Last year Google released a report on a survey it conducted in collaboration with Forrester on online shopping trends in India. The report highlighted factors driving growth of e-commerce in India. Aspects covered in the research included mobile commerce, consumption patterns of female shoppers, increasing demand from consumers in tier II and III cities, etc. The report also discussed some barriers to online retail in India such as poor customer satisfaction and trust.
Some key findings of the research were:
1.Mobile shoppers: Mobile is driving the market, especially in tier II and III cities of India. Half of the online shopping from Tier II and III cities are from mobile, compared to just one-third from Tier I cities. The percentage of online buyers making shopping queries from a mobile device have grown from 24% in 2012 to 57% in 2014. Forrester forecasts that mCommerce in India will be around $19 billion by 2019.
2.Women:. The study revealed that women are far more active on online shopping platforms as compared to men. They outspend men online by two to one, and around one-quarter of the women in tier one cities make mobile purchases.
3.New buyers: More than 70% of people in tier II and III cities who do not currently make purchases online are expected to do so in the next 12 months.
4.New growth areas: Home furnishings, cosmetics, and baby care are the next areas of growth for online retail after the success of online retail in the consumer electronics segment.
5.Low customer satisfaction: More than 60% of buyers reported that they were not satisfied with the online shopping experience. Most of the grievances came from Tier 2 down cities jumps from 58 percent in Tier 1 to 70 percent to Tier 2 cities. 67 percent people also highlighted that returning purchased item was complicated and expensive.
6.Lack of trust. 55% of buyers do not trust the quality of the products offered online.
For this research, Forrester Consulting surveyed 6,589 people in 50 cities across India. The respondent pool included both those who buy online and those who do not.