Do Indians Make Unplanned Purchases?
I came across an interesting article the other day. It basically dealt with a study related to impulse purchases. A study undertaken by a Wharton Professor and his colleagues found that there was one key difference between American shoppers and Dutch shoppers with respect to impulse purchases. It was noted that because Americans drive to stores (which are fragmented/ and also Americans are lazy) they tend to make more impulse purchases as compared to their Dutch counterparts who tend to walk to their supermarkets.
This is interesting especially in the scope of India. There are a couple of points to note here:
a) A lot of Indians don’t have cars.
b) Majority of Indians don’t have extra money to spend on unplanned impulse purchases.
c) For Indians shopping is a like a picnic – a day out. Something noted by Kishore Biyani, the mastermind behind Big Bazaar.
This brings forth an interesting mix.
On one hand, Indians SHOULD shop more because of the ‘picnic’/ carnival association where the likelihood of getting attracted to newer things is higher.
On the other hand, there is no personal transport/ SUV to lug unplanned purchases back home. It is also important to note that Indians are not still comfortable with the new retail shopping formats. I for one get extremely confused when i enter a Wal Mart store. I entered one a couple of months back and i left without purchasing anything – i just did not know what to do. I would label myself as an evolved Indian consumer (not in retail albeit). I can only imagine the problems associated with the same for Indian consumers who are just exploring these formats.
A seeming ‘auto – pilot’ nature thus kicks in because consumers will also be a little intimidated in these new formats and stick to things/ brands they feel comfortable dealing with. Products and brands that give them a feeling of security in a completely new environment.
The lack of comfort should not be mixed with a tendency towards planning purchases.
Cross posted on my personal blog
