While consumer sentiment has remained downbeat for some months now, about 90% of Indian consumers are willing to spend during the ongoing festive season.
While consumer sentiment has remained downbeat for some months now, about 90% of Indian consumers are willing to spend during the ongoing festive season, a recent study showed. For consumers, the preferred shopping channel remains the online platform with over three-fourth of shoppers saying that they would purchase products online, a study by Retailers Association of India (RAI) and LitmusWorld said on Monday. Further, there has been increased adoption of plastic money by consumers and the preferred mode of payment is credit cards, with about 55% consumers saying that they will choose credit cards over the debit card.
Cash goes south, plastic cards rule
While Prime Minister Narendra Modi has dreamt of making India a cashless society, consumers too seem to be willing to fulfill his dreams. “The report indicates that consumers are resisting to spend cash during the ongoing festive season with the preference dropping from 19% last year to 9% this year,” the report said. Further, Mobile Wallets and Net Banking modes of payment were also on a decline as compared to last year.
“As many as 61 percent of the survey respondents are looking at spending over Rs 15,000 this festive season and an enthusiastic 12 percent are looking to spend more than Rs 1 lakh during the ongoing festive season. This indicates that retailers have reasons to plan for a positive festive season,” Kumar Rajagopalan, CEO, RAI said in a statement. The report has also shown some light on the change in consumer shopping patterns. While the demand for apparel and consumer electronics has gone up, consumers are not very keen on spending on jewellery and furniture.
Meanwhile, online commerce platforms have already shown a robust sales increase in the first and the second leg of festive season sales and according to consultancy firm RedSeer, the month-long festivities are expected to clock in Rs 39,000 crore worth sales for e-tailers as the rage for online shopping gains momentum. “Consumer sentiment on online shopping remains bullish,” Anil Kumar, Founder, and CEO, RedSeer Consulting,had said earlier, even amid the challenging macroeconomic factors.