GfK, an AI-powered SaaS and data company, released the sales trends observed for the online retail channel in 2021. GfK Market and Consumer Intelligence powered by gfknewron reveals the shifting preferences of Indian consumers across consumer tech and durable products to online retail channel since the pandemic.
At a total TCG level, more than one-third of all value sales has been registered through the online channel, up from 27 per cent in 2020 during Jan – Nov. In 2021, online channel value contribution for small domestic appliances (SDA) accounted for 47 per cent, followed by IT Computing for 39 per cent and smartphones for 38 per cent.
The pandemic triggered some shifts in buying behavior. GfK Consumer Intelligence reveals the increasing preference of online shopping via general shopping apps, brands’ own websites and social media. This reflects the rising consumer trust and digitalization of purchase journeys fueling the online retail contribution to overall category sales of consumer tech products. This trend is expected to continue with evolving consumer needs and choices across big and small cities.
Nikhil Mathur, Managing Director – India, GfK says, “ With greater digitalisation across big and small cities and consumers shifting towards hybrid working and learning, the contribution of online retail has grown in 2021 vs. 2019 for electronics and appliances in India. Product categories like smartphones, MWO and PTV have contributed >35 per cent in terms of online volume sales. The trend is also the result of convenience of 24X7 shopping, promotions and contactless delivery options offered by omni-channel retailers. Significantly, working remotely and, consequently, spending more time at home, is a trend that is likely to endure. Also, with constant innovation taking place in the retail space, Metaverse would be an interesting trend to watch out for.”
For business leaders and marketers, it is essential to understand the TCG industry sales performance in comparison to pre-pandemic levels since 2020 witnessed several market disruptions owing to lockdowns and two waves of the pandemic. There is reason for marketeers to feel positive about 2022 as we expect the trend of omni-channel retail to continue.