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IIM-Ahmedabad report, Retail News, ET Retail


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Tier 2 to tier 4 cities are outpacing the tier 1 cities in online shopping. According to an Indian Institute of Management Ahmedabad report, online shoppers from tier 2 to tier 4 cities spent up to 77% more than those from tier 1 cities in their last online shopping.

Browsing online is becoming a favourite pastime for consumers, with one-third of consumers reported visiting digital retail platforms every two to three days. Doing these activities, consumers invested an average of 34 to 35 minutes in their last online shopping. “Nearly 72% of consumers started shopping online in the last one to three years, hinting at a surge during the COVID-19 pandemic,” according to the institute.

The IIMA has launched a survey report titled ‘Digital Retail Platforms and Consumer Emotions: An Indian Perspective,’ authored by Pankaj Setia, chairperson of the Centre for Digital Transformation (CDT), Swanand Deodhar, assistant professor (Information Systems), IIMA and Ujjwal Dadhich, research manager, CDT. The report offers insights into digital retail adoption across India and how it has transformed into a ubiquitous shopping option for many, both in urban and rural India, the institute stated in a release.

“The use of technology for retail is revolutionising how India consumes. We are very excited to share the emerging trends that will help retailers, policymakers, and others to harness the power of technology for creating valuable retail ecosystems,” Setia said.

More than 90% of consumers reported spending less than ₹10,000 in their last online shopping transaction. Male consumers spent 36% more money than female consumers in their last online shopping transaction, according to the report.

The median spending (of ₹1,500) is more by consumers over 50 years of age, indicating that older age groups are also actively purchasing online. On the other hand, consumers upto 35 years of age like to spend more, and a higher proportion of consumers in this age group spend over ₹10,000.

Female consumers shopped more for clothing and fashion products, whereas men shopped for electronic products. In comparison to low-income groups, high-income buyers (having annual household income >₹10 lakhs) have spent more in their last online shopping transaction and tend to spend more every month.

Overall, consumers reported an average score of 5 out of 7 when asked about the convenience derived from digital retail platforms. Fashion, clothing, and electronics are the major product categories in which consumers made their last online purchases.


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