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Business News/ Money / Personal Finance/  Unlock 1.0: Shoppers may stick to online shopping
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Unlock 1.0: Shoppers may stick to online shopping

CashKaro survey shows 80% of shoppers intend to do online shopping in the near future as Unlock 1.0 unfolds

Though sales may increase, they may mostly be carried out online and not through physical stores.Premium
Though sales may increase, they may mostly be carried out online and not through physical stores.

Though the first phase of Unlock 1.0, after the 68-day lockdown in the wake of covid-19, will see the reopening of stores and shopping malls from 8 June, people might not be ready to return to the shops just yet.

According to a survey by CashKaro, over 80% shoppers intend to steer clear of physical shops for the next few months and shop online instead, in order to maintain the social distancing protocol. CashKaro interviewed 8,000 respondents for the survey. What is likely to service their needs in the interim is e-commerce.

Distance is the key

Though sales may increase, they may mostly be carried out online and not through physical stores.

“As some zones will see further relaxation from 8 June, we expect a boost in sales of mobile phones, laptops, apparel, etc., as a result of pent-up demand," said Swati Bhargava, co-founder CashKaro. But as the CashKaro survey reveals, many are still afraid of visiting physical shops because it might expose them to the virus.

During the early stages of the lockdown, behavioural economists predicted that once the restrictions were lifted, people may indulge in an excess of discretionary spending or “revenge spending". Though this has been dampened by the financial uncertainties surrounding jobs and income that have followed the pandemic (read more here), experts said that shopping habits of people, especially those not affected by job loss or pay cuts, are unlikely to change, and people will resume buying as the lockdown lifts.

During the lockdown, 45% shoppers chose to buy through both online and offline mediums, 40% opted for only online platforms, and only 15% shopped. This trend is likely to continue, as 45% of the respondents said that they opt for offline shopping only when urgent even after the lockdown lifts. Another 30% said they would wait for a month before resuming going to physical shops, and 25% said they would not shop offline for the next two to three months.

The e-commerce comeback

During the first few phases of the lockdown, e-commerce platforms limited themselves to delivering essentials. But when the norms were eased, they returned to delivering all other items. “Though the lockdown has caused a temporary setback to e-commerce, the ongoing pandemic is expected to bring an unprecedented boost on account of the drastic change in the lifestyles of people and things such as work-from-home and social distancing becoming norms. A report by GlobalData suggests that India’s e-commerce industry is expected to touch 7 trillion by 2023, which will be significantly propelled by covid-19," said Bhargava.

The need to continue with social distancing and avoid crowded places like shops and malls, as well as cash- or card-based transactions is likely to drive more shoppers online. “According to Morgan Stanley, India will see the number of online shoppers jump to 590 million from 190 million in 2020, with the average spend per online shopper projected to nearly double," Bhargava added.

While the urge to shop might kick in for many as stores reopen, the need to be safe will act as a deterrent. There is the option of shopping online, but keep in mind that it’s easy to over-indulge and end up denting your finances if you go on an unplanned shopping spree.

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Published: 01 Jun 2020, 01:12 PM IST
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