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Online shopping for premium products increasing globally


Today online shopping culture increase globally, as people gets exclusive product ranges and compelling deals to make purchase effectively. While online has been growing as a channel in several developed markets in recent years, it’s broadening in scope, and is fast becoming a popular shopping destination for consumers around the world, particularly those looking to purchase premium products.
According to a recent Nielsen survey, 45% of global consumers say they are shopping for premium products online from their home country e-retailers, whereas almost a quarter (24%) say they’re purchasing from overseas e-retailers. Consumers from developing countries like India (72%), Turkey (66%) and Indonesia (58%) are the most likely to shop online locally for premium products.



Why people prefer online?
Online shopping is being popular among all age group. There is an exponential growth in this kind of market. Online marketplaces are building trust and giving convenient opportunities to their buyers. Today shoppers are smart, they search and compare products before making the final payment. Some people still have fear and don’t like to buy products online but others are frequent buyers. Below are some advantages to prefer online shopping.  
  1. Product Options: Physical stores have a limited stock. They only keep those things which are common and most selling. While online shopping showcase variety from their stock and different stores. You can browse and select products as per your choice, budget and latest trend.
  2. Convenience: Online shopping is easy; you can do from anywhere anytime just few clicks on your laptop or mobile and you get your product as per your choice.
  3. Better Prices: In online shopping you didn’t get the exclusive products also get compelling deals on wide range of products.
  4. Easily Replacement and Refund: Product replacement and refund is simple in online shopping but you have to read the policy before purchase the product. Online retailer provides you product replacement warranty for a limited time period. In this period if you find the product has defect and malfunction then you can replace the product as per product replacement policy.
  5. Crowd & POS Queue: Most of us hate crowd and point of sale queue. This is common during festivals and special occasions. In the crowd, shopping becomes a tough task. In this situation in a local market, you won’t able stand in your favorite store due to limited space and less attention towards you. Parking of vehicle may become another issue in peak hours.

Apart from this they are also seeking “premiumness” coming from value in combination with satisfying the need for convenient lifestyle solutions. The key attributes that consumers around the world say they are seeking in premium products are superior quality (56%), performance (51%), design (43%), experience (42%) and brand (42%). Notably, around two in five global consumers (41%) say they are willing to pay more for organic and all-natural ingredients. Similarly, 38% of consumers say they are willing to pay more for sustainable goods and 30% are willing to pay more for socially responsible products.

Also as per our latest survey communication design and effective messaging also play a role in influencing consumers in their trial of new premium products. Close to half of consumers (46%) said recommendations and encouragement by friends and family influenced their decision to try out new premium products. According to 36% of consumers product research is an important factor when they consider to purchase a premium product. Likewise, many consumers (32%) rely on online advertising, television advertising (31%) and in-store advertising (25%) that deliver the right engagement and outreach for premium products.

In certain FMCG categories consumer mindset is shifting from luxury image towards specific functionality and convenience offering that a product is able to provide under it’s ‘premium’ claim. Therefore, it is important that manufacturers understand how consumers ascertain value to a given product category and what kind of elements differentiate premiumness.
Original Source:
https://www.nielsen.com/in/en/insights/article/2019/online-platforms-are-gaining-traction-for-premium-products-globally/
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