Indian Retail & Buying Behavior

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Indian Retail Scenario Understanding the Shopper

2 © 2014 Shopsense Retail Technologies. Confiden5al document, not for circula5on. All rights reserved.

Overview

A Typical Shopping Journey

Retail Scenario - World & India

Types of Shoppers - Purchase Decision Influencers

Two Interesting Categories


Overview






Growth of Organized Retail With consolida5on of produc5on and democra5za5on of consump5on, organized retail is growing

8%

45%

11%

80%

75%

32%

36%

37%

33%

1%

While frontier markets are right-sizing themselves, organized retail in emerging markets are growing at an average of 25% y-o-y

PwC Global Retail Trends 2012 Report


India’s Organized Retail Market Growing at 27% y-‐o-‐y, India’s organized retail market currently stands at 8%, with apparel the largest category

$518 BN 7%

Indian Retail Food & Grocery

11%

Apparel 33%

Mobile & Telecom 11%

Food Service 7%

Jewellery 6%

Consumer Electronics 8%

Footwear 4%

Others 20%

Organized Indian Retail

Urbanization of Villages & Towns Rising Incomes Exposure through Technology Availability of Choices Younger Population

IBEF -‐ India Retail 2013 Report


India’s E-‐Commerce Market Online retail is s5ll a very small por5on of retail in India

Offline, 98%

Online, 2%

# Mobile Phones Purchased (2013)

Offline, 99.8%

Online, 0.2%

Jewelry Sales $ (2013)

Offline, 93%

Online, 7%

# Books Sold (2013)

Offline, 99%

Online, 1%

Fashion + Footwear Sales $ (2013)

Accel Partners -‐ India Ecommerce 2014 Report


Overview







1. CREATING THE NEED

2. SELECTING THE CHANNEL / BRAND

3. PRODUCT DISCOVERY

4. DECISION MAKING

5. TRANSACTION

6. AFTER-TASTE



1. CREATING THE NEED

2. SELECTING THE CHANNEL / BRAND

3. PRODUCT DISCOVERY

4. DECISION MAKING

5. TRANSACTION

6. AFTER-TASTE

Marketing

Sales / Store-Operations


Overview






The Bargain Hunter

Most Time Spent During: Product Discovery

Interaction With Sales Associate: Negligible

Purchase Decision Influencer: Price - Promotion

Frequency of Purchase: Regular

Brand Loyalty: Low

How to Reel ‘em In: Something on discount always


The Man on a Mission

Most Time Spent During: Decision Making

Interaction With Sales Associate: Pointed Pertinent Questions

Purchase Decision Influencer: Personalization

Frequency of Purchase: Only need based

Brand Loyalty: Medium

How to Reel ‘em In: Cater well to the Target Customer


The Impulse Buyer


Interaction With Sales Associate: Sometimes need a small nudge

Purchase Decision Influencer: Societal Acceptance of Purchase

Frequency of Purchase: Low

Brand Loyalty: Low

How to Reel ‘em In: Emotional Appeal


The Researcher


Interaction With Sales Associate: A LOT! They better be well-informed

Purchase Decision Influencer: Complete Comfort with Purchase

Frequency of Purchase: Low

Brand Loyalty: High

How to Reel ‘em In: Help them with product information


The Fashionista


Interaction With Sales Associate: Mainly for product discovery

Purchase Decision Influencer: Trendiness

Frequency of Purchase: High

Brand Loyalty: High

How to Reel ‘em In: Be Trendy Frequently


The Loyalist


Interaction With Sales Associate: Personalization Queries

Purchase Decision Influencer: Personalization

Frequency of Purchase: Regular

Brand Loyalty: Very High

How to Reel ‘em In: Always have something for them


Overview






The Working Woman

111% Rise in urban women income 2001 - 2010

20% Rise in women employment 2010 - 2012

30% Growth of Women’s Western Apparel Market

Rs. 78,500 Cr Women’s Western Wear Market


The Male Fashionista

Brand Awareness is the main driver

Men are more Brand Loyal than Women

In-store Experience not Avoided Anymore

Mumbai www.shopsense.co

Indian Retail & Buying Behavior

Retail

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