The value eCommerce market in India is expected to reach $40 billion by 2030, says a recent report by Kearney, a global management consulting firm. Based on their survey, the report also portrays distinctive online shopping patterns of value buyers. We have collected everything you need to know about the emergence of this new trend.
If you are keen on starting an online business in 2021, now is the right time. You will have the chance to be a part of the $40 billion value eCommerce market.
Who are value buyers?
In simple terms, consumers who focus more on finding affordable yet quality products are termed as value buyers. They don’t care much about branded products and are cautious on buying within their limited budget.
As per the report titled ‘value e-commerce: the next big leap in India’s retail market’, the value lifestyle e-commerce market will play an important role in the growth of India’s retail industry in the next decade (Source: Kearney).
After the pandemic, more value shoppers are moving online. The growing number of value-conscious online shoppers is reshaping India’s eCommerce landscape. So, if you are contemplating the idea of starting an online store, you need to focus on catering to the needs of this category of buyers.
If you already own an online business, here are some valuable consumer insights and trends you need to know.
Purchasing patterns of value buyers you need to know:
Value buyers think and buy differently. Here are five trends that stand out according to the Kearney report:
Budget-oriented buying: Value lifestyle consumers have a limited budget. So they spend a lot of time evaluating and finding products before buying.
Discount hunting: They always seek the products with the biggest discounts. So make sure you target customers with the right offers at the right time.
Less brand loyalty: Value lifestyle consumers tend to have less brand loyalty. Further, they are focused on getting the best quality products in their preferred price range.
Highly influenced by friends, family, and social media: Opinions by family and friends play a role in decision making for value shoppers. A significant number of consumers also agree that they trust social media influencers.
How is this important to online business owners?
Your online business has a high chance more than ever to attract customers and build trust.
DTC business model is the best way to solve the needs of online value-buying customers. There will be a rising demand for independent online stores which offer the right assortment of products at the right prices.
4 factors that will help your business grow in the value eCommerce space:
Availability and relevant assortment: Shopping trends vary according to regional and local fashion purposes. Therefore, retailers should find a way to include relevant assortments and curate to the price-points of value shoppers.
Include relevant peer reviews and personalised recommendations: A large number of online buyers rely on ratings and reviews when evaluating products. They also expect to receive relevant recommendations according to their tastes. So, collect as much reviews as you can from your customers.
Consumer Engagement: Although brand loyalty is less, businesses can strengthen through online community building. Experiment with new ways that enhance familiarity and trust.
Efficient supply chain: Value e-commerce retailers should be able to consistently optimise delivery experience of their customers. Ways to achieve this include quicker delivery and quality packaging.
It is clear that Indian consumers have already started embracing online shopping. Are you ready to grab your spot in the $40 billion market? We’ve got you covered! With Instamojo’s premium features, you can start selling online in no time. In just two minutes, you can start creating an online store.