Supermarkets not just well-off shoppers' stop

The findings of a new study of modern retail customers shows that it isn't only the affluent who shop at supermarkets. Delhi-based market research consultancy Market Pulse spoke with close to 350 consumers in Delhi, Mumbai and Chennai to understand their attitudes to modern retail and their spending patterns.

The results of the study have been made available exclusively to Business Standard's weekly supplement, the strategist.

A considerable proportion (44 per cent) of customers belong to the lower socio-economic categories. Half the respondents have monthly household incomes below Rs 20,000, while 26 per cent earn less than Rs 10,000 a month.

The skew is most remarkable in Chennai, where just 8 per cent said they earned over Rs 20,000. On an average, consumers spend 19 per cent of their monthly household income on shopping at modern retail outlets "" 30 per cent in the lowest income groups and 7 per cent for those earning more than Rs 30,000 a month.

While the wider range of products at modern retail outlets is the biggest draw for most respondents, for a third of those belonging to socio-economic categories (SECs) C, D and E, the real attraction lies in the lower prices and promos.

The most frequent purchases from modern format stores are of commodities (60 per cent) and personal care products (55 per cent), followed by fruit and vegetables and home care products. The study also proves that even converts to modern retail recognise the importance of kirana stores.

The biggest advantages consumers see are proximity to their homes, personalised attention and the availability of easy credit (without needing a credit card).

Besides, the neighbourhood store retains its dominance in providing daily essentials such as milk, bread and eggs. Still, spends at modern retail outlets are more than double what consumers spend at convenience stores "" Rs 800, compared to Rs 325.

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