In India, 74% people are saving their money to splurge during the festive season and 66% wish to buy electronic items and gadgets with it, according to a pan-India survey by ZestMoney, an AI-driven EMI financing and Pay later platform.
With India’s festive season starting soon, consumer spending seems to be witnessing a major shift. “We have noticed that people want to plan their finances better. The fact that 52% of respondents suggest their budgets will either increase or remain the same as last year indicates that there is latent demand,” said Lizzie Chapman, CEO and co-founder of ZestMoney.
“Online habits of consumers are here to stay with the boom in demand for e-commerce services. COVID-19 has not only changed how people plan their purchases but how they want to fund them too,” she added.
The survey, which got 12,200 responses, revealed some key features about consumer behaviour. While 48% people said their budgets have been impacted this year, 80% said they will be seeking for EMI solutions during festive shopping to manage their money better.
“Some of our partners have witnessed a 100% increase in EMI transactions signaling the importance of affordable solutions in boosting demand. There is increased interest in Buy Now, Pay Later solutions especially for big ticket items. The signs are quite encouraging,” said Chapman.
Industries faced a strong blow during the lockdown and are now banking on this crucial time to reduce their losses, especially the consumer durables sector. “Business has surprisingly been good. People have spent enough time at home to form associations with their appliances. Work from home and factors like the absence of domestic helps has added to this,” said Ashish Gupta, director, Vijay Sales.
“Mobile phones and laptops got sold out at one point. Apart from that, the sale of items like dishwashers shot up by 10%-15%. Because of the pandemic, people haven’t spent on many things like travel and food, it only gives them a good budget for electronic appliances,” added Gupta.
Despite the financial blow, 52% of respondents wanted to spend more or just the same as they did last year. A majority of them emphasised on affordability solutions as 84% preferred an all-digital loan experience.
The survey also looked deeper into where consumers planned to shop from. It found that 42% of respondents planned on going to online stores, while 35% did not and 23% said weren’t too sure about visiting an online store just yet, and would wait till later to decide.
Around 62% of respondents wanted to depend on only the online medium for their shopping needs this season, and 52% even planned on opting for online gifting.
With the festive season approaching in a few days, the Indian consumer behaviour will be vital in deciding what the future of the Indian economy holds.