Why do you shop online?
If you asked that question to a random online user, in all probability you will get the answer – “Because I get good deals and discounts”. If that’s not the answer, it will be “because I can shop from comfort of my home”. Undoubtedly, these are the two reasons why Online shopping has seen phenomenal growth over last few years and is expected to remain so in foreseeable future.
According to a recent report, Indian eCommerce market, which is currently pegged at Rs 78,000 crore ($13 billion) is all set to cross Rs 5,40,000 crore ($90 billion) by 2019, an increase of 700% in 5 years.
Digital Marketing Training Institute (DMTI) recently came out with a report to find why Indians shop online, and according to it, 61% Indians look for deals before they shop online. 55% look for discounts and 54% said they can shop whenever they want.
Deals and discounts are especially sought by shoppers when they are making purchase of electronic goods online. However, when it comes to travel tickets, 64 percent responded said that price is not the factor for purchasing tickets online.
Interestingly, if the shoppers find the price of the product lower in offline shops, they will actually go and buy them from offline store.
While eCommerce is extremely popular for purchases of Tickets, Electronic goods and even apparels, there are some categories that are still not very popular online. More than 3 out of 4 people said that they will not buy Furniture, Jewellery and Artifacts/Paintings online. 69% people said they don’t buy international food items and 63% said they do not buy groceries online.
However, report states that even though Jewellery purchase may not be too popular online right now, it is poised to be one of the fastest growing segments in India’s e-commerce market which is projected to become an $8 billion industry in the next two years.
Consumers Hate Remarketing Ads
When you buy something online or visit a particular product page, you suddenly start seeing similar product ads for next few days or even weeks. These are called remarketing ads. They are are so commonplace now that 43% of the people say they remember being “haunted” and “followed” by products they had searched for and they don’t like it!
Other Highlights of the report
- 12 percent of Indian population is into online transactions.
- Consumers are more confident buying brands they have bought and used before
- Consumers in the age group of 18-25 are the main influencers for all online purchase decisions in the family.
- The country’s e-commerce market to reach $56 billion by 2023
- Online grocery retail is slowly growing, and is expected to reach around 2% of the market by 2020, creating a potential market size of around $10 billion.
The report suggests that brands and ecommerce sites should not bombard consumers with ads and should cap the number of impressions per day. Diversification of Ads is necessary, so consumers do not get bored with them.
You can check out the entire report below:
