The value of 23 billion dollars in durable consumer sales in India will have digital influence by 2023: report
New Delhi, July 9 () It is expected that around 23 billion dollars in durable consumer sales in India will have a digital influence by 2023 as shoppers research online and watch videos before making the purchase, a report from Boston Consulting Group (BCG) and Google India Tuesday said.
The report defined a sale as a digitally influenced sale if the buyer uses the internet during any stage of the purchase cycle.
Today, 28 percent of durable consumer sales are digitally influenced and it is estimated that this reaches 63 percent of total sales, amounting to USD 23 billion by 2023. (Around) USD 10 billion of this will be sold online, he added. .
The report, entitled Digital Powers Consumer Durables: an opportunity of USD 23 billion for 2023, projected that the durable consumer industry (products such as televisions, air conditioners, washing machines, refrigerators and small kitchen appliances) could see an increase in 13% for USD 36 billion for 2023.
According to the report, at present, the digital influence varies according to product categories, with 33 percent for durable products with an average selling price (ASP) high as AC, televisions, washing machines and refrigerators, and 20 percent for products with lower ASPs such as small appliances, water purifiers and microwaves.
Digital research is increasingly playing an important role in the decision of consumers to buy a product, and a number of consumers with digital influence have doubled in the last four years, he added.
Consumers with digital influence have increased 5 times in the cities of level II and level III and women with digital influence have increased 10 times in the last 4 years, he said.
The report noted that in the pre-purchase phase, approximately 80 percent of digitally influenced consumers are not determined on their brand choice when they begin their research and typically spend 2 to 3 weeks in research before making the final purchase. .
Search, social networks, blogs and online videos are the key sources for online research. The report suggests that almost two out of three consumers with digital influence rate online reviews as a significant influence on their purchasing decisions.
Vikas Agnihotri, national director (sales) of Google India, said that while companies have begun to develop their digital presence, there is a need to adopt a holistic approach to digital, as the scale of their influence has increased rapidly and goes beyond the main metropolitan cities. Companies need to create a digital Alwayson strategy and create customized interventions to take advantage of the different demographic characteristics of consumers in all markets to achieve their business objectives, he added. SR HRS