Budgets on experiential retail is growing but not much in FMCG: Sreyoshi Maitra

"The changing experience expectations of the new age Indian consumer” at In-Store Asia 2016 in New Delhi,Sreyoshi Maitra, Director Shopper, Nielsen, India, pointed out that there has been a period of slower FMCG growth and while we saw a period of brief recovery in 2015,  consumption growths have slowed down again. 

"Disposable income is possibly being spent increasingly more on experiences like travel and entertainment and not on packaged goods. Shoppers are economising FMCG spends by consciously looking for promos, sticking to essential purchases and often buying in bulk. Modern trade in India which has started witnessing better growths in recent times, seems to be attracting more shoppers who are actively seeking better deals. Unlike earlier, when the shopping experience was more  important at MT, now better savings in shopping bills seem to be the driving factor for an MT visit”, Sreyoshi Maitra added.

While the grocery shopper has become more conscious of watching their spends it is not that premium offers are not winning favour. There is enough evidence of shoppers loosening their purse strings when they identify relevant and distinct tangible benefits.” Maitra said.

She went on to explain that GT on the other hand has always maintained its lion's share in retail because stores have kept the shopper happy through elements like doorstep delivery and credit facility apart from the trust on the local kirana. "Online grocery shopping is still quite small as shoppers still miss physically checking the products before buying them from a faceless retailer.”, Maitra concluded.