Bain & Company in collaboration with Flipkart, examine the current e-retail consumer trends and draw a future roadmap for the sector.
The Report covers right from the Indian e-retail evolution to online shopping journey of shoppers and lastly the future of online shopping in India.
We delve deeper into its report and brings to you some important aspects which were mentioned in this report.
Indian E-Retail Evolution
Over the last two decades rise in penetration of internet and the use of mobile and other technology has revolutionized the way shopping trend has shifted from traditional feel and touch store shopping to one-touch on their screen shopping from the comfort of their homes
The concept of e-retailing first came in picture back in 1991, when the internet penetration was close to none, a time when very few could fathom the act of buying and selling over the internet.
By the late 90’s people started to come across the word “internet” but considered it as a luxury they did not particularly need. It was only in 2002, when IRCTC launched it’s site and introduced the online reservation system then a wave of trust started toward online platforms.Soon thereafter E- retailing started to pick up with increase players providing range of products and services and not just restricted to one thing.
Online Shopping Journey
According to a study by Salesforce, nearly 64% of the global consumers stated that their expectations from online brands have grown over time. The study went on to highlight how 79% of the consumers said that the shopping experience a brand offers to them is as important as the products and deals they were offering. Here are a few pointers which show the importance of the impact of consumer engagement before purchasing a product online:-
- Consumers browse on an average, 20+ products before making an online purchase and for some selected categories like women’s ethnic wear, this number might go beyond 60 products!
- Online shopping data can provide greater insights into the online shopping preferences and patterns that can be used by brands and sellers to customize their products in order to provide a good customer experience which in return, leads to higher returns.
- According to the Bain & Co. Analysis, a product with a number of pictures will have 1 in 2 customer views while reading a detailed description will have 1/15 customer only and that makes the big difference between how products are being showcased online.
The Future Indian Retail E-Commerce
The Indian E-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second-largest E-commerce market in the world by 2034.
India e-commerce, growing at a 27 percent CAGR over 2019-24, will reach US$ 99 billion by 2024 fashion/apparel likely to be the key drivers of incremental growth. We have had such projections since the inception of e-commerce in India.
With past and future projection let us see what numbers speak about the future of online consumption and try to crystal gaze at the opportunities that lie ahead.
The four key areas which companies are investing and will shape the future of Online Indian Consumers –