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New Delhi, June 18 Economic slowdown is impacting grocery shopping with 18-20 per cent respondents trimming their monthly grocery expense, according to a Cartesian Grocery Shopping Survey.

The reduction in budget is more evident in the middle-class, and in Mumbai, where 20 per cent of the respondents claimed to have trimmed their monthly grocery expenses. Consumers are now exercising a greater degree of caution and control while grocery shopping by prioritising a list of things they need, the survey said. Most respondents are either switching to larger but more economical packs, or smaller packs to reduce immediate outflow. Tough economic conditions have led to a shift in brand loyalties with 47 per cent respondents in Mumbai switching from their usual brands to brands offering better deals.

Another significant finding of the survey was a gradual increase in preference for self service stores over the neighbourhood kirana store, demonstrating the importance of economical deals and offers with 86 per cent respondents admitting to actively looking out for better deals and offers.

Mr Sandeep Mittal, Managing Director, Cartesian Consulting, said, “While we’ve seen a decrease in brand loyalty in the last two months, we have found that loyalty programmes are more effective in a recession with 68 per cent using them more actively.

“This is a great tool for marketers to adopt in an economically challenging environment where the focus is more on customer retention than acquisition. Marketers need to be innovative in designing their loyalty programmes, offering cost effective pack sizes and value-based offers.”

More Stories on : Marketing Research | Foods & Food Processing

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