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Home Featured

Tonic Worldwide’s insights division GIPSI releases the report ‘The rise and rise of E-Commerce in India’

by MN4U Bureau
September 29, 2021
in Featured, Analysis
Reading Time: 4 mins read
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Tonic Worldwide’s insights division GIPSI releases the report ‘The rise and rise of E-Commerce in India’
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Mumbai: We’re always consuming, wish-listing and adding items to multiple carts, across multiple E-commerce portals, consciously or unconsciously, especially due to pandemic induced behaviour.

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GIPSI, Tonic Worldwide’s HI+AI (Human Intelligence + Artificial Intelligence) division applied its ‘Deep Listening’ methodology, triangulated with a survey (100 respondents) and 20 SME interviews to arrive at unique insights. The data sources are multiple for ‘Deep Listening’ Method – it goes beyond digital conversations and maps the data with interests and searches, coupled with unique HI perspectives giving actionable insights. All data compare January 2021 to July 2021, as well as to 2020 Data wherever applicable.

Key Findings of the GIPSI Report:

  • The Pandemic Effect is the key trigger for increased E-commerce adoption, with the majority of respondents shopping online tried at least 2 new E-commerce shopping sites/ apps in the past year.
  • Rise in the Types of E-commerce: Social commerce, Conversation Commerce, Homegrown Small Commerce, Delivery commerce, Video commerce, Sustainable commerce, Thrift commerce, Gift commerce, Creator commerce….the list is endless! Implication: The digital audience of India today is approximately 620+ million which consists of Fans, Friends, Followers, subscribers, passive surfers, who are all likely to be consumers!
  • The Rise of ‘Apps’ in E-commerce: Currently, there are 1103 most used E-Commerce apps in India and shopping apps have today captured the mobile home screens and they have made it to the Top 4 categories in the list of Most Used Mobile Apps in India, in 2021. Implication: Fight for the home screens has begun. Are you ready?
  • Rise of surfing in E-commerce: Every month approximately 620K searches take place for Social commerce, increasing month-on-month. With the average Indian today spending about 2.25 hours on social media everyday, commerce has become content now! Implication: Only presence is not enough! Your E-commerce content needs to be thumb-stopping.
  • Rise of “Search” in E-commerce: About 54% of product searches takes place on Amazon, with respondents attributing to the same, rather than using a search engine. Implication: How discoverable is your brand? Use Search behaviour to decode consumers’ intent and interest.
  • Rise of “Experience” in E-commerce: Today, From chatbots, Live videos, conversation commerce to AR features, the options are plenty. Inclination towards conversational commerce is on the rise, with 79% increase in industry-led conversations on decoding conversational commerce, and the technologies involved. Further, top conversational AI platforms see steady growth. Implication: “Experience”can be your post-pandemic advantage. Invest in experiences now.
  • Rise of “Entertainment” in E-commerce: E-commerce destinations are now competing with Social Media networks and OTTs, with customers spending more and more time on these shopping destinations. Soon, this experience will replicate malls – with the option to watch movies, shop and order food, all in an ‘E-comm mall’! Implication: E-commerce is not just a medium. It’s now a Destination for Entertainment.
  • The Rise of shopping on ‘Visual and Video platforms’ in E-commerce”: Visual platforms are seeing a whopping surge across all the platforms.  Preference for ‘Instagram shopping’ rules the roost, followed by Facebook, Youtube and Pinterest. There’s also a strong inclination towards Pinterest shopping, with 799% growth. Implication: Make visual platforms your shop’s new address.
  • The Rise of ‘Reviews’ in E-commerce: Led by the “creator economy” phenomenon, E-commerce reviews are also determined by Social Media Creators’ reviews and recommendations which can make or break brands on digital. There has been a 1447 % increase in conversations, with a 3X positive sentiment and further 25K conversations specifically on reviews and recommendations on E-commerce destinations. Implication: Brands, what’s your Review Quotient (RQ)?
  • The Rise of “Small Commerce” >> “Delivery Commerce” : The boom of Small commerce has seen an immense growth with creators, home businesses and local stores which have moreover taken their consumer experience completely online, with 155%+ increase in adopting Whatsapp catalogues and 46%+ increase in Shopify app downloads.. This thriving space has seen over 1.5 million searches on topics related to build/ set up E-commerce websites, free tools and related queries. Further, there has been a growth of 73%+in monthly active users of popular hyperlocal delivery players fromthe beginning of 2021 – to now. Implication: Brands, time to re-check who your competition is. Don’t forget to include the new-shops-in-town
  • The Rise of ‘Eco-activism’ in E-commerce: Witnessing a 50%+ surge in conversations around the topic and specifically 833K conversations on eco-friendly and sustainable packaging, this conscious shopping behaviour is now on the rise. Implication: Products, persona and packaging with an eco-filter is a must

Anjali Malthankar, National Strategy Director, Tonic Worldwide said, “Who knew that the biggest barrier ‘contactless shopping’ will become the biggest trigger for the rise and rise of E-commerce! With abundant data, there is no looking back on the reasons to adopt commerce on digital. Trends are available to all but brands which identify undercurrents will have an advantage. Our GIPSI report is for anyone who is riding, considering or fearing  the rise and rise of E-commerce”.

Commenting on the report, Unmisha Bhatt, Chief Strategy Officer and Director – India & MENA region Tonic Worldwide,said “At Tonic Worldwide, we enable our clients to meet their business objectives with better insights.  That is why we exist!   In the last year and a half, E-commerce and digitization has been a game changer for multiple companies of all sizes. In an effort to accelerate their business, GIPSI’s ecommerce insights report focuses on ways and means to see higher growth by adopting best practices. By making this report accessible to other brands and businesses beyond tonic, we look forward to contributing to the larger growth story for marketers”

GIPSI was launched in 2018 and is being headed and driven by Unmisha Bhatt, Chief Strategy Officer, Tonic Worldwide and Anjali Malthankar, National Strategy Director, Tonic Worldwide.

Tags: Anjali MalthankarCovid-19 pandemicGIPSIUnmisha Bhatt‘Tonic Worldwide’

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