Digital Consumer Profiles: How India’s Most Digitally Savvy Will Shop and Spend Online

Strategy Briefing

About This Report

Aug 2018

Leveraging Euromonitor International’s proprietary Digital Consumer Profiles segmentation analysis, this briefing explores the Indian digital consumer’s defining characteristics, motivations and preferences, and how they impact how these consumers shop and spend digitally. This briefing concludes by outlining the most promising digital commerce opportunities in India.

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Digital Consumer Profiles: How India’s Most Digitally Savvy Will Shop and Spend Online

Despite growth of mobile services, India lags behind in digital connectivity

Despite the growth of mobile connectivity, low fixed broadband penetration rates have affected India’s digital landscape. Weak rural infrastructure has held back more robust digital connectivity across the country, though the government’s national broadband project should improve digital access going forward.

Wealth is more highly concentrated among Indian digital consumers

Indian digital consumers have higher median incomes than their global counterparts, and digitally-savvy consumers are likely to be wealthier than the average Indian population. Indian digital consumers are also tightly concentrated in the 20-34 age bracket, similar to their global counterparts.

Consumers are increasingly utilising mobile for commerce activities

Indian digital consumers are conducting more commerce activities online and doing so more often on mobile devices rather than computers. Using banking services and reading reviews are among the most popular daily activities on both digital mediums.

Saving time and money are the top motivations for shopping online

Like digital consumers elsewhere, those in India indicate saving time and money as the top motivations for shopping online. Variety of brands is another important factor, with the country’s online shoppers ranking first among 21 surveyed nations on this parameter. Free shipping and ease and availability of delivery were also popular, given the country’s logistical challenges.

Despite challenges, the potential of Indian digital commerce is immense

India is in the early stages of its digital commerce story. The country’s weak digital backbone, high cash usage and logistical challenges have impeded digital commerce uptake. However, the potential of the country is well documented due to the young population, increasing disposable incomes, and improving digital and logistical infrastructure. In future, industries such as travel, ticketed attractions, apparel and consumer foodservice will see higher value of digital transactions.

Introduction

Scope of the Digital Consumer
Key findings

Examining India’s Digital Landscape

Internet penetration is low despite growth in cellular coverage
Despite mobile growth, poor digital infrastructure pegs back India
BharatNet to address India’s low fixed broadband coverage
Mobile drives digital connectivity in India
Weak digital connectivity hinders India’s digital commerce uptake

Identifying India’s Digital Consumer

Digitally-savvy Indians are wealthier than average Indian population
Identifying India’s digital consumer
Indian digital consumers are richer than their global counterparts
Indians are more lost without the internet than their global peers
Indians prefer to communicate online
Most popular computer-based activities reflect internet’s initial uses
Mobile phones are often used to browse and send messages

Understanding How These Digital Consumers Shop

Smartphones are the preferred devices for online shopping
Purchases most influenced by reviews and recommendations
Indians increasingly utilising mobile for commerce activities
Media products and tickets are common weekly digital purchases
Convenience, delivery facilitates online grocery purchases
Mobile is the preferred medium for digital purchases
Best price and time savings are top motivations for shopping online
Indians place greater value on variety of brands
Usage of third-party payment apps is increasing among Indians
Motivations for shopping in person provide online opportunities

Pinpointing Where To Place Digital Commerce Bets

Travel and apparel are promising digital commerce avenues
Despite strides, India will rank last in Digital Connectivity Index
India is in the early stages of its digital commerce story
Challenges lie ahead for India’s digital commerce uptake
Opportunity 1: Ticketed attractions and entertainment
BookMyShow leads online movie ticketing space
Opportunity 2: Apparel and footwear
Myntra dominates the online fashion segment
Opportunity 3: Consumer foodservice
Swiggy aims to enhance the food delivery experience
Opportunity 4: Online travel agencies
MakeMyTrip’s exhaustive services make it the market leader

Five Key Takeaways About This Digital Consumer

Key takeaways about the Indian digital consumer

Appendix

Overview of Global Consumer Trends survey