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Consumer Is The King
Consumer Is The King
Consumer Is The King
In brief
Consumers are willing to pay a premium for high quality and organic food.
64% are feeling the pinch of the rising cost of goods & services.
75% of Indian respondents will pay more attention to the environmental and social
Experience first
been changing with the pandemic threat looming large. During COVID-19, we closely
monitored and tracked the five key broad spending priorities of consumers – planet
first, affordability first, experience first, health first, and society first. The most
significant shift was witnessed in the ninth edition of the EY Future Consumer
Index (FCI) as experience came to the top with the biggest increase, doubling in
priority since 2020 and now assumes the greatest importance when Indian
consumers decide on where to spend, while it was the smallest at the beginning of
the pandemic.
The FCI findings bear testimony to the fact that "Experience first" is the priority
segment now in India (31%), in line with the US (24%), France (26%), and Thailand
(32%).
The pandemic-induced fear has led to the tendency to save more amongst people.
But it comes as an incredible revelation that in the backdrop of insecurity toward job
and income, and inflationary pressure, Indian consumers' buying behaviour is not
driven by price as they are willing to pay a premium for high quality and organic
food. Purchasing fresh food, household products, and grocery delivery continues to
have the larger pie of spending for the household. At the time of the FCI survey, a dip
in the COVID numbers was observed, yet people were conscious of their physical
well-being and continued to take good care of their health. With the recent rise in
COVID cases, health will undoubtedly remain a high priority for consumers who are
not ready to rely on the brand anymore; but are questioning the impact of a
The FCI survey shows an uptick in economic activities, with business gaining
momentum despite the prevalent COVID fear. Though feeling the heat with ever-
rising prices and inflation surging ahead, Indian consumers reflect a more positive
outlook than their global counterparts on expected changes in a financial situation at
72%.
The survey, though, highlights that emerging markets are feeling the pinch strongly,
with 62% citing affordability affecting their choices (South Africa 77%, India 64%,
Brazil 63%, China 42%), compared with 45% of respondents from developed markets
(US 50%, Canada 52%, UK 42%, France 40%).
Road ahead
Having set the tone for the future of business, the findings of the FCI survey indicate
that the top priority for organizations is customer-centric solutions. For creating
long-term sustainable companies, the leaders must focus on identifying and setting
Rapid innovation: The need for ‘experience first’ points towards the need to
services. The past may have seen products use long term differentiators to create
Leverage technology to stay ahead: The key to sustaining and staying ahead of
the curve is by being the first to provide a unique experience. Today, the end goal is
not the purchase by customers but their experience thereafter, which defines the
success or failure of the product or service. Businesses can engage AI and relevant
technologies and use data analytics, Big Data to decipher customers' buying
preferences, frequency of their purchases, and other such details to create a better
providing one solution to all is a recipe for disaster. Use data, analytics, and
technology to build an ecosystem where every customer is regarded as superior, and