Why is the youth market an attractive opportunity for Shoppers Stop?
Aditya Zutshi
India has a fairly large percentage of young population.
Approx. 35% of Indian Population is below 15 Years of
age and 70% below 35 Years of age. Young Customers have a high propensity to consume and are more likely to be brand switchers when compared to Older Customers.
The population of India was forecasted to stay young
for the next 20 years. A larger number of earning members in the family. An increase in the number of women joining the workforce. Decrease in Dependency Ratio. All This would lead to HIGHER SAVINGS i.e. Increased Disposable Income.
Shoppers Stop viewed
the young adult apparel category to be medium on supply chain sophistication and very high on consumer’s readiness.
The fashion quotient of young people is very high.
They were more likely to spend more for latest fashion clothes. The young adults are also high users of accessories.
They are willing to pay for the best brands.
65% of Shoppers Stop Revenue came from First Citizen
Card Holder.
Out of these, 75% were in the age-group 25-45 Years. This
indicates high loyalty even from the youth.
A typical Shoppers Stop customer is between 15-40 Years of
age, earned an average household income of Rs. 30,000, shopped in group, visited Shopper’s Stop at least once a month and spent between 2000-2500 rupees a month.
Young adults if loyal to Shoppers Stop would offer much
more CLV to the store over the years.
ď‚— Net Generation wants customized product, plenty of
choice and high-speed service. ď‚— They want fun to be embedded into the product.
This requirement of plenty of choice and high speed service is where Shoppers Stop can position itself. The regular mom-and-pop stores would not be able to satisfy this need of the Net Generation.
ď‚— The perception map shows that out of the 3 competitors of Shoppers Stop,
people associate Shoppers Stop nearest to Young, Sporty, Fashionable and Dynamic. ď‚— Hence it is likely that the youth will accept Shoppers Stop as their brand if
Shoppers Stop tries to position itself as a youth icon.