Internet awareness has gone up, but online purchases continue to remain stagnant. This has been revealed in the third Consumer Outlook Study 2001 conducted by management consultants KSA Technopak. Though the study shows that time spent on shopping has been stagnant for the last three years, shopping is still regarded as an out-of-the-home leisure activity. In contrast, online shopping has not picked up in popularity.
On the whole, non-store shopping formats have not been able to make an impact. Among non-store formats, awareness has gone up since last year in Net shopping (from 42 to 72 per cent), multilevel marketing (2 to 74 per cent) and catalogues (7 to 72 per cent).
In terms of sales, home/TV shopping has fallen from 5 to 2 per cent and catalogues from 3 to 1 per cent. Online shopping and MLM shopping have remained stagnant at 1 and 2 per cent, respectively.
With time spent on shopping at a premium, other out-of-the-home options like entertainment parks and eating out are taking up a large share of time. Supermarkets, department stores and shop-in-shops have emerged as the popular store formats, with their acceptability beginning to extend beyond metros to smaller cities also.
The growth of these large formats is driven by four product categories: apparel, grocery, cosmetics and music. Among product categories, consumer durables registered 70-80 per cent sales in multi-brand outlets, apparel accounted for 60-75 per cent, footwear 35-40 per cent and home textiles 60-65 per cent.
The Consumer Outlook Study covered 10,000 respondents in the top 20 cities across SEC A & B in the age group 15-58 years.