Consumer durables have broken the stereotype of the previous generations where only a few could possess these “white goods”. With rising disposable income, a conscious shift towards better lifestyle choices and merging of rural and urban boundaries, thanks to digital proliferation, consumer durables are no longer restricted to a few privileged households in metropolitan cities. Presently, it is considered more of a necessity than a luxury in most parts of India.
Even the slight slump brought forth by the pandemic has long disappeared with the increased purchases seen recently. According to a report by Indian Brand Equity Foundation, the consumer durables output was up by 98.2% in May 2022, compared with 70.3% decline, y-o-y. The Appliances and consumer electronics landscape is pegged to touch Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025.
Ushering in the digital era for new-age consumers
The increased penetration of consumer goods has been further fuelled by the digital economy. A RedSeer report states that, ‘India’s consumer digital economy is projected to reach US$ 800 billion by 2030, from US$ 85-90 billion in CY20, driven by increase in online shopping.’ The rise of the e-commerce and social commerce boom has altered the consumer behavioural patterns. In addition, D2C brands have created a niche for themselves in the digital shopping age.
Today, consumers can be present anywhere – remotely, and yet can have access to their preferred goods and services through online platforms. Consumers from hinterlands can also buy the latest gadget or cosmetics of a high-end or affordable brand without the presence of a single brick-and-mortar store of the respective brand in their city or villages. Similarly, grocery apps and food delivery apps also ensure last-mile outreach without the customer incurring any additional cost. In fact, the concept of 10-minute delivery is catching for some services such as essentials, groceries, medicines whereas e-commerce players and customized product providers are leveraging their own distribution network or outsourcing deliveries to ensure dame-day delivery.
Consumers today are tech-savvy and often refer to aggregator platforms to purchase consumer durables and other items in their ‘wishlist’. They do not even shy away from investing in end-end, premium products post referring to such platforms which also provide detailed customer reviews. With increased access to affordable data packs and smartphone availability, shopping is literally just a click away through Apps or websites.
In addition, consumers need to be segmented to have a better understanding of the approach for each of these segments. Some of them could include conservative / traditional mindset driven buyers, status conscious consumers, cautious buyers, idealists and liberal buyers, latest technology or innovation buyers, among others. The first category would still prefer retail touchpoints, the second one would opt for the fanciest or trendiest consumer durable, whereas the third would like to speak to multiple opinion makers for assurances. Idealists like socially conscious products or brands and innovation driven buyers believe in amassing the latest innovations and models to stay ahead of the curve.
Evolution of consumer durables marketing
Marketing in the present times is more holistic, and integrated through the right mix of channels – both online, offline. While the offline channels exist, there is a higher impetus that brands put on online platforms since it provides a higher outreach, regardless of the audience demographics.
The digital and social media platforms have become a playground for the growth of B2C brands, including consumer durables. It is imperative to note that the new-age consumers spend a considerable amount of time on social media platforms. Different stages of consideration of purchase are experienced by the existing and potential customers on these platforms, ranging from brand awareness, product portfolio knowledge, purchase decision, repurchase decision or even shifting loyalty to a competitive brand. According to a study by McKinsey & Co., ‘70 -75% of consumers’ final purchases are made from brands in the initial consideration set, more than twice as many as brands a consumer first considers much later in the decision-making journey’.
These platforms provide a direct interface with the brands either through their innovative and interactive advertisements, or through their social media handles which have fellow users comments and reviews for better understanding. Being an omni-channel, these platforms can have both a positive and negative impact on the brand reputation depending on how it chooses to engage with customers. Every single user has the power and the potential to influence a buyer’s decision. Thus, brands need to exercise caution on the engagement strategy. Leaving unanswered queries, providing mechanical bot-driven responses without the actual solution or worst engaging in a war of words can show the brand in a bad light to the new and current customer base.
The other side of this coin is effective engagement through appropriate and relevant content that is authentic and resonates with the target audience. For instance, creating a post in English for a regional festival may go unnoticed or not drive enough engagement. Similarly, brands also resort to interactive methods through contests, easy to perform challenges, and trends, among others, to establish a connect with the target group.
Another approach leveraged by consumer durable brands in the digital age is influencer engagement. Influencers are no longer celebrities alone. Instead there is a greater interest in influencers and micro-influencers who can drive immersive engagement with the audience. Owing to their relatability, users find them to be more credible, compared to celebrities and enjoy interacting with them as well as watching their content online for not just entertainment, but also educational purpose. With their significant follower base, these influencers can initiate purchase consideration and decision for brands in an enticing manner, including customized discounts and the option of shopping directly from a link shared on their profile.
This Article is authored by Rimo Bose, Public Relations Manager, TCL India.
