Amid e-commerce surge, Indian shoppers continue to buy from retail chains
Indian shoppers are continuing to buy from retail chains especially when it comes to premium products and during big discount days or festive periods, as per a latest study by market researcher NielsenIQ.
The study shows that these big shopping periods contribute 20% of incremental sales for FMCG and 60% for consumer electronic products.
Non-food categories grow 1.8 times faster than food during these periods, driven by deep discounts and consumer preference for non-essentials. Categories such as toothpaste, toilet soap, and washing powder lead the charge, benefits with 20-30% incremental sales during big days, it said.
Nielsen said India is the only market in the Asia-Pacific region to consistently deliver double-digit growth in modern retail for FMCG and electronics.
FMCG has witnessed a 2% increase in the modern trade format in urban India in the year to March 2024 as compared to same period last year. Consumer electronics observed a 4% rise in the same period. “The modern trade channel continues to offer a consistent and convenient shopping environment, which remains attractive to consumers, even during periods of inflation,” Sonika Gupta, executive director of consumer success for India at NielsenIQ said.
The study also revealed that there is a growing preference for premium-plus pricing products in modern trade that make up 40% of FMCG sales and 30% of consumer electronics. Gupta said that for the sake of superior benefits and features, consumers are willing to pay twice the average price for newly
