by The Rise of Home Shopping
The Covid-19 pandemic has led to an unprecedented change in consumer behavior across the world. With lockdowns enforced and people encouraged to stay indoors, online shopping emerged as one of the safest and most convenient options for meeting everyday needs. E-commerce businesses recorded an exponential rise in demand as people turned to digital platforms to order everything from groceries to electronics from the safety of their homes. According to statistics, the global e-commerce market grew by approx. 25-30% in 2020 alone with grocery being one of the fastest growing categories. The panic buying amid lockdowns, coupled with the convenience of online deliveries fueled this monumental boom.
Changing Home Shopping
While a section of the population was already accustomed to Home Shopping online, the pandemic brought a huge chunk of new users onto digital platforms. Those who were initially skeptical about ordering items without physically checking them were now left with little choice but to try online shopping. And according to surveys, a significant percentage ended up having a positive experience. This changed perspectives and preferences as people realized the hassle-free nature of browsing from home, cash-on-delivery options, easy returns/exchanges and speedy order fulfillment. Post Covid, even those who have resumed going out prefer making multiple smaller online purchases instead of one big monthly visit to physical stores.
Rise of Omnichannel Retail
In order to capture this rapidly growing online customer base as well as in-store shoppers, retailers across segments have upped their omnichannel game. Today, they offer seamless integration of in-store and online shopping experiences. While the digital platforms serve those preferring contactless delivery, storefronts function as fulfillment centers enabling customers to buy online and pick up orders. Click and collect, try-at-home and virtual shopping are some of the innovative models emerging. Omnichannel being more convenient and hassle-free has changed the relationship between customers and retailers for the better.
New Categories on the Rise
Certain categories received an unprecedented boost with online demand surging for things not traditionally bought online earlier. For instance, grocery and staples emerged as one of the frontrunners given the essential nature. While the segment was growing steadily before, the pandemic provided the much-needed inflection point. Other sectors like health and fitness, electronics, home improvement are also witnessing an ongoing boom. Niche categories like supplements, wellness products too saw a major uptake. Experts believe this change in shopping patterns will persist even post pandemic with new categories gaining prominence going forward.
The Grocery Delivery Revolution
The grocery delivery boom witnessed during the pandemic has left a permanent impact. Whether daily needs or weekly bulk stocking, online emerged as the preferred mode for majority. Brands like BigBasket, Grofers etc recorded massive spike in orders with timely delivery being a key priority. Even traditional retailers started focussing on tech-enabled models, customer-centric innovations and partnerships. Quick commerce players like Blinkit promised deliveries under 10 minutes. Omnichannel models allowing ordering online and pickups gained traction. In response to higher demands, theKiranasalso formed aggregations to provide services under one platform. This changed the complexion of the grocery retail space forever.
Changing Role of Kiranas
The organized grocery chains and quick commerce startups certainly gained majorly during the pandemic driven boom. However, the traditional neighborhood Kiranas also reinvented themselves to adapt and hold grounds. Many partnered with online platforms to facilitate digital ordering and provided deliveries on request. This allowed them to leverage their proximity to customers while gaining access to a wider audience. Several also upskilled on tech and hygiene fronts to make the buying experience convenient and safe. Their personalized attention, doorstep delivery and flexible credit options helped retain customers who now prefer minimising outdoor visits. While the largescale operators strengthened their hold, the humble Kiranas too found a way to stay competitive through innovation and community support.
Rise in Video and Live Commerce
As social distancing became the norm, digital became the primary medium for entertainment and leisure activities as well. Social platforms were abuzz with live videos, tutorials and interactive sessions. Retailers tapped into this trend by launching life commerce features that merge content and e-commerce. Viewers can shop products shown in real time video reviews, follow virtual store tours, try styling sessions and get assisted by experts – all from the comfort of their homes. Technologies like augmented reality were leveraged to give an enhanced virtual shopping feel. Live selling helped some brands achieve sales figures rivaling physical events. Going forward, social, content and shopability on digital are likely to merge stronger driving further demand for live commerce formats.
Personalization is the Mantra
With an explosion of new users, it has become extremely important for e-tailers to offer hyper-personalized experiences tailored as per individual preferences, browsing history and purchase patterns. Also, with limited ability to check products physically, building trust though relevant recommendations gains prominence. Many brands have dedicated teams studying users to roll out smart filters, customized assortments, quick reordering options and targeted communications. Social proof like reviews, popularity, best-sellers and personalized discovery features improve engagement. Together, these personalization strategies enhance familiarity, foster loyalty even among those initially hesitant. With more data and AI/ML, personalization will continue scaling new highs shaping the digital commerce evolution.
Lasting Consumer Mindset Shift
The pandemic has catalyzed a definite and lasting shift in how customers perceive and engage with brands online and offline. Core aspects like convenience, safety, trust and personalization have taken the center stage influencing purchase decisions. Even as physical stores resume full operations, surveys indicate people’s affinity towards channels best fulfilling these preferences according to their changing lifestyles and needs shall endure. The new shoppers acquired might graduate to loyal patrons with continued focus on experience enhancement. While uncertainties remain, retailers cognizant of this transformation and pivoting their strategy accordingly seem better equipped to thrive in the post COVID reality.
the Covid-19 outbreak has accelerated the adoption of digital shopping like never before. Many trends that may have played out over years have now manifested within just one. Even as mobility opens up across regions, the overall inclination towards convenience driven window shopping is likely to stay much higher than the pre-pandemic levels. With continuous innovations enhancing safety, ease and personalization, online is clearly here to say dominating retail.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
