IIMA survey reveals fascinating insights into digital retail in India

As per the IIMA survey, female consumers shopped more for clothing and fashion products, while men shopped for electronic products.

Hyderabad: The Indian Institute of Management Ahmedabad (IIMA) has released a new survey report titled ‘Digital Retail Platforms and Consumer Emotions: An Indian Perspective,’ which offers valuable insights into the adoption of digital retail across India.

The report, authored by Professor Pankaj Setia, Professor Swanand Deodhar, and Ujjwal Dadhich, reveals that digital retail has become a ubiquitous shopping option for many in urban and rural India. It highlights that consumers from smaller cities (tier 2 to tier 4) spend up to 77 per cent more than those from tier 1 cities in their last online order.

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The report also notes that browsing online has become a favourite pastime for consumers, with one-third of consumers reporting visiting digital retail platforms every two to three days. Moreover, consumers invested an average of 34 to 35 minutes in their last online shopping session.

Notably, the report found that nearly 72 per cent of consumers started shopping online in the last one to three years, hinting at a surge during the pandemic.

More than 90 per cent of consumers reported spending less than Rs 10,000 in their last online shopping transaction. Additionally, male consumers spent 36 per cent more than female consumers in their last online shopping transaction.

The report further revealed that female consumers shopped more for clothing and fashion products, while men shopped for electronic products. Females reported realizing greater convenience from online shopping than male consumers.

Females were keener on delivery time and return policies, while male consumers looked for better quality, EMI options, and online recommendations.

Consumers under 35 years of age visited multiple websites before making a purchase and were more influenced by online recommendations. On the other hand, buyers over 60 years old visited only one platform for their last online transaction.

In comparison to low-income groups, high-income buyers (having annual household income > Rs 10 lakhs) have spent more in their last online shopping transaction and tend to spend more every month.

The report concludes that consumers prefer digital retail platforms due to the convenience of access and transaction, post-purchase experience, and value for money. Consumers from lower-income groups reported higher convenience and satisfaction scores.

Overall, consumers reported an average score of five out of seven when asked about the convenience derived from digital retail platforms. Tier 1 city consumers reported having higher convenience and satisfaction scores than consumers of smaller cities.