Last year’s pandemic triggered a wave of digital transformation in the country. Due to a lack of choice or concerns about security or simply convenience, consumers began to digitalize the avenues to meet their needs. This change in behavior has fueled the growth of the e-commerce industry in India. The segment has already seen rapid growth in recent years due to the proliferation of the Internet and smartphones, but the pandemic triple that growth. From groceries to clothing and books to personal care products, every item has now been purchased online. The Indian e-commerce industry is expected to be a $ 200 billion market over the next three to five years.
What is interesting here is that consumer behavior has changed massively on a very fundamental level. Most of them initially started out new avenues of online shopping out of necessity, but it soon became a habit as they could sit in the comfort of their home and have everything delivered to their doorstep. This started a chain reaction for everything from products, services, to brands and categories.
For marketers like us, consumers are the center of our universe. So it was imperative for us to dig a little deeper into their behavior to understand how the growth of e-commerce has changed their lives. To this end, we conducted an online survey and asked consumers a series of questions to understand their shopping behavior and patterns.
Our e-commerce sector report provides a detailed account of changing consumer behavior in relation to the e-commerce industry, key insights for brands and companies in this area, and some interesting insights.
You can find it here – https://www.socialbeat.in/market-research-and-consumer-insights/
Important insights for brands and companies in the e-commerce sector –
1) The path to purchase is indefinite and complex –
The number of touchpoints in the digital environment for consumers has increased, as has the number of ways in which a brand can be present, innovative and interactive. According to a recent Amazon report, consumers use an average of 4 platforms before making their decision. According to the report, more than half of consumers visit Amazon to investigate that the platform is not just a purchase / action area on the consumer journey. According to a study conducted by Google, the journey between trigger and purchase is through a messy center that consists of an exploration and evaluation process. The loop can only be broken by a brand that is present at the right touchpoints and provides appropriate information to enable quick assessment. An important marketing tool after the pandemic is advertising on Amazon and Flipkart when the product and services are relevant. Advertising doesn’t have to be limited to conversion goals; it should guide consumers through the funnel. Brands also need to ensure that ad messaging is tailored to the needs of customers who are in the evaluation phase. According to a study conducted by Google, there are behavioral biases that influence our purchasing decisions. We need to get our news out by balancing our prejudices and category aspects. For example, the tendency towards scarcity plays a role when it comes to the lifestyle and fashion / luxury / premium categories. As the inventory decreases, purchasing the products becomes more desirable. Brands should also create bespoke email marketing campaigns to aggressively engage with prospects. Retargeting and abandoned basket message to get in touch with reviewing buyers before making a decision. Brands need a robust social media strategy and a comprehensive marketing plan to get consumers to buy. More social media platforms need to be explored and defined, depending on the target group and goals. This will help consumers rate quickly and get out of the “messy middle”.
2) Grocery Shopping: A Clear Winner!
When it came to understanding the key categories that were beneficial to e-commerce, survey results showed that grocery was a clear winner. The availability of items in grocery apps and websites is a major factor in a consumer’s loyalty to this platform. Continuous unavailability can lead consumers to rethink loyalty. Also, consumers have a strong affinity for buying from local stores, well-known stores, and brands they know. The UI experience makes a huge difference to a customer’s preferences. There have been cases where consumers have expressed that they distinguish Zomato and Swiggy based on their user interfaces. A simple, self-guiding and clear user interface can change the game.
3) brands with a purpose –
The global pandemic has elevated the idea of a company’s purpose or the idea of meaningful business – how brands give back to the community and the environment. There were a few important attitudes changes in 2020. According to a study conducted by Google, 86% of respondents say that the pandemic has made them more environmentally conscious. Consumers have expanded theirs
Horizons and therefore they are open to more decisions, rather better decisions. As it is rightly said, it takes a fall to learn for life. According to our survey, 70% of respondents said they used sustainable brands after the pandemic. It is now important to give your brand a higher purpose as it is no longer just a differentiator – consumers may value it more
than when customizing.
4) A shift towards digital payments –
According to a recent KPMG report, digital transactions rose to 23.7 million in October 2020, which is around 4000 crores. In our survey, we found that 70% of respondents prefer to use digital payment methods when shopping online. People in India feel more secure when dealing with physical money than when paying digitally according to prevailing consumer behavior. The results suggest that consumer preferences have shifted phenomenally. It is very evident that today’s consumers are experimenting and trying newer financial transaction platforms. The brands in this area need to be very proactive in entering into strategic partnerships with fintech platforms.
In conclusion, we’d like to say that today’s ecommerce brands can’t be complacent anymore. Consumers today are well informed and smart and have very high expectations of brands. Today’s e-commerce brand has a lot more touchpoints, a lot more potential consumers, and a complicated consumer journey to take care of. Let’s go ahead and adapt better!