Being consumer centric is the key to any business, including an online business. Understanding your consumer will help to ensure you are on the right track in striking the right chord with them.
What do consumers really want? Its more difficult to answer this in e-commerce particularly as your consumers are not there physically in front of you, to read their mannerisms or browsing patterns. However, traditional methods like surveys in addition to consumer buying patterns can help to understand e-consumer requirements.
yourstory, in association with Kalari Capital, conducted a survey with a balanced demographic spread in terms of age, gender, profession and location of residence.
- 65% of the respondents were in the age group of 22-30 years.
- 53% of the respondents were from Bangalore, Mumbai and NCR.
- 62% of the respondents were salaried employees and entrepreneurs.
The results have been summarised in the infographic below.
Not surprising ..
- Only 10% had made transactions before 2007. (While RedBus was started in 2006, Flipkart and Myntra were started in 2007, followed by Snapdeal in 2010.)
- Majority made their first online transaction in 2008-2010.
- 55% made their first online transaction (single largest set of online converts) in 2011-2013.
Introduction of COD – A Game Changer
Unlike the majority belief that Cash-On-Delivery (COD) helped to solve the plastic money issues, ie. most Indian consumers did not have credit/debit cards, the actual reason in different.
- 55% of respondents expressed their skepticism for online shopping initially and said that they took time to try out online shopping as they were worried how the products would look like if they purchased before seeing and feeling the product. So, COD actually helped to solve this as consumers could see the products and check them out like in a physical store before making payment for their purchases.
- 35% felt at ease with online shopping after trying out COD once Flipkart introduced it on 2007, followed by the other players in 2010 and onward.
It goes without saying that consumers are now comfortable and at ease with online shopping, the explosive growth and popularity of e-commerce a testimony to that.
Reasons for adoption of e-commerce
- Lower prices (No surprises there !)
- Home delivery of purchases
- Browse through various options at one go and at one place
How do consumers find what they want?
- 60% have a mind map of different e-commerce sites for different products. (For example, Myntra is associated with Myntra, Flipkart and Amazon are linked to electronics and books, Snapdeal for bigger discounts etc.)
- 19% still Google to find best deals for their desired products.
- 10% still feel purchasing from some sites are unsafe.
Frequency of usage
- 48% purchase as and when they want something.
- 30% purchase at least once a month.
- 32% browse through catalogues and deals at least once a day in their free time. (helps to increase unplanned and impulsive shopping)
Extent of usage
- Electronics is the most frequently (32%) purchased product category, followed by books and clothing.
- 37% are ready to spend Rs 2,000-Rs 10,000 in a single transaction.
- 34% are ready to go up to spending Rs 10,000- Rs 50,000.
- 78% have spent highest on electronics in their transactions.