Festive Season: Around 96% Consumers Desire To Shop From Indian Brands
Diwali is a mega gala for consumers and businesses alike, with the festive season experiencing record sales every year. With a growing impetus for convenient, tech-savvy purchase options amongst modern consumers, there has been a radical shift in the customers’ preferences pertaining to their festive shopping. There has been increased penetration of online shopping platforms in Tier-II and Tier-III cities, while people residing in rural or remote areas are also gradually choosing online shopping over market-hopping.
As more consumers continue to rely on online shopping for convenience, Indian merchants expect to register record-breaking sales during the 2022 festive season. An increase in Indian consumers' spending on essentials, electronics and fashion has resulted in a growing number of online shoppers, especially in Tier-II and Tier-III cities.
Bharati Balakrishnan, Country Head and Director at Shopify, India said, "The report found that 85 per cent of consumers plan to spend more than ever before and 8-in-10 consumers shop more online now than before the pandemic. This creates an opportunity for merchants to accelerate growth over the festive season by reaching consumers that were previously offline or out of reach."
Indian Retail Sector: Ushering Into Digital Era
Shopify’s 2022 Festive Outlook Survey reveals that the trend of smart shopping is sticking with consumers, signifying a major shift from the conventional approach to festive shopping. Ahead of Diwali, Shopify’s survey aims to highlight the shifting consumer attitude and trends in a post-pandemic India.
The impact of an evolving retail landscape has had on the spending patterns of people across the country, especially at a time when the economy is unstable is ever-lasting. To stay relevant, businesses of all sizes and in all locations have to adapt to newer dynamic trends.
Leading Segments During Festive Sales
Traditional festive gifts have remained limited to dry fruits and sweets and last year, home decor and furnishings lead the festive gifting list. Modern consumers are seeing festivals not only as occasions to make merry but also as the perfect time to amp up their wardrobe and overall lifestyle.
According to the report, 81.65 per cent of consumers prefer to purchase clothing and accessories, closely followed by 76.37 per cent also buying dry fruits, sweets and chocolates and 68.57 per cent spending on home electronics and gadgets.
Preference For Cashless Payments
Unified Payments Interface (UPI) emerges as the most preferred payment method with 67.36 per cent of consumers opting for it, followed by 45.49 per cent for credit cards and 37.69 per cent for net banking. Usual trend: Despite cashless payment methods being present in the country for decades, people have been paying upfront in cash for most of their purchases.
Enhanced security of cashless payment processes, combined with the added value offered in form of cashbacks, easy EMIs and partner deals, has contributed to the popularity of cashless payment options in India.
Appealing Businesses: Giants Vs Locals
Around 96 per cent of consumers expressed their desire to shop from Indian brands this festive season. Last year, just 57.9 per cent of Indian consumers expressed an interest in shopping locally, significantly less than this year’s shopping trend. The consumers are raising the bar for festive expenses, around 85.82 per cent plan to spend more than they have done in previous years, with 40 per cent of consumers expected to spend more than INR 10,000.
The government’s call for supporting local businesses and consumers’ growing pride in Indian brands may be listed as primary factors contributing to this shift.
Gearing Up For Festive Phase II
Despite an increase in spending capacities, the unstable economy accompanied by the pandemic effect has created an air of uncertainty, leading consumers to spend more on essentials over big-ticket purchases. Consumers are more price-conscious than ever before and expect merchants to offer discounts and better deals over the festive season to retain their loyalty.
The growing impetus for going digital has encouraged more sellers to build their own direct-to-consumer storefronts and actively advertise across online channels and engage in social commerce to increase the discoverability of their products.
