The Indian consumer and retail sector is all set to bounce back strong with e-commerce gaining a stronghold in the post-COVID-19 world. Grant Thornton Bharat’s survey on consumer buying trends has revealed that 75% of respondents are ready to spend as much/more than the pre-COVID-19 levels. Over 4500+ respondents participated in the survey conducted across digital platforms.
“The above data is a positive indicator for the consumer and retail sector, hinting at increased consumer confidence and heightened optimism backed by mass vaccination drive, better spending capacity and uptick in economic activity,” says Naveen Malpani, Parnter and National Sector Leader, Consumer and Retail, Grant Thornton Bharat.
According to the survey, 52% of the respondents said they prefer the hybrid shopping model (online + offline). Consumers are increasingly engaged in both digital and physical touch-points to make informed decisions. Clothes and accessories (28%) and mobile phones (25%) have the highest share of the pie when we talk about items people prefer buying online. Interestingly, the survey also revealed that 58% prefer to buy high-end luxury products online rather than going to branded stores.
“More than half the respondents favoured buying luxury branded products online, hinting at the level of trust that these e-commerce portals hold. Businesses may need to adapt to such a buying shift rather than chase new store openings for driving sales,” says Malpani.
An increasing number of consumers are becoming environment conscious and socially responsible, as 63% respondents agree to being more drawn to purchasing environment sensitive products. Companies need to now spend a higher share of their budget on products that don’t/least harm the environment, thereby making ESG (Environmental, Social and Governance) compliance a key agenda in their corporate strategies.The survey also indicates at a great opportunity for local manufacturers, as people are more attracted to locally sourced products. 62% of the respondents said that mentioning the country of origin of a product would impact their buying decision.