Online shopping is no longer confined to metropolitan areas in India, as digital literacy and widespread internet connectivity have expanded the trend to smaller cities and towns.
A recent PwC report highlights the diverse nature of India’s online shoppers, emphasising the need for businesses to tailor strategies based on the geographical location of consumers.
The report divides online shoppers into two categories: those in metros and those in the rest of India, revealing significant variations in preferences and behaviors.
One key difference lies in the importance of prompt delivery services, valued by urban dwellers facing traffic and long distances, while shoppers in smaller cities prioritise deals and discounts due to shorter distances.
The report identifies distinct preferences in product categories, with the rest of India leading in sports and fitness, home and kitchen, and health and wellness purchases, while metro residents focus more on grocery, electronics, and fashion.
Payment methods show comparable acceptance of UPI payments in both categories, but “cash on delivery” remains popular among shoppers in smaller cities to minimize fraud risks.
Generation X from the rest of India prefers card transactions for mid-high value purchases on well-known platforms.
Both categories prefer shopping through apps for their ease of navigation, simplified interfaces, and vernacular support. Marketplace apps dominate the consumer market, with Amazon leading in urban markets and Flipkart capturing the rest of India.
The report emphasises the need for tailored e-commerce experiences, recognizing the diversity in consumer preferences across India.
Prateek Sinha, Partner and Leader of Design and Experience Consulting at PwC India, stresses the importance of a human-centric approach, localized strategies and inclusivity for sustained growth and profitability in the dynamic Indian e-commerce landscape.
