EkaLore wishes our audience Happy Diwali to all who celebrate it. Today we’re going to talk about shopping in one of the largest and rapidly growing eCommerce markets.
The highest participation sport in India is shopping. Many people in G7 economies think their neighbors and friends are the greatest shoppers in the world. Indian shoppers are the greatest shoppers considering:
· 658,000,000 active Internet users of which India has the 2nd largest active base of shoppers after only China (likely to have passed the North American market space in 2022-3).
· Total online active hours per day in major markets exceeds seven hours per user with major opportunities to expand eCommerce with targeting on social media, game-vertising, and video/OTT
· 76.7% e-commerce penetration
· Tier 1, 2, and 3 Cities use mobile shopping and payments more
· More than 75% of Indian shoppers used omnichannel/online for most purchase categories
· 72% were in favor of “flash sales” compared to 19% for a government ban on the online feature [2021]
· 98% of Indian Internet users voted shopping a top reason to use the Internet as usage climbed and surveys reflect savvy shoppers looking for good buys for their budget and value
· 53% of Indian shoppers buy at least weekly or more often [US Internet had 76% online shoppers with only 62% using the Internet to shop once a month]
· Likely growth of 20-30% over the next 5 years with even larger total shoppers following
… and so on
“Quick Commerce” as an Indian social change is a reflection of how fast and how deeply shoppers have changed their value perceptions post-Covid-19. Even as consumers return to traditional shopping venues the pursuit of good deals and pricing information online increases online shopping activity. Indian online shoppers readily pursue fashion, food, beauty/personal care, and consumable household items. Brands looking to be “just in time” with consumers drive traffic and transactions to multiple channels of fulfillment. Accelerating from Covid-19, Indian online shopping is continuing to grow into many other consumer and business categories.
Businesses are using eCommerce to be efficient with distributors, payments, and stocking. As jobbers and distributors seek to offer value to retailers supportive eCommerce is a critical relationship feature. EkaLore has released a previous eCommerce analysis here - www.ekalore.com/post/alien-invaders-reliance-thrives
The population of intense shoppers in India brings benefits for consumers for better price info, product info, and comparisons. Merchants see multiple advertising and buying options as able to accelerate and drive transactions. Building brand awareness, then building critical trust for a transaction, with shoppers is still an obstacle for Indian online merchants.
Read more of our observations about Dynamic India at www.ekalore.com/india-business
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