Consumers in rural India are embracing online shopping, sparking a retail revolution

A recent survey by PwC reveals that consumers in less populated areas of India are leading a retail transformation by embracing online shopping, prioritizing deals over speedy delivery, and showing a preference for apps over websites, particularly for lower-cost items.

The absence of physical stores for premium brands, stock-outs of certain products, limited access to a wide range of products and brands in local stores and a lack of knowledgeable staff in offline stores are the main reasons why consumers outside densely populated urban areas (non-metro) in India opt for online shopping, according to a survey by PwC. On the other hand, the lack of discounts and special offers in physical stores, along with large crowds in malls during weekends are some of the reasons why urban dwellers prefer to shop online.

Non-metro Indian consumers are dedicating more time to shopping, with order volumes in tier-2 and -3 cities expanding by more than 60 per cent compared to previous years, PwC said in a release. Such consumers are driving a retail revolution in the country, PwC noted. In the festive season last year, consumers from tier-2, -3 and -4 cities contributed to more than 80 per cent of sales for Meesho and Amazon, highlighting a major opportunity for brands to tap into the growing aspirations and needs of consumers from these markets. Like most urban households, in families residing outside densely-populated urban areas, big-ticket purchases are not solely driven by men and homemakers play an active role in influencing decision-making, even though men are the ones making the actual purchase.

It has been observed that apps are preferred over websites to shop online. However, this behaviour changes when it comes to purchasing high-ticket items. Consumers in densely populated urban areas, who prioritise speed in online shopping, are particularly drawn to prompt delivery services that meet their demand for instant gratification and are willing to pay a premium price for the same. But non-metro consumers are keener on deals. These consumers are bargain and discount hunters.?As most urban women navigate shopping platforms like seasoned professionals, weighing their benefits and drawbacks, older women in non-metro areas tend to approach it with more cautious curiosity than others and are hesitant to shop online due to concerns about payment fraud, the credibility of unfamiliar websites and doubts regarding product quality matching the images shown.

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