Online shopping - clothes, gadgets and now essentials, medicines, groceries, and daily food: The next big trend after Covid-19

Introduction

The advent of the Covid pandemic brought about significant changes in the way the world around us functioned. Everything physical made a place for itself in the virtual world as the lockdowns and restriction of movement ensued. Even daily activities like shopping and events turned online in the wake of the pandemic.

Online shopping was admittedly already a popular thing in the pre-covid era however, it cannot be denied that the viral outbreak has worked to amplify the scope and acceptance of online shopping. While initially, a majority of people used online shopping for purchasing only non-essentials and luxury items such as gadgets, clothes, etc., recent times have witnessed a shift in consumer demand. In the Covid era, people have started making online purchases for everyday essentials such as groceries and dairy products. Even pre-cooked meals are now being sold and purchased online, as necessitated by the pandemic. A brief view of how the change has come is provided below.

Covid’s impact on online shopping

The Covid pandemic and its subsequent movement restrictions have spelt out a considerable change in the world and its processes. To accommodate for the lack of movement, all things, and activities necessary, were moved to virtual means, and to facilitate the move, attempts were made to strengthen the technological connections and services.

It is true that technological advancements were already a part of the pre-covid world but, it cannot be denied that people were still wary of using them. Many people preferred buying their goods and services, especially those of daily use and consumption, from nearby stores. The factor of trust and the need of customers to touch and feel products before buying them came into play here. However, when the pandemic hit the coast and the lockdowns were implemented, people had little option but to switch to online modes for shopping of not only non-essentials but also everyday consumption items such as groceries.

However, the shift, even if it started off with some concerns, has been a successful one. Recent times have only seen growth in preference and acceptance of online shopping of both essentials and non-essentials. As per a report by the Indian Brand Equity Foundation, India experienced a growth of 36% in terms of volume of E-commerce orders in the last quarter of 2020. This boost has been a constant in E-commerce sales ever since.

One significantly new trend that has surfaced in this time is online purchases and subscriptions of freshly-cooked food. With entire families catching the virus at once, the preparation of food came as a challenge. Thus, people switched to buying meals online. Additionally, in this scenario, there was a need for nutritious meals that one can consume daily and not junk food or snacks. This led to a rise in the demand for healthy, cooked food and thus a consequent rise in the number of online sellers of pre-cooked, nutritious meals.

Current landscape of online shopping

As established, online shopping norms are gaining rapid acceptance in the Indian market. However, it is also worth noting that with time, E-commerce platforms, too, have evolved themselves to better suit the needs and demands of the people.

Recent times have led people to opt for more healthy habits. Many people are now scouting for home-cooked and organic food products as compared to junk foods. Noticing the changing trend, E-commerce platforms, too, have come forward to make more and more natural and healthy foods and drinks available. The shift is because of the increased demand on this front. With covid restricting people from buying these essentials in person, the demand for them grew online and hence grew the supply. The products and services offered to have evolved to include fresh groceries, dairy products, and other ingredients of food.

The main focus of the E-commerce platforms has advanced from providing solutions to only occasional needs to fulfilling the daily needs of people. They have refreshed their supply chains and logistics and infused tech in their processes to meet the demands of customers shopping online.

The extra efforts of these businesses haven't gone in vain, as they have recorded higher rates of sales as compared to their offline counterparts. The same has been highlighted in a report by the United Nations Industrial Development Organization that stated that companies that have opted for digital advancement and have worked towards enhancing their virtual presence and services have displayed 27% more growth in terms of revenue as compared to the solely offline businesses.

Another additional benefit that companies have availed from their online commercial presence is that of saved costs. As per the report by UNIDO, businesses that used E-commerce witnessed a 60% reduction in their marketing and distribution costs. Thus, it is viable to say that it is not just the customers, but also the businesses, that have enjoyed perks from the online transition.

Future scope of online shopping

With the vaccines against Covid rolling out, the restrictions necessitated by the pandemic are gradually phasing out. Since E-commerce platforms owe their sped-up success to this pandemic to some extent, one has to speculate the place of E-commerce in the post-Covid era.

According to a survey by Statista, a majority of the masses confessed that they were likely to return to offline mediums of shopping post-pandemic. The survey highlighted that 74% of people suggested that they were likely to switch back to the offline option when the circumstances improve. This return can be expected especially in purchases pertaining to raw items of consumption like groceries and dairy since people still prefer that physical factor and reliability when it comes to making purchases of these items.

However, the fact that the entire Covid episode has drastically shifted consumer preferences and habits cannot be neglected either. Since consumers have become used to the online shopping trend in these recent times, it is also likely that consumers may end up sticking to the new normal even when things change. The one area where consumers are likely to stick around is that of online food services and subscriptions.

Even though the frontiers are opening up, there may still be a part of the population that has reserved about dining out. There can also be budget constraints that people have to abide by which may lead to them shying away from expensive meals outside. In this scenario, they are likely to stick around the familiar, freshly-cooked food option that is available online for substantially lower amounts. Additionally, the convenience and feasibility that accompany options like daily food subscriptions have worked to make online food services a desirable option for people, which they would expectedly seek to continue in the future as well.

Lastly, the pandemic has served as a wake-up call for most to be concerned about their health and this trend of increased inclination towards being healthy without disturbing the daily schedule is going to promote the growth of the virtual food industry.

The bottom line: Online food delivery and subscription is the next big trend in online shopping

The online shopping sector has been on the rise for the last decade however, its acceptance and development were radically quickened in the face of the Covid crisis. Not only this, but the Covid crisis has also worked to alter the customer needs and preferences and has made a substantial contribution in shaping the online services as we see them today.

The raw food items and healthy home-cooked meal industries have witnessed significant growth in recent times. Being able to avail healthy, hygienic and feasible eating options at affordable rates is becoming a new favourite choice amongst the customers when it comes to dining from outside. The industry is thus expected to only grow even in the post-pandemic situation, as it has come forward to garner acceptance and popularity worldwide.

BY: Chaitali Das, Associate Vice-President, Marketing- Sprink Online