Gaurav Gattani

Story so far…• Digital media is no longer a niche. At 150 million in

India, internet users cross the television and satellite users by a long mark.

• The reach of social media platforms like Google (100 million), YouTube(31 million) and Yahoo (28 million) is higher than the reach of the television properties like IPL (6 million) and Star Plus (5 million).

• No of internet users expected to reach 237 million by 2015.

• 57% travel gets booked online.• 47% of classified business is online.• E-commerce companies are recording revenue of

crores in a day.

The true change is in Consumer Behaviour, which is deeper. A Nielsen study on ‘Who do consumers trust?’

shows that recommendations by friends and then recommendations by strangers influence decision

making. This makes Facebook and Twitter important platforms to reach the consumers and influence the

decision making process.

• As over 150 million Indians surf the internet, Indian marketers are losing their sleep to catch them young, in their mid-life crisis or even after hanging up their boots.

• The challenge is immense. Out of the $5 billion Indian advertising industry, $900 million go to digital marketing. The share of digital is poised to grow larger every year & slated to touch 30% of the total market by 2015.

Influence of local cultures in the e-commerce business....India needs a desi model!!

• The big poster boys of e-commerce in India are selling everything under one roof, there is lot of focus on product categories and $ spend on customer acquisition.

The trend in the Indian consumers buying pattern is walk into the malls or retail stores feel & experience the product, check on the

prices then place an order with a e-tailer offering good discounts, this applies to

shoes & apparels as well.

e-commerce in India is getting pushed into a low margin business which can be compensated only by increasing the volume of sales & driving huge customer transactions.

But still kirana shops are still running and people are making the livelihood in-

spite of sprung-up malls.

Our masses wont eat pizzas & burgers everyday. We need flavors of vada-pav, pani-puri, idlis & dosas. We need a model which is adaptive to local taste in India.

How much “Brand” matters?? • Consumers remember brands that perform for them –

so be it a great ‘Jet Airways’ flight or a fantastic pizza from ‘Dominos’ – they remember these brands for what they did for them – NOT what they pretended to call themselves.

• Consumers don’t care about brand base lines and logos.

• If they are good at what they are selling, they will become the next Hertz.

Influence Mix• Flipkart.com, one of India’s largest e-commerce

companies, recently kicked off their new ad campaign ‘No Kidding, No Worries’.

• The motive of the campaign was to address the fears people generally tend to have with online shopping and to create the ever-important aspect of trust.

But most Indian marketers still find it challenging to cut through the

information clutter today to resonate. Mostly because they are not used to

customers driving interactions (after all it was one way shouting till a while back) &

taking control of the relationship they share.

What are the factors that a customer looks into while shopping online:

Better price - Return policy - Cash on Delivery-Faster delivery - Cash back guarantee- More choices and deals.

Thank You

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