What Every eCommerce Retailer Can Learn From The Latest Online Shopping Trends in India

In view of the fact that 2012 proved to be an "inflection point" for India, where online shopping grew by 128% over the previous year, Google India and TNS Australia undertook a study to note some of the key eCommerce trends to watch in India in 2013. (India, by the way, ranks third in the world in terms of Internet users -- 151.6 million -- representing only 12.6% of that country's population).

Here are some of the trends turned up by the survey, noted by Vishal Goel in a blog post, and summarized in a nice video at the end of this blog post:

1. 9 out of 10 online shoppers intend to spend more money shopping online in 2013 as compared to the previous year. The year 2013 also promises to see triple digit year on year growth of this trend.

2. People living in non-metro areas are driving the online buying. The increased buying online is from people who don't live in metro areas; much more so than that of metro online buyers.

3. Mobile phones will be the source of a greater number of queries.

4. Shoppers have shifted away from electronics to apparel and accessories. In 2013 apparel and accessories will overtake electronics to become the leading categories for online shopping.

5. Increasing online shopping growth will come in new emerging categories. Shifting away from electronics, categories such as health and nutrition, home décor furnishing, and baby products are becoming more prominent. The research indicated that 2 out of every 5 online shoppers have purchased these categories at least once. And growth of queries for these categories is the highest among all categories.

6. Ongoing influence of online travel shopping. Travel has always been, and will continue to be, the gateway for online shopping in India. Most of the new shoppers have made purchases in travel and then moved to other categories, but travel and ticketing will still remain the most popular category for purchases in 2013. This group is likely to spend two times more than the regular Internet users.

The top drivers for online shopping in India:

  • Fast delivery
  • Ability to pay cash on delivery
  • Substantial discounts compared to the markets
  • Access to branded products
  • Cash back guarantee on faulty goods.

The top barriers hindering people in India from shopping online:

  •  Can't touch and feel the goods before buying
  •  Couldn't return faulty goods purchased in the market
  •  Lack of immediate access to the goods purchased
  •  Unwillingness to post personal or financial details on the Internet
  •  Inability to bargain and get a better deal. 

Bottom Line For Your Bottom Line:

While every country has its own cultural influences on buying behavior, the trends in India look positive, but gaining consumer confidence and trust is a must to drive further growth in online shopping. For eCommerce retailers, it's worth thinking about how these kinds of trends are applicable to, and affect Global Retail in general.

Take a look at this video that nicely summarizes the new online shopping trends in India:

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Gilon Miller, CMO

About Author

Gilon is a seasoned marketing, sales and business development executive with over 15 years of experience in the software and Internet business. He is the Founder and CEO of GuruShots. Previously, Gilon was the CMO of Upstream Commerce, VP of Marketing at iMDsoft and Director of Global Marketing at SAP. He earned an MBA at the MIT Sloan School of Management and a BS in Electrical Engineering from Tufts University.
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