IBEF: July 10, 2019
Digitally influenced shoppers looking into, shopping, and auditing large appliances online are set to spur the interest for such merchandise utilizing the internet as a medium over the next five years, according to a report by Google and Boston Consulting Group (BCG).
Less expensive data rates, and access to online shopping has pushed the digital influence on the sale of large appliances, for example, TVs, air conditioners, and washing machines to 28 per cent of the overall consumer durables showcase. Such "digitally influenced" deals estimated by the report as the utilization of internet by customers during the entire purchase cycle—from researching to buying—will affect 63 per cent of all total consumer durables sold in India by 2023. which means US$23 billion in sales over the next five years.
Boston Consulting Group (BCG) and Google surveyed more than 6800 customers for the report. The report estimated consumer preference towards buying purchasing large appliances, for example, air conditioners, washing machines, refrigerator, small appliances barring handsets that are already heavily sold online.
Even though pure play online sales for durables i.e. items researched for and bought online stood at 10 per cent of the overall consumer durables markets estimated by BCG and Google in 2017, the number is set to rise sharply going ahead.
28 per cent of absolute sales of durables are digitally influenced. "over the next five years and estimated that that number will come to over 60 per cent, that is a pretty significant number”, said by Nimisha Jain, partner and manging director of BCG.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.