Neilsen recently conducted a study aimed at ‘Decoding Investment Attitudes of the Online Indian Consumer’.
As we have reported, Indians are increasingly active online. According to a report by World Bank, Indian internet users grew from 61 million in 2009 to 125 million in 2012. Even companies (banks included) are increasing their online/mobile app presence in a bid to connect with the always connected consumer.
Despite these seemingly revolutionary changes, it seems that the consumer still prefers the traditional route . According to the Nielsen report, approximately 77% Indian consumers prefer physical dealings conducted at bank branches as opposed to online transactions. The usage of credit card and debit card is limited to 37% and 56% respectively. This goes to show that cash is clearly the preferred mode of payment/transaction for the online Indian consumer.
This study was conducted in 56 countries. A sample size of 500 was selected from India. The firm had allotted quotas for age/sex/etc. in the sample size for each country depending on the penetration of internet as compared to the total population of the country.
The report went on to talk about Investment attitudes (as the name suggests) of consumers and stated that most Indians are self-dependent in their investment decisions. While there is some reliance on the opinions of friends, major decisions are taken individually.
While the Indian consumer may not be exactly comfortable with online payments, etc. he has definitely adopted well to social media. An earlier Nielsen report showed that social media sites are coming of age and that user engagement on them is high. Though online shopping is yet to pick up, social media is fervently accessed with teens spending more than 86% of their time on online networking sites.
I believe it will take time and the evolution + penetration of technology for Indian consumers to increasingly use online payment methods and to reduce their overall dependency on cash. Wouldn’t you agree?
Image Source | europeanvoice