Evolution of shopping is one of the most noteworthy advancements that we have seen every before. The transition of shopping behaviour from traditional in-store experience to eCommerce and then gradually towards mCommerce, has surely redefined the composition of retail in the country. The advent of these modern shopping formats has not just taken the country with a storm, but has also enabled Indian consumers and merchants to explore cross border market places.
When it comes to tapping the technology-driven opportunity, millennial consumers of the country are no match. This specific target group, between the age-bracket of 18-34 years, are taking the maximum benefit from the global commerce opportunity.
Recently Paypal, a digital payment solution provider, in association with a market research firm IPSOS has launched a report named PayPal Cross Border 2015 Millennial Report. The report highlights the advancements in global cross border eCommerce potential to identify how consumers meet their international shopping needs and how do they prefer paying for it.
Betting on the findings of the report and PayPal’s focus on the millennial segment, PayPal India has recently launched two new services named ‘New Money’- PayPal’s vision for money, payments and commerce that champions a better way forward for its consumers and merchants in India and ‘PayPal.me, a faster and personalised option for merchants to receive cross-border payments.
Millennial consumers who shops online are very well informed and consider a safe payment gateway for their payment options. Every avid online shopper in India expects features like secure payment, fast processing, trusted brands, accepted by most retailers and convenience from his payment merchant. This expectation gets higher in case of cross-border shopping.
Commenting on the report and the newly launched services Anupam Pahuja, Country Manager and Managing Director, PayPal India said, “At PayPal we are focussed on enabling digital payments in a safe and secure environment. New Money by PayPal caters to the millennial audiences encouraging them to ‘Switch to New’.”
He further added, “PayPal.me offers a quicker and on-the-go facility for the freelancer segment to receive payments. Interestingly, a safer payment option takes priority over all other factors including discounts which make us a preferred payment option with our focus on risk & security.”
What does the research say?
The PayPal and IPSOS Cross Border 2015 Millennials report highlights the online and cross border shopping habits of over 23,000 internet users across 29 countries including interviews of 517 millennial consumers in India. The study further showcases the advancement of online cross border commerce among Indian millennial shoppers in terms of factors like what drives them shop across the border, the roadblocks, how do they approach to brand and last but not the least, their payment mechanism.
The research says that around 59 per cent of millennial consumers have shopped across the border for apparel and consumer electronics. Higher product quality was one of the key reasons for these shoppers to choose products from global websites. A remarkable highlight of the report is the high incidence of event ticket purchases. Close to 79 per cent of Indian millennial consumers shop for event tickets online.
Moving ahead, US continues to be the most preferred nation for cross border shopping followed by countries like China, UK and Singapore. The survey also reveals that Indian millennial shopaholics have a preference for large online global stores such as Amazon while purchasing from another country.
Where millennial consumers shop (their cross border destination) is similar to the general population of online shoppers, with US being the most popular.
When asked about the challenges they face while shopping globally, high delivery shipping cost came up as the biggest hindrance they face. Other factors included difficult return process, unclear duty and tax structures, long delivery times, unfavourable conversion rates and payment option only in foreign currencies.
Millennial consumers’ reasons for shopping internationally are similar to the general population, with high product quality being the most important reason.
Potential drivers for cross-border shopping are similar, but coupons/ promotions and discounts are stronger drivers for millennial consumers.
Cross border sales have splurged exponentially over the past few years. With the combined market value increasing to $1 trillion it is touted to scale in the years to come. With consumers getting bold and diligent on experimenting with new models of shopping it will likely be important for retailers to understand and implement the mechanism of cross-border commerce.