Consumers turn to group buying to manage household budgets

thumbnailby Priyadarshini Narendra


  • Food inflation has been a bugbear for Indian consumers for the past couple of years. With food and grocery items accounting for as much as 30% of the household budget even in middle-class families, consumers are hard-pressed to manage within their means.
  • As a jugaad (makeshift) solution, consumers are banding together, as neighbours or extended families, and queuing up to take advantage of special offers on bulk buys.
  • Many are stocking up large quantities to guard themselves against future price rise, too. For example, a family of 16 bought 500 kg of rice, 100 litres of cooking oil, 6 kg pack of detergent among other household supplies by utilising the bulk purchase offer at Big Bazaar in Mumbai (, 8 February 2011).


  • Consumers are coming up with shrewd, practical schemes to beat the burden of rising prices.
  • The Indian consumer is keen to extract the maximum value out of every rupee he spends. He is more likely to stick to brands that give him this value for money, and also the flexibility to gain more by spending more.


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