Indian Consumer Insights

Submitted by: Group 6

Divyansh Jain
Prakhar Sahay
Shresth Sharma
Sahil dewan
Aishwarya Tiwari
Shikhar Saxena
A Brief look into the evolving behaviour of Indian Consumers

Changing Advancement in Customization Greater

of Products & Digital Bonding:
Lifestyle Technology Responsibility
Services
• More informed and aware • Mass customization of
• Higher disposable incomes. • Highly connected consumer. • With increased Social
consumer due to access to all products and services,
• Reach of Digital advertising to Concerns, consumers are
types of information. Both as means to attract the rural population. becoming more responsible
• Sedentary lifestyle and retain consumers. • Increasing influence of social
• Use of AI, machine learning in choosing products
media affecting buying
and data analytics by the
choices.
industry to observe and
ultimately influence
purchases.
● We can see there is exponential growth in terms of
telephone users as compared to the last decade.
Data suggests that out of 1149.5 million mobile
users approx. 636 million people have access to
internet connection.

● This increase in accessible connection for internet in

Indian demographics has played a major role in
defining the importance of digital media. The share
of media taken by digital media is approx. 20%
(13683 million ).

● According to the Dentsu Aegis network 2020

report, digital media marketing is expected to
grow at a rate of 27.42 % CAGR from 13683
million in 2019 to 58550 million in 2025.
 Internet penetration and rise of online shopping behaviour
Ericsson, in its Mobility Report for June 2020, said India's data traffic growth
continued its upward trajectory and it remains the region with the highest usage
per smartphone and per month. Given that only 4% of households have fixed
broadband, smartphones are the only way to access the internet in many cases.

Internet Users-
636.73 mn

Rural-333.52 mn Urban- 303.20 mn

Male- 72% Female-28% Male-62% Female-38%

In a survey titled Understanding Online Consumers’ conducted by American
Express and Nielsen, Indians voted online shopping (98 percent) as the top
reason to access internet; closely followed by social networking (96 percent).
 Indian Consumer’s online shopping behaviour

● Deals and value-for-money proposition drives India to shop online

60 percent of respondents cited that they get enticed to shop online because of
cash back offers (40 percent), discount coupons (38 percent), freebies &
additional offers (35 percent).

● All youngsters shop online frequently; ease of payment and product

comparison being the key
83 percent in 18-25 years and 92 percent in 26-30 years age groups have plans of
online shopping in future. Men clothing (57 percent) and footwear (53 percent)
are the most frequently purchased products online.

● Indian women score over men; high usage of credit and debit cards
74 percent female respondents use plastic money for their online transactions and
have higher penetration of mobile apps (98 percent) as compared to men (81
percent).

● Home budget spending to double in the near future

The average online monthly spend of Indians is Rs. 9400; in metros it is Rs
10,900 and in Tier 1 cities : Rs 8,000. This is going to increase across cities to an
overall ticket size of Rs. 16,000.
 Conclusion
● With 504 million active internet users who are 5 years old or above, India
has become the second-largest internet user market behind China, which Variables taken
has about 850 million users.

● For consumers in India who have been confined due to stay-at-home Tele-Density
restrictions, the internet has become their main channel to work, socialize,
entertain, and shop. There is an 18% increase in the time spent on the
internet per visitor per month since COVID 19.
Increase in number of telephone users
and internet penetration has caused a
● There has been a direct impact of greater connectivity and cheaper data great impact on two of the integral
plans on two major aspects of marketing as a whole: communicating and component of marketing :
“Communicating the value” and
delivering the value. “delivering the value”

● Not only greater connectivity translates into a prominent shift towards Rise of
Rise of e-
digital modes of promotion and communication, also the channels for digital media
commerce
distribution has shifted from traditional venues like retail stores, malls etc.
to e-commerce platforms. Covid-19 has amplified these two phenomenons
further.