Consumer spending up 9.6 per cent, says KSA study

NEW DELHI: The pessimistic outlook on the retail and fashion segment seems to have turned into a positive one. The Consumer Outlook study conducted by KSA Technopak, India's leading management consulting firm specialising in the fashion and retail industries, shows that consumer spending in the year 2002 has gone up by an impressive 9.6 per cent compared to the previous year which showed a decline in spending.


The findings of the study was shared during the ongoing fifth KSA retail Summit, organised by KSA-Technopak, in Mumbai on 10-12 February 2003. KSA-Technopak is India's leading management consulting firm specialising in the fashion and retail industries.

Consumer Outlook is a strategic annual tracking study on consumer's shopping and spending behaviour across categories conducted by KSA Technopak.

KSA Technopak officials also announced that the growth implies a phenomenal rise in market opportunity for retailers, estimated to be in the region of Rs 150 billion among the SEC A and B categories in urban India alone. The five main key drivers for today's consumers, according to the study, are enjoyable shopping experience; value for money; product quality; fashion attributes and saving time.

A large percentage of consumers said they enjoyed shopping to the extent they were willing to drive further for a pleasant and better shopping experience. Consumers also showed preference for shops offering special schemes or sales and were keen on products that are trendy and in with the times. A large number of consumers said shopping was a need-driven exercise which they preferred to do at outlets where they could save time.

Announcing the results, KSA-Technopak principal and associate director Harminder Sahni says: "These insights can be transformed to opportunities for retailers. Clearly, retail outlets that would succeed are those that, in

addition to offering quality products, also build enjoyment into every part of the consumer's shopping experience; create an ambience by effective use of merchandise display techniques; offer quick and efficient service; reward

the customer for loyalty; and use a combination of promotional schemes and offers to attract the customer."

According to the study, after a sluggish growth in 2001-02 when difficult market conditions forced people to tighten belts, almost all the categories in the Indian retail sector have bounced back. Among these are footwear, apparels, apparel accessories, home textiles, entertainment, books and music, among others.

This is not to say that consumers are spending more than they are saving, for the study reveals that savings and investments have also gone up by a substantial percentage. Brown goods and personal care items purchased for self showed a decline in growth.

However, various categories continue to vie for the share of consumer's wallet, with food reigning over other categories. Consumers spent more on groceries and eating out than on other categories and this trend has been consistent over the last five years that KSA Technopak has undertaken the Consumer Outlook study.

Announcing the outlook for 2003, Harminder Sahni says: "This year, 41 per cent of consumers have declared they will spend more in 2003 than the last, while 48 per cent expect they will spend at least as much as in 2002. This

spells good news not just for retailers, manufacturers and suppliers but also for consumers who continue to benefit from the many choices on offer and the increased competition for a share in his spending rupee."

The Consumer Outlook 2003 study was conducted by random sampling of 10,000 respondents in the 15 to 58 year age group in the SEC A and B categories in 20 cities across India. The Consumer Outlook study is a consumer-behaviour based tool used for devising consumer-centric strategies and is based on research across categories such as apparel, accessories, consumer durables,

books and music and personal care items.

KSA Technopak (KSA T) is a joint venture company with Kurt Salmon Associates (KSA) in India. KSA is the world's largest management consultancy, specialising in consumer goods and retail sectors. Based in New Delhi, with an industry experience of over 10 years and a strength of 50 consultants, KSA T has an in-depth understanding of the Indian consumer products industry and a unique vision of its future.

Comprehending the needs of the fast changing retailing milieu, it formulates company strategies, augments business processes and develops systems to effectively manage change. KSA T has successfully aided India's leading retailers & suppliers in the areas of business planning and strategy, retail operations and supply chain management.

Latest Reads
Maha Cartoon targets 65 per cent rural HSM via DD FreeDish, 2000 LCOs

Who can forget the Charlie Chaplin show which entertained the world audience of all ages. Maha Cartoon, the first free-to-air (FTA) Hindi cartoon channel targeted at the Hindi-speaking markets (HSM), will be launched on India's largest DTH platform DD FreeDish on 1 November. The new Maha Cartoon...

Television TV Channels Kids
Vikram Chandra steps down; KVL Narayan Rao is new NDTV group CEO

The rumours that were making rounds of Vikram Chandra quitting NDTV have now been put to rest.

Television TV Channels People
Naagin helps Colors capture top position this week: BARC

Backed by Naagin Season 2, Colors was almost close to Star Plus to get the number one position, but, this week, Colors went few steps ahead and grabbed the leadership position and replaced Star Plus in week 42. Even in Urban GECs market, Colors toppled Star and took over the number one position.

Television TV Channels Viewership
SPN India to broadcast Barclays ATP World Tour finals

Sony Pictures Networks India (SPN) will exclusively broadcast the upcoming ATP events in the month of November. The ATP 1000 Paris Masters will be aired live on Sony ESPN channels and will be streamed live on SonyLIV app and website. The ATP 1000 Paris Masters in Paris will begin on 31 October.

Television TV Channels Sports
Hunt for Zee Business head continues

MUMBAI: Zee Business, an arm of Zee Media Corporation, has seen several transitions in its management this year. The channel was initially headed by Amish Devgan, who decided to move away after serving for 14 years. It was then led by Zee Media Corporation’s then CEO for content Samir Ahluwalia,who...

Television TV Channels People
'King' content will take over monopolistic media entities, says Arnab Goswami

NEW DELHI: The future of news lies in breaking away from the interdependence of politicians and the media on each other.

Television TV Channels News Broadcasting
Animated 'Ramayana' a global Diwali gift on web, mobile

NEW DELHI: Thirty episodes of the animated series Ramayana will be available around the world on the nexGTv web and mobile platforms during Diwali.

Television TV Shows Animation
Sports Minister lauds b'casters, other stakeholders in promoting sports

NEW DELHI: India’s Sports Minister Vijay Goel said on Wednesday that digital media broadcasting will play a critical role in bringing about change in sports broadcasting in India but broadcasters must also focus on how sports as a product is delivered to audiences in rural areas so as to popularise...

Television TV Channels Sports
Know your karma on IBN7 with 'Karm Path'

In an attempt to give its viewers a refreshing start of the day, IBN7 is launching a new show titled Karm Path. Starting 27 October, the show will predict what the day holds. The show is a differentiator in its own genre as it connotes the supremacy of deeds over destiny.

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories