Why 76% of Shoppers Decide in-Store? The Power of the Physical

Did you aware of this? A whopping 76% of purchase decisions happen in the store! This statistic may surprise you in the digital age we live in, where e-commerce companies seem to be taking over. However, it draws attention to a key reality for FMCG brands: in-store experiences continue to rule the Indian market.

Compared to general trade, modern trade—think supermarkets and hypermarkets—accounts for only approximately 25% of the total sales of FMCG in India, according to a McKinsey & Company analysis. The enormous network of general trade businesses, or the well-known kirana shops on every corner, continues to handle the remaining 75% of sales.

To remain relevant and competitive in the fast-paced market of today, brands must have a thorough understanding of customer behaviour. The psychology of consumer decision-making is among the most fascinating parts of consumer behaviour. The physical sensation of being in a physical store is unmatched by anything, even though digital platforms are more accessible and convenient.

So, what does this mean for your brand?

1. Consumer Preferences: Indian consumers continue to favour the immediate satisfaction and personalised attention that physical stores provide, even in the face of the growth of e-commerce. Their decision to buy is greatly influenced by their personal ability to view, touch, and experience items.
2. Winning at the Shelf: It's important to get a customer's attention in a crowded store. 76% of in-store decisions can be greatly influenced by appealing packaging, well-placed shelves, and in-store promotions.
3. In-Store Engagement: Brands use a range of tactics to improve customer experiences in stores and boost sales. Every element of the retail space has been intentionally created to attract customers in, from engaging displays, POSM Element, Offers Communication and interactive product sampling to engage with every walking shoppers.
4. Impulse Buying: Whether drawn in by eye-catching displays, attractive promotions communications, or the desire to try something new, impulsive buying accounts for a significant proportion of sales in stores. Brands take advantage of these opportunities to promote products strategically and generate a sense of urgency.

In conclusion, In-store shopping continue to have an irresistible charm. In order to successfully respond to the varied needs of consumers, brands operating in the Indian FMCG market need to maintain a balance between their online and offline presence. Thus, the next time you enter a store, pause to recognise the complex interactions among many elements influencing your choices. Every little element, from the arrangement of the aisles to the positioning of the merchandise, has been carefully considered to make your shopping experience not just practical but also genuinely remarkable.