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Diwali Shopping: Check recent spending trends during festive seasons

To understand the zeal of Diwali shopping, let’s see some of last year’s numbers revealed by Razorpay, a payment solution company.

Diwali Shopping: Check recent spending trends during festive seasons
People even tend to overspend on Diwali shopping to make near and dear ones happy by generously giving away gifts.

India is a land of festivals and Diwali is one of the biggest among them. People even tend to overspend on Diwali shopping to make near and dear ones happy by generously giving away gifts.

To understand the zeal of Diwali shopping, let’s see some of last year’s numbers revealed by Razorpay, a payment solution company.

According to the data revealing the trends in Retail and Ecommerce Sector, compared to non-festive spends, spendings to buy electronic items witnessed a jump of 108 per cent last year, while the increase in spendings on apparels was 214 per cent.

The highest increase in spendings was for jewelleries with a jump of 595 per cent during the last year’s festive season compared to non-festive spends, while groceries saw a jump of 145 per cent during the festive shopping.

Out of the increased spends across product categories during festive season, 37 per cent of the all festive season orders happen one week before Diwali, resulting in 41 per cent increase in revenue for businesses during the week prior to Diwali. There was a 200 per cent increase in high value transactions of above Rs 1 lakh during the last festive season.

The data also revealed that the favourite window for shoppers was between 12 pm and 5 pm with hourly average spends doubling in this time slot.

“The increasing disposable incomes among consumers and the higher propensity to make high-ticket purchases has made Diwali one of the most prosperous seasons for all online merchants. Interestingly our data shows, the highest revenue generating time for merchants is a week prior to Diwali, not the week of. Regardless of what product one sells, we have observed in the last 3 years that the week before Diwali sees a 37 per cent jump in orders in comparison with the week of Diwali itself, which results in an increase in revenue for businesses by up to 43 per cent,” said Rahul Kothari, Chief Business Officer, Razorpay.

“While all merchants continue to vye for the highest mindshare among consumers, the merchants who understand these trends tend to sell significantly more. Being a business that always focuses on helping businesses reach a super-scale stage, it would be beneficial for the entire business community to understand the historic trends that we have seen and help them achieve more with less,” he added.

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First published on: 22-10-2022 at 15:59 IST