BCG-耐用消费品市场调查报告（英文）-2019.7-68页_3mb

Summary of BCG & Google Digital Influence on Consumer Durables Report (July 2019)

Core Content

The report by Boston Consulting Group (BCG) and Google analyzes the growth of the consumer durables industry in India and highlights the increasing role of digital influence in purchasing behavior. It outlines the future growth potential of the industry, the evolution of digital influence, and the opportunities for companies to adapt to this shift.

Main Findings

Industry Growth

• The consumer durables industry in India is expected to grow to USD 36 Bn by 2023, driven by several factors:
  • Low product penetration
  • Rising disposable income
  • Increasing urbanization
  • Easy access to credit
  • Government initiatives on electrification

Digital Influence

• By 2023, 63% of total consumer durable sales in India are expected to be digitally influenced.
• USD 23 Bn is projected to be the value of digitally influenced sales by 2023.
• 55% of urban consumers are expected to be digitally influenced by 2023, up from 29% in 2017.

Online Sales

• USD 10 Bn of the total USD 23 Bn will be from online sales.
• Online buyers have grown from 3% in 2013 to 9% in 2017 and are expected to reach 22% by 2023.

Key Trends in Digital Influence

Product Categories

• High ASP durables (e.g. TVs, ACs, washing machines, refrigerators) have higher digital influence.
  • 3 out of 10 consumers are digitally influenced for these products.
  • 1 in 3 buy these products online.
• Low ASP durables (e.g. microwaves, water purifiers, small appliances) have lower digital influence, but a higher percentage of online buyers.
  • 2 out of 10 consumers are digitally influenced for these products.
  • 1 in 2 buy these products online.

Demographics

• Urban consumers are the primary demographic showing growth in digital influence.
• Women, 35+ age group, and tier 2-3 city consumers have seen disproportionate growth in digital influence:
  • 10x growth in female online buyers over 4 years.
  • 5x growth in online buyers in the 35-55 age group.
  • 5x growth in digital influence in tier 2-3 cities.

Digital Influence by Brand

• Offline market leaders do not necessarily dominate digitally influenced sales.
• Challengers are increasingly leveraging digital platforms to enhance reach and market share.

Consumer Journey and Digital Touchpoints

The report outlines four archetypes of consumer journeys:

1. Research Offline - Purchase Online
2. Research Offline - Purchase Offline
3. Research Online - Purchase Offline
4. Research Online - Purchase Online

Pre-Purchase Phase

• 84% of in-store buyers and 74% of online buyers are undecided on brand at the start of their research.
• Research duration is typically 2-3 weeks.
• Search engines are the primary source of online research, followed by social media, online videos, blogs, and online forums.
• Consumers search for high ASP durables by brand and low ASP durables by product specifications.
• Online reviews influence 66% of digitally influenced buyers in their purchase decisions.

Purchase Phase

• Low price and convenience are the largest drivers of online purchases.
• Multiple payment options are among the top 5 drivers.
• Absence of in-person guidance and lack of touch & feel are the biggest barriers to online purchases.
• E-commerce aggregators are preferred over brand-specific websites/apps.
• TV, AC, and water purifiers show relatively higher brand-led online purchases.

Post-Purchase Phase

• 33% of online buyers provide digital reviews after purchase.
• 26% of in-store buyers and 36% of online buyers look for other offerings from the same brand.
• Low ASP durables have higher propensity for repeat purchases.

Opportunities for Brands

• Brands need to shift from digital as a channel to digital as a core of marketing.
• Move from mass marketing to personalized interventions.
• Focus on digitally influenced market share rather than just offline market share.
• Drive advocacy at scale by leveraging online reviews and digital engagement.

Recommendations

• Invest in digital infrastructure and build a dedicated digital organization.
• Reset digital ambition to capture the USD 23 Bn opportunity.
• Focus on consumer engagement across the entire journey, especially for undecided consumers.
• Leverage the 30% of consumers who provide reviews to influence 60% of consumers who rely on them.
• Utilize digital tools like:
  • Digital billboards for targeted offers
  • Chatbots and expert recommendations for purchase assistance
  • Augmented/virtual reality for product visualization
  • Digital kiosks for faster order placement
  • One-click returns and personalized loyalty programs

Drivers of Digital Influence

• Increasing internet penetration (expected to reach 650 million users by 2020).
• Falling smartphone prices and declining data tariffs.
• Rise of vernacular content (e.g., 20x increase in non-English watch time on YouTube).
• E-commerce sales thrust through promotions, exchange offers, and no-cost EMIs.

Conclusion

The consumer durables industry in India is on the cusp of a significant digital transformation. As digital influence grows, companies must adapt their strategies to engage consumers effectively, leverage online reviews, and enhance digital presence to remain competitive. The USD 23 Bn opportunity by 2023 requires a shift in mindset from traditional marketing to digital-first strategies.