Business

50% are likely to increase online spends: Survey

Nearly half of the consumers in India are likely to increase their spending on the online shopping platforms, even for traditionally offline categories such as vitamins, supplements, fresh food, home appliances and personal care products, a report by Facebook India and Boston Consulting Group (BCG) said.

As per the report, Turn the Tide, the surge in preference for online channel is sharper in India than in China, Brazil, Indonesia, Thailand, Philippines. India has seen a 1.3-1.7x increase in the number of online shoppers for essentials, it added.

Additionally, 43% respondents said that they plan to reduce overall spends in the next six months. However, more than half of them added that they will still buy a cheaper brand or a variant. 54% respondents expect overall household income to reduce in the next six months.

Some of the categories which are likely to see increase in spending include Fresh foods, Household care products, Paid OTT subscription, Savings, Insurance, Preventive diagnostics/test, Vitamins, herbs, supplements and Education.

Interestingly, spending on health and hygiene is expected to increase by more than 40% over next six months.

On the other hand, ‘Shrinking’ Categories with net decrease in spends will be travel, Public transport, Spas, theme parks, concerts, Restaurants, Movies at cinema hall, Luxury brands/products Cosmetics, make up, perfume, Apparel/fashion, Tobacco and smoking supplies, Alcohol, Food delivery and non mobile electronics.

Nimisha Jain, Managing Director and Partner, Boston Consulting Group said, “We are experiencing unprecedented shifts in consumer attitudes and behaviours.. .over 80% consumers will continue to practice social distancing and are bringing the outside inside, over 40% of consumers are dialing up on health and wellness spends, e-commerce adoption has already advanced by 2-3 years - to name a few.”

Ms Jain added that these aren’t just temporary surges, and many will last longer and become more defining traits.

According to another report by Deloitte India, spending pattern of the consumers has changed over the last six weeks with 55% respondents willing to spend a lot more on less discretionary items like groceries, 52% on everyday household goods, 31% on healthcare, 47% on medicines and 46% on home internet/mobile phone vis-à-vis discretionary items like Cable TV (31%) and entertainment (29%).

In addition, there has been an increase in intent to use digital services with 44% respondents very likely to use it for groceries, 27% for virtual doctor appointments, 36% for exercise programs, 52% for video conferencing with family and friends, 47% for streaming entertainment and 53% for payment apps/services.

“51% respondents feel the trend of online buying and pickup in-store is a safer option, while 37% respondents feel that it’s faster than shopping in the store,” Deloitte said in a statement.

Further, 77% respondents said they want to limit the use of public transit and 70% want to avoid ride hailing options altogether.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Dec 1, 2021 2:18:57 AM | https://www.thehindu.com/business/50-are-likely-to-increase-online-spends-survey/article31689561.ece

Next Story