How social media changes online shopping decisions in China, India
Social networks are significantly influencing online shopping choices of Asian consumers. The trend is most prominent in China and India. According to a recent A.T. Kearney’s study, ‘Connected Consumers Are Not Created Equal: A Global Perspective’, in China, more than 95 per cent of respondents between the age of 16 and 45 said the chatter on their social networks has at some point influenced their online shopping decision. In fact, 61 per cent of the respondents said they ‘frequently’ base their decision on what what’s happening in their social network. That is nearly double the global average of 32 per cent.
Even among the older population, aged 65 and over, 44 per cent of respondents said they frequently base their shopping decisions on happenings in their social networks. That compares with a global average of just 5 per cent in that age group.
Over in India, more than 82 per cent of the respondents between the age of 16 and 35 said happenings on their social networks influence their purchasing decision. Even among the older population, 26 per cent of respondents said they frequently base their shopping decisions on happenings in their social networks.
However, the result highlighted a different trend in Japan where majority of the respondents said their shopping decisions are not influenced by the chatter in their social networks. In fact only 7 per cent respondents in the age group of 16 to 25 said they ‘frequently’ base their shopping decisions on happenings in their social networks. The global average for that age group was 32 percent. The study also showed that connecting with people on social networks is not a key factor for Japanese consumers to go online. Only 34 per cent of respondents from Japan cited this as motivation for going online, compared to the global average of 74 per cent.
The results of the study showed that 53 per cent of respondents from India connected to the internet every hour, or more than 10 times a day. That is higher than the global average of 51 per cent. The number in India is even higher when compared with China – where just 36 per cent of respondents were online every hour and Japan – where the number was 39 per cent.
The key motivations for Asian consumers to be continuously connected are:
#1. Access services / products and make purchases: On this front, Chinese consumers are leading the global trend. 98 per cent of the respondents said they go online to access services or for shopping. That is higher than the global average of 92 per cent. In India 92 per cent of respondents cited this as a key factor to go online. Meanwhile, 86 per cent of respondents from Japan said they go online for this reason.
#2. Interpersonal connection: This is a big motivator for consumers from India and China. 94 per cent of respondents from India said they go online to connect with other people, while 88 per cent of respondents from China cited this is a key reason. That is much higher than the global average of 74 per cent. However, this is not an important factor among Japanese consumers – with only 34 per cent citing it as a reason to go online.
#3 Self-expression – Sharing opinions with others through the internet is particularly strong in emerging markets and places where offline self-expression is limited. In China 89 per cent of respondents cited this a factor. It’s a big motivator in India as well with 88 per cent citing it as a reason to be connected, compared to the global average of 62 per cent.
“The need for connection, self-expression, exploration, and convenience has changed the roles that brands and retailers play. To be successful, brands and retailers must address these needs by building communities, entertaining, and educating consumers and maintaining an ongoing dialogue,” said Hana Ben-Shabat, A.T. Kearney Partner and Co-author of the study.
Changing consumers, changing preferences
The study also highlighted an interesting difference among consumers in different Asian countries. In China 93 per cent of the respondents said they prefer to do online shopping with pure play online retailers. That is higher than the global average of 84 per cent. However, in India only 8 per cent of respondents said they do shopping with purely online retailers. This means Indian consumers prefer to do their online shopping with brands that also have traditional brick and mortar stores.
“Physical stores remain the foundation of retailing. For those consumers that buy something exclusively online, chances are these consumers will go to a physical store to discover, test, taste or get their friends to weigh in on the decision. The key point is that the debate should not be a question of digital vs. physical. Successful retailers understand how each customer touch point adds value in the eyes of customers, and they develop omnichannel strategies that maximise customer satisfaction and profitability,” added Mike Moriarty, A.T. Kearney Partner and study Co-Author.
