Offline against online: 78% consumers to shop from retail stores, 14% from e-commerce sites this festive season | The Financial Express

Offline against online: 78% consumers to shop from retail stores, 14% from e-commerce sites this festive season

This Diwali/ Dussehra, 44 per cent consumers plan to spend on apparel, and 8 per cent each plan to spend on mobile phones and white goods like AC, washing machines or refrigerators. Consumers are avoiding big-ticket sized items.

Offline against online: 78% consumers to shop from retail stores, 14% from e-commerce sites this festive season
This festive season, 78 per cent of the consumers are planning to shop from retail stores. Image: Reuters

While overall household spending has increased for 58 per cent people during festive season, 78 per cent of the consumers are planning to shop from retail stores near their homes and only 14 per cent are preferring e-commerce sites, according to Axis My India October CSI Survey. It said that 81 per cent people are shopping for family, and it will contribute to their ‘major’ expense this festive season. Another 7 per cent are planning major expenses towards investments. “Increase in discretionary spends across households demarcates the continuity of festive sentiments. From visiting physical stores to scanning through online sites, consumers are not only investing on household products but are also splurging for themselves and their families,” said Pradeep Gupta, Chairman & MD, Axis My India.

What are they spending on?

While 21 per cent of consumers are planning to spend more this festive season as compared to last year, what really are they spending on? According to the CSI Survey, consumption of essential products, personal care and household items increased for 44 per cent consumers; spending on non-essential and discretionary products like AC, car, and refrigerator increased for 9 per cent of families, reflecting an increase by 2 per cent points from last month. Further, health and fitness spends increased for 37 per cent of the families; consumption of media remained the same as the last two months; and mobility spends increased for 6 per cent of the families.

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“One can witness the spending capacity to be conscious as the expenses are mostly on low budget items such as clothes as compared to heavy ticket items such as vehicles or properties. Cash though continues to be the king, digital modes of payment like UPI & debit/credit card usage is also growing,” said Pradeep Gupta. This Diwali/ Dussehra, the survey said, 44 per cent consumers plan to spend on apparel, and 8 per cent each plan to spend on mobile phones and white goods like AC, washing machines or refrigerators. Consumers are avoiding big-ticket sized items with only 6 per cent of consumers planning to spend on jewellery, 5 per cent on two-wheelers, 3 per cent on four-wheelers, 1 per cent on tractor or commercial vehicles and only 2 per cent on home or commercial property. In fact, 43 per cent are even going for smaller packs or smaller sizes of their monthly groceries.

The survey was carried out with a sample size of 10058 people across 32 states and Uts, wherein 67 per cent of people belonged to rural India and 37 per cent were from urban areas. In terms of age group, 34 per cent reflected the age group of 36- 50 years, while 30 per cent reflected the age group of 26- 35 years old.

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