Consumer sentiment this festive season is upbeat, with about 6 out of 10 consumers saying they plan to “splurge and shop,” revealed a survey by Zest Money, a Buy-Now-Pay-Later (BNPL) and EMI/checkout finance platform.
In a press release, Zest Money said that about 7300 people, mainly GenZ and Millennials, responded to its pan-India survey about consumer shopping behaviour.
Gen-Zs are those people who are born between 1997 and 2012, according to Pew Research. Millennials are persons born between 1981 and 1996.
What Are Consumers Saying?
Inflation Concerns Scores Over Aspirations:
The report revealed that about 67 per cent of consumers said they would spend either more or the same as last year.
However, about 20 per cent of consumers surveyed said they were concerned about inflation increasing the prices of their sought-after goods and services. Hence, they decided to spend a lesser amount of money. At the same time, 13 per cent of consumers were undecided about their shopping behaviour.
Over 50 per cent of consumers said in the survey that they would spend between Rs 50,000 and Rs 1,00,000 in the coming months for festive shopping.
Lizzie Chapman, CEO and co-founder of Zest Money, said, “We expect this to be a solid festive season. Despite the macro environment and inflation, there are clear indicators that the festive cheers may be back on the back of strong and optimistic consumer sentiment."
Most Consumers Want To Buy A Smartphone
The survey found that about 63 per cent of consumers already had a solid specific shopping plan for the festive season. Over 55 per cent of consumers said they planned to purchases martphones and electronics, 17 per cent said they would spend on fashion, 13 per cent on home decor, and 13 per cent on jewellery.
This year, many smartphones were launched, and there was a particular hype about phone launches by Ex-Oneplus co-founder Carl Pei's Nothing Phone (1) and Google's Pixel 6a . Both these phones are available with discounts during Flipkart's festive sale 'Big Billion Days'
Shopping Deals Can Make Or Break Consumer’s Buying Decision
Fifty-eight per cent of consumers said the deals and offers would be their most important factor while making purchase decisions. The second most crucial factor was budget, with 29 per cent of consumers highlighting it.
"We expect smartphones and electronics to be the largest category, followed by large home appliances, fashion, and home decor. It is also interesting that most survey respondents see EMI as a viable option for powering their festive shopping," said Chapman.
Credit Money, EMI, and others To Drive Festive Sales
Sixty per cent of consumers said they would use various credit money options, including EMIs, to shop during the festive season. The remaining 40 per cent plan to use their savings.
"As consumers clearly indicated that they are looking for maximum value, a significant number of respondents evinced keenness to use low-cost cardless/digital credit solutions," noted the survey.
