A survey done by Accenture found that just between India, Bangladesh, Egypt, Ethiopia, Indonesia, Kenya, Nigeria, and the Philippines, 1 billion new digital shoppers will be added in the coming decade.
However, multinational companies have not picked up the cue and remain unprepared for this influx, with 40 per cent of the world’s largest consumer brands having no presence in these markets.
The analysts have drawn their projection of the surge based on the quadrupling of digital consumer revenue in these markets between 2017 and 2022, going up to $211 billion. The study is based on a sample size of 3,000 of which over 500 were from India. The online consumers currently fall between 6-26 years old, making up 36 per cent of the countries’ total population.
The survey found 79 per cent of Indian respondents use online channels such as search engines, social networks and videos to research products or services before purchasing and a majority (81 per cent) of them take into consideration “likes” and “good comments” when making purchase decisions. Half of them prefer shopping on social media apps to other purchasing platforms and many are likely to buy from the same seller again, influenced by benefits such as “click and collect” (80 per cent), free delivery (83 per cent) and easy return options (84 per cent).
Vineet R Ahuja, Managing Director and Accenture Song Lead in India, pointed out that the absent multinationals have “huge untapped opportunities for growth and innovations” in these markets to cater to the evolving buying habits of next generation consumers, which will be aided by lesser barriers to entry, more access to global brands and a digital-focused upbringing.