According to the report by Redseer, this group of ‘mass’ consumers is expected to contribute approximately US $ 1.3 trillion to the overall Indian retail market and play a significant role in nearly 45 per cent of the US $ 300 billion e-commerce opportunity in India by 2030.
One of the defining characteristics of this consumer segment is their preference for products that offer the highest value for money. They actively utilise the internet to search for the best deals, making them equally tech-savvy as affluent customers. Notably, around 75 per cent of these ‘mass’ consumers belong to the millennial and Gen-Z age groups.
The report also sheds light on their purchase preferences. While Gen-Z individuals show a preference for apparel, beauty and personal care (BPC), and electronics, the millennials lean more towards BPC, food and grocery, and apparel. Interestingly, they are value-conscious shoppers at heart, similar to their older counterparts.
Price, deals, discounts on e-commerce platforms, product quality, and platform trust are the three key factors that guide their purchase decisions. Additionally, this segment is open to choosing unbranded items if they find the quality satisfactory.
The ‘mass’ consumer segment largely comprises the middle class, which has seen substantial growth in recent years. Representing 31 per cent of the population, the middle class is expected to reach 38 per cent by 2031 and a significant 60 per cent by 2047. This demographic shift will significantly impact the country’s economic landscape and further propel the e-commerce business in India.
Within the category of the Indian Middle Class, the sub-group of Strivers with an annual household income of between Rs 15 lakh and Rs. 30 lakhs—has grown at 6.4 per cent annually between 2015- 16 and 2020-21. The Seekers, another sub-group of the middle-class earning between Rs. 5 lakh and Rs. 15 lakh a year, has grown by 4.8 per cent annually during this period, as per the PRICE survey.
By the end of this decade, the survey says, the structure of the country’s demographics will change from an inverted pyramid, signifying a small rich class and a very large low-income class, to a rudimentary diamond, where a significant part of the low-income class moves up to become part of Middle Class.
Overall, the growth of this consumer segment, driven by their tech-savviness and preference for value-driven products, presents a promising prospect for India’s retail and e-commerce sectors in the coming years.
