Consumers in India becoming savvy shoppers amid rising inflation: Criteo Report

Rising inflation has the potential to bring drastic changes in consumer behaviour and spending habits. Criteo, a commerce media company, in its latest report titled 'The Rise of Savvy Shopper Study' has highlighted five major inflation trends that advertisers should consider. The survey conducted with over 1,400 consumers in India states that shoppers are now heading to online platforms in search of best offers for the products they love. The study reveals that 81% of consumers in India are spending more time online searching for the best deals and prices before making a purchase compared to 71% of global shoppers. Moreover, 80% of shoppers are finding products at better rates online than at physical stores as compared to 65% shoppers globally. The report further adds that at present, 77% of shoppers say they shop more online as compared to 57% of global shoppers.

The Criteo report aims to understand how inflation is impacting shopping behaviour and preferences. The study reveals that economic uncertainty and rising costs are creating smarter shoppers who are eager to get the best value for their money without giving up on items they love. It adds that the consumers’ forward-thinking mindset is accelerating some purchases as they are shopping effectively to maximize their spending power. As many as 74% of consumers are believed to get more value for their money by buying essential items like detergent, tissues in bulk while 61% of consumer buy high-value items like appliances, and furniture sooner because prices are going up. Meanwhile, 51% of consumers buy gifts for future holidays or birthdays in advance thinking that the prices may go up while 59% of Indian consumers have cancelled or postponed plans to buy items due to price surge.

According to the findings, consumers are looking out for high-quality products even when prioritising saving money on their purchases. Though saving money is top of mind, shoppers still want great quality products that last long. "Product quality is the most important factor for consumers, outpacing free shipping and discounts/coupons," the report underlined. The study shows that 95% of consumers in India consider product quality when making a purchase, 90% consider free shipping as an added bonus while 89% look for discounts and coupons to get the best deal while making a purchase.

Lastly, the report highlights that shoppers want more from brands than just discounts. 83% of consumers consider loyalty points as a strong motivator to make a purchase, 90% of consumers consider brand values to be the add-on feature while buying a product while 88% want their brands to be eco-friendly.

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 utilizing both online and offline channels and finding the best deals and offers. The study especially suggests the key role of online, as many shoppers spend time doing thorough research before purchasing a product. It is important for marketers to build a strategy that covers every shoppable moment - all touchpoints throughout the customer journey need to provide a seamless and rich shopping experience to customers.” 

To know more about the five major inflation trends for advertisers to consider, download the Criteo report here.