The retail landscape has seen a massive digital shift over the last decade. With e-commerce and online shopping on the cards, consumers had to adapt and discern their way around new modes of spending, consumption, and most importantly the privacy of digital identities. According to PwC India's latest survey, Voice of the Consumer Survey 2024, around 82 per cent of Indian consumers consider protecting their personal data as a crucial factor in earning their trust.
Consumers Say They Will Spend More!
The survey finds that around 75 per cent of consumers say that they intend to increase their spending in the clothing, footwear, grocery, and health and beauty categories in the coming six months. This optimism though relies heavily on what brands bring to the table for them.
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Consumers say the three primary drivers of their trust were:
- The ease with which brands can simplify their lives
- The depth of their connection with them
- The inclusiveness brands foster for them
These drivers are underpinned by six factors, namely focusing on value-creating purchase journeys, aiding consumers in managing their health and wellness, maintaining authenticity on social media, ensuring robust personal data protection, creating sustainable business models, and responsibly deploying generative AI tools.
Data Protection Is a Must!
Around 74 per cent of consumers say they are okay with the use of their data for beneficial services.
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But here’s the catch, 82 per cent of consumers want brands to earn their trust by not disregarding the protection of their data. However, over 66 per cent of them have expressed willingness to share their data for more personalized experiences, indicating a complex but crucial balance between privacy and personalisation.
Consumers Care
The PwC survey shows that 69 per cent of consumers plan to increase their intake of fruits and vegetables while 75 per cent are actively seeking information on food sustainability. Where 78 per cent of Millenials favour independent sustainability scores on products, 66 per cent of Gen Z show interest in the same.
These findings show that health and well-being in addition to climate consciousness are at the forefront of an Indian consumer’s priorities.
Social Media Is Still A Paradox!
The report shows that around 58 per cent of Indian consumers purchase products directly through social media platforms (such as Instagram, Facebook, etc.) and around 77 per cent can discover new brands via them.
Despite the ease, 76 per cent are concerned about the privacy of their data. Influencer endorsements and targeted ads, however, continue to significantly influence purchasing decisions.
Physical Stores, Your Allure Remains!
The report shows that 56 per cent of consumers frequently purchase from physical stores as compared to 47 per cent who shop online.
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Such a preference for in-store shopping by Indian consumers is higher than the global average of 34 per cent. To enhance the physical store experience, brands are integrating technologies such as augmented reality and mobile payments to make shopping more seamless and engaging for consumers.
The report overall shows that consumers are placing relatively low trust in retail and consumer goods companies wherein data protection has emerged as the most important factor in building their trust.
