Fashion to see revenge buying behavior this festive season: Redseer3 min read . Updated: 16 Oct 2020, 08:18 AM IST
- 80% consumers are looking to spend on fashion categories during this festive season sales
- Only 21% customers will look to up their budget for buying smartphones
According to a consumer sentiment survey by management consulting firm, Redseer, 80% consumers are looking to spend on fashion categories during this festive season sales.
In comparison, 34% customers are looking to increase their spends on fashion buys, this festive season sale, while only 21% customers will look to up their budget for buying smartphones.
Flipkart which kicks off its Big Billion Days (BBD) sale starting October 16 has already partnered with more than 100 brands this festive season, to help bring across 2,000 fashion stores on to it’s platform, serving customers in more than 300 cities. Flipkart’s BBD sale is already live for its Flipkart Plus customers, today.
Over the past months, the Walmart-owned e-commerce major has also partnered with several value-fashion brands including Bata and Max Fashion, to cater to the changing budgets of Tier 2 customers.
“We will continue to bridge the gap between customers in metros and Tier 2+ regions, where customers are seeking the best of current fashion trends, but have limited access from a selection, range and affordability perspective," said Flipkart in a statement.
On the other end, Amazon India has shifted focus, this festive season to focus on large numbers of small-and-medium businesses (SMBs) to give a boost to the seller market, while doubling on assortments, through this strategy.
Amazon India will kick-off its festive season sale on October 17, with its Prime members getting access to the sale, a day prior on October 16.
On an average, close to 90% of consumers surveyed by Redseer, said that they will be shopping during this festive sale. This year, an additional 10% customers from metro cities are also expected to shop during festive sales this year, Redseer report states.
The consumer survey further states that while spends on mobile phone sales will be muted around ₹12,000 - ₹15000.
For fashion consumers will be willing to spend close to ₹5000 on an average, Redseer said.
“This year, the consumer sentiment says that individuals might not trade up for a premium model, under the smartphone category, and focus on value brands. Also, with supply chain constraints, total dollar value of smartphone sales will not increase much, while electronics and appliances may do well this year," said Mrigank Gutgutia, director, e-commerce, RedSeer Consulting.
Unlike previous sales, which hinged on smartphone sales predominantly; the key reasons for customers to look at this category, this year will be restricted to additional requirements of these products, as individuals and children get schooled or work-from-home, due to covid.
Cognisant of this change, e-commerce firms have also ramped up their smartphone and electronic portfolio to cater to value and budget phones this year, focusing on the under- ₹10,000 to ₹12,000 budget.
Further, while Amazon, this year, will base its sale on new product launches as well as key discounts, Flipkart will focus on products, which will be exclusive only to its BBD sale, under the BBD Specials category.
For BBD specials, Flipkart has partnered with more than 100 brands, across categories including fashion, electronics, mobile phones, large appliances, personal care, handicrafts and others, while offering more than 200 products, available only during the 6 Big Billion Days.
While BBD ends on 21 October, Amazon said on Tuesday that the Great Indian Festival sale will continue until the end of the festive season, culminating with Diwali.
The first festive sale event this year is expected to garner a gross merchandise value (GMV) of $4 billion, Redseer predicted earlier.