Major retail sales in India driven by 19% of super consumers

Aged under 25 years is a group of super consumers, these 19% of consumers are the loyal customers who are driving retail sales in India, according to Nielsen study.
Super consumers drive retail sales

A group of super consumers who comprise just 19% are driving more than half of the retail sales in India. This was reported in a study by Nielsen. Further, the report found that during new product launches, the trial rate goes 20% higher, and so does impulse shopping near about 40% more than regular shoppers.

"Innovation by companies is more likely to succeed if it is created for such consumers rather than a large majority of people who buy products very functionally," said Adrian Terron, executive director at Nielsen India.

The only challenge is in identifying such consumers which can get tricky. Usually, the perception is that such shoppers belong to the higher socio-economic class, but the fact is one-sixth of the super consumers belong to lower-income class.

“The super consumer is not necessarily the most economically empowered. But they are the ones who will typically overreach above what they normally must be spending because they are more emotionally engaged to the category," said Adrian.

A surprising fact revealed in the study is that a third of the super consumer segment is aged under 25 years and not the older age group with higher disposable income as is generally perceived. 

Consumer product companies and retailers thus target this segment with exclusive deals, focused campaigns, and plan the merchandise in stores according to them.

What retailers do in India is bank on their existing database or loyalty programmes to look for such consumers and have set strategies to impress them.

"The super consumer is not necessarily the most economically empowered. But they are the ones who will typically overreach above what they normally must be spending because they are more emotionally engaged to the category," said Adrian.

Confirming on this, a hypermarket retailer, Darshana Shah, senior vice-president - marketing at HyperCity, run by Shoppers Stop said,” "Our internal data shows that we get half our sales from loyalty members and within that, just 5% of loyal members account for half the sales. We do focus-group study or seek their feedback on merchandise-range planning, which helps in building loyalty."  

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