India's Online Shopping Trends
India's Online Shopping Trends
shops online:
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 1
Table of contents
3 6 8
Foreword About this report Executive summary:
Understanding the
shopping experience
and behaviour of urban
dwellers and the rest of
India
18 48
From fashion to Fashion and accessories 19 Small towns can drive big
gourmet food: Sportsandfitness 23 business
Exploring trends
Electronics 27
across categories
Home and kitchen 31
Beauty and personal care 35
Health and wellness 40
Grocery 44
PwC
PwC| How
| HowIndia
Indiashops
shopsonline:
online:Consumer
Consumerpreferences
preferencesininthe
themetropolises
metropolisesand
andtier
tier1–1-4
4 cities
cities 22
Foreword
In the past few years, about 12.5 crore1consumersinIndiashoppedonlineforthefirsttime
and since then, they have continued to use e-commerce platforms. These consumers –
primarilyfromtier-2,3and4cities–diaerindigitalliteracy,infrastructure,socialandcultura
factorsfromtheurbanpopulace,whoareaccustomedtoshoppingonline.
OnlineshoppingisnotjustaconveniencebutalifelineformillionsofconsumersinIndi
especially in tier-2 and 3 cities, where the availability of the latest and popular products
in physical stores is limited. These consumers are the drivers of a retail revolution in the
country. In the festive season of 2023, consumers from tier-2, 3 and 4 cities contributed to
more than 80% of sales for Meesho and Amazon2 highlightingamajoropportunityforbrand
totapintothegrowingaspirationsandneedsofconsumersfromthesemarkets.
Organisationswhichserveourvast,diversenationknowhowIndiachangesevery10
kilometres–notonlyintermsoflanguage,dialectandculturebutalsoinconsumer
behaviour (motivations, pain points and preferences). However, there is a lack of
comprehensiveandreliabledataandinsightsontheonlineshoppingbehaviourofIndi
consumers,andthechallengesandopportunitiesacrossregions.Thishindersthe
developmentofeaectivecustomer-centricstrategiesandoaerings.
1 https://www.ibef.org/industry/ecommerce-presentation
2 https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/non-metros-dominate-online-festival-sale-across-amazon-meesho-
flipkart/10432949
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 3
Highlyvalue-conscious,theaverageIndianconsumerwantsthebestdeals,loyalty
programmes,referralschemesanddiscountswhichnotonlyrewardtheirpurchasesbut
alsoencouragesthemtofurtherexploretheonlineshoppingexperience.Acustomer-
centricapproachutilisingdata,technologyandinnovationisrequiredtoaddressthedis
needsandexpectationsofthesecustomersatscale.Consumers enot
aronlyinfluenced
byonlinechannels,butalsobyocinetouchpointssuchasword-of-mouth,influencersand
theirfavouritelocalstore(s).Tomeettheseexpectations,itisessentialtooaeraseamless
experiencebyintegratingcustomersupportacrossmultiplechannels,implementingloyal
programmesandconsistentlyimprovingtheappusingreal-timeinventorymanagement,
in-storeWi-Fi,mobileapps,andtrainingtheemployees.Thisapproachallowsbusinessesto
leveragethebenefitsofbothonlineandocinechannels,creatingacohesiveandconvenient
experienceforcustomers.
Thisreportisbasedonanonlinesurveyof2,10people,10qualitativeinterviews,and40
in-personinterviewsacrossIndiawithleadingexpertsandindustrypartners.Theinsigh
Thisreportisbasedonanonlinesurveyof2,10people,10qualitative
derivedfromthereporthighlightthesimilaritiesanddiaerencesinthepurchasingha
interviews,and40in-personinterviewsacrossIndiawithleadingexpertsand
choices and mindsets of online shoppers across the country.
industrypartners.Theinsightsderivedfromthereporthighlightthesimilaritiesa
diaerencesinthepurchasinghabits,choicesandmindsetsofonlineshoppers
across the country.
50%ofconsumersinmetrosandtier-1citiesvaluequickdelivery,whilefor54%of
consumersintier-2,3and4cities,dealsandoaerstakeprecedence.
Withincreasingfinancialindependence,women’sshoppingbehaviourshiftedfr
socialtoindividualisticacrossgeographiesasperoursurvey.
Fake reviews of health and wellness products deter over 42% of tier-2, 3 and 4
cities’shoppersfrommakingpurchasesinthiscategory.Theyalsopreferbuying
these products online since there are concerns related to the authenticity of these
products in brick-and-mortar stores.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 4
Morethan60%ofourrespondentspreferredtoshopusinganappratherthan
usinganywebsite.Therewasaclearpreferenceformarketplaceappssincethey
catertomanycategories.
YouTubeemergedasaclearwinnerwhenitcomestoareliableplatform(discovery,
information,usageexperienceandunboxingvideos)formakingbuyingchoices.
Interestingly,GenZpreferscashondelivery(CoD)intier-2,3and4cities.
ThisreportaimstounderstandthepulseofIndia’sdiverseconsumerbaseandprovide
insightsintotheirbehaviour.Wehopethatthefindingsresonatewithyouandhelpyou
developthenextwaveofinnovationswhichcanservetheIndian
etailr
sector.
Disclaimer:Thisreportandallitsstatsandfindingsareanoutputofprimarydatacollectedspecificallyforthisreportalongwithsecondarysourcesas
mentioned.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 5
About this report
Thereportisastartingpointforbusinessestoinitiatevitalconversationsthat,inturn,wil
leadtothedevelopmentofane-commercestrategytailoredtomeettheuniqueneeds
andaspirationsofnon-metroconsumers.Itcanalsobeareferencepointandguide
for businesses to make informed decisions and actions to tap into the dynamics of the
ecommercelandscapeinthenon-metroregion.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 6
Thesample,comprisinganequalnumberofmaleandfemalerespondents,coveredarange
ofsocio-economicbackgroundsandagegroups(GenZ,early–millennials,late–millennials
andGenerationX).Geographically,thesurveyspanned:
Urban dwellers
Metro (population over 50 lakhs) and Tier 1 (population between 10–50 lakhs): Mumbai,
Delhi,Bangalore,Chennai,Kolkata,Hyderabad,Surat,Nashik,Nagpur,Bhopal,Allahabad,
Jaipur,Madurai,Mysore,Kochi,Bhubaneswar,Indore,Chandigarh
Rest of India
Tier2/34:Aizawl,Sangli,Solapur,Jhansi,Ferozabad,Nellore,Kasaragod,Siliguri,Sagar,
Darjeeling,Hingoli,Nagda,Bhatinda,Sohna,Thiruvallur,Idukki,Sahibganj
Weanalysedhowtheseconsumersengagewithcategoriessuchasfashionand
accessories,grocery,electronics,sportsandfitness,homeandkitchen,beautyandpersonal
care and health and wellness.
Havingcapturedthevoiceoftheconsumerthroughourextensivesurvey,thisreportdelves
intokeydriversandbarriersshapingtheonlineshoppingbehaviour estofIndia
ofthevis-
r à-
vis urban dwellers:
PwC | How India shops online: Consumer preferences in the metropolises and tier 1–
1-44cities
cities 7
Executive summary: Understanding the
shopping experience and behaviour of
urban dwellers and the rest of India
Figure 2: Average basket size based on last purchase
5,000
andshoppinghabitsareundergoing
4,000
a transformation. Today, consumers
3,000 fromrestofIndiaarededicatingmore
2,000 timetoshopping,withordervolumes
798 780
intier-2and3citiesexpandingby
1,000 749 795
more than 60%3 compared to previous
0 years.AsIndia’se-commercenarrative
Home and Health and Sports and
kitchen wellness fitness evolves, it is crucial to observe these
behaviouralchanges.
Urban dwellers Rest of Indi a
Base: Urban dwellers - 1,994; Rest of India - 1,304
3 https://www.livemint.com/companies/news/tier-2-3-regions-grab-a-larger-pie-of-e-com-market-11671380417276.html
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 8
Ourstudyrevealsasignificantshift–
regardlessoflocation,theincreasingfinancial
independenceofwomenischangingtheir
shoppingbehaviour.Forcategoriesofhomeand
kitchenandelectronics,buyingbigticketitems
online is primarily a household decision.
4 https://www.businesstoday.in/latest/corporate/story/indians-spent-87-billion-hours-on-shopping-apps-in-2022 report-366927-2023-01-20
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 9
However,bothsegmentssharesomecommonmotivatorsforpurchasingonline.Planned
purchaseswithspecifictimelinesareoftensatisfiedonlineduetothewiderrangeofprice
options and brands available. Let us delve into some of those nuances.
Motivators for shopping online: The absence of physical stores for premium brands,
stockoutsofcertainproducts,andalackofknowledgeablestaainocinestoresarethe
mainreasonswhytherestofIndiaconsumersoptforonlineshopping.Ontheotherhand,
thelackofdiscountsandspecialoaersinphysicalstores,alongwithlargecrowdsin
mallsduringweekendsaresomeofthereasonswhyurbandwellersprefertoshoponline.
Browsingthroughonlineshoppingplatformsduringfreetimealsotriggersonlinepu
both urban dwellers and rest of India.
80%
70% 68%
58% 61%
60%
56% 55%
50%
50%
40%
30%
20%
10%
0%
Trieditafterseeingiton Was recommended by Seen its advertisement
social media (Facebook, members of an online onTV
Youtube,Instagram,etc.) community that I am part of
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 10
What makes an app/platform a shoppers’ favourite: Urban dwellers, who prioritise speed
inonlineshopping,areparticularlydrawntopromptdeliveryserviceswhichmeetstheir
demandforinstantgratificationandarewillingtopayapremiumpriceforthesame.But
consumersinrestofIndiaarekeenerondeals.Theseconsumersarebargainanddiscount
hunters.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1–
1-44cities
cities 11
Most purchased category: Interestingly,therestofIndiaappearstobeleadingthe
purchasesinthesportsandfitness,homeandkitchen,andhealthandwellnesscategories,
whereasurbanresidentsfocusmoreongrocery,electronicsandfashion.Theriseofsocial
mediahasplayedasignificantroleinincreasingawarenessoftheseproductsandwithan
increaseindemand,theplatformsintroducednewandaaordableproductstothesecities.
AsincomesinrestofIndiaimprovedsodidthespendingonthesecategories.
35%
30% 29%
25%
21%
20% 19% 19%
16% 17%
0%
Grocery Fashion and Electronics Beauty and Health and Home and Sports and
accessories and consumer personal care wellness kitchen fitness
durables
PwC
PwC || How
How India
India shops
shops online:
online: Consumer
Consumer preferences
preferences in
in the
the metropolises
metropolises and
and tier
tier 1–
1-44cities
cities 12
12
Figure 6: Monthly average purchase frequency of the categories
Monthlyaveragepurachasefrequency
3 2.80
2.5
2.12 2.16
1.97
2 1.78 1.92
1.65 1.76
1.59 1.57
1.41 1.54
1.5
0.48 0.39
0.5
0
Fashion and Electronics Home and Beauty and Health and Grocery Sports and
accessories and consumer kitchen personal care wellness fitness
durables
“ IrecentlystarteddoingyogaforbetterhealthandboughtyogapantsfromBlissClubwhich
everyonewastalkingaboutonInstagram.Theyareverycomfortable.Ialsoboughtayoga
mat from Amazon.”
Impact of reviews: Both urban dwellers and rest of India shoppers rely heavily on reviews,
ratingsandphotosfromothercustomerstobeconfidentabouttheirselectionsandtosee
theproductinitsnaturalenvironment.Knowingothershavetrieditandlikeditmakesalot
ofdiaerenceintheirshoppingjourney.
PwC
PwC || How
How India
India shops
shops online:
online: Consumer
Consumer preferences
preferences in
in the
the metropolises
metropolises and
and tier
tier 1-4
1– 4cities
cities 13
13
Figure 7: Most important factor while choosing a product online
60%
55%
50% 47% 47%
40% 39%
33% 33%
30%
20%
10%
0%
Price of the product Deals/discountsof
fered Reviews of the product
Payment preference: Urban dwellers and rest of India consumers display comparable
acceptancelevelsofUPIpayments,indicatingariseinadoptionandfamiliaritywithsuch
paymentmethods.However,itisworthnotingthatcashondelivery(CoD)remainsthe
preferredoptionamongtherestofIndiaconsumerstominimisetheriskoffrauds.This
suggeststhatwhilethereisgrowingacceptanceofUPIpaymentsduetoitsconvenience,
speedandsecurity,therearestillconcernsregardingonlineplatformsandpaymentmet
particularlyamongrestofIndia.GenerationXfromrestofIndiaprefercardtransactio
mid-highvaluepurchasesonwell-knownplatformsduetotheirdirectconnectiontobank
accounts,providingatrustedlayeroftransactionsafety.Paytmispopularamongurban
dwellers for its user-friendly wallet while PhonePe is preferred by rest of India because of its
intuitiveinterface.GooglePayrankssecondnationwide.
40%
34% 35%
35%
30% 29%
30% 26%
25%
18%
20%
15%
9% 9%
10%
5%
5% 3% 2% 2%
0%
UPI Cash on Credit/debit E-wallet Online payment EMI
delivery cards on delivery
Urban dwellers Rest of India
Source: PwC analysis Base: Urban dwellers - 1,890; Rest of India - 1,408
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 14
Hurdles to online shopping: Asmosturbanwomennavigateshoppingplatformslike
seasonedpros,weighingtheirbenefitsanddrawbacks,GenXwomeninrestofIndia
tend to approach it with more cautious curiosity than others and are hesitant to shop
online due to concerns about payment fraud, credibility of unfamiliar websites and doubts
regardingproductqualitymatchingtheimagesshown.Theyrelyheavilyonreviewsand
recommendationsfromtheirfamilytogaugetrustworthiness,questioningwhetherthe
product will match its depiction and if it will be delivered as promised. Urban delivery faces
logisticaloverload,regulations,andaccessrestrictions,causinginconsistentexperienc
totheconsumers.Frequently,thetimingofdeliveriesclasheswiththefast-pacednatureof
urbanlifestyles,creatingobstaclesandchallengesforindividuals.Incontrast,restofInd
enjoyssmootherdeliveriesduetolessdenseenvironmentsandfamiliarpersonnel.
Urban dwellers are familiar with the In rest of India, women (especially
medium, understand the pros and GenX)areslightlyscepticalabout
cons and appear to be more self- online medium whereas men are more
assured. enthusiasticaboutonlineshopping.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 15
Emergence of direct to customer (D2C) and Open Network for Digital
Commerce (ONDC): D2CgainedpopularityaftertheCOVID-19pandemicduetoexclusivity ,
noveltyanditspotentialtoaddresstheperceivedlackofa‘premium/luxuryfeel’associate
with marketplaces where consumers choose marketplaces for product diversity and
discounts.WhileurbandwellersaremoreawareofONDC,restofIndiaisgraduallyadopting
platformslikePaytmandMeesho,whichoaerappealingoptionsforconsumerstoshop
throughONDCwithlowerpricesandavarietyofproducts.
70%
61%
60% 57%
50%
39%
40%
33%
30%
20%
10%
0%
Yes No
PwC | How India shops online: Consumer preferences in the metropolises and tier 1–4
1-4 cities
cities 16
App usage experience: It has been observed that apps are preferred over websites to shop
online.Thisiscommonforalltherespondentsirrespectiveoftheirgeographiclocatio
factorsforthispreferenceareeaseofnavigation,simplifieduserinterface(thatcompl
toglobalstandards)andvernacularsupport.Marketplaceappsoftenalsogetdownloade
moresincetheycatertoawiderangeofcategories.Forcustomerserviceandassistance
consumerspreferhumaninteractionoverinteractingwithchatbots.
70%
61% 60%
60%
50%
40%
30% 24%
20% 19% 21%
16%
10%
0%
I shop only I shop only Sometimes I shop
throughapps through usinganappand
websites sometimes
throughwebsites
Understandingthesespecifictriggersiscrucialforbusinessesandacknowledgingthese
diversenarrativesiskeytoharnessingthevastpotentialoftheevolvingIndianretail
marketandfosteringmeaningfulconnectionswithcustomers.Theonlineshopping
ney jour
transcendsmeretransactionsandneedsaprofoundunderstandingoftheaspirations
challengesanduniquemotivationswhicharedrivingthemassestowardse-commerce.Let
uslookatcategoryspecificimplicationsinthenextchapter.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 17
From fashion to gourmet food:
Exploring trends across categories
PwC
PwC || How
How India
India shops
shops online:
online: Consumer
Consumer preferences
preferences in
in the
the metropolises
metropolises and
and tier
tier 1-4
1–4 cities
cities 18
18
Fashion and accessories5
77%
of rest of India consumers listed product price as a reason
tocontinueusingtheirpreferredplatforminfashionand
accessoriescategory.
ThefashionandaccessoriescategoryintheIndiane-commercemarketstandsoutdue
toitsvastarrayofproductsandenticingdeals.Thiscategorycomprisesnationalbrands,
privatelabels,unbrandedsellersanddigital-nativebrands
ecent
inpast.
therAaordable,
fastfashionwithlowentrybarriersandhighprofitabilityissettomakethiscategorymore
popularandaccessibleamongconsumers.
Key insights6
5 Fashion as a category covers the following product types: Accessories such as watches, handbags and clutches, fashion jewellery, sunglasses; footwear;
apparels/clothing; athleisure; babycare; intimate wear
6 Key insights uncovered through survey and research for this category.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 19
The drivers: Fashionisoftenseenasareflectionofsocialstandingacrossage
groupswithdiaerentagegroupsinterpretingitinuniqueways.GenZvalues
personalisedfashionwhichhelpsthemtostandoutbycombiningclothingand
accessoriesfromvariousappstocreatetheiruniquestyle.Theypreferplatforms
withrapidlychangingfashionproductsthatoaerdiversityincolour,design,fabr
and ease of comparison. On the other hand, early millennials, who are more
focusedonstayinginlinewithcurrenttrends,optforastreamlinedapproachto
fashionandaccessories,savingtimebynotextensivelyexploringmultipleapps.In
contrast, late millennials and Gen X prioritise practicality, durability and value, and
preferitemsthatlastlongerandprovideutility.Theyalsodisplaybrandloyaltythe
mostcomparedtotheothergroups.
“ Iliketobuysomethingexclusivewhichisnotcommonlyavailable.”
“ ItalldependsonwhereIcangetthebestdealandhavemorechoices
available.”
PwC
PwC || How
How India
India shops
shops online:
online: Consumer
Consumer preferences
preferences in
in the
the metropolises
metropolises and
and tier
tier 1-4
1–4 cities
cities 20
20
The impact of social media and influencers: Whilesocialmediainfluencersplaya
significantroleinthediscoveryoffashionable,trendyproducts,influencer-ledpromotions
arealsobeingmetwithalotofscepticismespeciallyinthelightofgovernment7guidelines
whichrequirecleardisclosuresofpaidpromotions.Fakereviewsandpaidadsonsocial
mediahaveledoldermillennialsandGenXtorelyoncommunitygroupsonMeta/Telegram
and visual reviews besides word-of-mouth advice.
“ Iconsiderthequalityfirstthenthereviews,shippingduration,andsometimesthebrand.
ThesearethefactorsIconsideralongwithcolours,patternsanddesigns.”
Platform loyalty: Responsive customer service and clear return policies are crucial in this
segmentirrespectiveofgeographicallocationhighlightingauniversalexpectationf
andconvenientshoppingexperience.Discountsandoaersarecrucialfordrivingloyalty
amongrestofIndiaconsumershighlightingavalue-drivenapproachinthissegment.
Liketheoverallexperienceofusingtheplatform 37%
38%
Comfort and familiarity developed over time 40%
45%
Providesquickexchange/rteurn 40%
35%
Efficient customer care 41%
38%
Easy payment options 43%
46%
Convenienceofshoppinganytime,anywhere 46%
44%
Easytoexchnage/re turn 45%
45%
Brand trust and reliability 47%
49%
Quick delivery 54%
48%
Attractive prices 54%
42%
Attractive offers/discounts 55%
45%
Product cost related 77%
64%
Delivery 85%
78%
Connect with the platform 91%
94%
7 https://pib.gov.in/PressReleasePage.aspx?PRID=1892527#:~:text=Endorsements%20must%20be%20made%20in,not%20personally%20used%20or%20
experienced.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 21
Offline versus online: Consumersprioritiseocineshoppingforhigh-value,quality-centric
itemslikeoccasion-basedattire,whileonlineshoppingdominatesforlowtomedium-ticket
itemswherecustomersprioritisevariety,therebyminimisingtheriskoflowquality/return
related issues.
Short term: Parameters which can enable positive engagement with the
category
Recommendations and user generated content:Encouragingcommunity-based
recommendations can improve brand conversations and eliminate authenticity
concernsforrestofIndia,whilestrengtheningloyaltyandtrustforurbandweller
Trend responsiveness:Platformsneedtoconstantlyupdatethestockstoreflect
the latest trends and seasonality to cater to the intrinsic need of shoppers in
thiscategory.
8 Key recommendations are our suggestions for businesses and brands in this market on basis of our research and survey.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 22
Sports and fitness9
#exclusivity,#brandtrust,#lifestyle
68%
ofrestofIndiaconsumerschosetoshopsportsandfitness
itemsonlineforthefirsttimeafterseeingiton
social media.
Thesportsandfitnesscategoryisstillinitsearlystagesofadoptioninthe cee-commer
market.Thereisagrowingdemandfortheitemsofthiscategoryduetoanincrease
infitnessandhealthenthusiastsinthecountry.Thecategoryisexpectedtogrowat
acompoundannualgrowthrate(CAGR)of3%inthenextfiveyears. 10
This presents
opportunitiesfornewerplayersinthee-commercespacetoestablishthemselvesandgain
footholdinthiscategory.
Key insights
Sports and fitness as a category cover the following product types: sports shoes, special purpose sports clothing, sports equipment, fitness accessories,
nutritional items, home gym equipment, camping accessories and bicycle andcle bicy
accessories
10 https://timesofindia indiatimes com/blogs/voices/the-fitness-industry-in-india-is
-being-reshaped-by-ml-wearable-technology-and-ai-based-workouts/
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 23
Impact of social media and influencers: Unlikefashion,influencersinthis
categoryimpactpurchasedecisionswhicharenotjustlimitedtoproduct/brand
awarenessbutmorefrompersonalexperiencenarrativesandreal-worldimpacto
theproduct.ConsumersacrossIndiaseekguidanceandrecommendationsfrom
them.Peerandsocialmediagrouprecommendationsarestillthemostinfluential
factorinthedecisiontoadoptanewproductorchoosealifestyle/regime.The
influenceofinfluencersvariessignificantlybyagegroups(seethetablegivenbelow)
andsomebrandsareleveragingtheseinsightsfortargetedsalesandmarketing
70% 67%
64% 66%
27%
30%
21%
20%
10%
0%
Influencers help me in Help me identify Influencers help Influencers help Help me understand
understandinghowto new brands/new build trust in megetcoupons/ the look and feel of
use the product products/launches the product discounts the product for
visual validation
PwC
PwC||How
HowIndia
Indiashops
shopsonline:
online:Consumer
Consumerpreferences
preferencesin
inthe
themetropolises
metropolisesand
andtier
tier1-4
1–4cities
cities 24
24
Shift from marketplace apps to D2C: While marketplace apps like Amazon and Flipkart
remainpopularduetotheirextensivereachandfamiliarity,thereisagradualshifttowar
specialisedD2CplatformslikeDecathlon,HRX,BoldFitandmanyothersduetotheir
exclusiveandvariedoaerings.Thesespecialisedplatformsareincreasinglyvaluedfor
theirnicheselectionswhichaddressspecificconsumerneedsinsportsandfitness.Active
lifestylebrands,suchasHRX,Decathlon,andBoldFit,prioritisecommunity-building
activitieswhichpromotehealthylifestylesthrougheventslikerunningcompetitions,
yogasessionsandsharinghealthyrecipesthroughsocialmedia.Thisfocusoncustomer
engagementhascontributedtotheshifttowardsD2Cplatformsinthiscategory.
“ D2Cisalsogoodbecausewepurchasedirectlyfromthecompany.Ifwehaveanyissues,
theyhelpusresolveit.Theyneverdissatisfythecustomers.So,insteadofpurchasingfrom
thirdpartiesoneshouldpurchaseproductsdirectlyfromcompany’swebsite.”
“ IknowthequalityoftheD2CplatformIbuyfrom,theynevercompromiseonit.”
PwC | How India shops online: Consumer preferences in the metropolises and tier 1–4
1-4 cities
cities 25
Key recommendations: Present, short and long term
Asthesportsandfitnesscategorygainstractionacrossvariousdemographicsacross
thecountry,particularlyamongrestofIndiashopperswhoarenewtopurchasingthese
products online, it is crucial to provide them with comprehensive service support and
assuranceofproductquality.
Despitethecategory’slowwalletshare,amajorityofconsumersseekdiscountedand
budget-friendlyoptions,viewingtheseproductsassupplementarytotheirlifestyleand
wardroberatherthanessentialpurchases.Thefollowingarethepresent,short-termand
long-termrecommendationswhichbusinessescanconsider:
Short term: Parameters which can enable positive engagement with the
category
Educational content and guidance: Platforms and brands should develop user-
friendlyguidestohelpnewconsumersinrestofIndiatounderstandthebenefits
andusageofsportsandfitnessproducts,educatingthemaboutthecategoryand
tapintoanewsegmentofcustomers.
Partner with relatable fitness influencers: Platformsshouldengageinfluencersto
createcontentthatguidesandmotivatesconsumersthroughtheirfitnessjourney
and not merely as a promotional tool.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 26
Electronics11
41%
ofGenZacceptthatfakecustomerreviewsareakey
barrierforusingotherplatformsinthiscategory.
Indiaisoneofthefastest-growingelectronicsmarketsworldwideandispoisedtobecome
thefifth-largestconsumerdurablesmarketglobally. 12
The consumer durables market in
Indiaisexperiencingatransformationdrivenbyanincreasingnumberofconsumerswho
areinvestingintheirhomesandseekinginnovative,time-savingsolutions.Thisshiftin
consumerbehaviourhasbeenfurtheramplifiedaftertheCOVID-19pandemicasconsumers
spentmoretimeindoorsduringthelockdown,leadingtoasurgeinhomeinvestmentsanda
heightenedfocusonhouseholdappliances.Thekeydiaerencesinthepurchasingbehaviou
between urban dwellers and rest of India are convenience, discounts and the perception of
trust.Acrossdiaerentagegroups,thepurchaseofelectronicproductsischaracterisedby
thoroughresearchandastrongemphasisonbrandrecognition.
“ Electronicsupgradeourlives.Theymakeourliveseasierandbetter.”
1Theelectronicscategoryincludesthefollowingproducttypes:mobile,headphones,smartwatch,speakers,laptop,television,tablet,washingmachine,
refrigeratorandcameras
12https://www.ibef.org/industry/consumer-durables-presentation
PwC | How India shops online: Consumer preferences in the metropolises and tier 1–4
1-4 cities
cities 27
Key insights
Platform preference:Whenitcomestoelectronicpurchases,mobilephonesemergeas
the most coveted product followed by headphones. Urban dwellers prioritise convenience
(easy,anytimeandanywhereaccess)overdiscountsandgravitatetowardsplatformslike
Amazon,whilerestofIndiaconsumerspreferFlipkartandprioritisediscounts.Despiteh
awarenessofplatformslikeJioMart,PaytmMallandCroma,consumersplacegreatertrust
in popular marketplaces due to concerns about fake/duplicate products.
80%
70% 67%
65%
64%
60% 59% 53%
52%
50% 46%
40% 35%
30%
25%
20% 16%
10%
0%
Influencers help me in Help me identify Influencers help Influencers help Help me understand
understandinghowto newer brands/new build trust in megetcoupons/ the look and feel of
use the product products/launches the product discounts the product for
visual validation
“ Amazonhasalwaysgivengoodelectronicsproductswithbestprices.Hence,forme,thatis
mainassociationwiththecategory.
”
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 28
Influence of visual content and personal recommendations on decision-making:
Thedecision-makingprocessforelectronicpurchasesisheavilyinfluencedbyvisualcontent
andpersonalrecommendations.Consumersrelyextensivelyonvisualformatslikeunboxing
videos and reviews, predominantly found on YouTube tech channels, to assess product
quality.Furthermore,theimpactofinfluencersontheseplatformsissubstantial,shaping
consumerpurchasingdecisionsthroughtheirreviews.Personalrecommendationsremain
anotherpowerfulforceemphasisingtheenduringimportanceofword-of-mouthinguidin
consumer choices.
70% 65%
60%
53% 55% 53%
49% 49% 51% 51%
51%
50%
42%
40%
32%
30%
20%
10%
0%
Productcategory/nature Offers/discounts Promotion by Recommendation Based on
of product to be shopped available social media by friends urgencyof
(e.g.offlineshopping influencer product
preferred if physical requiremnets
product assessment
required)
Urban dweller s Rest of India
Source: PwC analysis Base: Urban dwellers - 281; Rest of India - 200
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 29
Key recommendations: Present, short and long term
Urbandwellerscravetheconvenienceofonlineelectronicsshopping,whilerestofIndia
buyersprioritisefindingproductsreadilyandataaordableprices.Strikingtherightbala
betweenthesecontrastingneedsiscrucialforonlineelectronicsretailerstoachievegro
in this market.
Short term: Parameters which can enable positive engagement with the
category
Strong after-sales support: Onlineplatformsneedtoprovideextensivepost-
purchaseservicessuchasaccessiblecustomerservice,extendedwarrantiesand
easyreturnsandexchangesmirroringin-storeexperiences.
Pay per use: Someproductcategorieslikewaterpurifiershaveimplementedpay-
per-usemodelwhichenablesconsumerstoavoidpayingupfrontforlargerticket
sizeitems,thismaybenefitthecustomersinthecategorysincethecustomerswho
arereluctanttobuyexpensiveelectronicsonlinecanbuythemwithoutpayingthe
lumpsum amount.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 30
Home and kitchen13
#instagrammablespaces,#aaordableaesthetic
41%
of rest of India respondents believe that Flipkart is the most
suitableplatformforbuyinghomeandkitchenproductsonline.
IntheIndianmarket,thehomefurnishingandkitchensectorhasexperiencedremarkable
growthandisgrowingataCAGRof10%. 14
Severalfactorscontributetothisgrowth
includingthecountry’surbanisation,asubstantialyoungpopulationandtheincreasing
aspirationsoftheburgeoningmiddleclass.Theincreasingdemandformodernandmodu
furnituresolutionstheexpandingurbanlandscapeacrossIndianstates,andthegrowing
preference for durable, versatile home spaces have also led to the increase in the demand in
thiscategory.
Flipkart is perceived as most suitable by rest of India, while urban dwellers prefer Amazon.
JioMartandMyntraaregainingground.Therearealsosignificantdiaerencesinthebuying
behaviour between men and women.
“ Home is very personal for me; hence, I always like to decorate it and keep it aesthetic.”
13 Home and kitchen as a category includes the following product types: Kitchen storage like containers and jars, home decor products such as rugs, wall
stickers, vases as well as home storage solutions like pot racks, kitchen drawers, and plastic boxes. This category also covers furniture items and home linen.
14 https://retail.economictimes.indiatimes.com/blog/consumer-trends-in-the-home-and-lifestyle-categories/105567375
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 31
Key insights
Platform preference: Urban dwellers prefer to buy home linen from Amazon while
Myntraisbecominganotherpopularchoiceforhomelineneversinceitincluded
theproductasapartofitsoaering.RestofIndiaconsumerspreferFlipkart,while
JioMartisquicklygainingpopularitywithkitchen,diningandstoragesolutions.Fo
urbandwellers,auser-friendlyappinterfaceholdssignificantlymoreimportance
comparedtorestofIndiaconsumers.RestofIndiaconsumerfocusoncost-saving
measures,attractiveoaers,andquickdeliverywhileIndiaconsumersprioritise
brand trust, reliability, and support from the e-commerce platforms.
Gender differentiators:InrestofIndia,menandwomenarealmostshopping
equallyinthiscategory.However,howtheyshopvariessignificantly.Mostmen
focusonreadingproductdescriptions,specificationsandareveryfunctionalinth
approach to the product, while some women prioritise aesthetics, detailed reviews
aswellaswaystovisualisetheproductintheirhomethroughpicturebasedreviews
andpersonalisationoptionsanduniquefindsresonatedeeplywiththeirdesiref
individualexpression.
“ It(theproduct)shouldhavegoodreviews,andwetrustthosereviews.Forinstance,ifyouare
buyingastudytableandchairpricedataminimumofINR10,you’dwantgoodr
and a reputable brand.”
eviews
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 32
Figure 15: Important factors while a purchasing product online
70%
10%
0%
Price of the Product should Deals/discounts Reviews of Delivery App/website Product
product be of a trusted offered the product time should be should be of
brand even if it trustworthy a brand I
has not been have tried
used in the past
“
Base: Urban dwellers - 91; Rest of India - 148
Homeismyrelaxationspace;hence,keepingitcleanandwell-maintainedismygoal.Italso
adds to my social status as people often notice and appreciate a nice, well-done house.”
PwC
PwC||How
HowIndia
Indiashops
shopsonline:
online:Consumer
Consumerpreferences
preferencesin
inthe
themetropolises
metropolisesand
andtier
tier1-4
1–4cities
cities 33
33
Key recommendations: Present, short and long term
Byfocusingontheseelementsandindustryrecommendations,businessescaneaectively
attractandengageconsumerswhilemeetingtheirevolvingpreferencesandexpectations
theonlinehomeandkitchenshoppingsegment.
Short term: Parameters which can enable positive engagement with the
category
Influencer collaboration for engaging content: Collaboratingwithinfluencersto
createengagingcontentthatprovidesdécortipsandshowcasesproductscan
enhanceconsumerengagementandprovidepersonalisedexperiencesforthe
consumers.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 34
Beauty and personal care15
#highengagement,#authenticity,#personalisation
53%
of urban dwellers believe that price is an important factor
whilechoosingtobuybeautyandpersonalcareproducts
online.
Thebeautyandpersonalcareindustryhasbeenwitnessingsignificantgrowth,anditis
projectedtogrowataCAGRof9.5% 16
inthenextfiveyears.Thisgrowthisinfluenced
by various factors such as economic dynamics, cultural transformations, product
advancements,andevolvingconsumerperceptionstowardsself-careandwellness.This
growthtrajectoryispoisedtoelevatethesector,leadingtotheemergenceofnumerous
million-dollar club brands in the near future.17Apivotaldriverofthisexpansionisthe
recognitionofholisticwell-beingandregimensthatfosteraconfidentself-image.Quick
commerceenterprisesinIndiaareamplifyingtheirbeautyandpersonalcareportfolio
reflectingtheindustry’sevolutiontowardsamorecomprehensiveapproachtoindividual
well-being.
“ Beautyisimportanttomebecauseitisbasicallytakingcareofyourselfanddoingthatuplifts
yourmood.Soitislikepamperingyourselfandtherapyatthesametime.”
“ Forme,shoppingformake-upandskincareisanescapefromdailylife,soit’slikerelaxati
andde-stressinginawayasitimprovesmyoverallwell-being.”
15 The beauty and personal care category covers the following products: skin care, hair care, make up, bath and body care, fragrances and personal
care appliances
16 https://www.moneycontrol.com/news/business/india-beauty-personal-care-market-projected-to-grow-to-30-billion-by-2027-report-11297611.html
17 https://economictimes.indiatimes.com/industry/cons-products/fashion-/-cosmetics-/-jewellery/pure-play-brands-to-drive-indias-30-billion-beauty-and-
personal-care-market-opportunity-report/articleshow/103277515.cms?from=mdr
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 35
“ Iusuallydopersonalcareshoppingasitisanecessityformetobewell-groomedinmy
obce.Ithelpsmelookgood.”
Key insights
“ Iconsiderwhethertheproductisorganicornot,thenthebrand,priceandotherfactors.”
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 36
“ It is crucial to ensure the authenticity of beauty products. The products you purchase must be
genuine;otherwise,theycoulddamageyourskin.”
Social media ads and influencer marketing strongly influence decision making
for Gen Z and early millennial women
GenZandearlymillennialwomenfollowthesocialmediapagesofD2Cbrands
suchasSUGARCosmetics,NykaaandSmytten.Thisengagementoaersthema
windowintothelatestproductsandtrends.Theyalsoenjoywatchingtheirfavourite
Bollywood celebrities promote brands. On the other hand, late millennials and
Gen X still rely more on peer recommendations and stick with familiar and popular
brands.
80%
T
70% 69%
61% 59%
60% 56% 54%
50% 51%
40%
40% 38%
30% 24%
20%
20%
10%
0%
Influencers help in Help me identify newer Influencers help build Influencershelpme t ge Help me understand
understandinghowto brands/new products/ trust in the product coupons/ discounts the look and feel of the
use the product launches product and provide
visual validation
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 37
“ Iamdoubtfulabouttheauthenticityofcosmeticbrandssoldocine.Ifeeltheyear
genuine,soIprefertoshoponlineonly.”
not
Short term: Parameters which can enable positive engagement with the
category
Sampling opportunities: Consideroaeringsamplesortrialsizesofbeautyproducts
toallowcustomerstoexperiencetheproductsbeforemakingfull-sizepurchases,
acknowledgingthepersonalnatureofsuchproducts.
Personalised guidance and expert support: Introduce beauty consultations,
personalised product recommendations, and AI-powered tools to match products
withindividualskintypesorbeautygoals.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 38
Long term: Parameters which can create disruptions in the category
Transparency: Ensureproductlegitimacythroughpartnershipswithreputable
globalbrandsknownforqualityandeco-friendlinessandconsidercertifications
organicorcruelty-freelabels.Oaerassurancessuchasmoney-backguaranteesto
bolsterconfidenceinproductebcacyandsafety.Implementauthenticityverification
systems,utilisingholograms,QRcodesordigitale-verificationmethodstocombat
counterfeit products.
Hyperpersonalisation: Facilitatedbytechnologicaladvancements,
hyperpersonalisationwillgrowinthebeautyandskincareindustry,enhancingthe
customerexperience.
PwC
PwC||How
HowIndia
Indiashops
shopsonline:
online:Consumer
Consumerpreferences
preferencesin
inthe
themetropolises
metropolisesand
andtier
tier1-4
1–4cities
cities 39
39
Health and wellness18
53%
ofurbandwellersboughthealthandwellnessproducts
- on
lineforthefirsttimeafterbeingrecommendedbymembers
of an online community.
India’sonlinehealthandwellnesssectorisboomingduetoevolvingconsumerpreference
andtechnologicalprogress.Oaeringtailoredproducts,itcaterstohealth-conscious
consumersseekingholisticsolutionsthatcombinemodernandancientpracticeslike
Ayurvedaandyoga.BothurbandwellersandrestofIndiaconsumersaregravitatingtowards
onlinehealthandwellnesscategoriesfortheirconvenience,
oductwide
range,
prand
detailed information and reviews.
Key insights
18 Health and wellness as a category includes the following product types: General medicines (tablets/syrups), general nutrition and wellbeing – health drinks,
supplements, multivitamin tablets, shampoo, facewashes, lotions, Ayurvedic medicines/powders/syrups, weight management products – tablets, shakes,
book lab tests/health checkup packages
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 40
“ Nowadays,IcangetmedicinedeliveredtomyhomewheneverIneedit.Idon’thavetogo
anywhere, and I can access all types of medicines prescribed by my doctor.”
“ MyfriendwasusingApollo,hesuggestedittomesoItrieditonce,andsincethenIhave
beenusingit.”
“ Icheckforoaers,rewardsandexpirydates,andcheckwhetherornottheproductis
returnable.”
The impact of social media and influencers: Late millennials and Gen X prioritise
theabilitytoverifyprescriptionsandmedicinedetailswithintheapp,placing
greateremphasisoninformationaccuracyratherthansocialmediaandinfluencer
promotion.Incontrast,GenZisinfluencedbysocialmediaandrecommendations
fromfriendswhilebuyingnon-prescribedsupplements.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 41
Platform loyalty: Goodoaersanddiscountsonrecurringordersareincentivesfor
all cohorts, especially late millennial and Gen X rest of India consumers and urban
dwellers.FlexiblepaymentoptionsandCoDareimportantfordrivingloyaltyamon
rest of India older women consumers.
Offline versus online: Both urban dwellers and rest of India customers prefer to
placerecurringorders,especiallyforprescribedmedicines,online.Theyusetruste
appstogetgooddealsanddiscounts.Consumersacrossallcohorts,irrespective
ofgeolocation,prefertomakeemergencypurchasesocinefromanearbylocal
chemist.
60%
46% 50% 48%
50% 45% 48%
44%
41% 39% 41%
40% 34% 37% 35%
33%
30%
30%
20%
10%
0%
Products shoul d Deliver
y Product s Reviews of Price of the s App/website
Deals/discount
be of a brand I time should be the product product offered should be
trust even if I of a brand I trustworthy
have not used it
in the past have tried
“ IfIurgentlyneedanymedicine,Ihavetogotothenearbychemist.However,ifIorderfrom
Tata1mg,Icanreceivemedicineswithin2–3days,andoftenwitha20%discount.”
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 42
Key recommendations: Present, short and long term
Emergingbrandsinthehealthcategorymustprioritisefundamentalhygienefactorssuch
asqualityassurance,productauthenticityandadiverserangeofoaeringstoensuresafety
andplatformrelevance,thusminimisingtheriskofcounterfeitproductsandensuring
warrantycoverage.Itiscrucialforthesebrandstoimproveuserexperiencebyoaering
intuitiveappinterfacesandstreamlinedfunctionalitiestodiaerentiatethemselvesinth
competitive market.
Short term: Parameters which can enable positive engagement with the
category
On-demand and predictive delivery network: On-demanddeliveryalongwith
predictivedeliveryschedulesforurbandwellers,usingAItoforecastwhen
customerswillneedrefillsornewproductsbasedontheirpurchasepatternsand
subscription services.
Flexible subscription: Toattractfirst-timeurbandwellersandrestofIndiausersand
increase conversion.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 43
Grocery19
#transparentpricing,#quickdelivery,#shelflife,#nominimumordervalue
66%
of the rest of India shoppers tried online platform/brands for
groceryshoppingafterseeingcontentonsocialmedia.
AlthoughasmallsegmentofoverallgroceryretailinIndia,theonlinegrocerymarketis
experiencingsignificantgrowth
20
due to wide product variety, convenience, seamless
digitalpaymentintegration,quickdelivery,andeaectivesocialmediamarketingstrategie
Consumerschoosebetweenocineandonlineshoppingbasedonthe gency
ur oftheir
needs,purchaseamountandreturnpolicies.Oaeringquickdeliveryandeliminating
minimumorderrequirementscanboostonlinepurchasesinthiscategory.
Key insights
19 Grocery as a category covers the following product types: Snacks like wafers, namkeen; shampoo, facewash, lotion, oil, masalas, sauces; house cleaning
products like instant food, instant noodles rice, atta (flour), dal bakery milk, coffee, tea, cereals like oats, cornflakes milk products, fruits, vegetables, meat,
eggs, seafood other home supplies such as bulbs
20 https://retail economictimes indiatimes com/blog/the-roadmap-to-fostering-the-growth-of-indias-e-grocery-market/ 10 1
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 44
“ WheneverIthinkofgroceriesJioMartcomestomymindaswehavebeenusingitevery
month for many years.”
“ Yes,thee-commerceplatformshavesomanyoaersavailable.Forexample,ifyougo
toAmazon,thereisarewardssectionwhereyoucanfindoaerslike10%cashbackon
purchasesofINR1,0ormore.Additionally,ifyoupaythroughcertainplatforms,youcan
receivecashback.I’vereceivedcashbackfromtheseoaers.”
- Female, late millennial, urban dwellers
Offline versus online: Both urban dwellers and rest of India consumers prefer
purchasingfreshproduceandnon-vegetariangroceryitemsthroughin-person
orocinechannels.Thispreferencearisesfromconcernsregardingquality,the
absence of a return policy, freshness issues or a desire to endorse local businesses.
Incontrast,snacks,bathingproductsandotheressentials,whichhaveminimum
riskoflowqualityandtheoptionofquickdeliveryand ders,
bulkor
areamongthe
top-sellingitemsongroceryapps.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 45
Figure 18: Channel selection for shopping
30%
20%
10%
0%
Productscategory/natur e Offers/discounts Based on Recommendation Promotion by
of product to be shopped available urgencyof by friends social media
(e.g.offlineshoppingis product influencer
preferred if physical requirements
product assessment is
required)
Short term: Parameters which can enable positive engagement with the
category
Providefeatureslikevoicesearch,multiplefiltersandsortingoptions,event-
themedoaers,notificationsandpicture-in-picturevideoofnewlylaunchedproducts
toenhancetheuserexperienceandsupportproductdiscoveryandpurchase
consideration.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 46
Event-driven content, personalised recommendations and pricing with
transparency: The idea is to increase conversion and attract new rest of India
customers.Forurbanusers,thiswillstrengthenbrandloyaltyandtrustevenmore.
Cart sharing:Topromoteconvenienceandasmoothshoppingexperienceamong
family and friends.
PwC | How India shops online: Consumer preferences in the metropolises and tier 1–4
1-4 cities
cities 47
Small towns can drive big business
InthegrowthnarrativeofIndia’seconomy,thespotlightoftenshinesonitsbustlingmetro
andtier-1cities.However,thecountry’stier-2,3and4citiesarewitnessingrapidgrowth,
especially since the pandemic.21
21 https://www.pwc.in/research-insights/full-potential-revival-and-growth.html
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 48
DesigningexperiencesthatresonatewithallusersinIndiaisnomeanfeat.Thee-commerce
experiencethathasworkedintheurbancentresmaynotnecessarilyworkfortherestof
India.Thelatterwillneedamorein-depth,human-centricviewthatacknowledgesand
capitalisesonthediversitythatexistsacrossinthesesmalltownsandcities.
E-commerceisonthecuspofarevolution,havingpenetratedtothefarthestcornersof
ourcountryandprovidingaccesstoseveralnewshoppers. 22
This increased reach can be
attributedtosocialmediapenetrationinthecountrywhichhasheightened eness
awar
about
e-commerceamongIndiancustomers.However,accessibilityandaaordabilityofproducts
willremainkeydrivers.Onemustconsiderthattheconsumerbaseisconstantlyevolving
andthatconsumersoftenadoptnewwaysofshopping(enabled oughthr
newtechnologies/
designs/businessmodels,etc.)quickly,especiallywhentheirunmetorunarticulatedneeds
arefulfilledthroughtherapidphaseofinnovations.Utilisingthenuancesofcustomer
behaviourandsegment-specificinsightsbroughtoutbythisreport,organisationscan
expeditethecraftingofe-commerceexperiencesthatresonatewithconsumersinthese
regions(restofIndia).
Whilepricesensitivityisakeydecision-makingfactorinrestofIndia,itiscrucialto
understandthatcustomers’valueperceptionisbasedonthetotalservicepackage(delivery,
returnexperience,loyalty,etc.)deliveredbythebrand.Neweronlineuserswarmupto
brandsthatoaertoeducatethemandprovidethemguidancelikeatrustedadvisorwould.
Theneedofthehourisawellthought-outbrandandsocialmediastrategythatfocuseson
thisgroupofusers’uniquefunctionalandemotionalneedsandengagesthemthroughthei
preferred channel(s).
Inconclusion,thecalltoactionistobesimple,clearandlocal:thatisgoingtobethekey
togrowthinthesemarkets.Itisnotjustabouttechnology;itisaboutmakingpeoplefeel
welcome,includedandunderstood.Itisnotjustaboutbusiness;itisaboutconnecting
withrestofIndia’suniquespirit.Businessleaderscouldusethesetwo‘engines’of‘urban
dwellers’and‘restofIndia’tocontinuetoinnovateandcreateproducts,servicesand
experiencesthatarenotonlymadeinIndiaforIndia,butalsomadeinIndiafortheworld.
Emergingbrandswillnotonlyrecognisethesimilaritiesandusethemtodriveebciencies
butalsorespectthediaerencesandleveragethemtodrivemeaningfuldiaerentiationby
servingsmalltownsprofitably,thusdrivingbigbusiness.
22 https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/e-commerce-revolution-in-india-gets-its-second-wind-post-covid-19/77460376
PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 49
Contact us
Somick Goswami Ravi Kapoor Prateek Sinha
Partner and Business Partner and Retail and PartnerandExperience
Transformation Leader Consumer Goods Leader ConsultingLeader
PwC India PwC India PwC India
[email protected] [email protected] [email protected]
Contributors
Sudip Gupta Anshumala Srivastava
Director-ExperienceConsulting AssociateDirector-ExperienceConsulting
PwC India PwC India
[email protected] [email protected]
Editorial
Vishnupriya Sengupta, Rubina Malhotra, Dion D’Souza
Designers
Advika Pradhan, Arindam Das, Rajul Jain, Vidhi Vaid
PwC | How India shops online: Consumer preferences in the metropolises and tier 1–4
1-4 cities
cities 50
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PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 51
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PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 52
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PwC | How India shops online: Consumer preferences in the metropolises and tier 1-4 cities 53
About PwC
AtPwC,ourpurposeistobuildtrustinsocietyandsolveimportantpr
oblems.We’rea
networkoffirmsin15countrieswithover360,peoplewhoar ecommittedtodelivering
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