Consumers are more “excited” by festive shopping this year, 73% intend to buy online

Clothing and appliances are at the top of consumers’ shopping lists this holiday season, with 94% of consumers excited to shop this holiday season, up from 80% last year.

The Festive Shopping Index, an annual survey by the Retailers Association of India (RAI) and LitmusWorld, indicates that this bodes well for retail businesses and could lead to a turnaround.

The survey also indicated that a majority (73%) of consumers intend to shop online while also considering shopping in malls (66%) as well as stand-alone stores (46 %).

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This comes at a time when the out-of-home is picking up and things are moving towards normalization after the second wave. India-wide shopping malls are increasing and after October Durga Pooja was at 70-75% of pre-COVID 2019 levels and sales at 85-90% of pre-COVID levels and 100% of 2020 levels.

In terms of what’s at the top of consumers’ shopping lists, the Festive Shopping Index showed that 63% of consumers have clothing at the top of their shopping lists, followed by home appliances and electronics (50%) and cell phones (36%). .

Jewelry sales this holiday season could also increase from last year with 27% of consumers surveyed having jewelry among the best things to buy this holiday season compared to 9% last year.

There is also a slightly higher demand for automobiles, at 11% compared to 9% last year. However, with the return to work from the office, fewer consumers (24%) will likely prefer to buy furniture this holiday season compared to 34% in 2020.

There are also slight changes in consumer budgets this year. While the number of people willing to spend more than Rs 1 lakh this holiday season is up 9 percent from 5 percent last year.

Twenty percent of consumers surveyed want to spend between Rs 30,000 and Rs 1 lakh (compared to 23% in 2020), and 48% are willing to spend Rs 5,000 to 15,000 this holiday season. The Buy Now Pay Later trend will also continue, with 21% planning to opt for EMI programs or pay later.

In addition to retail shopping, consumer buying habits will also experience a change this holiday season, according to a survey by SnapBizz, a technology solutions provider for Kirana stores. For example, products in categories such as household cleaning, health drinks, and groceries like atta, masala rice, oil, fast food, and ready-to-eat dried fruits are being bought more, the report says. investigation.

Sales of consumer staples (FMCGs) in the July-September quarter increased 8-9% from pre-COVID levels in 2019 and 18% from the same period in 2020.

Not only that, the Pay Later trend spills over to daily grocery sales (although it’s not a new trend), with Snapbizz seeing an increase in consumer credit from stores during the holiday season.

The holiday season has given retailers the opportunity to recover from losses that occurred during covid closures. Kirana stores have made the most of the festival season by offering their customers discounts and rewards points on products to generate more sales For example, some of the products such as oil and ghee are on display at counters, along with seasonal festive offer packs, ”said Prem Kumar, Founder and CEO of Snapbizz.

These signs of improving consumer confidence give both large FMCG companies and retailers confidence in a possible turnaround this holiday season.

(Edited by : Jomy Jos Pullokaran)

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