According to Nielsen India’s e-commerce consumer panel, there has been a rapid double increase in the average spending of online shoppers for various categories
By Shreyansh Bhandari and Upesh Verma
In this era of new normal where the traditional channels of all brands are challenged almost every day, most brands have quickly adapted and focused on acquiring customers through platforms that not only offer ease and convenience, but also a safe environment for shopping. Lockdowns in the midst of the pandemic and the fear of getting out have resulted in a major shift in consumer behavior, forcing B2C brands to reassess and change their marketing strategies and reorganize their sales channels.
The pandemic initially forced traditional shoppers to buy online; however, it has become a viable and regular option when it comes to shopping. Of course, the high penetration of the internet, the low cost of data, the ease and widespread acceptance of digital payments have only made things easier. According to McKinsey Insights, 10 years of growth has been covered in just three months of 2020 – Ecommerce has replaced years of physical channels in just a few months.
According to a survey, 73% of Indian respondents are willing to spend more for convenience. The limitation of physical stores coupled with frequent and uncertain closings has only added to the benefit of building brands online. 77% of consumers have chosen, recommended or paid more for a brand that offers a personalized experience. Brands are now able to serve customers across the country and provide a 24/7 shopping experience, driven by the growing adoption of online payments and UPI. Other benefits brands have been able to offer customers during these times are contactless delivery and access to better deals. According to an E-commerce and Consumer Internet Sector India Trendbook-2021 (E-commerce and Consumer Internet Sector India Trendbook-2021) report, the online retail market is expected to grow from 25% to 37% of the organized retail market by 2030.
Brands traditionally focused on offline, from powder detergents to faucets, have now started to put more emphasis on their online strategies and devote more time and energy to building a better branded store or creating content. A + attractive. Some even invest in their D2C websites to drive sales, discovery and even brand visibility of their products. Brands are creating personalized online stores, adding enhanced branded content for their ads to connect with customers around the world and Indian consumers around the world. The pandemic has brought about an evolution in the way brands want to reach consumers and brands are ready to experiment and even spend significant amounts of money on marketing for vertical e-commerce companies in the beauty and fashion space and on the new booming and interesting social network. commercial applications.
Internet only or Internet first brands have increased over the past 15 months
According to the Nielsen India e-commerce consumer panel, there has been a rapid double increase in the average spending of online shoppers for various categories. For us, the story is no different: almost 20% of the brands in our portfolio are Internet brands only. Without exception, all brands have increased their budgets on e-commerce channels and around 40% of the budget is spent on major sales events and the teaser campaigns leading up to them. Even D2C brands plan their sales and offerings based on sales events on e-commerce platforms to take advantage of the increased sentiment of customers to buy online during this time.
Prime Days and Big Billion Days are now festivals in themselves. In fact, another trend that is catching up is that brands are creating their own branded shopping days and are willing to invest to build it as IP. New launches, special categories or variations are launched online to meet the growing appetite of customers to try something new.
Ecommerce companies are collaborating with fintech players and even traditional banks to provide access to credit and additional offers to get more customers to buy more.
In this frenzy of everyone listing their products online and having their own D2C website, brands don’t have to forget the basics and make sure they give customers a great shopping experience. We see a lot of brands not having mobile-focused websites, high load times, poor images and content. Today’s consumer is very impatient and with the multitude of options available with one click, they will easily move to another site or application. The shopping experience is as important as the quality of the product, which comes to the second point that brands need to pay attention to, reviews.
Today, brands need to be aware of their customer feedback, respond to customer inquiries promptly, and continue to constantly evolve customer reviews based on their products. Before adding products to the cart or even buying offline, reading online reviews is now an important part of the consumer shopping journey.
We are living in exciting times and have much to look forward to. Our advice to brands will be to have a continuous and focused attention on the shopping experience and content if they need to capitalize on this new trend. Speaking of trends to watch over the next year, we’re keeping a close eye on the live and social commerce space – while it has seen phenomenal growth, we seem to have barely scratched the surface.
The Authors Shreyansh Bhandari is Co-Founder and COO of Lyxel & Flamingo and Upesh Verma is Solutions Architect, Third Party Ecommerce Solutions of Lyxel & Flamingo. The opinions expressed are personal.
Also Read: How To Convey A Brand Message Using A Quest Scenario
follow us on Twitter, Instagram, LinkedIn, Facebook
Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.