This segment of ‘mass’ consumers is projected to drive ~US$ 1.3 trillion in the overall Indian retail market and nearly 45% of the $300 billion eCommerce opportunity in India by 2030.
‘Mass’ consumers may drive more than ~USD 135 Bn GMV of the USD 300 Bn total eCommerce opportunity in India by 2030. The report said that this segment looks for ‘bang for buck’ or products that offer the highest value for money. Internet has become a major source in their purchase decision making journey to locate the best deals and has made them equally tech-savvy as the affluent segment.
The report by Redseer found ~75% of the mass consumers comprised of millennials and Gen-Z consumers.
“While Gen-Z, who are young and independent, show purchase preference for apparel, BPC, and electronics, the value-driven independent millennials tilted towards BPC (beauty & personal care), food & grocery, and apparel. Gen-X constituted about 13% and spent a higher share on food and grocery, followed by health and wellness. Although Gen-Z consumers have distinct characteristics from older generations, they are also value-conscious at the core,” the report adds.
The survey also found that this segment is also willing to tilt towards unbranded items if they liked the quality. The three factors that guide purchase decision for this segment include- prices/deals and discounts on eCommerce platforms, quality of products, and the trust on the platform.The population- earning up Rs 10 lakh- comprises of the middle class. The middle class is the fastest-growing major segment of the Indian population in both percentage and absolute terms, rising at 6.3 percent per year between 1995 and 2021. It now represents 31 percent of the population and is expected to be 38 percent by 2031 and 60 percent in 2047. More than one billion Indians will make up the middle-class when India will turn 100. These are the figures from PRICE ICE 360 degree surveys based on primary data.Within the category of the Indian Middle Class, the sub-group of Strivers—with an annual household income of between Rs 15 lakh and Rs. 30 lakh—has grown at 6.4 per cent annually between 2015- 16 and 2020-21. The Seekers, another sub-group of the Middle Class earning between Rs 5 lakh and Rs. 15 lakh a year, has grown by 4.8 per cent annually during this period, as per the PRICE survey.
By the end of this decade, the survey says, the structure of the country’s demographics will change from an inverted pyramid, signifying a small rich class and a very large low-income class, to a rudimentary diamond, where a significant part of the low-income class moves up to become part of Middle Class.
Thus, the growth in the population will also serve as a catalyst to the e-commerce business in India.
