(1) Consumption characteristics
Data research center eMarketer released a report on the purchasing preferences of young Indian consumers (aged 16-34). The report pointed out that compared with their peers in other parts of the world, young Indian consumers, especially high-income groups, consider product brands more when purchasing. 79% of high-income young Indians and 69% of non-high-income young Indians believe that brands play an extremely important role in life, both higher than the world average (70% and 51%, respectively).
The report also pointed out that 73% of respondents have brand awareness (67% worldwide), and 82% of respondents hope that brand manufacturers can provide them with more product information. Therefore, retailers and international brand sellers who intend to expand into the Indian market can list product information (i.e., listing) and prices in detail to attract Indian consumers to browse.
Indian consumers like to shop online for major brands of products in different categories, and the most popular product categories among Indians are the following five categories.
① Mobile phones and electronic products. In recent years, the Indian smartphone market has grown significantly, partly because there are many types of smartphones that consumers can afford on the market. Among them, the most popular mobile phone brand in India is Samsung, accounting for 26% of the total number of smartphones in India. On the other hand, the advancement of technology has made online shopping easier. Nowadays, most Indian consumers like to buy large and small household appliances online for convenience, and the discounts for online shopping are also very large.
Clothing and fashion accessories. According to recent studies, consumers have the greatest purchasing interest in the fashion and accessories industry, accounting for 72% of the total industry in 2017. In addition, brands such as Louis Philippe, Gap, Puma and Titan have also shown about 5 times growth in different periods. The reason behind this growth is: the prices of branded clothing, accessories, footwear, gifts, and jewelry are lower.
③Food. Regardless of people’s economic conditions, food is a necessity. In the past few years, there has been a revolution in food consumption in India, and more and more people are buying food online. India’s online grocery market achieved sales of nearly $1 billion in 2017. Obviously, this shows that online food shopping is more convenient for consumers. Compared with 2016, the sales of India’s online food industry increased by more than 65% in 2017.
④Beauty and personal care products. As the disposable income of the Indian middle class has increased and many people are becoming more and more interested in beauty, the revenue of the beauty and personal care industry increased by 52% in 2017, of which 80% of the sales came from repeat customers. Market research shows that the total sales of the Indian beauty market is expected to reach US$20 billion in 2025, compared with the current level of US$6.5 billion. It is worth mentioning that Indian men aged 18 to 25 spend more on beauty and care products than women.
⑤Household products. In 2017, the sales of online household products in India increased by 49%. The huge demand for household products in the urban class is very beneficial to the development of the Indian home furnishing market. The growth of infrastructure and real estate has also driven the demand for household products in India. In addition, the introduction of international brands and the increase in brand awareness have also promoted the growth of household products.
(2) Payment method
Cash on delivery is still the most popular payment method for consumers because they believe that it is safest to pay after verifying the physical product. The second is bank card payment. In the past two years, mobile payment has also gradually become popular.