GURUGRAM: After two-and-half years since the Covid-19 pandemic began, this year’s festive season in India will be the first one with no restrictions or holdbacks. With a return to normalcy becoming a closer reality, consumers across the country are expected to dramatically scale their festive shopping budgets this year.
Online festive sales in India are predicted to grow significantly, driven by competitive prices, ease of returns, increase in the festive offers and expansion of products within the affordability range of the buyers. Sixty seven per cent of Indian consumers have increased their budgets for shopping during the festive season, with Mumbai (82 per cent) and Bengaluru (71 per cent) taking the lead.
Bengaluru (77 per cent) and Mumbai (57 per cent) consumers cite normalcy after Covid-19 restrictions as the primary reason behind their budget increases. The majority of shoppers in Mumbai and Bengaluru plan to spend more than Rs 25,000 while only 27 per cent of Delhiites will budget the same amount. The most popular purchased category this shopping season will be fashion (76 per cent). Almost 90 per cent of Bengalureans to set to prioritise product/brand sustainability when making a purchasing decision.
Benori Knowledge, a new-age startup providing custom research and analytic solutions, has launched a survey-led report, with the aim to gauge consumers’ shopping behaviours and spending habits this upcoming festive season. The survey was trifurcated into three regions — Delhi NCR (North), Mumbai (West) and Bengaluru (South), to better understand local variations in consumer behaviour.
The survey found that 67 per cent of Indian consumers are planning an increase in their shopping budgets, with Mumbai (82 per cent) and Bengaluru (71 per cent) taking the lead. Compared to the other cities, more than half (52 per cent) of the shoppers in Delhi-NCR are planning to either stick to the same budget or decrease their spending this year.
The disparity in seasonal shopping spends between the national capital and the two large metros is primarily attributed to stricter Covid-19 restrictions and lockdowns that Mumbai and Bengaluru faced in the previous year, whereas Delhi-NCR had a fairly normal festive season.
Around three-fourths (77 per cent) of respondents from Bengaluru and 57 per cent from Mumbai cited return to normalcy after the pandemic as the factor behind their budget increases. The second strongest motivator for Bengalureans (34 per cent) was the pent-up needs from not shopping as much in previous years, whereas according to 53 per cent of Mumbaikars and 45 per cent of Delhiites, it is income growth that is allowing them to scale their spending accordingly.
Across India, seasonal discount deals (35 per cent) and pent-up needs (32 per cent) were the other factors guiding consumers’ budgeting decisions. About 44 per cent of respondents across India are planning to spend beyond Rs 25,000. Mumbai and Bengaluru ranked high in terms of spending this season, with over 50 per cent of consumers holding a budget above Rs 25,000. About 14 per cent of Mumbai consumers plan to spend more than Rs 60,000. In Delhi on the other hand, the majority (73 per cent) of consumers reported having a budget of less than Rs 25,000.
When it comes to what Indian consumers will shop for, fashion (clothing, shoes and accessories) will be the most popular (76 per cent) category, followed by home appliances and electronics (59 per cent), home furnishing (45 per cent), phones and accessories (43 per cent), and gold and silverware (39 per cent). More people (43 per cent) from Mumbai plan on purchasing gold and silverware compared to residents of the other cities.
Most (81 per cent) shoppers across the country expect to do their shopping through major e-commerce platforms, followed by category-specific platforms (56 per cent) and direct-to-consumer websites/apps (38 per cent). Despite these top three purchase locations being online portals, 58 per cent of respondents from Bengaluru revealed that they would patronise traditional department stores this season.
With interest in sustainable business practices becoming a more prominent consumer trend over the years, Benori’s research demonstrated that this festive season, most (76 per cent) consumers will factor in product sustainability when making a purchase decision. Almost 90 per cent of buyers from Bengaluru revealed that they are very conscious about considering sustainability when making a purchase.
Reflecting on the findings from the buyer survey, Ashish Gupta, co-founder and CEO of Benori, said, “After two years of a reduced scale of festivities, especially in Bengaluru and Mumbai, consumers are looking forward to celebrating this festive season with renewed enthusiasm. Post pandemic, this will be the first normal festive season where people can celebrate and enjoy the festivities with their family and friends without any restrictions. This provides a great opportunity for brands to engage with their audience and increase awareness. Understanding the nuances of regional buying behaviour can help them drive purchase intent for the brand through relevant offers.” (ANI/PRNewswire)