As the festive sales begin, Indian households are projected to spend a staggering Rs 1.85 Trillion during this festive season. Online shopping has gained prominence in the last decade, shoppers now eagerly await for festive deals and massive discounts on platforms like Amazon, Flipkart, Nykaa, etc.
According to a survey report by Local Circles, 1 in 2 urban Indian households surveyed said they will spend over Rs 10,000 during the festive season of 2024. The retailers, including dealers of automobiles, white goods, consumer electronics, etc. are pinning their hopes on the consumer’s high buying sentiment.
The expectations are high despite the latest Reserve Bank of India’s (RBI) bi-monthly consumer confidence survey (CCS) report which stated that in July consumer confidence in the country had declined for the second consecutive survey round, reversing a prolonged upward trend seen in the post-Covid period.
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The report revealed that household expectations on major parameters, barring spending, have moderated. Moreover, the current situation index (CSI) has dropped to 93.9 in July 2024, down from 97.1 two months earlier. While households remain optimistic about economic conditions for the coming year, this optimism has waned compared to last year.
How Much Are Consumers Willing To Spend?
Based on some 12,008 responses, the survey finds that urban shoppers are willing to pull out this much for their shopping spree:
- 4 per cent may spend Rs 1 lakh or more!
- 4 per cent plan to spend between Rs 50,000 – Rs 1 Lakh
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- 18 per cent want to spend between Rs 20,000 - Rs 50,000
- 26 per cent would spend between Rs 10,000- 20,000
- 14 per cent want to spend between Rs 5,000 – Rs 10,000
- Around 8 per cent say they may spend up to Rs 2,000 while 26 per cent of respondents say they don’t plan to spend anything this festive season at all.
The data suggests that 1 in 2 urban Indian households surveyed are planning to spend over Rs 10,000 this festive season. “India has approximately 80 million urban households and if averages of the above categories are applied to them, Urban India is likely to spend Rs 1.85 Lakh crores or $22 billion during festive season 2024,” the report states.
