- With increasing financial independence, women in India exhibit individualistic shopping behaviour across geographies.
- Fake reviews of health and wellness products deter over 42% of rest of India shoppers from making purchases in this category.
- More than 60% of people prefer shopping via apps over websites. There was a clear preference for marketplace apps since they cater to many categories.
- YouTube emerged as a clear winner when it comes to a reliable platform (discovery, information, usage experience and unboxing videos) for making buying choices.
- GenZ in Rest of India prefer cash on delivery (CoD) as their preferred mode of payment
PwC India has recently released a report unveiling insights on the evolving dynamics of e-commerce in India, particularly focusing on the shopping behaviour of consumers in tier 2 and tier 3 regions. Titled “How India shops online: Consumer preferences in the metropolises and tier 1-4 cities”, the report encapsulates comprehensive research that aims to reshape the trajectory for businesses operating in India’s burgeoning digital marketplace.
“The next phase of growth for ecommerce will be driven by the new digital savvy consumers of tier 2,3 and 4 cities in India. In contrast to urban dwellers, these individuals, constrained by limited access to physical stores and brand choices consider online shopping a gateway to fulfil their aspirations”, said Somick Goswami, Partner and Business Transformation Leader, PwC India
The report is based on an online survey of 2,100 people, 100 qualitative interviews, and 400 in-person interviews across India with leading experts and industry partners. It provides nuanced insights into the purchasing habits, choices, and mindsets of online shoppers nationwide.
“India’s online consumption gravity is decisively percolating to markets beyond metros. This report creates an industry first insight on what are some of the unmissable category wise nuggets a brand needs to imbibe to success in Rest of India” said, Ravi Kapoor, Partner and Leader – Retail and Consumer Goods, PwC India.
In recent years, approximately 12.5(1) crore consumers in India have embraced online shopping, with a significant portion hailing from tier 2, 3, and 4 cities. Online shopping has emerged not only as a convenience but as a lifeline, especially for individuals in these regions where access to the latest products in physical stores is limited. These consumers, distinct in their digital literacy, infrastructure access, and socio-cultural influences, are driving a retail revolution in the country. This presents a monumental opportunity for brands to tap into this booming market.
Prateek Sinha, Partner and Leader – Design and Experience Consulting, PwC India said, “The report emphasises the need for tailored e-commerce experiences to resonate with diverse users across India. A human-centred approach, coupled with localised strategies and inclusivity, is crucial for success. It’s about connecting with each customer on a personal level, celebrating the rich tapestry of our cultures, and innovating every step of the way. By embracing agility and a deep understanding of consumer dynamics, businesses can chart a trajectory of sustained growth and profitability. When businesses get this right, they’re not just selling products; they’re creating experiences that people love and trust”.
