67 pc Indian Consumers Increase their Budgets for Festive Season Shopping
67 pc Indian Consumers Increase their Budgets for Festive Season Shopping

With the return to normalcy becoming a closer reality, consumers across the country are expected to scale their festive shopping budgets this year. Online festive sales in India are predicted to grow significantly, driven by competitive prices, ease of returns, an increase in festive offers, and expansion of products within the affordability range of the buyers.

A survey-led report by Benori Knowledge found that 67 percent of Indian consumers are planning an increase in their shopping budgets, with Mumbai (82 percent) and Bangalore (71 percent) taking the lead.

Compared to the other cities, more than half, 52 percent of the shoppers in Delhi NCR are planning to either stick to the same budget or decrease their spending this year. The disparity in seasonal shopping spending between the national capital and the two large metros is primarily attributed to stricter COVID-19 restrictions and lockdowns that Mumbai and Bangalore faced in the previous year, in comparison to Delhi NCR which had a fairly normal festive season.

Around 77 percent of the respondents from Bangalore and 57 percent from Mumbai cited a return to normalcy after the pandemic as the factor behind their budget increases. The second strongest motivator for Bangaloreans (34 percent) was the pent-up needs from not shopping as much in previous years, whereas according to 53 percent of Mumbaikars and 45 percent of Delhiites, it is income growth that is allowing them to scale their spending accordingly.

Across India, seasonal discount deals (35 percent) and pent-up needs (32 percent) were the other factors guiding consumers’ budgeting decisions.

44 percent of respondents across India are planning to spend beyond Rs 25,000. Mumbai and Bangalore ranked high in terms of spending this season, with over 50 percent of consumers holding a budget above Rs 25,000. 14 percent of Mumbai consumers plan to spend more than Rs 60,000.

In Delhi on the other hand, the majority (73 percent) of consumers reported having a budget of less than Rs 25,000.

When it comes to what Indian consumers will shop for, fashion will be the most popular (76 percent) category, followed by home appliances and electronics (59 percent), home furnishing (45 percent), phones and accessories (43 percent), and gold and silverware (39 percent). More people (43 percent) from Mumbai plan on purchasing gold and silverware compared to residents of the other cities.

Around 81 percent of shoppers across the country expect to do their shopping through major e-commerce platforms, followed by category-specific platforms (56 percent) and direct-to-consumer websites or apps (38 percent). Despite these top three purchase locations being online portals, 58 percent of respondents from Bangalore revealed that they would patronize traditional department stores this season.

With interest in sustainable business practices becoming a more prominent consumer trend over the years, Benori’s research demonstrated that this festive season, 76 percent of consumers will factor in product sustainability when making a purchase decision. Almost 90 percent of buyers from Bangalore revealed that they are very conscious about considering sustainability when making a purchase.

“After two years of the reduced scale of festivities, especially in Bangalore and Mumbai, consumers are looking forward to celebrating this festive season with renewed enthusiasm. Post-pandemic, this will be the first normal festive season where people can celebrate and enjoy the festivities with their family and friends without any restrictions. This provides a great opportunity for brands to engage with their audience and increase awareness. Understanding the nuances of regional buying behavior can help them drive purchase intent for the brand through relevant offers,” said Ashish Gupta, Co-Founder, and CEO, Benori.

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