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Did you know which Indian city spends the most time on popular shopping apps like Amazon, Meesho, and others? Surprisingly, it's neither Delhi nor Mumbai. A recent research study has revealed that Bengaluru takes the lead as the city where people spend the maximum time on Amazon. On average, Bengaluru residents spend approximately 4 hours per week shopping on the platform, establishing the city as a hub for online shoppers.
The CyberMedia Research (CMR) study focused on online shopping habits in Tier II and Tier I cities, highlighting Bengaluru's significant engagement in e-commerce. The study found that people from Tier II cities such as Guwahati, Coimbatore, and Lucknow also spend considerable time shopping online, averaging around 2 hours and 25 minutes per week, which accounts for approximately 16% of their income.The convenience and appealing features offered by e-commerce platforms have empowered consumers in Tier II and beyond to embrace online shopping. Market giants like Amazon, Flipkart, Meesho, Tata, and Reliance are fiercely competing to capture this growing market. However, the study highlights that Amazon has gained consumer trust and preference due to its widespread presence across India. The study identifies attractive prices, convenient return and exchange processes, and irresistible offers as the main triggers for online shopping, influencing consumers' purchasing decisions.
Key findings from the study include the fact that women entrepreneurs and other individuals spend an average of 149 hours per year on e-commerce, with 29% of them purchasing smartphones in the price range of Rs 15,000 to 20,000 online. Gen Z, the generation born between the mid-1990s and early 2000s, shops online more frequently (51%) compared to Millennials (47%).
The study also reveals that consumers from Tier II cities spend nearly the same amount on online purchases as their Tier I counterparts. The average online spend in the last six months by Tier II buyers is Rs 20,100, while Tier I buyers spend Rs 21,700. Mumbai records the highest average spend at Rs 24,200, followed by Nagpur and Coimbatore at Rs 21,600.
In terms of product categories, clothing and accessories rank as the most purchased items online, followed by electronics and electronic gadgets. Nagpur leads in online purchases of electronics and electronic gadgets (81%), while Coimbatore and Bhubaneswar exhibit similar trends.
The study also sheds light on the preferences of online shoppers for electronic gadgets. The top three products bought online are smartphones, headphones/earphones, and smartbands/smartwatches. It highlights the significance of 5G smartphone compatibility and the increasing demand for premium smartphones. When it comes to e-commerce platforms, Amazon emerges as the preferred choice among consumers, followed by Flipkart. The study indicates that 73% of consumers from both Tier II and Tier I cities have shopped at Amazon in the past six months. Consumers appreciate Amazon for its attractive prices, easy return/exchange process, brand trust, and the convenience of shopping across various locations in India.
In conclusion, the study predicts the coexistence of both online and offline retail in the Indian market. As consumers become more digitally fluent, the e-commerce boom is expected to benefit small business owners and contribute to the growth of India's internet economy, which is projected to reach a trillion dollars.
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