Grocery shopping has entered a new era in India, influenced by factors such as fast-paced changes in technology and evolving consumer behavior. Convenience, technology, and engagement are at the heart of the changing face of grocery shopping in India.

Here are the key trends that are influencing Indian consumers’ online and in-store grocery shopping habits:

1. Engaging Experiences, Convenient Delivery

The pandemic has given rise to a number of ordering and delivery services – bringing home-bound consumers everything from medicines to groceries. Two in five Indian consumers find using online grocery shopping apps convenient. At the same time, nearly two-thirds consider grocery shopping at neighborhood stores to be fun. 

To satisfy this dual-natured behavior, brands can adopt a hybrid model where offline experiences can be supported with online tools. Brick-and-mortar retailers can also attract time-pressed consumers by creating all-in-one spaces to cater to their needs.

With the growth of online shopping trends, offline stores can leverage home with delivery as over two-thirds of Indian shoppers agree that home delivery is an important factor when deciding where to shop. 

2. Digital Shifts are Transforming Tier II Markets

More exposure to digital channels is expanding Tier II consumers’ desire for new products. They are just as likely, or more likely, to see the convenience in grocery shopping apps as Tier I consumers. While these consumers are evolving with aspirational lifestyles, according to Mintel research on premiumization in India, they may not be attainable through local, offline channels.

Tier II consumers also exhibit price sensitivity with two-thirds believing that online grocery shopping offers more discounts than neighborhood stores. Online brands like Grofers, Flipkart, and JioMart are tapping into new Tier II and III markets and exploring tie-ups with local micro-sellers.

3. Millennials are Enhancing their Household Skills 

Aided by the pandemic, consumers are readily exploring their interests in domestic activities and utilizing their free time to learn new household skills. Older Millennials aged 35-44 are more inclined to improve their cooking skills and 39 percent of men in this cohort look for gourmet ingredients to ramp up their cooking.

Stores can stand out by stocking traditional Indian groceries along with non-traditional ingredients like Italian puree, oregano, cheese like parmesan, olive oil, curated meats, and other cold cuts.

4. Consumers are Seeking Value for Money Products

Apart from convenience, Indian consumers are always seeking value for money with their grocery shopping. With multiple channels available for consumers to shop from, grocery apps and physical-only stores need to keep their prices competitive. 

To retain value-seeking consumers, offline channels have the task of creating unique offers and delivering the information to their target audience via physical and digital means. 

Source: Mintel