Online shoppers in metros like Mumbai and Bangalore are only ‘cautiously open’ with less than 35% preferring mobile transactions over other modes of payments, according to a study called ‘Mobile Consumer Journey – 2016’ carried out by Yahoo India and Mindshare. Note that the companies did not reveal the sample size of the study and we’d advise our readers to take this with a pinch of salt.
Kolkata leads mobile transactions with 75% online shoppers opting for mobile transactions, followed by Chennai at 64% and Delhi at 57%, according to the study. The study took into account different devices across 31 categories including travel and online shopping.
Some highlights from the study:
– The study states that out of the total number of consumers browsing products on mobile, 79% preferred to buy on mobile devices and 9% on PCs/laptops, while 12% preferred to buy from a physical store.
The study showed that consumers preferred online transactions for certain categories on the phone, as it saved time and allowed them access to discounts and promotions, especially for travel, music and movies.
– 31% of online shoppers listed “saving time or effort” as their main reason for shopping online while attractive discounts and promotions was another key driver as stated by 28% of online shoppers, with 21% of the respondents stating that the convenience to shopping anywhere, anytime was a big draw.
– The willingness to buy on mobile was driven by the category of product being reviewed. Users are less likely to buy financial services products, technology and consumer electronics on mobile as they see these as more complex purchase decisions.
– Over 90% of consumers use mobile devices for quick and frequent purchases in segments such as travel, music and movies.
– 36% consumers prefer buying high-consideration products like insurance on their personal computers or laptop, while 24% consumers prefer buying health supplements on personal computers and laptops.
– Categories with significant in-store purchases included personal hygiene (30%) and luxury goods and accessories (27%).
Barriers to buying online:
Some of the barriers to online shopping included fake goods, unreliable delivery and lack of quality control. This was noticeable especially in categories such as luxury goods, where people preferred to make big-ticket purchases in stores, as opposed to the online space.
Amex Nielsen study: Note that last month, American Express and Nielsen’s survey titled ‘Understanding Online Consumers’, conducted across 6 cities – Delhi, Mumbai, Bengaluru, Jaipur, Ahmedabad and Hyderabad stated that 70% of Indian consumers preferred online shopping with cards over COD, for quick refunds. Professionals aged 26-30 preferred cards over COD and claimed to have shopped online in the last year.
Jana study: Likewise, a study conducted by Jana stated that 53% of smartphone users in India used a shopping app every day. 4 out of the 25 most used apps were core messaging apps, while 5 more fell under communication. WhatsApp, the study stated, was on 90% of smartphones in India and had 1.7 times more DAUs than the next competitor, Facebook Messenger, on the list.