e merchants anticipate record-breaking sales as more consumers continue to rely on internet shopping. According to Shopify’s 2022 Festive Outlook Survey, 78% of customers want to do more online shopping over the holiday season than they did before the pandemic.
Diwali is a huge event for both consumers and businesses, with the holiday season consistently setting sales records. Modern consumers’ increasing demand for practical, tech-savvy purchase options has resulted in a significant shift in the preferences of customers with regard to their holiday shopping. Online shopping platforms have become more prevalent in Tier-II and Tier-III cities, and consumers living in rural or remote locations are increasingly choosing online purchasing over market hopping.
Bharati Balakrishnan, Country Head and Director at Shopify, India said, “The report found that 85 per cent of consumers plan to spend more than ever before and 8-in-10 consumers shop more online now than before the pandemic. This creates an opportunity for merchants to accelerate growth over the festive season by reaching consumers that were previously offline or out of reach.”
Festive Season 2022: Indian Retail Sector Poised for bigger growth
According to Shopify’s 2022 Festive Outlook Survey, people are continuing to favour smart purchasing, which represents a significant departure from traditional holiday shopping practises. Shopify’s poll, conducted in advance of Diwali, intends to draw attention to the evolving consumer attitudes and behaviours in a post-pandemic India.
People’s buying habits across the nation have been impacted by a changing retail environment, particularly at a time when the economy is shaky. Businesses of all shapes and sizes must change with the times in order to remain competitive.
Who will lead the 2022 Festive Sales
Traditional festive gifts have remained limited to dry fruits and sweets and last year, home decor and furnishings lead the festive gifting list. Modern consumers are seeing festivals not only as occasions to make merry but also as the perfect time to amp up their wardrobe and overall lifestyle.
According to the report, 81.65 per cent of consumers prefer to purchase clothing and accessories, closely followed by 76.37 per cent also buying dry fruits, sweets and chocolates and 68.57 per cent spending on home electronics and gadgets.
Cashless Payments still the favorite?
Unified Payments Interface (UPI) emerges as the most preferred payment method with 67.36 per cent of consumers opting for it, followed by 45.49 per cent for credit cards and 37.69 per cent for net banking. Usual trend: Despite cashless payment methods being present in the country for decades, people have been paying upfront in cash for most of their purchases.
Enhanced security of cashless payment processes, combined with the added value offered in form of cashbacks, easy EMIs and partner deals, has contributed to the popularity of cashless payment options in India.
Who is drawing consumers to online shopping?
96% of consumers said they planned to buy from Indian brands throughout the holiday season. In comparison to this year’s purchasing trend, just 57.9% of Indian customers said they were interested in shopping locally last year. Approximately 85%.82% of customers intend to spend more this holiday season than they did the year before, with 40% of consumers expecting to spend more than INR 10,000.
The government’s call for supporting local businesses and consumers’ growing pride in Indian brands may be listed as primary factors contributing to this shift.
Despite an increase in spending capacities, the unstable economy accompanied by the pandemic effect has created an air of uncertainty, leading consumers to spend more on essentials over big-ticket purchases. Consumers are more price-conscious than ever before and expect merchants to offer discounts and better deals over the festive season to retain their loyalty.
The growing impetus for going digital has encouraged more sellers to build their own direct-to-consumer storefronts and actively advertise across online channels and engage in social commerce to increase the discoverability of their products.
