Pandemic Has Made Consumers More Comfortable Spending On Online Services

Diwali 2021 is likely to be an interesting opportunity for app marketers to attract and retain them as customers
‘Pandemic Has Made Consumers More Comfortable Spending On Online Services’

The strong adoption of online shopping brought about by the pandemic has inevitably led to consumers being more comfortable spending on online services. A 1.43x increase in the number of users buying staples online has been reported compared to the pre-Covid period. Also, as per Facebook, 16 percent of shoppers start shopping 6-8 weeks before Diwali.

Looking ahead, owing to the influx of new mobile users, Diwali 2021 is likely to be an interesting opportunity for app marketers to attract and retain them as customers, stated a report by AppsFlyer in collaboration with Facebook. 
Sanjay Trisal, General Manager of INSEA/ ANZ, AppsFlyer said, “Last year's festive shopping trends show that consumers have majorly pivoted towards online platforms, which will achieve greater magnitude as we head into the festive season in 2021. In the Food & Drinks category, there was an IAP surge of 3.75x in Q2 2021 compared to Q2 2020, and remarketing offered a massive boost of over 100 percent to the average app’s 30-day retention rate, registering more than twice the number of retained users in 2020.”

In fact, despite app activities slowing down in the Food and Drinks and Shopping categories owing to the second wave of the pandemic, it is likely to see a major recovery as consumers await the festive shopping season with bated breath. Taking a cue from last year’s trends, marketers should start early in 2021 – three-four weeks before Diwali to make the most of the upcoming festive season.

Nitin Chopra, Industry Head – E-commerce and Retail, Facebook, stated, “With increased digital influence and improved consumer sentiment this year, businesses have an opportunity to unlock growth by enabling digital discovery - Facebook being the home for personalized discovery. The pool of about 200 million Indians at various stages of commerce adoption have to be primed across the digital funnel differently this season.” 

Moreover, about 92.2 percent was Android’s market share for India during festive season 2020, the report stated. And, a 65 percent rise in the share of paying users was recorded from January 2021 to April 2021
“Brands have to start by building trust and awareness before consideration and subsequently push consumers down the funnel to buy from them with the least possible friction. While the mega sales moments help drive new shopper acquisition, it's important to sustain remarketing efforts post the peak events to improve the LTV,” Chopra further added. 

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