77 per cent of Indian shoppers prefer to shop from an omnichannel brand: Report, ET BrandEquity

<p>77 per cent of Indian shoppers prefer to shop from an omnichannel brand: Report</p>
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In the afterglow of a post-pandemic world, the future of retail is steadily being shaped by digital, as shoppers envision a future where nearly two-thirds (64 per cent) of their shopping will be online in the next 10 years, as per Wunderman Thompson Commerce and Technology’s Future Shopper report.

The report highlights the habits of online shoppers and online shopping behavior. It has covered 18 international markets (including India) and 31,000 consumers.

Further it stated that brands are closing the gap on marketplaces with online spend doubling through direct-to-consumer (D2C) channels, from seven per cent in 2022 to 14 per cent in 2023, and brands should look to review their online sales models, with more than half (58 per cent) of global shoppers saying they like to buy from branded marketplaces.

According to the latest report, India ranks highest as the percentage of consumers who would be interested in the ability to buy from beyond the grave.

With the arrival of AI and the huge amounts of data now collected on individuals, ‘post-consumerism’ is a concept that refers to carrying on purchasing from beyond the grave via uploading ‘personalities’ to the cloud or being brought back to life virtually via an avatars.

India also tops the list, although with a slightly lower percentage than last year, when it comes to digital items being bought. The report highlighted that in the case of India, the cost of mobile internet data is among the lowest globally.

This has contributed to the widespread adoption of mobile internet services in the country and massive mobile phone penetration across all strata of society and every part of the country.

India is also one of the youngest nations in the world with a median age being around 28 years, and it is expected to have one of the youngest populations in the world until 2030, it is reported.

‘Compressed commerce’, referring to customers often wanting to get through from inspiration to purchase, as quickly as possible, and those businesses, retailers and marketplaces that can do this best, often find themselves winning against their online competition.

Indian B2B buyers are those that want “compressed commerce” the most (80 per cent), while Japanese B2B buyers are the least interested (38 per cent), as per the report.

Thailand (77 per cent) and India (72 per cent) rank highest as the percentage of consumers who have changed shopping habits due to concerns around global warming and the environment.

The report mentioned that the spread of adoption of voice commerce to buy a product has gone up with China leading the way with 72 per cent of shoppers owning such a device, closely followed by India with the current consumers being in the age group of 25 to 34 year olds.

Omni-channel strategies are vital to the success of brands and retailers – redefining the future of how organizations engage with their customers and elevating the experience by maximizing the strengths of each brand, the report stated.

Further, the report suggested that 77 per cent of Indian shoppers would prefer to shop with a brand or retailer that has both a physical and online store.

When it comes to online spending, Indian consumers are reticent about making large online purchases, while German consumers are willing to spend USD 749 online.

The study stated that Indian shoppers will not shop with brands or retailers or marketplaces failing to match their expectations in the future and will not stand for an experience that is ‘boring’ or ‘engaging enough’ and ranks as the country with the highest returns after the UAE.

As per the report, Indian consumers also expect their deliveries to arrive in less than two hours, ranking them as the most impatient online shoppers vis-à-vis their global counterparts.

Consumers’ trust in these vast online ecosystems extends well beyond shopping, with 42 per cent open to using dating apps, and 51 per cent comfortable purchasing energy, water and utilities, provided by marketplaces, it stated.

India ranks the highest as the top five countries who would be open to marketplace dating services, it added.

Hugh Fletcher, global head of consultancy and innovation at Wunderman Thompson commerce and technology, said, “After years of Covid-related uncertainty, we seem to be seeing the first signs of more settled and predictable consumer behavior. And in today’s fragmented omni-channel retail landscape, a seamless shopping experience across every channel is not just an advantage, but essential for brands and retailers.”

“Whether you’re a brand, marketplace, social media platform, search engine or physical retailer, the winning formula for success can be achieved through balancing the right price, exceptional service, and a relevant experience across all channels and devices that not only grows but retains customers,” he added.

Market size of India's online retail sector likely to touch $325 billion by 2030: Deloitte India report

The report attributes these projections to the rapid growth of e-commerce in tier-2 and tier-3 cities, which have surpassed tier-1 markets in terms of total orders.

  • Published On Jul 1, 2023 at 11:00 AM IST

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