India's Consumer Trends Unveiled: Future Shopper Report 2023
05 July 2023, Mumbai
Wunderman Thompson Commerce & Technology has launched the 7th edition of its Future Shopper report, offering valuable insights into the online shopping habits of 31,000 consumers across 18 international markets, including India.
Shaping the future of Indian retail
The report highlights the growing significance of digital channels in shaping the future of retail, with 64% of shoppers expecting nearly two-thirds of their purchases to be made online in the next decade.
Datapoints
Online spending through direct-to-consumer (D2C) channels has doubled from 7% to 14% in 2023, narrowing the gap with marketplaces. To capitalize on this trend, brands are advised to review their online sales models, as 58% of global shoppers prefer buying from branded marketplaces.
The increasing role of AI
The report identifies India as the leading market for consumers interested in posthumous purchasing, enabled by AI and cloud-based avatars. Additionally, India ranks highest for digital item purchases due to affordable mobile internet data and high mobile phone penetration across all demographics.
Customer purchase journey
The concept of "compressed commerce," where customers seek fast purchasing experiences, is gaining traction. Indian B2B buyers display the strongest preference for this approach, while Japanese B2B buyers are least interested. Brands emphasizing purpose and ethics appeal to an increasingly conscious consumer base.
Competitive landscape
Thailand and India rank highest in terms of changing shopping habits due to environmental concerns. Voice commerce adoption remains moderate, but China leads with 72% of shoppers owning voice-enabled devices, followed closely by India.
Omnification
Omni-channel strategies are crucial for brand success, with 77% of Indian shoppers preferring brands with both physical and online stores. Indian consumers have high expectations, demanding engaging experiences, quick deliveries, and minimal returns.
They also exhibit trust in marketplaces beyond shopping, with openness to marketplace dating services and utility purchases.
Observation
Hugh Fletcher, Global Head of Consultancy and Innovation at Wunderman Thompson Commerce and Technology, emphasizes the importance of providing a seamless shopping experience across all channels and devices to meet evolving consumer demands and retain customers. Are businesses prepared for the consumer of the future?
The Future Shopper report urges organizations to invest wisely and leverage data to deliver the experiences consumers will come to expect.
