The Consumer Price Index (CPI)-based inflation had eased to 5.72 per cent in December.
Consumers in India are becoming more forward-thinking in their purchasing habits due to economic uncertainty and rising costs.
The economic uncertainty and rising costs are creating savvy shoppers who are eager to get the best value for their money without sacrificing the items they love, said a new report.
Criteo, the commerce media company, today released ‘The Rise of Savvy Shoppers Study’, which was conducted with over 1,400 consumers in India, to see how inflation has impacted their shopping behaviour and preference.
The study highlighted that 81% of shoppers in India are spending more time online searching for the best offers and values before making a purchase compared to 71% of global shoppers.
Consumers in India are becoming more forward-thinking in their purchasing habits due to economic uncertainty and rising costs, the study said.
According to the findings, 51% of consumers buy gifts for future holidays or birthdays in advance because of price increase, compared to 40% of global consumers following the same trend.
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59% of Indian consumers have cancelled or postponed plans to buy items due to price hikes. 74% buy essential items in bulk to get more value for their money.
Additionally, 61% are purchasing high-value items like appliances and furniture sooner to beat potential price increases. These findings highlight a growing trend of smart and strategic shopping among consumers.
Taranjeet Singh, managing director, South APAC, Criteo, said, “The recent inflation has affected the budget of many shoppers. This has given rise to smart shoppers who know how to save their budget by utilising both online and offline channels and finding the best deals and offers.”
“It is important for marketers to build a strategy that covers every shoppable moment – all touch points throughout the customer journey need to provide a seamless and rich shopping experience to customers,” Singh added.
Consumers want more from brands than just discounts. Alignment with a brand’s values and loyalty programs are strong motivators for shoppers to make a purchase right now.
Also, 80% of Indian consumers surveyed are finding products that are priced better online than in physical stores compared to 65% shoppers globally. According to the study, 77% of Indian shoppers said they are shopping more online now, compared to 57% of global shoppers.
The study added that shoppers prioritise cost savings while also seeking out products of high quality. In fact, product quality is the most important factor for consumers, outpacing free shipping and discounts/coupons.
The study shows that 95% of Indian consumers consider product quality when making a purchase, 90% take free shipping into consideration, and 89% look for available discounts and coupons. Shoppers are looking for the best of both worlds- great products that are made to last and deals that don’t compromise quality.
Moreover, India’s retail inflation in January 2023 rose to 6.52 per cent on costly food items and fuel, according to the latest official data released on Monday.
With this, the inflation has breached the RBI’s upper tolerance limit of 6 per cent after remaining under it for the previous two consecutive months of November and December. Inflation in rural areas during January 2023 rose to 6.85 per cent, while that in urban areas hardened to 6 per cent.
In December 2022, the Consumer Price Index (CPI)-based inflation had eased to 5.72 per cent. In November 2022, it had fallen to 5.88 per cent. The retail inflation came under the RBI’s 2-6 per cent band in November with 5.88 per cent rate after remaining beyond it for 10 months consecutively.
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