In what could set alarm bells ringing for fast moving consumer goods (FMCG) companies, more than 60 percent consumers in urban India have seen their financial condition deteriorate even with the positive news of vaccine development, a recent study showed. While the number of these consumers who are changing their spending habits is growing, it is higher than the global average of 46 percent.
In addition, the study conducted across 16 countries by NielsenlQ revealed that more than a third of them in urban feel less confident about income prospects in the first half of 2021.
This cautionary spending environment means brands will need to be laser focused in this group’s newly emerging need states, “said Scott McKenzie, global head of the NielsenlQ Intelligence Unit. “Assortment, pricing, innovation and distribution of products will need to be recalibrated, and quickly”.
61 percent of consumers say they are brand loyal, and will only change brands if the regular price increases
Large numbers of urban consumers in India are employing new coping mechanisms to manage household budgets: 46 percent are driven by the lowest price, irrespective of brand, 50 percent always seek private labels, 45 percent say they buy products based solely on promotions. But 61 percent of consumers say they are brand loyal, and will only change brands if the regular price increases.