Mumbai: The Indian e-commerce industry’s growth has accelerated over the past few years and emerged among the largest online shopping geos in the world, thanks to the penetration of smartphones and the Internet. And, the series of lockdowns has further fueled its growth. ‘Zee5 Intelligence Monitor- E-commerce Report Consumer Insights & Trends’ aims to comprehend this changing phenomenon of the e-commerce industry and analyse where the industry is heading.
The report, based on a consumer survey by Zee5 in over 146 cities, dives deep into consumer insights and tracks the changes in consumption patterns and consumer attitudes in India. Let's look at the report's findings to understand expected and asynchronous trends of the e-commerce industry.
Online Shopping Has Become A Mainstream Trend
The survey found that 95 per cent of the respondents shop online and use more than one e-commerce platform to meet their shopping needs. The respondents include many shoppers who made their first online purchase during the lockdown. Further, the report also unearthed that 60 per cent of respondents have more than three apps, and 25 per cent use more than five e-commerce apps regularly.
The figures reflect that e-commerce, which used to be one of many purchasing options in the pre-pandemic world, has now become mainstream. Note that the respondents include people from Tier I and Tier II and III cities. Lockdown served as an excellent opportunity for consumers to explore online shopping.
Now, the figures of the Zee5 survey clearly show that while this shift was initially triggered due to limitation of movement, people started liking the convenience and ease of online shopping.
Uptick In Frequency Of Online Purchases
The untimely lockdown also marked an uptick in the frequency of online shopping. According to the report, while shopping online was an irregular trend before the lockdown, people now make frequent online purchases, with a whopping 60 per cent of users shopping online at least twice a month and 20 per cent at least five times a month.
People over The Age Of 35 Started Spending More On E-commerce
What makes the data more interesting is that online shopping, which used to be a Gen Z thing, has significantly become popular even among Gen Y, including people over the age of 35. If we speak of numbers, 55 per cent of Gen Y users spent over 20 per cent more on online shopping since the first lockdown. A critical reason behind this notable growth is the dissolution of the barriers between online and offline shopping.
Male Shoppers Leading E-Commerce Race Over Females
It is a common belief that women are key drivers of e-commerce growth, but the survey revealed that it is presently the male shoppers who are currently leading the race.
As per the findings, 22 per cent of the male consumers made more than five online purchases against 14 per cent of female shoppers. The asymmetry of mobile users among men and women in Tier II and Tier III markets could be a significant reason for this demographic shift in e-commerce sales. Another factor could be increased use of social media, which exposes men to the latest fashion and lifestyle trends, resulting in e-commerce purchases. This shift opens a massive opportunity for brands dealing mainly with men's products.
E-commerce Window Shopping: Mood Upliftment
As lockdown restricted people from going out and having fun, they found new ways to engage themselves. While some of them revisited their old hobbies, others found new pastimes. Interestingly, online window shopping emerged as a favorite activity for many people. The Zee5 report suggested that 25 per cent of their respondents consider online shopping to enhance their mood. Online platforms offer an unprecedented level of product discovery and a shift in perception of e-commerce from 'need fulfillment' to 'mood upliftment'.
OTT Shows Have Emerged As A Platform For Fashion Discovery
Ever since the first lockdown was imposed, people unknowingly started spending more time online. Since everyone in the family was locked inside their homes, OTT content consumption recorded enormous growth. Interestingly, as an offshoot of increased consumption, OTT shows emerged as a platform for fashion discovery among consumers. Reportedly, 87 per cent of users look forward to discovering fashion and lifestyle products in the shows they watch online. This is not it; even 75 per cent of people are likely to buy similar products and clothes that their favorite actors use or wear. And, naturally OTT platforms have become a platform of choice for all ecommerce advertisers.
People Conduct Online Purchase After Checking Products In-Store
The report discovered that 70 per cent of male users do online shopping after checking the same products in-store. It wouldn't be wrong to say that now consumers don't differentiate online and offline and make purchases based on their preference. Brands must invest in hybrid and omnichannel models that will allow them to cater to their customers wherever they choose to be. As the lockdown eases with time, we can look forward to an integrated market where e-commerce will most likely complement the offline market.
