Havas Media Network India released a whitepaper decoding the evolving Indian e-commerce landscape. ‘Shaping Consumer Experiences: How India Buys and How Tech is Shaping E-Commerce Adoption and Experience’ is an expedition into the heart of India’s e-commerce market. The report is launched at a time when India is taking confident strides in the retail and ecommerce sector which is likely to touch $2 trillion in the next decade.
In an era of rapid digital transformation, where technology and e-commerce are central to consumer shopping behaviour, this whitepaper delves into the catalytic role of technologies such as immersive AR/VR, AI-driven chatbots, Web 3.0, and ONDC in empowering consumers and driving business growth.
The study offers an analysis of how Indian consumers are reshaping the e-commerce landscape and how technology serves as the driving force behind this transformation. It sheds light on evolving consumer behaviour patterns, preferences, and expectations, emphasizing technology’s pivotal role in shaping these experiences. With the proliferation of smartphones, accessible internet connectivity, and innovative digital platforms, e-commerce in India has witnessed an unprecedented surge. These factors not only fuel online shopping adoption but also redefine consumer interactions with brands, purchase decisions and post-purchase experiences.
Key Insights – What can brands do to enhance customer experience in an ever-evolving digital landscape:
Tier-Based Shopping Patterns: The whitepaper uncovers distinct shopping behaviours across different city tiers in India. Urban areas prioritize convenience and variety, while smaller towns emphasize affordability and value. Brands are encouraged to tailor their marketing strategies to cater to these unique preferences.
Rise of Social Commerce: Instagram and Facebook now play a pivotal role in brand discovery and engagement. Peer and influencer-generated content drive shopping decisions, effectively turning social media into a direct shopping platform. Brands are urged to harness this trend for enhanced credibility, trust, and engagement.
Elevated Role of Direct-to-Consumer Brands (D2C): D2C brands are gaining momentum, particularly among younger consumers. Their authentic narratives and personalized products are capturing interest. Established brands should consider collaboration with D2C brands to align with evolving consumer choices.
Technological Empowerment & Convenience: Technology is revolutionizing shopping by providing convenience and empowerment. Features like chatbots, voice assistants, and AR offer seamless assistance, immersive experiences, and instant information. Brands that effectively integrate these technologies can elevate customer experiences and foster brand loyalty.
The findings of the report highlight that women are traditionally discerning by nature. Eighty-five percent state they check reviews before shopping: 81% state they check out offers and deals before shopping.
Eighty percent in the West and 78 percent in North India look for options and enjoy having a wide range of products to choose from South &Tier 3 cities (76%), on the other hand, are budget-conscious.
Both Gen Z (76 percent) and Millennials (78 percent), believe that comfort and convenience is more important than the price.
With online shopping becoming a regular shopping channel, categories with day-to-day shopping requirements are driving growth.
Grocery, Personal care, Fashion and F&B are shopped most often. We see a year-on-year rise in the frequency of these categories being shopped online.
Online shopping for Medicines/Pharmacies has picked up in the last one year. We see almost 33 percent rise in frequent shoppers.
Appliances are least shopped online. However, we observe an upward trend in this category as well.
Retailers are constantly working towards enhancing the shopping experience through digitalization. Smartphones are the most shopped category online. They are followed by Fashion & Makeup. Whereas, Medicines are researched more online but shopped offline.
The Tier Phenomena
A higher number of people from Tier 2 and 3 cities agree that when shopping online, they end up spending more than what they would spend if they were shopping offline. Perhaps access to a larger variety of options and availability of attractive deals and offers could explain why that is, as they emerge higher up in the ranking of key motivators to shop online for these cities compared to Tier 1 cities.
Awareness – Brand Discovery
YouTube, Google, and Social media has a high influence on brand discovery across generations. However, we find certain touchpoints have a higher influence across age groups.
• TV Ads – Higher skew from 35 to 45 years & 45+ years
• Social Media Influencers – Skew from 25 to 35 years & 35 to 45 years
• Ads on OTT – Skew from 25 to 35 years & 35 to 45 years
• Ads on Music platform/Podcast – Skew from 25 to 35 years & 35 to 45 years
Consideration – Compare and shortlist
Google search, Search on portals, and YouTube ads have a high influence across generations. However, we find certain touchpoints have a higher influence across age groups.
• Ads on OTT – Skew from 25 to 35 years & 35 to 45 years
• Social Media Influencers – Skew from 25 to 35 years
• Ads on Radio – Skew from 25 to 35 years & 35 to 45 years
• Experts review – Skew from 25 to 35 years
Purchase intent – Making the final choice
• Expert reviews/blogs – Skew from 25 to 35 years & 35 to 45 years
• Google Search – Skew from 25 to 35 years
• Ads on Social Media – Skew from 25 to 35 years & 35 to 45 years