Last year, just 57.9% of Indian consumers expressed an interest in shopping locally, Shopify India’s 2022 Festive Shopping Outlook.
As many as 96.04% consumers plan to shop from Indian brands this festive season, according to a survey by Shopify. While 81.65% of consumers plan to spend on fashion and accessories, 68.57% planned to buy home electronics and gadgets, the survey found.
For its 2022 Festive Shopping Outlook, Shopify surveyed 1,000 Indian consumers from metro and non-metro cities with an aim to uncover the dynamics of consumer behaviour and patterns of spending over the festive season in the post-pandemic era.
The survey identified a noticeable shift in how consumers will shop in the lead up to Diwali, as cashless payments, online shopping and deals on fashion, electronics and essentials top consumer wish lists.
“Diwali 2022 will be a monumental shopping event across the country as consumers spend more than ever before and opt for the convenience of online shopping,” said Bharati Balakrishnan, Country Head and Director, Shopify India. “With some uncertainty around the global economy, buyers are more cautious about where they spend, however, deals and discounts for fashion, electronics and essential items and support for local brands has boosted overall spend.”
The Festive Shopping Outlook also identified 10 trends shaping India’s retail sector ahead of Diwali.
- Festive shopping budgets expand: Indian consumers are planning to spend more on their festive shopping as compared to previous years. As many as 85.82% consumers surveyed expressed a desire to spend more than they have in previous years.
- Trust in e-tailers continues to run high: As many as 78.57% of consumers plan to shop online more than they did before the pandemic over the festive season. The change in behavior can be attributed to the convenience of shopping from anywhere, partner discounts, exclusive deals, easy payment options, and quick deliveries.
- Electronics and fashion rule festive sales: The survey noted a sharp increase in the number of people planning to spend on fashion and accessories with 81.65% of consumers preferring to purchase the same. As many as 68.57% planned to buy home electronics and gadgets. With 76.37% consumers planning to buying dry fruits, sweets, and chocolates, traditional festive gifts continue to be a consumer favourite.
- Cashless payments gain popularity: UPI emerges as the most preferred payment method with 67.36% of consumers opting for it, followed by 45.49% for credit cards, 37.69% for net banking and 38.68% for reward points.
- Festive season shopping big business for local merchants: 96.04% of consumers expressed their interest in buying from local sellers/brands this festive season, perhaps in response to the government’s appeal to go ‘Vocal for Local’ .
- Essentials surpass luxury: Indian consumers are spending cautiously despite planning to increase their shopping budget this year with 25.71% respondents planning to spend on essentials rather than luxury items this year.
- Discounts and deals trump brand name: Moving from the traditional focus over brand name, product range and quality, 75.82% of consumers have listed discounts and deals to be the major reasons for being loyal to a brand/seller.
- 58% of consumers listed social media platforms, online shopping websites, review websites, and online ads as their preferred ways of knowing the trends to shop this year.
- 86% of consumers plan to be more sustainable in 2023.
- 36% they prioritised brands actively giving back to society, selling cruelty-free and vegan-friendly products, and promoting environmental sustainability.