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Do consumers today prefer online or offline shopping

In the last four years online shopping has grown by eight times taking the number to whooping 90 million people shopping online.

Tags: Online shopping, Offline shopping, Appliance Market, Mobile Market, eCommerce, Indian retail industry, Apparel Industry

BY Shwetha Satyanarayan  |  Dec 23, 2017  |  comments ( 0 )  | 
Do consumers today prefer online or offline shopping

At a time when online shopping has threatened the existence of brick and mortar stores in the country, a recent survey has concluded that although 70 per cent of the online shoppers are influenced by ecommerce, only 16 per cent make online purchases. The report released by BCG highlights that online shopping has grown by 8x from 2013. It says, “Unlike most other markets, only 5 per cent of purchases, accounting for 16 per cent of the value, are made after consumers followed a mixed pathway, using online and offline touch-points. This means that purely offline pathway remains dominant, accounting for 78 per cent of purchases and 58 per cent of value.” The report further adds, “Only 16 per cent purchases are done on online pathway from beginning to end, although those purchases represented 26 per cent of value.” While the purchase pattern continues for most of the large appliances and mobiles, the report says 50 per cent purchases of mobiles and major appliances by urban consumers are made online and offline.


But where online platforms for a category are well established, consumers use purely online pathways. For example, only 10 per cent transactions for hotel rooms and airline tickets are done offline now, says the survey.


When it comes to apparel, however, 32 per cent are willing to buy accessories online, but only 22 per cent will buy shoes online. The other 78 per cent still go to a store to see the new styles and try them on.


Frequent online shoppers are also 3.5 times more likely to follow a purely online pathway for purchases as they are willing to buy big-ticket items online. Consumers, mostly those in the urban centres research online and buy offline, according to the report.


Despite a litany of online grocery platforms, the survey finds that almost all fresh-food purchases are made offline while 1-2 per cent transactions are online and offline.


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