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IPG Mediabrands, in collaboration with Google released 'The Indian Online Shopper 3.0', a detailed exploration of consumer behaviour in digital shopping. The comprehensive report is based on a survey of over 7,000 consumers across India and delves into 18 key shopping categories, providing crucial insights into online shopping trends and consumer preferences.
Key Takeaways
The report reveals several trends shaping the Indian online shopping experience. The Indian online shopper is increasingly open to hedonistic shopping, yet remains conservative in certain categories. Shopping motivations vary widely not only across different product categories but also among different shopper profiles.
Despite the growth of ecommerce over the past 15 years, many Indian consumers still seek guidance from online retail platforms. Social commerce, while not yet a dominant sales channel has emerged as a crucial point of discovery and influence. Additionally, category-specific marketplaces and D2C brand websites are beginning to capture market share from traditional marketplace giants.
Category Insights
The study provides a detailed profile of the Indian online shopper, highlighting key demographics and behavioural patterns. The majority of online shoppers are younger, with 75 per cent aged between 18 and 44. Most are married (69 per cent) and live with children or parents, indicating a strong household focus on their shopping habits. Capital is notable among online shoppers, with 62 per cent falling into medium to high-income brackets. The shopping concentration is highest in five states namely, Maharashtra (16 per cent), Delhi (12 per cent), Karnataka (9 per cent, West Bengal (9 per cent) and Tamil Nadu (8 per cent).
Quick commerce has driven an increase in emergency purchases in categories such as food, groceries and baby products. Recommendations and reviews play a critical role in influencing decisions, particularly for high-value items like electronics and furniture. The fashion and beauty sectors are witnessing a surge in online shopping, characterised by both impulse and routine buying behaviours, largely driven by the convenience of online platforms.
Shopping Sources & Pain Points
The study identifies several pain points and trends in online shopping. There is a resurgence of D2C marketplaces as brands seek greater control over the shopping experience and product authenticity. Fashion and beauty categories are leading the way in social commerce, influenced by trends, creators and celebrities. Platform features such as recommended products, live chat and online catalogues are increasingly popular, especially among younger shoppers. 92 per cent of users have engaged with some form of platform feature, with product recommendations playing a pivotal role in brand switching.
The report highlights various influences shaping online shopping behaviours including brand websites, recommendations from friends and family, TV ads, social media and marketplace reviews. Emerging influences such as live streaming, AI reviews and social commerce shops are gaining traction. However, shoppers face several pain points including price concerns (21 per cent), shipping charges (20 per cent), delivery time (20 per cent), product returns (19 per cent) and product availability (18 per cent).
Shashank Rathore, VP, ECommerce, Interactive Avenues (the digital arm of IPG Mediabrands India) said, “The ecommerce industry in India is growing rapidly, poised to reach $300 billion by 2030. Quick commerce is now thriving, with over 50 million monthly active users. Amidst these changes, marketers face challenges in understanding audience behaviour across multiple shopping platforms. To simplify these complexities and provide valuable insights, we conducted a detailed study of over 7,000 online shoppers. Our report explores strategic consumer nuances, growth drivers, and online buying behaviour across key demographics, industry categories, and shopping platforms. I am confident that the Indian Online Shopper 3.0 will serve as a valuable resource for businesses and industry professionals navigating this dynamic market.”
