Shillong, July 26: A new report by market research firm Redseer reveals that ‘mass’ consumers are expected to play a significant role in shaping the Indian retail market, driving a massive $1.3 trillion in overall retail sales by 2030. The report highlights that these consumers will contribute over 45% of the projected $300 billion e-commerce opportunity, resulting in a substantial $135 billion in gross merchandise value (GMV).
Currently, India has 65-70 million households engaged in e-commerce transactions every month. This number is predicted to surge to 120-130 million by 2030, with the ‘mass’ consumers accounting for more than 80% of the incremental growth in e-commerce activity.
The report emphasizes that the ‘mass’ consumers, with an average annual income ranging from Rs 2.5-10 lakhs, are the driving force behind the increasing adoption of e-commerce in India. They have become the focal point for internet players in the country.
IANS reported that breaking down the ‘mass’ consumer demographic, the study found that 75% of this group comprises millennials and Gen-Z consumers. Gen-Z, being young and independent, show a preference for purchasing apparel, beauty and personal care products, and electronics. On the other hand, value-driven independent millennials tend to lean towards beauty and personal care products, food & grocery, and apparel.
Gen-X, accounting for around 13%, spends a higher share of their online shopping budget on food and grocery, followed by health and wellness products.
The report also indicates that the online wallet share expansion will be a key trend among ‘mass’ consumers, driven by their high-value consciousness across various product categories and their increased reliance on the internet throughout their purchase decision-making journey.
Approximately 70% of ‘mass’ consumers have increased their online shopping frequency on e-commerce platforms in the past year.
The top three factors influencing the purchase decisions of ‘mass’ consumers while shopping online include prices/deals and discounts on e-commerce platforms, product quality, and trust in the platform.