New Delhi: Shoppers in India’s top metros said they preferred shopping for mobile phones, new clothes, and appliances online and in malls this festival season, willing to spend over ₹15,000 on purchases, according to findings of a recent survey by Retailers Association of India (RAI) and LitmusWorld.
RAI surveyed 50,000 urban shoppers in India’s top metro cities as part of its annual shopper study that it conducts during the country’s festive season which will conclude early next week. India’s festival season that spans over a month draws in big business for apparel, electronics, and jewellery retailers.
Over 60% of those surveyed by RAI said they are willing to spend over ₹15,000 this festive season, while 12% shoppers were looking to spend more than ₹1,00,000. The remaining 39% said they plan to spend below ₹15,000. The numbers were only marginally higher than what households allocated to festival season spend last year.
Online retailers famous for doling out hefty discounts and cashbacks continue to be the preferred choice for urban Indian shoppers. A large proportion of those surveyed (76%) said they were looking to shop online, followed by malls (71%). The number is a jump from last year when 65% of those surveyed said they will shop online. However, over 40% will also go to local shops this year, a slight increase from last year. The preference for online shopping comes even as the country's small traders continue to be at loggerheards with large e-commerce companies over hefty discounts offered by such retailers that have allegedly hurt business for small brick and mortar stores.
RAI’s survey also comes amid a general gloom in consumer sentiment, especially as companies across the spectrum have been complaining of a slump in growth rates. As a result, retailers have been doing more to lure shoppers, offering more discounts, and attractive consumer financing options.
Something the survey corroborates. These shoppers are also actively hunting for deals and financing options. “Product features followed by discounts are the most influencing factors for purchase decisions this festive season. However, consumers are also looking at unique experiences and cashback offers, followed by attractive EMI offers," the survey said.
Over half of those surveyed said they will use their credit cards this year to make big-ticket purchases, while 28% will use debit card. The number of shoppers using cash dropped significantly to 9% of those surveyed.
More shoppers will continue to spend on buying new clothes, followed by purchase of big-ticket items such as mobile phones and home appliances.
“From 57% of consumers wanting to shop for apparel in 2017 to 71% of consumers shopping apparel this year; the second dominant category continuous to be home appliances and electronics at 49% followed by Mobile Phones at 40% this year." The number of shoppers willing to spend on jewellery saw a dip as escalating gold prices spell bad news for jewellery retailers. Some 16% of consumers said they have budgeted money for a holiday this festive season, with only 14% willing to buy a new vehicle.