business strategy 2019-03-20

Want to Understand the Consumer Behavior? Capgemini Invent in India Explains Here

Capgemini recently launched a report of Capgemini titled “Retailers must ‘go the extra mile’ to overcome inefficient and unprofitable delivery models". Read on...

By Senior Sub-editor
Want to Understand the Consumer Behavior? Capgemini Invent in India Explains Here

The basic of growing a business is “understanding the needs and requirements of the customer”, upon which different strategies are built and changes are incorporated into the business.

Capgemini recently launched a report of Capgemini titled “Retailers must ‘go the extra mile’ to overcome inefficient and unprofitable delivery models".

In a recent interaction with Franchise India, Aashish Chandorkar, Head of Capgemini Invent in India shares the ways how business can work on building a relationship with the customer based on the report.

Here are the excerpts from the interaction: 

Understanding Consumer Behaviour

Aashish explains in the following points, how consumer behavior can influence the way of doing business:


o Organizations that provide a superior last-mile experience which customers desire, will definitely gain a competitive edge over their peers.

o Today, consumers want faster and more frequent deliveries. We found that 40% of consumers now rank delivery services as a “must-have” feature for food and grocery purchases.

o Expectations are also increasing, with consumers gravitating towards faster delivery options. 55% of consumers said that they will switch to a competitor if that competitor offers a faster service. 

o Delivery is also seen as key to addressing a range of customer pain points. 63% of consumers order online because they find retail stores as crowded as public transport is during rush hour. Apart from this, 76% of consumers order groceries online as it allows them to choose products at their own leisure.

o We also found that 59% of consumers purchase items online when they need them or on demand rather than waiting until the weekend to purchase in the store which is a fundamental shift in decades-old purchase behavior. 

Factors that add on to the growth of the business

He adds, “Taking efforts to provide a great last-mile delivery service that delights consumers will go a long way towards attracting and retaining customers. 38% of executives mentioned the top complaint they receive from consumers in India is the late arrival of delivery. 

A detailed analysis of consumers satisfied with last-mile delivery services reveals a range of benefits:

  1. Increased loyalty when faster delivery options are made available
  2. Greater willingness to pay for the faster speed of delivery
  3. Higher monthly spend
  4. More frequent purchases.”

How is India following the global trends in terms of doing business?

Aashish describes this as:

“In India, Dark stores are the most preferred location for leveraging multiple fulfillment locations for last-mile delivery, (others being a retail storefront, store backroom, and warehouses). Dark stores are retail outposts with a store-like layout intended only to fulfill online orders. They are located close to urban areas with good connectivity to ensure fast delivery. We found that in India: 

o 33% of executives prefer dark stores to fulfill two-hour deliveries, 31% of executives prefer retail storefronts vis-à-vis just 7% prefer warehouses.

o 35% of executives prefer dark stores for same-day deliveries, 27% prefer retail storefronts, and 22% prefer warehouses.

o The global figures for delivery preference from dark stores for two-hour delivery are 20% and same-day delivery is 24%. 

o We also found a higher preference for using store backroom for delivery in India compared to other countries globally.

o For two-hour delivery, 29% of executives in India prefer retail store backrooms compared to 12% globally.

o However, for same-day delivery the preference to deliver from store backroom in India is low, 16% compared to 43% globally.

star franchise india
Sourav Chakrabarti : 25, Mar 2019 at 11:40 AM
As always Aashish Chandorkar , brings about a data driven perpective and has lot of insightful views and finally derives some key logical conclusions.
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