New Delhi, July 26
An increasing number of Gen X customers, those in the age group of 41-60 years, are spending more online on travel, food and beverages (F&B) and services categories like millennials' and Gen Z, according to a report on Friday.
The report by fintech startup Simpl, showed the Gen X customers showed the fastest growth in spending in the first six months of 2024.
While spending on travel grew 72 per cent, F&B and services recorded 60 per cent and 57 per cent growth respectively.
This shift in consumer behaviour is primarily attributed to the growing number of services going online providing ease, convenience, and affordability in addition to customers getting habituated to smartphones via simpler app experiences, said the report.
"The Indian e-commerce industry is witnessing tectonic shifts where customers in the age group of 41-60 years have pipped 18-25 year olds in the growth in online spending," said Puneet Singh, CXO- Business, Simpl.
"Interestingly, Gen X and Boomers also saw a 52 per cent increase in the frequency of transactions in the first six months of 2024 as against the same period last year. These shifts are driven by greater sets of services available online along with customers' innate behaviour to seek affordability and convenience online," he added.
The surge in the adoption of e-commerce services is also leading to a significant increase in the average order value (AOV) across categories.
While the AOV for health and fitness grew by 42 per cent to Rs. 1,022 from Rs 720, travel and marketplace AOV grew by 38 per cent and 35 per cent respectively.
Interestingly, the AOV of Boomers and Gen X is 20 per cent higher than that of Gen Z, in a testament to the growing trust and usability of internet commerce among seniors, the report said.