Bulk of white goods sale will be digitally influenced by 2023

10 Jul,2019

 

By A Correspondent

 

Capturing the growth of digital influence and key consumer insights in the consumer durables sector in India, Boston Consulting Group (BCG) and Google India released a report titled ‘Digital Powers Consumer Durables: A $23 billion Opportunity by 2023’. Projecting a healthy growth rate for consumer durables, the report states that overall industry will see a growth of 13 per cent to reach $36bn by 2023.

 

The report defines a sale as a digitally influenced sale, if the buyer uses internet during any stage of purchase cycle. Today 28 per cent of consumer durable sales is digitally influenced and this is estimated to reach 63 per cent of total sales, amounting to $23bn by 2023. $10bn of this will be online sale.

 

Capturing rise in number of digitally influenced urban consumers, the report states that digital is increasingly playing an important role in consumers’ decision to buy a product, and number of digitally influenced consumers have doubled over last four years. Digitally influenced consumers have increased 5X in tier 2 and tier 3 cities and digitally influenced women consumers have increased 10X over last four years.

 

Decoding the digital consumer further, the report also highlights important consumer insights as buyers traverse through multiple online and offline touchpoints before making the final purchase. In the pre-purchase phase, approximately 80 per cent of digitally influenced consumers are undecided about their choice of brand when they start their research and spend typically 2-3 weeks on research before making the final purchase. Search, social media, blogs and online videos are the key sources for online research. The report suggests that nearly 2 out of 3 digitally influenced consumers rate online reviews as a significant influencer in their purchase decisions.

 

Speaking about the key insights, Nimisha Jain, Managing Director & Partner, The Boston Consulting Group, India said: “18Bn of consumer durable sales will reside with digitally influenced consumers who are undecided on their brands in 2023. Companies will have a short 2-3 week window to influence them and ability to timely & efficiently influence them will determine the winners of the future.”

 

Calling specific actionable insights for the consumer durables players to seize this opportunity, Vikas Agnihotri, Country Director – Sales, Google India said, “Consumers are creatures of habit, and with growing access and connectivity, we are seeing consumers research online before they arrive at their purchase decisions for almost everything. And while businesses have started to build their digital presence, there is a need to take a holistic approach to digital as the scale of its influence has grown rapidly going well beyond top metros. Businesses need to create an always on digital strategy and create personalised interventions to tap different consumer demographics across all markets to achieve their business goals.”

 

 

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