Consumer spends in the last quarter were robust across online and offline retail, as gross merchandise value grew alongside a moderating inflation and rising income levels, says Redseer’s quarterly report that tracks consumer sentiment on e-com spending and adoption in the following six months.
The survey conducted in the first week of July indicates an optimistic consumer outlook towards Q2, with an e-commerce Consumer Confidence Index (ECCI) of 131, representing a slight decline from 142 in Q1 FY24, informed a statement from the company.
Over 45 pc of respondents planned to increase their e-commerce spends, largely in categories of fashion, grocery, beauty, and personal care.
“However, with the e-commerce sector approaching maturity, the adoption of new categories is expected to be muted. Most non-users also tend to remain sticky (prefer offline retail) as only a few consumers are willing to try online shopping over the next six months,” the statement added.
Mohit Rana, Partner at Redseer Strategy Consultants, said, “ECCI for Q2FY24 underscores that e-commerce will continue to be a key driver for retail growth and consumer spending, driven by existing users. However, given the slowdown in new user adoption, going forward companies will have to craft their strategies for premiumising their offerings, devising upselling and cross-selling schemes, and developing loyalty programs, with a continued focus on customer satisfaction.”
According to the survey findings, retail commerce grew in Q1FY24 as inflation cooled and incomes rose. Offline retail outpaced eCommerce, driven by higher rural demand (particularly FMCG) and a steady uptick in urban demand.
The net promoter score for e-commerce has improved to 52 pc, driven by increasing trust and overall satisfaction with online platforms, notes the report.
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