In 2020, the adoption of digital commerce was accelerated by multiple years in only a few months. Taking a closer look at the Indian market, the e-commerce sector has grown exponentially with new adopters expected to continue shopping online also post Covid-19.
Since the lockdown restrictions were lifted, many working professionals moved to their hometowns from metros leading to increased demand especially for online shopping and food deliveries in Tier-2,3 towns. At the same time, the demographic composition among shoppers also changed with older population and low-income segments contributing to the rise in e-commerce.

The pandemic drove a surge in online shoppers notably from non-metros
Lockdowns, travel bans, and retail closures forced the consumer online. This increased digital usage is leading to a rise in the number of first-time ecommerce-users in India, who had been so far inhibited to shop online.

There is increased price sensitivity and more careful review for purchases
There’s cautious optimism among Indian consumers. Although non-essential purchases have gradually improved, consumers are thinking about price and quality, with increased price sensitivity and more careful consideration.

Consumers are looking for high-quality and reliable brands
Since rural consumers are less familiar with brands, they will take longer than their urban counterparts to decide that they trust a brand. Hence, brands will need to adjust the way they do business to meet new consumer expectations in rural. Businesses can implement promotions and rewards, encouraging consumers to repeat purchases and driving consumer loyalty and trust.
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