Social commerce is pivotal for discovery and influence, but is not yet a mature sales channel: Report

In the bustling world of e-commerce, understanding the digital behaviour of consumers is like finding the holy grail for marketers. IPG Mediabrands and Google recently shed light on this evolving landscape with their report, ‘The Indian online shopper 3.0’.

This comprehensive study delves into the preferences, habits, and expectations of over 7,000 online shoppers across India, covering 18 crucial categories. It offers several actionable insights for marketers eager to decode the Indian online shopper's psyche.

With India's e-commerce sector projected to soar to $300 billion by 2030, the landscape is rapidly transforming. Quick commerce, characterised by lightning-fast deliveries, often under 10-minutes, is thriving, boasting over 50 million monthly active users.

As Shashank Rathore, vice president of e-commerce at Interactive Avenues, the digital arm of IPG Mediabrands India, points out, "Marketers are grappling with understanding consumer behaviour across various platforms. This report offers knowledge that can help businesses tailor strategies to align with the dynamic preferences of Indian online shoppers."

The report paints a detailed picture of the typical Indian online shopper. It reveals that 75% of online shoppers are aged between 18 and 44, with 62% belonging to households with medium to high income.

Among those shopping for household items online, 69% are married with children, while 49% live with their parents, reflecting a trend of family-oriented online shopping. Geographically, over half of India's online shoppers are concentrated in Maharashtra (16%), Delhi (12%), Karnataka (9%), West Bengal (9%), and Tamil Nadu (8%).

The study delves into 18 product categories, uncovering interesting shopping patterns. It notes a significant uptick in emergency purchases for food, groceries, and baby products, hinting at a growing reliance on e-commerce for essential items.

Meanwhile, categories like electronics and furniture see a heavy reliance on recommendations and reviews before purchase. Fashion and beauty, driven by convenience, are witnessing both impulse and routine buying, showing the versatility of online shopping habits.

Consumers are increasingly favouring platforms that offer enhanced user experiences. Features like recommended products, live chat, and online catalogues are popular, especially among younger shoppers.

A striking 92% of users have utilised some form of platform assistance when shopping online. Product recommendations significantly influence buying decisions, emphasising the need for personalised shopping experiences. Loyalty programs, particularly those offering monetary rewards, are well-received, although concerns about data privacy and low reward value persist.

The report highlights several emerging trends and persistent challenges in the online shopping ecosystem. Direct-to-consumer (D2C) marketplaces are on the rise as brands seek more control over their branding and user experience. This shift is driven by consumers' desire for perceived quality and authenticity.

Social commerce is also gaining traction, particularly in fashion and beauty, influenced by trends, creators, and celebrities. However, despite its growing importance in discovery and influence, social commerce is not yet ready to be a primary sales channel.

Brand websites, recommendations from friends and family, TV ads, social media, and marketplace reviews emerge as the top influences on online shopping decisions. Newer influences, such as live streaming on online platforms, AI-driven reviews, social commerce shops, and tech-enabled services, are gaining ground.

On the flip side, the report identifies key pain points for online shoppers: high prices (21%), shipping charges (20%), delivery time (20%), product returns (19%), and product availability (18%).

There are several key findings of ‘The Indian online shopper 3.0’ report, which offer valuable lessons for marketers. Top amongst this is thatthese buyers are open to indulgent shopping experiences but remain conservative across most categories.

Moreover, their shopping motivations vary significantly not just across categories but also shopper profiles. Despite over a decade of e-commerce, Indian consumers still require guidance from online platforms. Marketplace giants face competition from category-specific platforms and D2C websites.