More than 60% of people prefer shopping through mobile apps due to ease of navigation, user-friendly interfaces, and vernacular support, according to a PwC India report.
In the report titled 'How India shops online: Consumer preferences in the metropolises and tier 1-4 cities', PwC India said urban dwellers are enticed by perennial discounts and convenience of online shopping, while consumers from rest of India regions are driven towards e-commerce by factors like limited product availability and stockouts in local offline stores.
In recent years, approximately 12.5 crore consumers in India have embraced online shopping, with a significant portion hailing from tier-II, -III, and -IV cities.
PwC India said the report is based on an online survey of 2,100 people, 100 qualitative interviews, and 400 in-person interviews across India with leading experts and industry partners.
"The next phase of growth for e-commerce will be driven by the new digital savvy consumers of tier 2,3 and 4 cities in India. In contrast to urban dwellers, these individuals, constrained by limited access to physical stores and brand choices, consider online shopping a gateway to fulfil their aspirations," Somick Goswami, Partner and Business Transformation Leader at PwC India, said.
It further said social media platforms play a pivotal role in driving product trials, with 62% of users trying products after seeing them on platforms like Facebook and Instagram.
Urban and rest of India consumers exhibit differing preferences in social media channels for product discovery and trials, it added.
It also said while both urban dwellers and rest of India consumers display comparable acceptance of UPI payments, cash on delivery remains the preferred option among the latter to minimise fraud risks.
"India's online consumption gravity is decisively percolating to markets beyond metros. This report creates an industry-first insight on what are some of the unmissable category wise nuggets a brand needs to imbibe to success in Rest of India," Ravi Kapoor, Partner and Leader - Retail and Consumer Goods at PwC India, said.