Indians making buying decisions on Facebook reviews, social media open to marketers of all brands

MUMBAI: Till a few months ago Bhushan Kalap was happy to stroll into a neighbourhood mall to find out the best deals on consumer durables. These days the 30-year-old artist gets the same information at home - via online social networks like Facebook . 

"My buying decisions were totally dependent on either salespeople or friends who would give feedback based on their experience. But now I go by online reviews, as I assume that a majority of such consumers can't go wrong," says Kalap. 

Kalap is not just one of the estimated 30 million Indians hooked onto social media; he is also among those Indians who are spending more time on social media than on checking personal email, according to a study conducted by market research firm. 

The Nielsen Company in collaboration with research and analytics company AbsolutData . While just 8% spend between an hour and three hours on personal email, 20% spend the same time on social media sites, reveals the study. The online survey covered 2,000 people from all walks of life spread across top five metros and tier 1 cities in India. 

Interestingly, if more people are spending time on social networking websites than on email, it's because they are using social media itself to send messages rather than logging into their email inboxes. Some 82% of those surveyed use social media to send messages. For marketers, the behaviour of the likes of Kalap is noteworthy. For, he is not the only one relying on social networks for product information. Some 40 million, or 67% of Indians on the web, rely on online reviews to make purchases. 

The survey also points out that company and product information is what most consumers expect online. "This is a platform where people can decide against or for a particular brand. When we see consumers talking negatively about our brand, we make sure to nullify that by reaching out to them through a dedicated team," says LK Gupta, chief marketing officer, LG India. 

LG India has set up an 'Online Reputation Management' team to deal with such issues. This initiative was flagged off after the country's largest consumer durables firm noted that 40-50% of consumers use the internet first to search and learn about the product before actually going to stores or discussing with anyone. 

"This indicates that no single brand 'owns' the social media space and that the opportunity to become a 'social' brand is overwhelming," says Adrian Terron, vice-president, The Nielsen Company. "Having a social media presence connotes 'innovation', 'customer friendliness' and a sense of 'cool'. Brands should only ignore this aspect at their own peril." 

While social networks are a great source of information on brands, they also provide a great platform for consumers to tell marketers what exactly they feel about these brands. To that extent, social media's relevance extends beyond influencing buying decisions. Consider, for instance, Perfetti Van Mell , makers of Happydent, Chlormint and Alpenliebe. As Mohit Bhalla, media consultant for the company, explains, there's little social media can do to make consumers buy Perfetti's confectionery and gum as this is an impulse segment. 

Still, the social web has moved beyond supplementing communication. "Online Indians today are using social media to facilitate activities that range from leisure and entertainment to job searches and researching prospective partners," says Suhale Kapoor, executive vice-president, AbsolutData. 

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