Offline retail outpaced e-commerce, driven by higher rural demand (particularly FMCG) and a steady uptick in urban demand in first quarter of FY24, according to the Redseer Report.
The e-commerce spending sentiment for Q2 remains positive with an ECCI (e-commerce Consumer Confidence Index) of 131, with a minor dip from the previous quarter. Additionally, the net promoter score for e-commerce has improved to reach 52 per cent driven by increasing trust and overall satisfaction with online platforms.
“Given the slowdown in new user adoption, going forward, companies will have to craft their strategies for preimmunizing their offerings, devising upselling and cross-selling schemes, and developing loyalty programmes, with a continued focus on customer satisfaction”, stated Mohit Rana, Partner at Redseer Strategy Consultants.
E-commerce spending
Additionally, over 45 per cent of the respondents plan to increase their e-commerce spending, largely across the categories of fashion, grocery, beauty and personal care, noted the report.
However, with the e-commerce sector approaching maturity, the adoption of new categories is expected to be muted. Most non-users also tend to remain sticky (prefer offline retail), as only a few consumers are willing to try online shopping over the next six months.
Redseer conducts a quarterly survey to assess the consumer sentiment towards e-commerce spending and adoption in the following six months. The survey conducted in the first week of July indicates an optimistic consumer outlook towards Q2, with an ECCI of 131. This is a slight decline from an ECCI of 142 in Q1 FY24.