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Inside
the Mind of the
‘Wired’ Consumer
Durables’
Buyer
Inside
the Mind of the
‘Wired’ Consumer
Durables’
Buyer

2. ContentsContents
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

3. 2
Introduction
Despite sluggish consumer buying trends witnessed during global recession,
the Indian consumer durables industry grew at a phenomenal rate of 32%
1
in March 2010. Pegged at Rs 35,000 crores in 2008-09, the industry was
2
earlier dominated by a few players. Since the end of 'license raj' and advent
of liberalization, this market has been flooded with a host of domestic and
international players. It is not surprising to note the peaking levels of
awareness about brand image, prices and features of products among
discerning Indian consumers who have become more demanding and
cautious with exposure to a variety of options. With change in status of
durable goods from ‘luxury’ items to ‘utility’ goods, which have become
necessary to maintain a comfortable lifestyle, the lines between
‘consuming’ and ‘aspiring’ classes are increasingly getting blurred.
Growth in dual income families leading to higher disposable income,
reduction in custom duties and easy access to consumer finance are some
of the factors that have facilitated growth of the industry. Cut throat
competition amongst players has ensured product availability at lower
prices. At the same time, the ensuing battle for product differentiation and
price wars has put durable goods’ players in a tight spot.
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
names, branded items and brand performance are common topics of
discussion on social platforms online. Since consumers are price and brand
conscious while looking for functionality, they prefer to independently seek
information about the options available. An increasing number of
marketers are adopting the online medium to engage this discerning
audience through exclusive product launches online and taking robust
measures to increase traffic on their websites.
Being an industry that thrives on constant technological innovation and
product upgradation, dynamic online interaction which supplements offline
marketing strategies becomes a key differentiator for durable brands
struggling to capture a significant proportion of the large Indian consumer
base. With a 50 million strong online audience, the advantage of internet in
engaging 'hopeful' and 'life-long' consumers who display high repeat/re-
purchase intention for durables is highlighted in our study. Inside the Mind
of the ‘Wired’ Consumer Durables’ Buyer - a study of the Indian durable
consumers’ usage, attitude and behaviour towards the online medium
takes a close look at the growing influence of Internet in driving purchase
intention/decisions among them.
3
1
Central Statistical Organization (CSO)
2
Federation of Indian Chambers of Commerce and Industry (FICCI)
Note: The study focuses on five consumer electronics (durable) namely
TV, AC, Fridge, Washing Machine and Personal Computer

4. Executive Summary
The Indian consumer's confidence and demand for durable goods has been
robust as the industry recorded the highest average growth rate of 26.1%
3
from April 2009 to March 2010 among all sectors.
4
3
Central Statistical Organization
4
Source: India Online 2010 Report, JuxtConsult
5
Comparative Growth Rates of Industrial Production based
on Use-based Classification (% figures)
Source: Central Statistical Organization
Concurrent to this is the increase in internet access and usage with as
many as 73% online durable owners spending more than one hour
online (weekdays), which is the highest across all other mediums. The
average number of online activities undertaken is 17, of which,
information search and social networking are in the list of top ten most
4
popular online activities.
Results from our survey indicate that 76% of existing online durable
owners online intend to purchase another durable item, exemplifying a
substantial replacement/repurchase demand for durables. Moreover, with
85% online durable intenders referring to the internet as their preferred
mode of product search, it is clear that this group is aggressively scouring
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,
opinions and comments shared by existing as well as prospective durable
owners, thereby influencing each other's purchase decisions. In such a
scenario, the opportunity for marketers to leverage their online presence is
increasing exponentially, particularly with Indians becoming increasingly
vocal on social media platforms. It is interesting to note that online
durable consumers actively share opinions, views and experiences not only
on personal blogs, but circulate them across a variety of online platforms
including company websites, consumer review websites, social networks
and blogs, causing a ripple-effect across online and offline consumers. Rise
in popularity of online forums including social networks has given birth to
a new model of promotional content creation, with the consumer
donning the role of message creator in place of the marketer.
Inside the Mind of the 'Wired' Consumer Durables Buyer highlights the
impact of online media with consumers becoming brand evangelists
sharing positive recommendations or stripping brands naked with negative
feedback. Today, they have become a ‘currency’ or a threat to durable
brands depending on whether durable marketers are actively listening to
and participating with their consumers where they flock to the most, or
not. Keeping positive conversations and brand image alive is a function of
the ‘viral-ability’ of online engagement, its adoption amongst influencers
and a sustained effort to spark personalized, one-on-one interaction.
Note: The term 'intender' denotes respondents who are online and intend
to purchase a durable good, including existing online durable owners and
non-owners.
Sector 2008-09 2009-10 2009-10
(Mar 2010) (Apr’09 - Mar’10)
Basic Goods 2.6 10.1 7.1
Capital Goods 7.3 27.4 19.2
Intermediate Goods -1.9 12.7 13.6
Consumer Goods 4.7 10.6 7.4
(ii) Consumer Non-Durables 4.8 3.3 1.5
(i) Consumer Durables 4.5 32 26.1

5. The ‘Connected’
Indian Durable
Owner
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
today. They are perceived as necessities for leading a comfortable life
among urban and rural consumers alike, and have shed the 'luxury' tag for
millions. This becomes evident with a whopping 89% online Indian
5
households possessing consumer durables .
7
5
Source: India Online 2010 Report, Juxt Consult
Share of Online Households
Owning Durable Goods
Households
without durables
Households owning
durable
11%
89%
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.
An impressive 89% of total online Indian
households (23.7 million) own durable goods

6. 8
Source: Digital Consumer Durables Survey 2010, Webchutney
6
Federation of Indian Chambers of Commerce and Industry (FICCI), 2005
Amongst the 21.5 million online households
which own durables, TV ownership is the highest
(96%) across all socio-economic classes
(SEC A 98.5%, SEC B 83.7%, SEC C 97%)
Internet is the Key Medium for
Online Durable Owners
73% online durable owners spend more than one hour online (weekdays),
which is higher than time spent on any other media. Television trails with
60% usage, followed by substantially lower 38% preference for Radio. The
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.
9
Media Usage for more than 1 Hour amongst
Online Durable Owners (Weekdays)
Source: India Online 2010 Report, Juxt Consult
73% online durable owners use internet
for more than one hour on weekdays,
higher than any other medium
In comparison, ownership of washing machines (61%) and air-conditioners
(merely 35%) is not as high. Low figures for AC ownership could be
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
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
25 % annually. The rural market is growing faster than urban India as the
6
urban market is now becoming a replacement and upgradation market.
With steady increase in disposable incomes, propelled by a buoyant national
economy, the opportunity for widespread increase in consumption of
durables across online and offline households in India is sizable.
Television Personal
Computer
Washing
machine
83%
96%
Air
Conditioner
82%
35%
61%
Fridge
Current Ownership of Durables
Among Online Households
Internet TV Channel Magazine
60%
73%
Newspaper
38%
14%
20%
Radio
Channel

7. 11
Unlike other media forms, online durable owners engage with the internet
more often, with 89% of them accessing it daily. Online media offers scope
for a vast variety of activities, notable amongst which are job search,
service/product/information search and social networking.
Top 10 Activities Pursued by
Online Durable Owners on the Net
10
Experience and Prolonged Usage
have made them Adept Online
70% of online durable owners have been using the medium for more than
two years exhibiting expertise at accessing information while searching and
curating content online. The type of online activities conducted indicate the
extent to which an existing durable owner online is connected, at ease with
use of internet and participative towards information access, supply and
exchange through the medium.
Experience in Internet Usage of Online Durable Owners
Using for more
than 5 years
Using for
upto 2 years
Using between
2-5 years
40%
31%
29%
Frequency of Internet Usage amongst Online Durable Owners
Over 5
times a day
2-5 times
a day
Once in
2-3 days
32%33%
Once
a week
24%
2%
7%
Once daily
1% 2%
1-3 times
a month
Once in
more than
a month
7 out of 10 online
durable owners
have been
using the medium
for over 2 years
89% online
durable
owners access
the internet
daily
‘Search’ and ‘Interaction’ feature as
prominent online activities. These are
avenues where maximum opportunities
for selective targeting exist
Job Search
Instant messaging/chatting
Download music
Check general news
English info search engine
Social networking
Non-Travel Products & Services
Check cricket content/score
Joined online community
Dating/Friendship
64%
60%
67%
52%
49%
49%
46%
45%
44%
44%
Online activities pursued by durable owners are indicative of their
preference to procure product related information. These avenues present a
great opportunity before marketers to selectively target these audiences.
Consumer engagement through unique interactive online executions
remains the prerogative of durable marketers.
Source: India Online 2010 Report, Juxt Consult
Source: India Online 2010 Report, Juxt Consult

8. Search
Online
High Purchase Intent
Durable Owners Harbor
13
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
Source: Digital Consumer Durables' Survey 2010, Webchutney (Base:1995)
Owner
Non-Intender
Current Owner
plus Intender
76%
24%
76% of current online durable owners exhibit intention
to purchase another consumer durable item
With 78% of online durable owners earning upto Rs 25,000 per
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.

9. 14
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.
15
Source: Digital Consumer Durables' Survey 2010, Webchutney (Base: 1510)
Monthly Household Income of
Online Durable Owners Intending to Purchase
A majority of online durable owners intending to
purchase another one, earn upto Rs 25,000 per
month indicating high purchasing power across
‘classes’ and ‘masses’
Less than Rs 6250
Rs 6250 -Rs 12500
Rs 12500 -Rs 25000
Rs 25000 -Rs 40000
Rs 40000 -Rs 80000
Rs 80000-Rs 100,000
More than 100,000
16%
33%
29%
7%
6%
7%
2%
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.
Current Durable Ownership vs. Intent to
Purchase Another Durable
Currently own
Intend to own
Television Personal
Computer
Washing
Machine
83%
96%
31%
Fridge
52%
21%
82%
41%
61%
Air
Conditioner
38%35%
High purchase demand exists for most durable
products, despite high level of current ownership
Note: Figures indicating intention to purchase represent owners across various product categories.
Source: Digital Consumer Durables' Survey 2010, Webchutney

10. 16 17
Our survey results exhibit that high replacement demand exists for
consumer electronics, even amongst existing owners. Washing
machines are voted as the most desired consumer durable, with 84% of
respondents intending to buy it within a year. Strong desire for a
washing machine could possibly be attributed to the need to save time
and energy.
Likelihood of purchase for computers, refrigerators and air conditioners
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
marketers to leverage this undercurrent through creative usage of the
online medium to engage audiences and drive sales for their
brand/products.
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 642)
Time Period within which TV Purchase is Intended
It is not surprising to witness high repeat/re-
purchase demand (75%) for TV in the next 12
months among current online TV owners (97%), as
it is a highly penetrable product.
Owner Intender
Within
6 months
6-12
months
18-24
months
12-18
months
50%
After
24 months
Non-Owner Intender
32%
43%
25%
11%
25%
4%
9%
0% 0%
Snapshot: Purchase Intent of
Television within 12 months
Break-up of TV Intenders
3%
97%
TV Owner
Intender
TV Non-Owner
Intender
TV AC Washing
machine
Fridge Computer
13%
34%
3%
13%
36% 37%
33%
10%
17%
3%
40%
44%
13%
3%
62%
13%
9%
14%
3%
10%
29%
50%
3%
8% After 24 months
18-24 months
12-18 months
6-12 months
Within 6 months
Time Period Within which
Durable Purchase is Intended
For 4 out of 5 durables, maximum intention
to purchase is within 6 months
Source: Digital Consumer Durables' Survey 2010, Webchutney

11. 18 19
High demand among current Personal Computer
owners intending to purchase another one (73%) in
next 12 months (71%) is observed
Snapshot: Purchase Intent of
Personal Computer within 12 months
Break-up of Personal Computer Intenders
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 406)
Time Period within which Fridge purchase is Intended
Snapshot: Purchase Intent of
Fridge within 12 months
Break-up of Fridge Intenders
25%
75%
Fridge Owner
Intender
Fridge Non-Owner
Intender
Owner Intender
Within
6 months
6-12
months
18-24
months
12-18
months
52%
After
24 months
Non-Owner Intender
25%
37%
30%
12% 9%
12% 14%
4% 4%
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 431)
Time Period within which Personal Computer
Purchase is Intended
Owner Intender
Within
6 months
6-12
months
18-24
months
12-18
months
35%
After
24 months
Non-Owner Intender
41%
30%
54%
14%
4%
7% 8%
4% 4%
PC Owner
Intender
PC Non-Owner
Intender
27%
73%
High demand among current online Fridge
owners intending to purchase another one (75%)
in next 12 months (62%) is observed

12. 20 21
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 787)
Time Period within which AC Purchase is Intended
Owner Intender
Within
6 months
6-12
months
18-24
months
12-18
months
38%
After
24 months
Non-Owner Intender
30%
48%
30%
9%
20%
3%
9%6% 6%
Snapshot: Purchase Intent of
Air Conditioner within 12 months
Break-up of AC Intenders
33%
67%
AC Owner
Intender
AC Non-Owner
Intender
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 486)
Time Period within which
Washing Machine Purchase Is Intended
High demand among non-owners intending
to purchase a Washing Machine (55%) in next
12 months (73%) is observed
Owner Intender
Within
6 months
6-12
months
18-24
months
12-18
months
33%
After
24 months
Non-Owner Intender
39%39%
40%
11%
22%
7% 4%4% 2%
Snapshot: Purchase Intent of
Washing Machine within 12 months
Break-up of Washing Machine Intenders
55%
45%
Washing Machine
Owner Intender
Washing Machine
Non-Owner Intender
High demand among non-owners intending
to purchase an Air Conditioner (67%) in next
12 months (68%) is observed

13. Driving Purchase
Decisions From
The Living Room
Searching for product information and cross-product comparison on the
net has become predominant among online consumers intending to
purchase a durable item. The clear advantage of in-depth research offering
third party views as well as ease of accessing and collaborating information
from multiple sources at one place free of cost is evident with 85% online
durable intenders opting Internet as a reliable and convenient source to
help them determine the best choice.
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.
Internet is the Preferred Medium
for Durables Related Search
23
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1510)
Online Durable Intenders Prefer Internet
for Product Research
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
Internet Friends &
Family
Television
57%
85%
Magazine/
Newspaper/
Brochures
48% 45%
Dealers
42%
Driving Purchase
Decisions From
The Living Room

14. 24
The strength of an information source is based not just on the magnitude
of information it provides but also on the convenience it offers and the
credibility that is attached with it. Our survey shows that consumers find
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
networks are used for obtaining friends and relatives' opinions on various
attributes of durable goods.
Relevance of Various Information
Sources for Purchase Related
Research on Durables
Reliance on consumer review websites could be attributed to unbiased
endorsements by a third party. Websites such as naaptol.com have become
popular portals offering facilities to view, compare, buy, review and sell
consumer electronics. In a world of choices, the facility to compare and
read product reviews can help address customers' information needs. Trust
in social networking sites stems from faith in peers, friends and relatives for
their views, feedback and personal experiences. The same trusted circle of
friends and family is now online, making it convenient to take their opinion
with a single message posted on the screen.
25
Company Websites and Online Catalotues
Consumer Goods
Magazines & TV Shows
Family/Friends/Relatives
.2
.6
.8
DegreeofEffectiveness
Resource
-.8
-.4
0.0
-1.0 -.8 -.4 -.2 .2 .6
Social Networking Websites
Online Consumer Review Websites
Equally Effective
More Effective
Less Effective
Salesman at the Dealer’s Outlet
.4.0-.6
.4
-.2
-.6
Online channels are considered ‘more effective’ in
researching product information for durable goods
Note: The closer a resource is to a particular degree of effectiveness,
the stronger it associates with it.
Perception of Effectiveness Medium Type
More Effective Company Websites/Online Catalogues
Online Consumer Review Websites
Social Networking Websites
Equally Effective Friends/Family/Relatives
Less Effective Salesman at Dealer’s Outlet
Consumer Goods Magazines
& TV Shows
Online portals (company websites, consumer review
websites and social networking websites) are perceived as
more effective in enabling search for durables
Friends and relatives continue to be a 'relevant' source of information as
Indians value the opinions of people close to them for most things,
including consumer electronics. The decision to buy a particular consumer
durable brand is likely to be made before the customer actually visits the
showroom/point of purchase, which could lead to the diminishing role of
the salesman/dealer in influencing purchase decisions. While magazines and
TV shows seem to be losing their steam as popular information sources,
they remain effective in building the brand image of the company.

15. 2726
While friends and family continue to be most popular source for research
on ’performance’ of a durable good, the internet adds significant value to
purchase decisions with depth of information available from multiple sources.
Product Features, Price and Visual
Appeal are Searched most Online
Owing to the vast variety available in durable goods, particularly with the
rise of multi brand retailers selling consumer electronics such as ezone,
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
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
unique 'Wow' experience while promoting awareness and recall.
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
and share their experiences about products and brands. Overall 55%
durable owners shared a durable related experience online and a majority
shared positive experience(s). Consumer review websites have become the
most popular platform for this exchange.
Sharing pre and post purchase experiences is common on the net. Survey
results show that positive durables' related experiences are more widely
shared online as compared to negative brand experiences. Also, owning
certain durable models is a matter of pride and such news put as status
messages helps generate buzz across social platforms resulting in instant
publicity across a cross section of potential consumers.
Online Social Spectrum is
Buzzing with Consumer Views,
Thoughts and Experiences
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1995)
Type of Experience Shared Pre-Purchase
Negative
experience
Not shared
an experience51%
4%
45%
Positive
experience
Product Price, Features and Visual Appeal
Researched most Online
TV shows & ads Dealer Friends & Relatives
Consumer Magazines Internet Newspapers
Item features Price Brand Image Performance Visual Appeal
5%
9%
47%
4%
29%
7%9%
32%
7%
28%
6%
17%
27%
8%
22%
8%
24%
12%
23%
10%
28%
8%
22%
11%
31%
7%
22%
19%
12%
10%
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1510)

16. 28 29
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.
Preferred Online Channel to
Share Pre-purchase Experience
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1097)
Other
43% 28%
21%
8%
Consumer goods
review website
Company/Brand
website
Social Platforms
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1995)
Type of Experience Shared Post-Purchase
Negative
experience
Not shared
an experience48%
6%
46%
Positive
experience
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.
Preferred Online Channel to Share
Post-purchase Experiences
Source: Digital Consumer Durables Survey 2010, Webchutney (Base: 1077)
Other
39% 32%
23%
6%
Consumer goods
review website
Company/Brand
website
Social Platforms

17. 31
Online Buying is Slowly Catching
Pace with Online Product Search
79% of online Indians use the internet for product search and 21% online
7
Indians purchase products on the net . While penetration of credit/debit
cards in the country is on the rise, typically in urban areas, success of
e-commerce depends heavily on product quality assurance and security
mechanisms put in place to ensure transaction security.
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
8
airline tickets booked online , it is clear that Indians like to avail of travel
products/services available online.
Online Search to Buy Ratio of Various Products in
Consumer Durables Category
Source: India Online 2010 Report, Juxt Consult
Mobiles phone, PDA & Accessories 73% 27%
Cameras & Optics 67% 33%
CD/VCD/DVDs 56% 44%
Computer Hardware 67% 33%
Kitchen Appliances 62% 38%
Automobiles (booking) 66% 34%
Consumer Electronics 56% 44%
Search BuyProduct Category
7
India Online 2010, Juxt Consult
8
International Air Transport Association (IATA)
Building Brand Value
And Driving Customer
Engagement Online

18. 3332
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.
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
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
9
million Indians on Orkut and 20.9 million on Facebook 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.
Online Engagement Enables
Brand Differentiation
9
Comscore, July 2010

19. 34
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.
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.
Gender Wise Break-up
of Respondents
Female
14%
86%
Male
Base: 1995
Age
19-24 Yrs
Age
25-35 Yrs
Age
36-45 Yrs
Above 45 Yrs
11%
4%
16%
69%
Age Wise Break-up
35
Methodology About the Authors
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
Sidharth Rao
Shweta Bhandari leads the research team at
Webchutney, which publishes thought provoking
reports on the state of online in India.
She carries a diverse business profile including
blue-chip companies like American Express and GE.
At Webchutney, she has contributed in writing
several research publications such as The Digital Vote Bank, Viral
Marketing and more recently the Digital Media Outlook 2009. Her
passion for discovery and thirst to engage in new challenges lend
immense scope and dimension to this field.
She can be reached at shweta.bhandari@webchutney.net
Shweta Bhandari

20. 36
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
Ankita Kapoor
A special thanks to for conceptualising
and executing the report design.
Sushil Kumar