With a low Covid-19 positivity rate, lower number of active cases and deaths, consumers are in no mood to let the festive spirit go this festive season.
The Covid-19 pandemic spoiled the festive season last year. However, with a low Covid-19 positivity rate, lower number of active cases and deaths, consumers are in no mood to let the festive spirit go this festive season.
Even high prices and Covid-hit earning levels have failed to dampen the spirit. However, with earnings affected by the pandemic, a majority of people are avoiding big-ticket purchases and are opting for various options to pay later – either by taking loans and repaying it later or by using various payment options to defer the cash outflow.
“The fervour of this festive season is probably closer to the pre-Covid period and consumers are showing interest towards increasing discretionary spends, so there is an organic increase in the volume of digital lending. While most of the product offerings remain the same across most lenders, the key attraction is the quality of service and quick loan disbursals,” said Krishnan Vishwanathan – CEO & Founder, Kissht.
“Among others, Kissht is also offering vouchers for Amazon and Flipkart which has seen a good demand amongst consumers in this festive season. We saw a 34 per cent increase in voucher sales in the first two weeks of October 2021 as compared to the previous month and nearly 90 per cent of the vouchers were in the price range of Rs 8,000 to Rs 10,000,” Vishwanathan added.
Apart from taking loans for festive buying, people are also going for the Buy Now – Pay Later (BNPL) option to keep the festive spirit alive.
“BNPL has been in the market for a long time, but it gained prominence during the pandemic period which forced people to find alternate ways to fund their expenses, including essentials. BNPL is user-friendly and an agile solution that appeals to the present-day consumer, known for their need for instant gratification. Also, BNPL allows customers to break down large expenses into smaller, interest-free EMIs, instead of going heavy on their pockets. So, they feel less financial burden, especially around the festive season wherein there is an upswing in general expenditure,” said Vishwanathan.
“However, consumers need to be careful about the hidden costs and repayment options too,” he cautioned.