Changing Purchasing behaviour

A report says 61% of consumers are concerned about their financial situations, with Millennials (66%) and Gen X (64%) being the most worried, and Boomers (55%) the least. To navigate these pressures, almost half (44%) of consumers say they are reducing their overall spending; an increase from 33% of respondents who said the same in November 2020.

As per Capgemini Research report, ‘What Matters to Today’s Consumer,’ reveals the impact of an increased cost-of-living on consumer spending habits and preferences. The report indicates that while retail organizations continue to navigate disruptions there is a need to transform operations to meet changing consumer expectations of affordable products and pass on cost benefits to customers.

Most consumers (61%) are concerned about their financial situation and nearly three-quarters of consumers are cutting back on non-essential purchases during tough times and the purchasing behaviours are also changing. From its survey of 11,300 consumers in 11 countries, the report found that nearly three-quarters (73%) of consumers are making fewer impulse purchases, while 69% are cutting back on non-essential expenses such as electronics, toys, and dining out, as well as delaying the purchase of luxury items. Saving money is top of mind for many people, with 64% of consumers buying products from hypermarkets and discount stores and 65% buying cheaper private-label or low-cost brands.

There’s an opportunity for retail businesses to dramatically reimagine their operational strategy in order to weather this storm and pass on price benefits to consumers. By identifying new revenue streams, creating new markets, transforming operations, and optimizing costs, businesses can succeed without compromising on sustainability or overall customer experience and “Harnessing technology for intelligent demand planning, inventory management and automated operations can not only help reduce costs and maintain margins, but also yield sustainability benefits for organizations.”

Going forward, Retailers are going to rethink operational strategy for cost reductions, sustainability, and experience. The report also suggests that by leveraging the power of social media influencers and expanding into newer channels to reach customers, brands can unlock new revenue streams and growth opportunities. According to the research, 70% of consumers buying products on social media said they trust influencers when they use the product and share their own experiences and reviews.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA