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Contents
Introduction ............................................................................................. 2

Executive Summary ................................................................................... 4

THE ‘CONNECTED’ INDIAN DURABLE OWNER .......................................... 6

Substantial Chunk of Online Indian Households own Durables................... 7
Internet is the Key Medium for Online Durable Owners.............................. 9
Experience and Prolonged Usage have made them Adept Online ............. 10

PURCHASE INTENT OF ONLINE DURABLE OWNERS.................................. 12

Online Durable Owners Harbor High Purchase Intent............................... 13
Intention to Purchase a Durable Good within 6 Months is High ............... 15
Snapshot: Purchase Intent of Television within 12 months ....................... 17
Snapshot: Purchase Intent of Fridge within 12 months ............................ 18
Snapshot: Purchase Intent of Personal Computer within 12 months......... 19
Snapshot: Purchase Intent of Washing Machine within 12 months .......... 20
Snapshot: Purchase Intent of Air Conditioner within 12 months .............. 21

DRIVING PURCHASE DECISIONS FROM THE LIVING ROOM ...................... 22

Internet is the Preferred Medium for Durables Related Search .................. 23
Relevance of Various Information Sources for
Purchase Related Research on Durables ................................................... 24
Product Features, Price and Visual Appeal are Searched most Online........ 26
Online Social Spectrum is Buzzing with Consumer Views,
Thoughts and Experiences....................................................................... 27

BUILDING BRAND VALUE AND

DRIVING CUSTOMER ENGAGEMENT ONLINE........................................... 30
Online Buying is Slowly Catching Pace with Online Product Search........... 31
Online Engagement Enables Brand Differentiation .................................. 33
Methodology .......................................................................................... 34
About the Authors.................................................................................. 35
 Introduction
Despite sluggish consumer buying trends witnessed during global recession, names, branded items and brand performance are common topics of
the Indian consumer durables industry grew at a phenomenal rate of 32% discussion on social platforms online. Since consumers are price and brand
in March 2010.1 Pegged at Rs 35,000 crores in 2008-09, the industry was conscious while looking for functionality, they prefer to independently seek
earlier dominated by a few players.2 Since the end of 'license raj' and advent information about the options available. An increasing number of
of liberalization, this market has been flooded with a host of domestic and marketers are adopting the online medium to engage this discerning
international players. It is not surprising to note the peaking levels of audience through exclusive product launches online and taking robust
awareness about brand image, prices and features of products among measures to increase traffic on their websites.
discerning Indian consumers who have become more demanding and
cautious with exposure to a variety of options. With change in status of Being an industry that thrives on constant technological innovation and
durable goods from ‘luxury’ items to ‘utility’ goods, which have become product upgradation, dynamic online interaction which supplements offline
necessary to maintain a comfortable lifestyle, the lines between marketing strategies becomes a key differentiator for durable brands
‘consuming’ and ‘aspiring’ classes are increasingly getting blurred. struggling to capture a significant proportion of the large Indian consumer
base. With a 50 million strong online audience, the advantage of internet in
Growth in dual income families leading to higher disposable income, engaging 'hopeful' and 'life-long' consumers who display high repeat/re-
reduction in custom duties and easy access to consumer finance are some purchase intention for durables is highlighted in our study. Inside the Mind
of the factors that have facilitated growth of the industry. Cut throat of the ‘Wired’ Consumer Durables’ Buyer - a study of the Indian durable
competition amongst players has ensured product availability at lower consumers’ usage, attitude and behaviour towards the online medium
prices. At the same time, the ensuing battle for product differentiation and takes a close look at the growing influence of Internet in driving purchase
price wars has put durable goods’ players in a tight spot. intention/decisions among them.
In such a scenario, the challenge to increase brand consideration and
preference among relevant audiences through greater visibility has become
intense. Mass media like television and print are unable to garner loyalty
and establish sustained marketer-consumer relationships, as their efficacy in
selective or contextual targeting is limited. In an age of instant gratification
where confidence in traditional, one-way marketing messages sans relevant
brand interaction has diminished, a large number of consumers now prefer
to research such products and review third party opinions/experiences
online from the comfort of their home while making purchase decisions.
The internet has arisen as a major source of information today. Growth of
social networking sites among other online channels has created an
inimitable opportunity for brands to identify changing consumer behaviour
and create custom-made experiences to suit prospective buyers. Brand

1
2 Central Statistical Organization (CSO) Note: The study focuses on five consumer electronics (durable) namely 3
2
Federation of Indian Chambers of Commerce and Industry (FICCI) TV, AC, Fridge, Washing Machine and Personal Computer
 Executive Summary
The Indian consumer's confidence and demand for durable goods has been 85% online durable intenders referring to the internet as their preferred
robust as the industry recorded the highest average growth rate of 26.1% mode of product search, it is clear that this group is aggressively scouring
from April 2009 to March 2010 among all sectors.3 the net for durables' related research, beating the traditionally popular
referral model of influencing purchase decisions by a huge margin of 28%.
The online sphere is constantly abuzz with durable goods' related views,
Comparative Growth Rates of Industrial Production based opinions and comments shared by existing as well as prospective durable
on Use-based Classification (% figures) owners, thereby influencing each other's purchase decisions. In such a
scenario, the opportunity for marketers to leverage their online presence is
Sector 2008-09 2009-10 2009-10 increasing exponentially, particularly with Indians becoming increasingly
(Mar 2010) (Apr’09 - Mar’10) vocal on social media platforms. It is interesting to note that online
durable consumers actively share opinions, views and experiences not only
Basic Goods 2.6 10.1 7.1 on personal blogs, but circulate them across a variety of online platforms
Capital Goods 7.3 27.4 19.2 including company websites, consumer review websites, social networks
and blogs, causing a ripple-effect across online and offline consumers. Rise
Intermediate Goods -1.9 12.7 13.6 in popularity of online forums including social networks has given birth to
Consumer Goods 4.7 10.6 7.4 a new model of promotional content creation, with the consumer
donning the role of message creator in place of the marketer.
(i) Consumer Durables 4.5 32 26.1
Inside the Mind of the 'Wired' Consumer Durables Buyer highlights the
(ii) Consumer Non-Durables 4.8 3.3 1.5 impact of online media with consumers becoming brand evangelists
sharing positive recommendations or stripping brands naked with negative
Source: Central Statistical Organization
feedback. Today, they have become a ‘currency’ or a threat to durable
Concurrent to this is the increase in internet access and usage with as brands depending on whether durable marketers are actively listening to
many as 73% online durable owners spending more than one hour and participating with their consumers where they flock to the most, or
online (weekdays), which is the highest across all other mediums. The not. Keeping positive conversations and brand image alive is a function of
average number of online activities undertaken is 17, of which, the ‘viral-ability’ of online engagement, its adoption amongst influencers
information search and social networking are in the list of top ten most and a sustained effort to spark personalized, one-on-one interaction.
popular online activities.4 Note: The term 'intender' denotes respondents who are online and intend
Results from our survey indicate that 76% of existing online durable to purchase a durable good, including existing online durable owners and
owners online intend to purchase another durable item, exemplifying a non-owners.
substantial replacement/repurchase demand for durables. Moreover, with

3
4 Central Statistical Organization 5
4
Source: India Online 2010 Report, JuxtConsult
 Substantial Chunk of Online Indian
Households Own Durables
Ownership of consumer durables, especially white and electronic goods,
has permeated rapidly across socio- economic classes of people in India

The ‘Connected’ today. They are perceived as necessities for leading a comfortable life
among urban and rural consumers alike, and have shed the 'luxury' tag for

Indian Durable millions. This becomes evident with a whopping 89% online Indian
households possessing consumer durables5.

Owner Share of Online Households

Owning Durable Goods
Households
without durables 11%

Households owning
89% durable

5
Source: India Online 2010 Report, Juxt Consult

An impressive 89% of total online Indian

households (23.7 million) own durable goods

Across various product categories, our survey indicates that 96% online
Indian households own a TV, 83% own a personal computer and 82% own
a fridge. In the post-liberalization era, durable goods in India have gained
technological competence and have become considerably more affordable.
A case in point is the cost of personal computers which has dropped by
almost half in the last decade, just as an evident spike in purchase of CTVs
and LCDs (Flat Screen) is observed with a steady decline in prices. For
example, the cost of a 14-inch CTV in 2000 was as high as Rs 14,000 but
in 2010 a 29-inch CTV is available for Rs 10,000 approximately. 7
 Current Ownership of Durables
Among Online Households Internet is the Key Medium for
96% Online Durable Owners
83% 82%
73% online durable owners spend more than one hour online (weekdays),
61% which is higher than time spent on any other media. Television trails with
60% usage, followed by substantially lower 38% preference for Radio. The
35% nature of engagement and depth of interaction offered online are obvious
reasons for the medium to gain an edge over static, one-way
communication based media.
Television Personal Fridge Washing Air
Computer machine Conditioner

Media Usage for more than 1 Hour amongst

Online Durable Owners (Weekdays)
Amongst the 21.5 million online households
which own durables, TV ownership is the highest 73%
(96%) across all socio-economic classes 60%
(SEC A 98.5%, SEC B 83.7%, SEC C 97%)

38%
Source: Digital Consumer Durables Survey 2010, Webchutney

In comparison, ownership of washing machines (61%) and air-conditioners 20%

(merely 35%) is not as high. Low figures for AC ownership could be 14%
attributed to high running costs and erratic electricity supply in some parts
of the country.
Rural India accounts for nearly 70% of the total number of households, with Internet TV Channel Radio Magazine Newspaper
Channel
2% penetration in case of refrigerators and 0.5% for washing machines,
which offers plenty of scope and opportunities for the white goods industry.
The urban consumer durable market for products including TV is growing
annually by 7 to 10 % whereas the rural market is zooming ahead at around 73% online durable owners use internet
25 % annually. The rural market is growing faster than urban India as the for more than one hour on weekdays,
urban market is now becoming a replacement and upgradation market.6 higher than any other medium

With steady increase in disposable incomes, propelled by a buoyant national

Source: India Online 2010 Report, Juxt Consult
economy, the opportunity for widespread increase in consumption of
durables across online and offline households in India is sizable.
8 9
6
Federation of Indian Chambers of Commerce and Industry (FICCI), 2005
 Experience and Prolonged Usage Unlike other media forms, online durable owners engage with the internet
more often, with 89% of them accessing it daily. Online media offers scope
have made them Adept Online for a vast variety of activities, notable amongst which are job search,
service/product/information search and social networking.
70% of online durable owners have been using the medium for more than
two years exhibiting expertise at accessing information while searching and
Top 10 Activities Pursued by
curating content online. The type of online activities conducted indicate the Online Durable Owners on the Net
extent to which an existing durable owner online is connected, at ease with
use of internet and participative towards information access, supply and Job Search 67%
exchange through the medium.
Instant messaging/chatting 64%
Experience in Internet Usage of Online Durable Owners Download music 60%

Using for more Check general news 52%

Using for
than 5 years upto 2 years English info search engine 49%
31%
40% Social networking 49%
7 out of 10 online
durable owners Non-Travel Products & Services 46%
have been 29% Check cricket content/score 45%
using the medium
Using between
for over 2 years 2-5 years Joined online community 44%
Dating/Friendship 44%

Frequency of Internet Usage amongst Online Durable Owners Source: India Online 2010 Report, Juxt Consult

33% 32% ‘Search’ and ‘Interaction’ feature as

89% online
durable prominent online activities. These are
24% owners access avenues where maximum opportunities
the internet for selective targeting exist
daily

7% Online activities pursued by durable owners are indicative of their

2% 1% 2% preference to procure product related information. These avenues present a
great opportunity before marketers to selectively target these audiences.
Over 5 2-5 times Once daily Once in Once 1-3 times Once in
times a day
Consumer engagement through unique interactive online executions
10 a day 2-3 days a week a month more than 11
a month remains the prerogative of durable marketers.
Source: India Online 2010 Report, Juxt Consult
 Online Durable Owners Harbor
High Purchase Intent
The fabric of Indian society has undergone a dramatic change,
significantly in consumer behavior and in their attitude towards
consumption of durable goods. Our survey indicates that a majority of
existing online durable owners remain relevant target audiences for
marketers with high intention to re-purchase new durables.

Purchase Intention of Online Durable Owners

Owner
Non-Intender 24%
Current Owner
plus Intender
76%

Source: Digital Consumer Durables' Survey 2010, Webchutney (Base:1995)

76% of current online durable owners exhibit intention

to purchase another consumer durable item

r c h
ea
With 78% of online durable owners earning upto Rs 25,000 per

S month, a majority of online Indian durable consumers are well off and
have the purchasing power to afford consumer electronics. Moreover,
with durable goods being made available on flexible monthly
payment options, their link with monthly income of a person has
diminished considerably. 13
 The rise in 'needs' for products and services has been replaced by 'wants'
and 'demands' in the Indian consumer durables' landscape as a large
number of consumers fall in the 'have money, will buy' segment today. In a
cluttered durables market flooded with domestic and international brands,
the pressure on marketers to capture the large consumer base through
product differentiation and increase brand consideration has become
greater than ever before.
Monthly Household Income of
Online Durable Owners Intending to Purchase
Intention to Purchase a Durable
Good within 6 Months is High
The replacement period of consumer durables in India is falling at a rapid
pace. High rate of repeat/re-purchase has attracted a host of branded and
unbranded consumer durables' players to India, inducing cut throat
competition in the sector. Increasing affordability of the products, coupled
with increase in consumers' disposable incomes has led to greater sales in
the category. While longevity of durables is high, the trend of consumerism
is fast catching on the imagination of Indian masses. Along with rapid
changes and upgradations in technology, a high rate of repeat/re-purchase
for durables exists.

Less than Rs 6250 16%

Rs 6250 -Rs 12500 33% Current Durable Ownership vs. Intent to
Purchase Another Durable
Rs 12500 -Rs 25000 29%
Rs 25000 -Rs 40000 7% 96%
Currently own
Rs 40000 -Rs 80000 7% 83% 82% Intend to own
Rs 80000-Rs 100,000 6%
More than 100,000 2% 61%
52%
41% 35% 38%
31%
21%
A majority of online durable owners intending to
purchase another one, earn upto Rs 25,000 per
Television Personal Fridge Washing Air
month indicating high purchasing power across Computer Machine Conditioner
‘classes’ and ‘masses’
Source: Digital Consumer Durables' Survey 2010, Webchutney

Source: Digital Consumer Durables' Survey 2010, Webchutney (Base: 1510)

High purchase demand exists for most durable

products, despite high level of current ownership

14 Note: Figures indicating intention to purchase represent owners across various product categories. 15
 Snapshot: Purchase Intent of
Time Period Within which
Durable Purchase is Intended
Television within 12 months
3% 3% 3% 3%
13% 14% 10% Break-up of TV Intenders
17% 13%
3% 8%
9% After 24 months
34%
10% 3%
13% 18-24 months
44% 29% TV Owner
33% Intender
12-18 months
TV Non-Owner
13% 97% Intender
6-12 months
62%
50% Within 6 months
40%
36% 37%

TV AC Washing Fridge Computer

machine Time Period within which TV Purchase is Intended

Owner Intender
Source: Digital Consumer Durables' Survey 2010, Webchutney 50%
43% Non-Owner Intender

For 4 out of 5 durables, maximum intention 32%

25% 25%
to purchase is within 6 months
11% 9%
4% 0% 0%
Our survey results exhibit that high replacement demand exists for
Within 6-12 12-18 18-24 After
consumer electronics, even amongst existing owners. Washing 6 months months months months 24 months
machines are voted as the most desired consumer durable, with 84% of
respondents intending to buy it within a year. Strong desire for a
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 642)
washing machine could possibly be attributed to the need to save time
and energy.
It is not surprising to witness high repeat/re-
Likelihood of purchase for computers, refrigerators and air conditioners
purchase demand (75%) for TV in the next 12
amongst online Indians within a year is fairly high at 79%, 75% and
70% respectively. To cater to this strong demand, the time is ripe for months among current online TV owners (97%), as
marketers to leverage this undercurrent through creative usage of the it is a highly penetrable product.
online medium to engage audiences and drive sales for their
16 17
brand/products.
 Snapshot: Purchase Intent of Snapshot: Purchase Intent of
Fridge within 12 months Personal Computer within 12 months

Break-up of Fridge Intenders Break-up of Personal Computer Intenders

Fridge Owner 27% PC Owner

25% Intender Intender
Fridge Non-Owner PC Non-Owner
75% Intender 73% Intender

Time Period within which Personal Computer

Time Period within which Fridge purchase is Intended Purchase is Intended

52% 54%
Owner Intender
37% Non-Owner Intender 41%
35% Owner Intender
30%
25% 30% Non-Owner Intender
12% 14%
12% 9%
4% 4% 14%
Within 6-12 12-18 18-24 After
7% 8%
6 months months months months 24 months
4% 4% 4%

Within 6-12 12-18 18-24 After

Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 406) 6 months months months months 24 months

Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 431)

High demand among current online Fridge High demand among current Personal Computer
owners intending to purchase another one (75%) owners intending to purchase another one (73%) in
in next 12 months (62%) is observed next 12 months (71%) is observed
18 19
 Snapshot: Purchase Intent of Snapshot: Purchase Intent of
Washing Machine within 12 months Air Conditioner within 12 months

Break-up of Washing Machine Intenders Break-up of AC Intenders

Washing Machine AC Owner

45% Owner Intender 33% Intender
55% Washing Machine 67% AC Non-Owner
Non-Owner Intender Intender

Time Period within which Time Period within which AC Purchase is Intended
Washing Machine Purchase Is Intended
Owner Intender
48% 38%
Owner Intender Non-Owner Intender
40% Non-Owner Intender 30%30%
39% 39%
33% 20%
22% 9% 9% 6%
11% 3% 6%
7% 4% 4%
2% Within 6-12 12-18 18-24 After
6 months months months months 24 months
Within 6-12 12-18 18-24 After
6 months months months months 24 months
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 787)
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 486)

High demand among non-owners intending High demand among non-owners intending
to purchase a Washing Machine (55%) in next to purchase an Air Conditioner (67%) in next
12 months (73%) is observed 12 months (68%) is observed
20 21
 Internet is the Preferred Medium
for Durables Related Search
Searching for product information and cross-product comparison on the
Driving Purchase net has become predominant among online consumers intending to

Driving Purchase purchase a durable item. The clear advantage of in-depth research offering
third party views as well as ease of accessing and collaborating information
Decisions From from multiple sources at one place free of cost is evident with 85% online
Decisions From durable intenders opting Internet as a reliable and convenient source to

The Living Room help them determine the best choice.

The Living Room In comparison, traditional media and surprisingly, even the conventionally
trusted dealer/salesman lag far behind. This suggests a change or disruption
in the traditional purchase model where the buyer has greater control in
selecting the best brand/product suited to personal need.

Online Durable Intenders Prefer Internet

for Product Research
85%

57%
48% 45% 42%

Internet Friends & Television Magazine/ Dealers

Family Newspaper/
Brochures

Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1510)

8 out of 10 durable intenders online prefer the internet to

search for durable goods, beating the traditionally popular
‘friends & family’ as the most preferred information source 23
 Relevance of Various Information Reliance on consumer review websites could be attributed to unbiased
endorsements by a third party. Websites such as naaptol.com have become
Sources for Purchase Related popular portals offering facilities to view, compare, buy, review and sell
consumer electronics. In a world of choices, the facility to compare and
Research on Durables read product reviews can help address customers' information needs. Trust
in social networking sites stems from faith in peers, friends and relatives for
The strength of an information source is based not just on the magnitude their views, feedback and personal experiences. The same trusted circle of
of information it provides but also on the convenience it offers and the friends and family is now online, making it convenient to take their opinion
credibility that is attached with it. Our survey shows that consumers find with a single message posted on the screen.
company websites and social networking websites as 'more effective'
sources of information. While company websites provide detailed
information on product specifications/features, price and design, social Perception of Effectiveness Medium Type
networks are used for obtaining friends and relatives' opinions on various
attributes of durable goods. More Effective Company Websites/Online Catalogues
.8
Online Consumer Review Websites
Salesman at the Dealer’s Outlet
.6 Social Networking Websites
Less Effective
Equally Effective Friends/Family/Relatives
.4 Consumer Goods
Magazines & TV Shows Less Effective Salesman at Dealer’s Outlet
.2
Company Websites and Online Catalotues Consumer Goods Magazines
More Effective & TV Shows
0.0
Online portals (company websites, consumer review
Degree of Effectiveness

-.2 websites and social networking websites) are perceived as

Online Consumer Review Websites
more effective in enabling search for durables
Social Networking Websites
-.4

Equally Effective
-.6 Friends and relatives continue to be a 'relevant' source of information as
Family/Friends/Relatives
Indians value the opinions of people close to them for most things,
-.8 including consumer electronics. The decision to buy a particular consumer
-1.0 -.8 -.6 -.4 -.2 .0 .2 .4 .6
durable brand is likely to be made before the customer actually visits the
Resource showroom/point of purchase, which could lead to the diminishing role of
Online channels are considered ‘more effective’ in the salesman/dealer in influencing purchase decisions. While magazines and
researching product information for durable goods TV shows seem to be losing their steam as popular information sources,
they remain effective in building the brand image of the company.
24 Note: The closer a resource is to a particular degree of effectiveness, 25
the stronger it associates with it.
 Product Features, Price and Visual Online Social Spectrum is
Appeal are Searched most Online Buzzing with Consumer Views,
While friends and family continue to be most popular source for research Thoughts and Experiences
on ’performance’ of a durable good, the internet adds significant value to
purchase decisions with depth of information available from multiple sources. The web is emerging as a powerful medium that invites participation from
consumers and keeps them interested, engrossed and engaged. The online
space is increasingly becoming a popular medium for consumers to express
Product Price, Features and Visual Appeal and share their experiences about products and brands. Overall 55%
Researched most Online
durable owners shared a durable related experience online and a majority
TV shows & ads Dealer Friends & Relatives
shared positive experience(s). Consumer review websites have become the
Consumer Magazines Internet Newspapers
most popular platform for this exchange.
6% 5%
12% 9% Sharing pre and post purchase experiences is common on the net. Survey
27% 22%
19% 28% results show that positive durables' related experiences are more widely
8% shared online as compared to negative brand experiences. Also, owning
47% 23%
certain durable models is a matter of pride and such news put as status
22% 17% 22%
11% messages helps generate buzz across social platforms resulting in instant
7% 7%
8% 10%
publicity across a cross section of potential consumers.
4%

31% 32% 24% 29% 28%

10% 9% 12% 7% 8%
Item features Price Brand Image Performance Visual Appeal Type of Experience Shared Pre-Purchase

Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1510)

Owing to the vast variety available in durable goods, particularly with the Positive Not shared
rise of multi brand retailers selling consumer electronics such as ezone, experience 51% 45% an experience
Croma and Next among others, product literature as well as salesmen
facilitate search for the desired goods only to a limited extent. Vast
improvements in technology and consequent innovations in products have
brought most durable players at the same level in terms of brand image.
The differentiating factor is product functionality, which can be highlighted 4% Negative
experience
to a prospective consumer through brand websites. The USP for registering
a successful online presence for marketers is to stay ahead of consumer
expectations and expand the scale of their online executions to create a Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1995)
26 unique 'Wow' experience while promoting awareness and recall. 27
 Preferred Online Channel to
Share Pre-purchase Experience Preferred Online Channel to Share
Post-purchase Experiences

Consumer goods Company/Brand

review website website Consumer goods Company/Brand
43% 28% review website website
39% 32%

21%
8% 23%
Social Platforms
Other 6% Social Platforms
Other

Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1097)

Findings from our survey indicate that post-purchase a majority of 54%
consumers shared experiences about brands on the online domain, out of
which 48% were positive brand experiences. A presence on the online
space translates into tremendous opportunities for marketers to make their
brands visible, available and worthy of discussions that go around on
social networking sites and other online platforms. What is interesting is
that this word of mouth may or may not be initiated by marketers and still
reap benefits, as long as the marketer's products are unique and there is
sufficient buzz around them on the interactive medium.
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1077)
Online campaigns for durable brands can create engaging experiences
for potential consumers and trigger word-of-mouth publicity of huge
proportions. Of late, consumer review websites have emerged as major
platforms where consumers share durables-related experiences that
influence prospective buyers in making purchase related decisions.

Type of Experience Shared Post-Purchase

Positive Not shared

experience 48% 46% an experience

6% Negative
experience
28 29
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1995)
 Online Buying is Slowly Catching
Pace with Online Product Search
79% of online Indians use the internet for product search and 21% online
Indians purchase products on the net7. While penetration of credit/debit
cards in the country is on the rise, typically in urban areas, success of

Building Brand Value e-commerce depends heavily on product quality assurance and security
mechanisms put in place to ensure transaction security.

And Driving Customer

Engagement Online Online Search to Buy Ratio of Various Products in
Consumer Durables Category

Product Category Search Buy

Mobiles phone, PDA & Accessories 73% 27%

Cameras & Optics 67% 33%
Consumer Electronics 56% 44%
CD/VCD/DVDs 56% 44%
Computer Hardware 67% 33%
Kitchen Appliances 62% 38%
Automobiles (booking) 66% 34%
Source: India Online 2010 Report, Juxt Consult

Online shopping or e-commerce hasn't taken off the way it was expected in
India owing to a dichotomy in Indian consumers' online buying behaviour.
With more than 3 lakh daily online railways tickets bookings and 78% of
airline tickets booked online8, it is clear that Indians like to avail of travel
products/services available online.

7
India Online 2010, Juxt Consult 31
8
International Air Transport Association (IATA)

Online ticketing sells like hotcakes, but online
shopping still hasn't hit tipping point in India.
Marketers need to build transparent, self-sustained
e-commerce 'communities' that empower
consumers and induce trust/confidence
Trust in online purchase of durable goods can be strengthened through
enhanced online presence of marketers providing timely information to
consumers and maintaining impeccable standards of product delivery.
Taking this a step further, building SEO-friendly web commerce sites which
enable ease of use and functionality, encourage consumer reviews and
exchange of opinions, integrated with advanced features like real life
testimonials from customers through online videos, along with the ability
to facilitate cross-product comparisons followed up with excellent customer
service and security are vital in promoting the medium.
For online buying to work well in India, a real incentive for the consumer
has to be attached with the offering and be passed on to the discerning
Indian consumer. As internet is the primary source of information for
prospective durables goods' buyers, the onus of giving e-commerce the
much needed push to become a prevalent trend is critical for marketers
more than ever before.
32
Online Engagement Enables
Brand Differentiation
Product differentiation in consumer durables is limited to technological
innovation and to some extent, style and design. However, the key to
building an innovative brand experience lies in targeting the right audiences
creatively. Tactful engagement that empowers consumers with more value
and choice within their comfort zone through meaningful assets is the first
step towards encouraging brand evangelism.
A consumer talking about a brand using social media is far more reliable
than a marketer shouting about it from a rooftop. Growing popularity of
social media, particularly, social networking, and the exponential rise in
consumer discussions on them are expected to displace credibility of
marketers’ push-based messaging to a large extent.
Brands across the world monitor consumer conversations about their
products in the cyberspace, terming these as positive, negative or neutral
conversations using various methodologies. With international brands
making a foray into the Indian market space, it is time for similar tactics to
be deployed in India as well.
Evidently, in a cluttered marketplace, a marketer should be where
customers habituate. A population of 50 million Indians is online, alive and
buzzing, scouring for information and engaging in social networking. 19.9
million Indians on Orkut and 20.9 million on Facebook9 aren't just figures;
they bear testimony to the fact that these young, urban consumers are
online and on a constant lookout for information, interaction,
entertainment and engagement.
Consequently, with multiple choices existing in the market, the final
purchase decision is not based on publicity in traditional media alone, but
also on performance-related reviews received from friends and relatives.
Participating in such conversations, driving engagement with social
currency and amplifying buzz by driving word-of-mouth from influencers is
not a choice that marketers may or may not exercise; it is now or never for
durable brands to increase sales and profitability and to survive the race to
capture a billion strong consumer base in India.
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9
Comscore, July 2010
 Methodology
Inside the Mind of the 'Wired' Consumer Durables' Buyer scopes the usage
and attitude of online durable consumers. The primary purpose of our
study was to understand and analyze online Indians' durable goods' buying
behavior and the impact of internet in influencing and driving their
purchase decisions.
To this effect, a sample of 2000 respondents was taken from a panel of
consumers belonging to different demographics - age groups, socio-
economic classes, locations etc. Primary data was collected by means of a
questionnaire. The consumer panel was further classified into current and
prospective consumer durable owners and intenders and based on different
attributes; their attitude towards the use of internet was mapped. The
period of the study was July to September 2010.
About the Authors
Sidharth Rao
Sidharth Rao is the Chief Executive Officer and
Co-Founder of Webchutney, India’s leading and
most awarded web services company.
With over 12 years of industry experience,
Sidharth has made a significant contribution in
shaping the interactive marketing industry in
India. Sidharth leads the 150 people strong
organization assisted by an excellent management team across New
Delhi, Mumbai and Bangalore.

He can be reached at sidharth.rao@webchutney.net

Demographics
Our respondent base was classified into four groups, namely, 19-24 years,
25-35 years, 36-45 years and above 45 years. 86% of the respondents were
males and 14% were females.

Shweta Bhandari
Gender Wise Break-up Age Wise Break-up
of Respondents Shweta Bhandari leads the research team at
4% Above 45 Yrs Webchutney, which publishes thought provoking
Female reports on the state of online in India.
Age
36-45 Yrs She carries a diverse business profile including
14% 11% 16% Age
19-24 Yrs blue-chip companies like American Express and GE.
At Webchutney, she has contributed in writing
86% several research publications such as The Digital Vote Bank, Viral
69% Marketing and more recently the Digital Media Outlook 2009. Her
passion for discovery and thirst to engage in new challenges lend
Age immense scope and dimension to this field.
Male 25-35 Yrs
She can be reached at shweta.bhandari@webchutney.net

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Base: 1995
 Ankita Kapoor
Ankita Kapoor is a Research Analyst at
Webchutney.
She has completed her MBA in Marketing from
ICFAI Business School, Hyderabad. Prior to this, she
graduated in Journalism from Lady Shri Ram
College, Delhi University. She has interned with
'HPCL-Mittal Energy' (HMEL) and 'Business Standard' during her post
graduation and graduation respectively. Her strong analytical and
communication skills and deep interest in the field have lent new
perspectives to the report.
She can be reached at ankita.kapoor@webchutney.net

A special thanks to Sushil Kumar for conceptualising

and executing the report design.

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