How Online Shopping Habits Vary Across India

Online shopping is not a uniform phenomenon in India, as different regions and cities have different preferences, motivations, and challenges. A recent report by PwC India reveals the similarities and differences in the online shopping behaviour of consumers in the metropolises and tier 1-4 cities. The report, based on a survey of 2,100 people and 100 qualitative interviews, provides insights into how India shops online and what businesses need to know to cater to the diverse and dynamic consumer base.

Apps vs Websites: The Preferred Mode of Shopping

According to the report, 80% of the surveyed respondents prefer using apps to shop online, as they find them more convenient, user-friendly, and secure. Apps also offer more features, such as notifications, discounts, and loyalty programs, which attract and retain customers. However, there are some differences in the app usage across regions and cities. While 85% of the respondents in the metropolises use apps, only 75% of the respondents in the rest of India do so. The report suggests that this could be due to the lower internet penetration and digital literacy in the smaller cities, which make them rely more on websites.

COD vs UPI: The Preferred Mode of Payment

Another difference in the online shopping behaviour of consumers is the preferred mode of payment. While cash on delivery (COD) is still the most popular payment option in India, with 65% of the respondents using it, there is a growing acceptance of UPI payments, especially in the rest of India. The report shows that 55% of the respondents in the rest of India use UPI payments, compared to 45% in the metropolises. The report attributes this to the ease, convenience, and security of UPI payments, as well as the government initiatives to promote digital payments in the rural areas.

Ratings vs Reviews: The Preferred Mode of Decision Making

The report also reveals how consumers make their purchase decisions online, and what factors influence them. The report finds that 70% of the respondents look at the ratings and reviews before shopping, as they trust the feedback and opinions of other customers. However, there are some variations in the importance of ratings and reviews across regions and cities. While 75% of the respondents in the metropolises look at the ratings and reviews, only 65% of the respondents in the rest of India do so. The report explains that this could be due to the higher awareness and exposure of the consumers in the metropolises to the online platforms and products, which make them more discerning and critical.

Social Media vs Word of Mouth: The Preferred Mode of Discovery

The report also explores how consumers discover new products and brands online, and what sources they rely on. The report finds that 60% of the respondents tried new brands after watching them on social media, as they were influenced by the content and recommendations of the influencers and celebrities. However, there are some differences in the role of social media across regions and cities. While 65% of the respondents in the metropolises tried new brands after watching them on social media, only 55% of the respondents in the rest of India did so. The report suggests that this could be due to the lower internet access and social media usage in the smaller cities, which make them depend more on word of mouth and offline sources.

Challenges and Opportunities: The Way Forward

The report also identifies the challenges and opportunities for the online shopping platforms and businesses in India, and provides some recommendations to address them. The report highlights the challenges of infrastructure, logistics, trust, and quality, which affect the online shopping experience and satisfaction of the consumers. The report also highlights the opportunities of personalisation, localisation, innovation, and collaboration, which can enhance the online shopping value proposition and differentiation of the platforms and businesses. The report concludes that online shopping in India is a complex and evolving phenomenon, which requires a deep understanding of the consumer preferences and behaviour across regions and cities.