What’s pushing e-commerce?

Finding the way into the hearts and minds of indian consumers is not easy. And it took quite a few years for consumers to get convinced of the advantages that e-commerce offers. But of late they have taken to it with a gusto that’s unprecedented. what’s driving this change? The icmr survey throws up interesting findings that can help explain this phenomenon

Methodology

Using a structured questionnaire, The Indian Council for Market Research (ICMR) carried out a survey among Indian consumers in the age group of 18 years and above. The aim of the survey was to understand the penetration and scope of e-commerce in India. The survey was conducted in five cities across India, namely Delhi, Mumbai, Kolkata, Bangalore and Chennai. The sample size of the survey and the number of respondents was 500.

15-5How often do you use e-commerce sites?

E-commerce in India is booming with practically anything and everything available online. According to the survey, in the current scenario, 38% of the respondents indulge in online shopping activities very often and are regular users of e-commerce sites. Only 2% of the respondents said they never use them.

 

16-7What category of products do you purchase from e-commerce sites?

The survey purported to judge the respondents based on their online purchases. The respondents were asked to list the product categories that they generally purchase online. Booking tickets (both for travel & recreation) topped the list of purchases. This was followed by other kinds of purchases – apparels, books, electronics and flowers.

17-9Why consumers buy directly from a brand or a manufacturer’s website?

85% of the respondents believe that buying is cheaper and convenient from a brand’s website. Variety, better service, loyalty and warranty/guarantee were the other factors why consumers prefer buying directly from the brand/manufacturer.

18-7User experience of e-commerce sites?

Though e-commerce-based activities have taken time to pick up and become popular with the Indian consumer, what is interesting is that 62% of the respondents rated their online shopping experience as ‘good’ while a decent 18% said it was was ‘excellent’. A mere 8% of the respondents complained of having a ‘poor’ experience with respect to purchasing online.

19-7Do you actively engage in customer reviews prior to making a purchase?

With all kinds of information available on websites, Indian consumers are now reading reviews and getting feedback before going ahead and making a purchase. 83% of the respondents interviewed in this survey agreed that they read consumer reviews of products they intend to buy prior to making an online purchase themselves.

20-5What kinds of payment methods were used in the last three months

With more and more consumers flocking to e-commerce websites for making purchases, their choice of payment methods are also different. 35% of the respondents used cash on delivery option, which shows that it is one of the most preferred payment mode after debit card and credit card.

21-5Is the e-commerce market in India poised for rapid growth?

The proliferation of new e-commerce websites on a daily basis indicates that India is poised for rapid growth in this sector. The attractive offers, payment methods and ease of buying have increased the number of customers logging on to these websites. 72% of the respondents agreed to the same as they see rapid growth in this sector.

 

Is government a promoter e-commerce in India?

The government has taken new policy initiatives and adopted frameworks to guide the development of e-commerce business in India. But many were not aware of such initiatives. Among the respondents 23% said that the government is not doing enough to promote e-commerce in India while 45% of the respondents felt that effective measures and policies have been put in place by the government to oversee and regulate the e-commerce business in the country.