D2C purchases on mobile are driven by utility not discretion: Abhishek Shah

The D2C market in India has been growing rapidly (in double digits) for several years and is further expected to maintain a 19.2 per cent growth rate in 2021.

51 per cent of online sales happen via mobile devices. This is much larger than the global average and it is largely a Tier 2 and 3 audience that is shopping online directly via mobile. This trend is unique to India and other emerging markets.

On an average, Rs 10,000 is being spent per month by a consumer on mobile devices for shopping. Marketers, business owners and e-tailers cannot ignore customer experience on the mobile device, because 70 per cent traffic is coming from there, revealed Abhishek Shah, Founder and CEO, CommerceX, in his keynote address – ‘D2C - The next wave for Digital/ Mobile shoppers in 2020’ – on Day 1 at MOBEXX 2020.

Shah spoke about cracking D2C Commerce on Mobile Consumers in his session, where he identified the key trends that are amplifying adopting of D2C channels on mobile.

For e-commerce players, building for mobile is a challenge because the conversion rates are very low. Customers in Tier 2 or 3 markets are unwilling to download multiple apps as they clog the storage space or slow down their devices.

While bill payments dominate purchases on mobile, people are increasingly shopping for food, clothing & accessories, ticketing, electronics and groceries. What’s common among these purchases is that they are driven by utility or impulse. Travel, which is one of the oldest modes of commerce on mobile, has been quickly overtaken by bill payments and e-commerce categories, which are driven by utility.

Watch the complete session here: