India has the largest percentage of internet users who have nearly doubled in recent times. In spite of increasing internet users population, there’s a relatively lower percentage of people who indulge themselves in online digital transactions, be it buying products from various online shopping platforms, booking travel packages online or paying for online streaming services like Netflix or Spotify. Some people are still reluctant to make purchases online and feel unsafe or unsure about doing that.
Recently, in a research conducted by BCG and Nielsen under the title, “ Digital Consumer Spending in India: A $100 Billion opportunity”, it showed that by 2020 the total online spending by consumers will take a hike of $100B from $40B of today. Here are the reasons listed on how this could be a reality. Let’s understand consumer’s digital spending behavior more intimately.
- Digital up-gradation by 2020
Internet users aren’t making online purchases yet. We see a trend where buyers are surfing and browsing online but become reluctant when it comes to making an online purchase. Even if they decide to do it, they’ll either be occasional buyers or spend a small amount for their online transaction. However, it’s estimated that by 2020 with the digital advancement there’s a possibility of people spending more on online categories like clothes, gadgets, food, and groceries which will only lead us towards $100B goal.
With infrastructure advancing and people becoming more technology friendly, there are positive signs for increased digital consumer spending.
- Change in the demographic factors of online shoppers
Age, gender, and place of residence are some factors that greatly influence how people choose to make their online purchases. While now, there’s a wider percentage of male population making online purchases than women and youngsters being more friendly with digital spending than young teenagers or old population, it’s estimated that by 2020 these figures will show a change. The female shoppers and people from 35 yrs and above shoppers will increase and so will the shopping trends of people living in non-metro cities.
With these growing trends, marketers will also need to update their various policies related to price, delivery, and returns to suit the market trends.
- With buyers shopping habits progressing, brands should do the same
While the shopper’s habits are evolving, it’s important that the brands are evolving as well. By 2020, it’s expected that more consumers will enter this shopping bandwagon making it wider and broader concept. When brands will evolve with the changing trend, they’ll better use the opportunity to their benefit. And if this happens the digital spending in India will surely surpass the goal of $100B by 2020.
Let’s understand how brands can play a major role in evolving consumer habits in making digital payment in India:
- For the shoppers who buy often, brands should try to set up a more personal form of communication with them to keep them attracted and offer unique & exclusive offers and
- Focus on occasional shoppers by providing services like easy and fast delivery, flexible return policies and efficient after-sales policies.
- To attract non-buyers, use strategies that could build their trust in digital spending and give them access to easy-to-use online platforms to make purchases.
So saying that by 2020 consumers will be more involved in digital spending than they are now wouldn’t be entirely wrong. Brands should adopt these strategies and soon there shall be an improvement in the consumer’s digital spending habits.
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