Smartphones, electronics and fashion have emerged as the top categories where people planned to splurge this festive seaon, says a pan-India survey conducted by ZestMoney, which found that 78% of the respondents saved up to splurge in the coming months. This indicates a strong revival in consumer spending habits, with 62% saying they have planned to increase the festive budget compared to the previous year.
The survey highlights that 72% choose smartphones and consumer electronics as their preferred choice to shop. Home décor, jewelry, automobiles, personal care products are the other popular categories.
The Indian festive season is a crucial time as consumer demand is at its peak with many planning several small and big-ticket purchases. With increased vaccination and the general opening of the economy, the survey witnessed a positive sentiment around budgets and shopping at physical stores. 75% of the surveyed respondents said they were more comfortable shopping at physical stores than last year. While online shopping continues to be popular among people, 53% said they would shop at both online and offline stores for their needs this year.
Lizzie Chapman, CEO and Co-Founder, ZestMoney, said they are expected this to be a “dhamaka festive season” and the signs are already visible. “People have started spending and the consumer demand is very upbeat for the next three months. We have seen customer applications go up by 10X on our platform and we have had to increase credit limits for select customers as many reach out asking for it. It’s interesting to see the survey suggesting people want to spend more this year compared to last year.”
Chapman highlighted a noticeable difference, which is that, people are more comfortable at retail stores and the footfalls are promising. “We are seeing massive interest from retailers wanting to enable Buy Now, Pay Later at their stores. We will soon have a network of 1 lakh physical stores across the country owing to the festive season with demand across categories from electronics, home appliances, smartphones and electric bikes.”
There is a noted increase in discretionary spending and budgets as 67% people say they plan to spend on gifting family and friends. It is interesting to note that 59% of them revealed that they plan to use Buy Now, Pay Later/EMI options for their shopping needs. UPI, Credit Cards and cash payments were other popular options. Affordability solutions continue to play a crucial role in these times as people look at ways to plan their finances better.