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Indian Consumer Survey - Arpita - Final 100702
Indian Consumer Survey - Arpita - Final 100702
Indian Consumer Survey - Arpita - Final 100702
Arpita Mukherjee Professor, Indian Council for Research on International Economic Relations (ICRIER) New Delhi, India Murali K. Mantrala Sam Walton Professor of Marketing University of Missouri, Columbia Shaoming Zou Robert J. Trulaske, Sr. Professor of Marketing University of Missouri, Columbia External Professor of Marketing, Peking University
Presentation at 2010 China India Consumer Insights Conference, Yale Univ.Tsinghua Univ., Beijing, July 3, 2010
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Motivation
Along with China, India has emerged as one of the most attractive countries for both domestic and international retailers.
The Indian organized retail market is expected to exceed $50 billion by 2013. reflecting a fast-growing middle class demanding higher quality shopping environment and stronger brands
(A. T. Kearney Global Retail Development Index Report).
Modern retail outlets growing at 30% - major foreign brands are entering India. Policy changes are taking place
Partial opening up of single brand retailers in 2006 (multi-brand retailers are still restricted). Government is evaluating the scope for further liberalization.
Source: NCAER (2005) and http://www.fadaweb.com/indian_mkt_05.htm Note: These figures are given at 2001-02 prices., P - Projected
45 40 35 30 25 20 15 10 5 0
1950-51
1960-61
1970-71
1980-81
1990-91
2000-01
2010- 11
2020-21
2030-31
Percentage of Population
Presentation Organization
Description of the primary survey Sample profile Summary results of Indian shopper behavior Lessons for retailers and policymakers Next Steps
Survey Procedures
A three-tier survey was conducted through door-to-door interviews and through interviews with consumers in shopping malls Focused on the consumers level of brand consciousness, where they purchase such brands from, and what factors determine their purchase decisions.
Cities covered during the Survey Tier I Tier II & Tier III Mumbai, Chennai, Delhi, Kolkata, Hyderabad, Ahmedabad Allahabad, Bhubaneswar, Kanpur, Surat, Visakhapatnam
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Product Categories
Clothing and Fashion Accessories Footwear and Leather Goods Gems and Jewellery Food and Grocery
Home Furnishing and Home Appliances
Sports Goods
Sample Profile
Gender Distribution
160 38.33% 140 120 132
Age Distribution
151
Females Male s
61.67%
Education Distribution
180 160 140 123 160
Income-wise Distribution
3 2 11 9 72 109
In per cent
120 100 80 60 40 20 0
94
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1 Lakh = $2,220
Graduate Post Graduate
50 Lakhs - 1 Crore 5 Lakhs - 10 Lakhs Up to 1 Lakh 20 Lakhs - 50 Lakhs 2 Lakhs - 5 Lakhs 10 Lakhs - 20 Lakhs 1 Lakh - 2 Lakhs
Schooling
Tier III
10% 23%
Tier II
67%
Tier I
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Ownership of Autos
Luxury car
15
12
34
176
Small car
2- Wheeler
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70%
65% of the respondents who travel abroad purchase foreign brands during their international trips 79% of those who purchase during international trips say that products are different from India
Follow updates
87.67%
Yes
No
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13
51
39
In per cent 2.7 21.3 56.0 28.0 93.3 57.3 89.3 4.0 30.7 65.3 2.9 51.4 48.6 61.4 92.9 68.6 90.0 18.6 32.9 50.0 12.9 20.0 35.7 37.1 91.4 47.1 90.0 27.1 27.1 28.6 Fresh Fruits & Vegetables Preserved Food & Agro Products Apparel Handbags Footwear Watches 5.9 5.0
10.6 64.7 24.7 65.9 78.8 68.2 100.0 32.9 51.8 83.5
56.9 29.4 51.0 94.1 100.0 52.9 25.5 49.0 72.5 100.0
60.0 32.5 62.5 87.5 97.5 62.5 15.0 35.0 40.0 95.0 14
Year of Entry
1931 1990 1991 1995 2000 2003 2006 2006 2006 2006 2006 2006 2007 2008 2008
Mode of Operation
Wholly owned subsidiary Wholly owned subsidiary Wholly owned subsidiary Exclusive licensing agreement Franchise agreement Distribution Agreement Franchise agreement Privately held company Exclusive licensing agreement Joint Venture Exclusive licensing agreement Franchise agreement Joint Venture Joint Venture Exclusive licensing agreement
Know/Not Use
22 33.67 64 44.67 13 18 35.33 57.67 55.67 12.67 33.33 52.33 35.67 52.67 12.67
Do Not Know
2.67 3 11.67 4.33 86.67 78 61.33 34.67 14.33 87 63 41 55.67 35.33 87
Know/Use
75.33 63.33 24.33 51 0.33 4 3.33 7.67 30 0.33 3.67 6.67 8.67 12 0.33
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Apparel
109 92
14
11 More Variety
20
0
Better Packaging Affordibility
0
Better Design Better Quality More Variety
Handbags
Apparel Footwear
82
3 3
148
202 269
3
95 28
17
300
297
232
240
150
18
56
22 3
Leather Goods
200 180 160 140 120 100 80 60 40 20 0 179 350 300 108 250 200
Fresh fruits
299
51
5 New Seasonal Product Sales & Released in Discounts market Festivals 6 2
150 100 50 0 Festivals Regular Purchases 1 Family Regular Seaonal Occasions Purchases Pruchase
19
87
76 85 86 63
60 94 95 76 90 92 55 0 10 20 30 40 50 60 70 80 90 100
Preffered Brand/Variety
Fresh New Stock/Exclusive Design Price
Per cent Note: Scale of 1 to 5, higher is better. Percentage calculated on the basis of high (4) and very high (5) on factor 20 importance ratings. This is a multiple choice question
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Factor
Infrastructure
Store Operators Availability of products Shop Operating Time Availability of public transport and toilets
Mean Evaluation*
4.49
4.47 4.36 4.30 4.26
Ability to Bargain
Parking facility Ease getting things exchanged/returned Prices of products Distance and required travel time
1.59
3.54 3.56 3.64 3.73
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Note: Scale of 1 to 5, higher is better. Percentage calculated on the basis of high (4) and very high (5) on factor importance ratings. This is a multiple choice question
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Factor
Product Quality Assortment Selection and Newness Customer Service Store Ambience and Convenience Price
Mean Importance*
4.64 4.47 4.29 4.27 3.71
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Demographic effects on Indian consumer annual spending on branded clothing and footwear
(Stepwise Regression)
Significant Variable
t-Value
Significance level
.282 .188
5.161 3.440
.000 .001
p < .001
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Furniture
Exp(B) Wald Sig.
Fresh Fruits
Exp(B) Wald Sig.
.598 .336
Model Statistics:
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Demographic effects on consumer attitude toward allowing foreign brands enter India (Stepwise Logistic Regression)
Exp(B) Wald Sig.
Education
1.984
8.604
.003
.661
6.868
.009
Model Statistics:
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Next Step
Larger survey of Indian consumers (sample size around 1,000 focusing on heterogeneity across regions, cities, products, etc.) A survey of Indian large and small retailers to understand how they cater on Indian shoppers behavior A survey of retail consumers in four Chinese cities (Sample size 200) Comparison of Indian and Chinese consumers brand consciousness, shopping behavior, etc. through primary survey and stakeholders consultation
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