An increasing number of customers in the age group of 41-60 years are spending online with travel, food and beverages (F&B) and services categories witnessing the fastest growth in spending in the first six months of 2024, according to Simpl Checkout Scan. While spending on travel grew 72%, F&B and services recorded 60% and 57% growth respectively. This shift in consumer behaviour is primarily attributed to the growing number of services going online providing ease, convenience and affordability in addition to customers getting habituated to smartphones via simpler app experience. Interestingly, Generation X, born between 1965 – 1980, are emulating the online spending behaviour of Millennials and Gen Z where travel, F&B and Services have been the most preferred picks.
Overall, seniors made over 3 million or 30 lakh transactions online via Simpl across categories with 52% increase in the frequency of transactions. Among the top spends on categories, groceries or quick commerce and food and beverage accounted for one-third of all online spends via Simpl’s 1-Tap Checkout followed by travel where senior’s made 20% of spends and the remaining on services and health and fitness. These spends were made across merchants such as Zomato, Swiggy, Blinkit, Zepto, Swiggy Instamart, MakeMyTrip, Ixigo, MyJio, BookMyShow, Apollo 24/7, Netmeds among others.
This surge in the adoption of e-commerce services is also leading to a significant increase in the average order value (AOV) across categories. While the AOV for health and fitness grew by 42% to Rs 1022 from Rs 720, travel and marketplace AOV grew by 38% and 35% respectively. Interestingly, the AOV of Boomers and Gen X is 20% higher than that of Gen Z, in a testament to the growing trust and usability of internet commerce among seniors.
Commenting on this trend, Puneet Singh, CXO- Business, Simpl said, “The Indian e-commerce industry is witnessing tectonic shifts where customers in the age group of 41-60 years have pipped 18-25 year olds in the growth in online spending via Simpl’s 1-tap Checkout across several categories. Interestingly, Gen X and Boomers also saw a 52% increase in frequency of transactions in the first six months of 2024 as against the same period last year. These shifts are driven by greater sets of services available online along with customers’ innate behaviour to seek affordability and convenience online.”