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A quarter (25%) of urban online Indian consumers look to purchase food and beverage via an internet enabled device

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A quarter (25%) of urban online Indian consumers look to purchase food and beverage via an internet enabled device.

Consumers indulge in ‘me-tailing’ for categories like cosmetics (21%), clothing and accessories (25%)  

MUMBAI –Jan 17, 2013 – According to a study from Nielsen, a leading global provider of information and insights into what consumers watch and buy, half of the online respondents in India (50%) have expressed an intent to purchase a mobile phone and accessories while a quarter (25%) expressed an intent to purchase food & beverage via a connected device such as a mobile phone, personal computer or a tablet. These are the findings of the Nielsen’s Q1 2012 Global Survey on digital shopping amongst 28,000 internet respondents in 56 countries.

“Today’s online Indian shopper isn’t just regarding e-commerce as an alternative channel, she is recreating and reshaping her lifestyle in the intangible but infinitely engaging e-tailing stratosphere. No longer shackled to a shopping cart or traffic snarls, e-commerce in India is becoming the desirable fusion of product, service, content, commentary and conversation meshed together within the browser window of her connected device,” Says Adrian Terron, Executive Director, Retailer and Shopper, Nielsen India. “This also marks the advent of ‘me-tailing’ in India, where a shopping experience is created by shoppers for their immediate needs” he said.

Grocery Shopping

Almost three in five (57%) consumers compare prices for grocery items on their devices, 41 percent have purchased items online in the last month. Slightly more than two in five (44%) online respondents in India spend between ten to twenty five percent of their time online, conducting research on products and their prices.  25 percent of online respondents in India have expressed an intent to shop for food and beverage online in the next six months.

 In the last one year, grocery shopping for the Indian consumer has been impacted by rising food prices (54%) ; health factors (50%) and increased transportation costs (46%).  Factors such as food labeling (44%), retailer loyalty programme (48%) and discontinuation of a favorite product (45%)  make a small dent in grocery shopping for a consumer.  

Over half ( 53%) of India’s consumers actively look for deals online, while 46 percent conduct research on products in the online spaceOf the respondents who conduct online research , do so on a daily basis (51%). Looking up prices for grocery products is done weekly (52%) and of those who purchase products online, do so monthly (51%).

“The surge in deal-seeking behavior in the Indian consumer has prompted and sustained a plethora of ‘deal weeks’ by offline retailers. There is a carry over of this behavior  is also prompting similar shopper behavior online. Not only is e-tailing increasingly about finding the best deals for what shoppers intend to purchase, but it is quickly becoming the very reason shopper are buying more impulsively and straying beyond their traditionally defined ‘shopping list’. The shopper’s vision is no longer restricted by what the shopping aisle offers her” adds Terron. 

E-tailing to Me-Tailing :: Shopping Online

Intent to purchase cosmetics and skin care online in the next three to six months has gone up to 21 percent from 14 percent in the first quarter of 2010. Slightly lower than two in five (38%) urban consumers purchase tickets for entertainment , such as movies or shows  via their connected device, an increase of twelve points from the first quarter of 2010 (26%).A quarter (25%) of consumers purchase clothing and accessories online, while 36 percent order physical copies of books, and subscriptions to magazines via their devices. 26 percent pay for and download ebooks, digital magazines and newspaper subscriptions online.

“There is a dramatic shift taking place, with e-tailing in India that now offers shoppers the flexibility and customization to recreate their every day life online. While online purchase of items of daily use are now seeing traction , this phenomena is extending beyond products into entertainment “ says Terron. “ The format of ‘me-tailing’ now takes prominence for a shopper, from what she wears to what she consumes and how we shape our minds. Everything now has an online point of sale that is constantly responsive to shoppers needs to compare, seek information, navigate choice and seek affiliation with their network of friends and acquaintances”, he adds

About the Nielsen Global Survey

The Nielsen Global Survey of Digital’s Influence on Grocery Shopping was conducted February 10–27, 2012 and polled more than 28,000 consumers in 56 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on their Internet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of ±0.6%. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent Internet penetration or 10M online population for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Survey, was established in 2005.

 About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com.