A report by Boston Consulting Group (BCG) says, about 54 per cent consumers are expected to cut spending in malls largely to avoid crowds while boosting spends on channels like e-commerce. Up to 35 per cent consumers would increase spending through e-commerce, the highest compared to other retail formats.
This is an indication of e-commerce emerging as the preferred way of shopping for consumers in a post-Covid-19 world and retail outlets in shopping malls would be the worst hit in the near term. Tier-II and III towns may still rely on traditional setups but e-commerce is seeing faster adoption, than anticipated, due to the coronavirus pandemic and lockdown. The BCG report noted that 85 per cent consumers are trying to avoid public spaces as much as possible.
This would increase e-commerce penetration in India which is around 5 per cent, here. Relatively, the same is much higher in the US at 15 per cent and China 2 per cent.