Despite increasing inflation, most Indian consumers are excited about the upcoming festival season. A survey of over 7300 consumers has revealed that six out of every 10 respondents plan to splurge and shop during the festival season. Indicating a strong revival in consumer demand amid inflationary concerns, about 67% of respondents said they would spend either more or the same as last year.
Over 50% of respondents revealed that they plan to spend between Rs 50,000 to Rs 1 lakh in the coming months. Most of the surveyed consumers indicated that they were looking for maximum value. According to the survey, about 60% of the participants said they would choose credit options such as EMIs for festive shopping, while 40% plan to use their savings. The survey was conducted by digital EMI/checkout finance platform ZestMoney.
Only 20% plan to spend less
Only 20% of the respondents said they may spend less than the previous year due to inflationary costs while 13% have not still made up their minds.
Where do they want to invest?
Of the 67% of respondents who said they have solid shopping plans, over 55% plan to buy electronics and smartphones, followed by fashion (17%), Home decor (13%) and jewelry (13%). Around 65% of the respondents say that they are inclined to shop at both online and physical stores. Domestic travel, personal care products, and automobiles were among other popular categories that respondents plan to spend on.
“Consumer sentiment remains very bullish for the next 3 months. W expect this to be a solid festive season. Despite the macro environment and inflation, there are clear indicators that the festive cheers may be back on the back of strong and optimistic consumer sentiment,” said Lizzie Chapman, CEO & Co-founder of ZestMoney.
Why do they want to spend?
With most of the online marketplaces like Flipkart and Amazon gearing for festival sales, 58% of respondents said that deals and offers will be the most important factors while making purchase decisions, followed by budget (29%).
Travel plans beyond shopping
Spending on travel in the festive season was also on the top of the list of many consumers. More than 71% of respondents with travel plans said they are likely to visit domestic destinations such as Goa, Manali, Kashmir, Kerala, Agra, and Shimla. 29% of respondents said they have started planning for an international holiday in the coming months with Bali, Thailand, and the Maldives topping the list of their choices.