Business

78% of consumers shop online more than they did before the pandemic: Shopify’s

Shopify, a major provider of critical internet infrastructure for commerce that powers some of India’s largest and most well-known businesses, has issued its Festive Shopping Outlook for 2022.

Shopify polled 1,000 Indian consumers from metro and non-metro cities to investigate the dynamics of ever-changing consumer behaviour and spending patterns during the festive season in the post-pandemic period.

  • 85% of consumers intend to spend more than ever before throughout the holiday season – 78% of consumers currently shop online more than before the epidemic
  • This year’s trend is led by cashless payments and offers on fashion, technology, and necessities
  • Strong preference for shopping locally, with 96% purchasing Indian brands, up from 58% in 2021.

Diwali, the festival of lights, is one of the most cherished occasions in India, and it is an excellent opportunity for businesses to improve their sales.

According to Shopify’s 2022 Festive Shopping Outlook, cashless payments, online shopping, and offers on fashion, electronics, and basics are at the top of consumer wish lists in the run-up to Diwali.

“The digital transition has here, and it is ushering Indian customers into the next phase of purchasing.” Diwali 2022 will be a massive shopping event across the country, with customers spending more than ever before and preferring the convenience of internet purchasing. Participating online through marketplaces and their own website is now a given for companies, since consumers prefer to browse online before visiting their local store. And, with some uncertainty around the global economy, purchasers are more careful about where they spend their money; nonetheless, promotions and discounts for fashion, electronics, and basic items, as well as backing for local firms, have increased overall spend.”

Bharati Balakrishnan, Shopify India’s Country Head and Director

The Festive Shopping Outlook also identified 10 trends shaping India’s retail sector ahead of Diwali.

  1. Consumers raising the bar for festive expenses: Due to increased purchasing capacity and a renewed desire to improve their lifestyle following the pandemic, Indian shoppers plan to spend more on festive shopping this year than in past years. As many as 85.82% of those polled reported a willingness to spend more money than in prior years.
  2. Trust in e-tailers continues to run high: This year, the Indian retail sector continues to observe a rising movement from offline to online buying. Over the holiday season, 78.57% of people plan to shop online more than they did before the outbreak. The change in consumer choice can be ascribed to online shopping’s convenience of purchasing from anywhere, as well as partner discounts, special deals, simple payment options, and speedy deliveries. People outside of metro areas are increasingly trusting e-tailers with their holiday shopping, in addition to metro residents.
  3. Electronics and fashion rule the festive sales:While traditional festive gifts like dry fruits, sweets, and chocolates remain popular, Shopify India’s poll found a significant increase in the number of individuals planned to spend on fashion and accessories, followed by consumer electronics and gadgets. Fashion and accessories are preferred by 81.65% of consumers, with 76.37% also purchasing dry fruits, sweets, and chocolates and 68.57% spending on home devices and gadgets. This trend reflects the aspirations of current customers, who see festival offers as a great way to upgrade their lifestyle.
  4. Cashless payments becoming the new norm: With the Government of India pushing cashless payments among the population via secure payment gateways and incentives, digital payment methods such as UPI, cards, and internet banking have emerged as the most popular options among Indian customers. Because of the growing popularity of cashless payments, advance cash payments are gradually losing favour. UPI is the most popular payment option, with 67.36% of people using it, followed by 45.49% using credit cards, 37.69% using net banking, and 38.68% using reward points.
  5. Festive season shopping big business for local merchants:This holiday season, 96.04% of shoppers expressed an interest in purchasing from local sellers/brands. This is in sharp contrast to Indian customers’ longstanding confidence and desire for international companies and their products. The government’s demand for customers to be “loud for local” may be a major driver of this shift.
  6. Essentials surpass luxury in consumer preference: Despite plans to raise their shopping budget this year, Indian shoppers are spending cautiously because to the global economic recession, its influence on the Indian economy, and an aura of uncertainty produced by the pandemic. In order to be prepared for any unforeseen eventuality, 25.71% of respondents aim to spend their money on necessities rather than luxury products this year.
  7. Discounts and deals emerge as major tools for consumer retention: Moving from the traditional focus over brand name, product range and quality, 75.82% of consumers have listed discounts and deals to be the major reasons for being loyal to a brand/seller. Most consumers plan to flock to the brands/sellers offering them maximum value for their money.
  8. Consumers scrolling their screens to land new finds as social commerce takes hold: As window shopping becomes passé, more and more consumers now choose to rely on their internet-connected devices to find new products. Shopify’s research found that 57.58% of consumers listed social media platforms, online shopping websites, review websites, and online ads as their preferred ways of knowing the trends to shop this year.
  9. Sustainable shopping gaining ground: With eco-conscious practices taking a centre stage all around the world, Indian consumers are beginning to also take notice. The report reveals that 62.86% of consumers plan to be more sustainable in 2023. This shift can be attributed to the growing sensitisation around the impact of consumer choices on the environment, combined with the consumers’ desire to make a difference in whatever way possible.
  10. Ethical and responsible brands take the lead: Indian consumers are preferencing socially and environmentally responsible brands over other available options. The majority (67.36%) stated that they prioritised brands actively giving back to society, selling cruelty-free and vegan-friendly products, and promoting environmental sustainability. As many as 17.91% consumers stated that they avoided buying from companies that promoted fast fashion.

This article was shared with Prittle Prattle News as a Press Release.

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