Debit/Credit Cards Beat Cash, eWallets This Festive Season; 12% Indians Will Spend Rs 1 Lakh+, Clothes #1 Choice

Amidst all the drums and commotion of the major Indian festive season, Dusshera and the upcoming Diwali, there has been a lot of hocus-pocus everywhere. We are delighted to bring to you a survey report today, which will prove to be quite helpful for retailers.

In a survey report prepared by the Retailers Association of India (RAI) and LitmusWorld, called the ‘Festive Shopping Index 2019’, we will enlist all the pointers indicating shopping sentiments of consumers during this festive season, like will they spend, how will they spend, what will they buy and how much will they spend, besides other indicators.

This will be terribly useful for retailers, as a guide to becoming more consumer-centric during the most crucial quarter of the year.

Festive Shopping Index 2019

The Festive Shopping Index 2019 is annual consumer sentiment survey prepared by the Retailers Association of India (RAI) and LitmusWorld. They initiate conversations with Indian consumers to measure their shopping sentiment during the festive season. The Index predicts the predominant consumers’ shopping behavior during the festive season.

Brace yourselves well for the upcoming information.

• 89% of Indian consumers are willing to shop during the ongoing festive season, meaning only 11% don’t. That’s a huge number.

It has been found out that more and more consumers are showing negligence in spending cash this year. The most preferred medium of payment has become credit cards. The Festive Shopping Index 2019 brings out the enthusiasm among consumers for festive shopping. This is simply encouraging to learn about.

Consumer’s budget for this festive season:

About 61% of the survey respondents are looking forward to spending over Rs. 15,000 this festive season, while an enthusiastic 12% are looking towards spending over Rs. 1 lakh, indicating that retailers should be congruently planning for a positive festive season.

• 15% consumers are looking upto spending Rs. 5000, compared to 19% last year
• 24% consumers could spend from Rs 5,000 to Rs 15,000, compared to 25% in the previous year
• 26% consumers could spend from Rs 15,000 to Rs 30,000, against 25% last year
• 23% could spend from Rs 30,000 to Rs 1,00,000, rising from 20% last year
• 12% are looking upto spending over Rs 1,00,000, again rising from 11% last year.

These consumers are also looking at unique experiences and cashback offers, followed by attractive EMI offers and the opportunity to redeem their Loyalty Points.

Consumers’ Most Preferred Modes of Payment:

It has been seen that cash spend preferences have fallen down significantly in 2019.

• 55% of consumers opt for Credit Cards over Debit Cards as the most preferred mode of payment.
• 25% opt for Debit Cards
• The preference to use cash has dropped down to 9% this year, from 19% last year.
• Mobile Wallet has shown a downward trend from 8% last year to 5% this time.
• Net Banking too has shown a similar result, falling from 6% last year to 3% this year.

Consumers are looking forward to shop across the following categories:

In the last 3 years, Apparel & Fashion stands out as the most indulgent category.

• Apparel and Fashion has shown a massive rise in demand this year with 71%, as compared to 66% last year. In fact in 2017, only 57% of consumers wanted wanting to shop for apparel.
• Home Appliances and Electronics see 49% consumer attraction, rising from 45% last year.
• Mobile Phones attract 40% of them, compared to 38% last year.
• Jewellery and Home furniture stands at 19%, compared to 23% and 20% last year.
•  16% consumers are considering spending on travel, the same count recorded last season too.
• 14% are considering buying a new set of wheels, compared to 10% a year before.
• 9% consumers are willing to purchase miscellaneous items, increasing from 7% last year.

Places Consumers are Planning to Purchase From:

• Online: 76% from 65% last year
• Malls: 71% from 64% last year
• Shops: 41% from 37% last year
• Tele-Shopping: 3%, same as last year
• Other Sources: 2% from 4% last year

Most Influential Advertising Media (Sequentially)

1. Online/Social Media
2. TV/Ads
3. Newspaper
4. Hoardings
5. Radio

Factors Influencing Purchase Decision (Sequentially)

1. Product Features
2. Discounts
3. Customer Experience
4. Cashback Offers
5. Attractive EMIs
6. Loyalty Points