Urban India seeks less friction in shopping experiences

Consumers are weighed down by concerns around cost of living and personal finances. Around 74% of Indian respondents say they are concerned about their personal finance situation, as opposed to 50% globally. Sixty-three per cent of Indian consumers are cutting back non-essential spending altogether, according to the 2023 PwC Global Consumer Insights Pulse Survey, which captured the views of 9,180 consumers across 25 territories. In India, the survey included 500 Indian respondents across 12 metros, tier-1 and tier-2 cities of India (Mumbai, Delhi NCR, Bengaluru, Visakhapatnam, Chennai, Kochi, Kolkata, Nagpur, Jalandhar, Hyderabad, Meerut and Rajkot). Out of these, 57% of the respondents were male and 43% were female.

The survey also found most Indian consumers expect to reduce their expenditure across all surveyed categories over the next six months, a significant decline in planned spend across all categories since the previous pulse survey, June 2022. Industries including luxury and premium products, travel, and fashion expect to see the greatest portion of consumer spend reductions over the next six months, whereas groceries is expected to decline the least.

To a large degree, covid continues to influence the experiences of consumers and the industries that cater to them. E-commerce grew massively during the pandemic in part because in many areas it was the only type of commerce available. Some of that boom is subsiding. But what seem like short-term declines may simply be mean regression in the context of long-term growth; 43% of consumers said they plan to increase online shopping in the next six months. These are among the central findings of the latest Global Consumer Insights Pulse Survey, conducted in December 2022 among 9,180 consumers across 25 territories.

The demand and supply shocks brought about by covid continue to ripple through the economy and factor into consumers’ decision-making, habits and attitudes. Yet, even as they take defensive actions, consumers remain resilient, demanding and eager to experiment. Consumers are seeking less friction—but that doesn’t necessarily mean opting only for e-commerce, or for physical experiences that are entirely mediated by technology. They’re continuing to experiment with the next generation of digital platforms, including the metaverse. And as more of everyday work and leisure life continues to go digital, mobile and virtual, concerns about data security and privacy remain a significant source of friction.

The survey makes it clear that companies must go beyond responding to consumers’ evolving attitudes, actions and aspirations. They must identify, isolate and mitigate the many frictions that stand between them and their customers, and between their customers and optimal experiences. Beyond meeting consumers where they are—physically and psychologically—companies must invest to ensure that they’ll be able to meet them where they will be in the future.

Consumers globally are shifting their consumption habits in-store and online as the cost-of-living surges and supply chain disruptions impact product availability and delivery times. As a result, almost half (45%) say they are buying certain products when on offer/promotion, 44% are looking to retailers offering better value, 38% are using comparison sites to find cheaper alternatives, 36% are buying in bulk to save cost, and 33% are buying retailers ‘own brands’ to find savings.

Adoption of the metaverse as a shopping channel is still in its early stages of adoption, however, the medium still remains under-utilised, with only one-quarter (23%) of Indian respondents having heard of the metaverse but have not used it in 2022. The largest portion of these users have primarily employed the metaverse for virtual reality (VR), i.e, playing games or watching a movie (20%), joining a virtual world, i.e, experience a retail environment or concert (13%), or purchasing a digital product, such as a Non-Fungible Token, or NFT (17%). Those most likely to engage in metaverse-related activities: India (48%), Vietnam (43%), and Hong Kong (42%), as well as millennials (36%).

All the while, as on-line shopping continues to grow in volume, consumers are increasingly weary of data privacy. 65% of Indian respondents say they are extremely or very concerned when interacting with social media companies, third-party/portal travel websites (54%), healthcare (59%), and consumer companies (58%). As a result, 41% of Indian respondents say they don’t share more personal data than they have to, 37% opt-out from receiving communications from these companies, and 38% have overall reduced their interaction with these types of companies.

These trends in consumer preferences point to a hybrid shopping strategy that producers and retailers are grappling with: consumers aren’t approaching where to shop, regardless of what’s on their list, as an either–or proposition but as a this-and-that set of options. This duality was apparent well before the pandemic. Despite persistent economic and social headwinds, consumers aren’t simply switching from online to in-store shopping. Rather, they’re choosing one or the other—or both—based on preferred attributes of each, such as in-store technology or improving delivery times and costs for online orders. These trends are likely to continue throughout 2023.

Digital environments are evolving, whether it’s the continuing rollout of 5G or the integration of shopping into social media apps. And so, a great deal of attention is being paid to what may be the next large-scale digital platform: the metaverse, which promises to erase many of the frictions between the digital world and the physical world. But the metaverse is still very much in its infancy, and is riven by its own set of frictions. As the PwC report Demystifying the metaverse concluded: ‘The metaverse is an evolution, not a revolution. And it’s one that business leaders should not ignore.’

Whether they’re using the metaverse or not, consumers already inhabit a thoroughly digital universe. The billions of daily transactions, interactions and downloads that occur digitally are both enabling and compelling a pervasive sharing, collection, analysis and dissemination of consumer data by companies, organisations and governments across the globe. Control over all of that data has become a source of friction for consumers. Asked about their level of concern about personal data privacy when interacting in routine activities and with various entities, nearly half said they are extremely or very concerned when engaging with social media (47%). Concern is also high regarding the media in general (41%), third-party travel websites (36%) and healthcare companies (34%).

There’s lesser but still substantial concern among respondents when engaging with consumer companies (32%) and retailers (30%). It’s possible that retail performs comparatively well here because the return for consumers on providing data is clearer and more transparent, in the form of vouchers, discounts and special offers.

Consumers are acting on their concerns. Half said they don’t share any more personal data than necessary (49%), and 32% opt out of receiving emails, texts and other communications. And this is another sort of friction. Companies will be more effective and efficient and provide better value to their customers if they have more data about them. But when it comes to both regulation and behaviour, there are efforts to reduce the flow and use of data. To regain trust, leaders need to persist in their efforts to establish innovative data-privacy systems and operations—especially as lawmakers and regulators consider legislative remedies.

As we look ahead, there are three essential sets of frictions. 

There’s a set of frictions that are beyond the control of companies—macro levels of inflation, a global recession or contraction, wars, and disruptions to trade caused by the pandemic. In response, consumer-facing companies must focus on resilience, conduct scenario planning, and ensure that their supply chains, operating models and staffing levels are fit for a range of potential short-term outcomes. 

There’s a set of frictions that companies themselves can introduce relating to experiences—by not having sufficient staffing in stores or by failing to meet or manage expectations surrounding the experience. To guard against this, companies should focus on operational excellence and continue to experiment and innovate with the use of technology in stores and the creation of satisfying phygital experiences.

And there’s a set of frictions that consumers themselves introduce into the system, including changes in behaviour due to economic or personal circumstances. In response, companies must monitor and stay on top of the latest trends, and plot investments and initiatives that will meet customers wherever they are and build loyalty.

The term frictionless retail may be an important buzzword and a worthy goal. But a deep understanding of what consumers think, the stresses that concern them, and the demands and expectations they have should lead to a more sophisticated and strategic understanding of the frictions that exist—and the steps necessary to mitigate or remove them.

PwC surveyed 9,180 consumers from October 24 to November 16 of 2022 via a 15-minute online quantitative survey. Interviews were conducted with consumers in twenty-five participating territories, and the survey was translated into fourteen languages. This survey highlights movements between pulses (with the preceding pulse being conducted in March of 2022) and explores any key data points in detail. The full Indian perspective findings can be accessed at